Consumer Learning

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The Importance of Consumer Learning

Why consumer learning is important? How does a consumer learn about a product?

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Importance of Learning
Marketers must teach consumers:
where to buy how to use how to maintain how to dispose of products

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Learning Theories
Behavioral Theories: Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.
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Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving.

Consumer Learning

A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior.

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Learning Processes
Intentional: Incidental: learning acquired as learning acquired a result of a careful by accident or search for without much effort information

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Behavioral Learning Theories

Classical Conditioning Instrumental Conditioning Modeling or Observational Learning

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Classical Conditioning

A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.

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Figure 7.2A Pavlovian Model of Classical Conditioning

Unconditioned Stimulus Meat paste Unconditioned Response Salivation Conditioned Stimulus Bell

AFTER REPEATED PAIRINGS

Conditioned Stimulus Bell

Conditioned Response Salivation

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Figure 7.2B Analogous Model of Classical Conditioning

Unconditioned Stimulus Dinner aroma Unconditioned Response Salivation Conditioned Stimulus 9 oclock news

AFTER REPEATED PAIRINGS

Conditioned Stimulus 9 oclock news

Conditioned Response Salivation

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In C.B. setting
Well-known brand UC stimulus New products under the same brand name Conditioned stimuli Trial of new products Conditioned response

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Neo-Pavlovian Conditioning
Repeated Pairings of CS and US A CS and US that Logically Belong to Each Other A CS that is Novel and Unfamiliar A US that is Biologically or Symbolically Salient

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Strategic Applications of Classical Conditioning

Repetition Stimulus Generalization Stimulus Discrimination

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Repetition
Repetition increases strength of associations and slows forgetting but over time may result in wearout. Cosmetic variations reduce satiation.eg. HSBC Bank Theme of Different people, Different views The Worlds local bank (Teenager boys, Mother & daughter, Exercise posture) Substantive variations
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Three-Hit Theory
Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective The number of actual repetitions to equal three exposures is in question.

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Stimulus Generalization

The inability to perceive differences between slightly dissimilar stimuli.

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Stimulus Generalization and Marketing

Product Line, Form and Category Extensions (Dettol, Vicks, Lux, Fair & Lovely) Family Branding (Tata salt to Tata Indica) Licensing (Mc Donalds, Hallmark, Archies) Generalizing Usage Situations (Asian Paints, Cadburys, Harpic, Burnol)
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Stimulus Discrimination

The ability to select a specific stimulus from among similar stimuli because of perceived differences.
Positioning

Differentiation eg LG Golden eye, Nestles Kit Kat

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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.

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Figure 7.10 A Model of Instrumental Conditioning

Try Brand A
Try Brand B Try Brand C

Unrewarded Legs too tight

Unrewarded Tight in seat Unrewarded Baggy in seat

Stimulus Situation
(Need goodlooking jeans)

Try Brand D
Repeat Behavior

Reward Perfect fit

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Instrumental Conditioning
Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors. A favorable experience is instrumental in teaching the individual to repeat a specific behavior.
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Instrumental Conditioning and Marketing

Customer Satisfaction Reinforcement Schedules - Continuous/Total reinforcement - Systematic/Fixed interval - Random/Variable reinforcement
Shaping (Test drive) (Reinforcement before behaviour takes place)

Massed versus Distributed Learning

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Reinforcement
Negative Positive Reinforcement: Reinforcement: Positive outcomes that Unpleasant or negative outcomes that serve to strengthen the likelihood of a specific encourage a specific behavior (Fear appeals) response Example: Ad showing Example: Ad showing wrinkled skin as beautiful hair as a reinforcement to buy reinforcement to buy skin cream (Garnier) shampoo (Clinic Plus)
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Other Concepts in Reinforcement

Extinction
Combat with consumer satisfaction

Forgetting
Combat with repetition

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Observational Learning

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A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning. Eg Use of models or experts or common man appeals (Pepsodent)

Cognitive learning theory

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Cognitive Learning Theory

Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

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Figure 7.12 Appeal to Cognitive Processing

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Information Processing

A cognitive theory of human learning patterned after computer information processing that focuses on how information is stored in human memory and how it is retrieved.

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Figure 7.13 Information Processing and Memory Stores

Working Memory (Shortterm Store)

Sensory Input

Sensory Store

Rehearsal

Encoding

Longterm Store Retrieval

Forgotten; lost

Forgotten; lost

Forgotten; unavailable

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Retention
Information is stored in long-term memory
Episodically: by the order in which it is acquired Semantically: according to significant concepts

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Table 7.1 Models of Cognitive Learning

Promotional Tricompetent Model Model

Sequential Stages of Processing

DecisionMaking Model

Innovation Adoption Model

Innovation Decision Process

Attention
Interest Desire Action

Cognitive
Affective Conative

Awareness Knowledge

Awareness
Knowledge

Interest Evaluation Evaluation Persuasion Purchase Trial Decision Postpurchase Adoption Confirmation Evaluation

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Involvement Theory

A theory of consumer learning which postulates that consumers engage in a range of information processing activity from extensive to limited problem solving, depending on the relevance of the purchase.

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Figure 7.14

Figure 7.14 Split Brain Theory

Right/ Left Brain Hemispheres specialize in certain functions

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 Left Brain Rational, active, realistic Right brain Emotional, Impulsive, intuitive

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Issues in Involvement Theory

Involvement Theory and Media Strategy Involvement Theory and Consumer Relevance Central and Peripheral Routes to Persuasion Measures of Involvement Personal Inventories

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Central and Peripheral Routes to Persuasion

A theory that proposes that highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).

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Measures of Consumer Learning

Recognition and Recall Measures
Aided and Unaided Recall

Cognitive Responses to Advertising Comprehension, copytesting Attitudinal and Behavioral Measures of Brand Loyalty

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Exercise 1
Godrej offers a line of shaving products for men. How can the company use stimulus generalization to market newer products?

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Exercise 2
Which theory of learning (classical, instrumental, observational or cognitive) best explains the following consumption behaviours? 1. Buying a pack of Gillette razors and other shaving items 2. Prefering to purchase a shirt at Jade Blue than other shops 3. Buying a digital camera first time 4. Switching from one cellular service to another 5. Buying a new car Explain your choices
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