FCB Grid THINK FEEL

INFORMATIVE AFFECTIVE

HIGH (Economic) (Psychological)

INVOLVEMENT
Learn →Feel →Do Feel → Learn →Do
e.g. Car, House e.g. Aparrel, Cosmetics

HABITUAL SATISFACTION
LOW (Responsive) (Social)
INVOLVEMENT
Do → Learn →Feel Do → Feel → Learn
e.g. Grocery, Household e.g. Beer, Cigarette
Items
Fundamental theories of learning

1)Conditioning theories

Pavlovian classical conditioning explains

behavior based on repetitive stimuli and the
establishment of a close association (contiguity)
between a secondary stimulus and the primary
stimulus
Strategic Applications of Classical
Conditioning
Increases the association between the conditioned and
unconditioned stimulus
Slows the pace of forgetting
Having the same response to slightly different
stimuli
Useful in product extensions
Classical Conditioning (cont.)
Extinction
• forgetting occurs when reinforcement for learning is
withdrawn
Stimulus generalisation
• Tendency of a stimulus similar to a CS to evoke similar,
conditioned responses
Stimulus discrimination
• Occurs when a UCR does not follow a stimulus similar to a
CS.
Retrieval environment
• the stronger the original learning process, the more likely it is
to retrieve the information when needed
Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-

error process, with habits forced as the result of
positive experiences (reinforcement) resulting from
certain responses or behaviors.

Instrumental conditioning views behavior as a

function of the consumer’s assessment of the
degree of satisfaction obtained from the action.

Satisfaction leads to reinforcement and to an

increase in the probability of repurchasing.
A Model of Instrumental Conditioning
Applications of Instrumental Conditioning Principles
Reinforcement of Consumption:
Thank you
Rebates
Follow-up phone calls

Frequency Approach:
Reinforces regular purchases by giving them rewards
with values that increase along with the amount
purchased
Cognitive learning theory

Cognitive psychologists view learning as a problem-

solving process rather than the stimulus and response.

Cognitive theory emphasizes the thought process

involved in consumer learning

Classical and instrumental conditioning emphasize the

result based on the stimulus association.
Cognitive Learning

Observational learning:
Occurs when people watch the actions of
others and note reinforcements received
for their behaviors

Learning occurs as a result of vicarious,

rather than direct, experience.
Observational Learning
We watch others and note reinforcements they
receive for behaviors

Vicarious learning

Socially desirable models/celebrities who use the

products
Components of Observational Learning
CLT – Modeling conditions
Attention directed at model
Model must be desirable to
emulate
Must remember what model does
& says
CLT – Modeling conditions

Must be motivated to perform

actions

Must convert information into

action
Consumer willingness
to make own reinforcement
Saves marketers the task

Consumers enjoy using models

for guidance in purchasing
Interpretation of Information
Physical Appearance

Positive attributes of people they know to those who

resemble them

Important for model selection

Attractive models are more persuasive for some

products
Stereotypes

Judging someone on the basis of your perception

of the group to which that person belongs.

People hold meanings related to stimuli

Stereotypes influence how stimuli are perceived

Types of stereotypes
racial e.g. Germans are perfectionists

gender e.g. women are bad drivers

age e.g. old people are said to be very forgetful

religion e.g. Jews are "scheming merchants"

profession e.g. all lawyers are greedy

Jumping to Conclusions
People tend not to listen to all the information before
making conclusion

Important to put persuasive arguments first in

advertising
Halo Effect

Consumers perceive and evaluate multiple objects

based on just one dimension

Used in licensing of names

Important with spokesperson choice

Habit
The functions of habit
Purchasing by habit provides two important
benefits to the consumer.
• First, it reduces risk.
• Second, it facilitates decision making.
Habit versus Complex decision making
 Habit versus Complex decision making

Habit Complex Decision Making

Minimal informational search Extensive informational search

High frequency of purchase Low frequency of purchase

Low price High price

Low involvement High involvement

Intensive distribution Selective distribution

Less need for service More need for service

Promotion is important Promotion is not that important

Advertising is for reminding Advertising is for providing informations

High sensibility of price Low sensibility of price

Inducing a switch from habit to decision making
Generally, the market leader in a category is more likely to be purchased by
habit.

Various marketing strategies can induce consumers who buy by habit to

consider other brands by:

• Creating awareness of an alternative to the leading brand

• Emphasizing a new feature in the category

• Encouraging consumers to substitute one product category with another

• Introducing a line extension to offer a new benefit

• Using price promotions, free samples etc.

Use of situational variables in marketing strategy

Situational variables have been used most frequently for

positioning products and segmenting markets.

Induct the new condition

Advertisement can effectively suggest the consumer to induct the new condition
when the new use-occasion consistent with the exist conception of how to use
the product.

Take extant use condition as target market

(1)Subdivide the user based on product use

(2)Develop new product to meet the special situation
(3)Position product in the use of a particular situation though advertising
(4)Distribute product to meet the needs of the situation