LEARNING

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Consumer Learning

Marketers want to teach consumers about

products, product attributes, and potential consumer benefits about where to buy their products, how to use them how to maintain them, even how to dispose of them

Marketers want their communications to be noted, believed, remembered, and recalledtheyre interested in every aspect of learning process

Perspectives in Learning

Behavioral perspective

behavioral theorists focus almost exclusively on observable behaviors (responses) that occur as the result of exposure to stimuli Classical conditioning Operant conditioning

Cognitive learning perspective

view learning as a function of purely mental processes

Learning - defined

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

Learning is a process it continually evolves and changes as a result of newly acquired knowledge or from actual experience Both newly acquired knowledge and personal experience serve as feedback to the individual and provide the basis for future behavior in similar situations

Also, great deal of learning is also incidental, acquired by accident or without much effort

These elements must be present for learning to occur

Motivation Cues Response Reinforcement

Motivation

Degree of relevance, or involvement, with the goal, is critical to how motivated the consumer is to search for knowledge or information about a product or service

Cues
If motives serve to stimulate learning, cues are the stimuli that give direction to the motives Pricestylingpackaging advertisingstore displays serve as cues to help consumers fulfill their needs

Response

How individuals react to a cuehow they behave A need or motive may evoke a whole variety of responses

The response a consumer makes depends heavily on previous learning that, in turn, depends on how related responses were reinforced previously

Reinforcement

Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli

Behavioural Learning Theories

Stimulus-response theories

When a person responds in a predictable way to a known stimulus, he or she is said to have learned

Behavioral theories concerned with inputs & outcomes of learning, not process Classical conditioning and Instrumental (or operant) conditioning

Classical Conditioning

Conditioned learning results when a stimulus that is paired with another stimulus elicits a known response and serves to produce the same response when used alone Psychologist Pavlovs experiments with the dog

The process of classical learning

Conditioned stimulus

Unconditioned stimulus

Response

Conditioned stimulus

Response

Reasons for learning

Form of association Associative Learning

Stimulus substitution, conditioned stimulus acquires the capacity of substituting unconditioned stimulus Information & expectation, unconditioned stimulus becomes the signal of CS

Applying classical conditioning

Conditioned stimulus
Dettol brand

Response Unconditioned stimulus

uncompromised protection from germs Trust / purchase

Conditioned stimulus
Other products / line extensions from Dettol brand

Response
Trust / purchase believing in the same attribute of uncompromised protection from germs

Strength of learning depends upon

Forward conditioning (CS should precede the US) Temporal proximity Number of repetitions Unconditioned Stimulus which is biologically or symbolically salient Novelty of Conditioned Stimulus

Concepts arising out of Classical Conditioning

Repetition Stimulus Generalization Stimulus Discrimination

Repetition

Increases the strength of the association and slows down the process of forgetting However after a certain number of repetitions, retention declines - advertising wearout

Can be decreased by varying the ad messages

cosmetic variation (same message, different executions Surf daag acchey hain campaigns) or substantive variation (conveying more than one product feature using different ad content)

Substantively varied ads more effective 3 Hit Theory

Stimulus Generalization

Learning depends not only on repetition, but also on ability of individuals to generalize Stimulus generalization explains why imitative me too products succeed in the marketplace: confusion with original product

Private label packaging closely resembles national brand leaders

Use of Stimulus Generalization

Product line extensions Product form extensions including different sizes, different colors, different flavours New product category Family Branding Licensing brand-names, cartoon characters, celebrity/designer names

Flip-side: Counterfeiting

Stimulus Discrimination

Opposite of stimulus generalization Selection of specific stimulus from among similar stimuli

Consumers ability to discriminate among similar stimuli is the basis of positioning strategy Comparative ads

Unlike imitators who hope consumers will generalize their perceptions & attribute special characteristics of market leaders products to their products, leaders want consumers to discriminate among similar stimuli

Classical Conditioning in Indian context

Lux soap beauty of film stars Pears gentle, soft baby-like skin Pepsi youth & cricket Kingfisher use of jingle & good times

Operant conditioning

The process of operant conditioning

some action on the part of respondent is instrumental in bringing out the change in the environment if the change is positive likelihood of the response occurring again increases and if the change is negative the likelihood decreases due to this reinforcement (either positive or negative) behavior is learned

Operant / Instrumental Conditioning

Psychologist B.F. Skinner Learning is a trial and error process Occurs in a controlled environment, where individuals are rewarded for appropriate behaviour

Reinforcement

Positive Reinforcement: events that strengthen the likelihood of a specific response Negative Reinforcement: unpleasant or negative outcome to encourage a specific behavior (in order to avoid that outcome)

not to be confused with punishment, which is designed to discourage behavior

Positive Reinforcement

Advertisement for The Economist

Positive Reinforcement

Advertisement for The Economist

Negative Reinforcement

Negative Reinforcement

Fear Appeals Negative Reinforcement

Fear Appeals Negative Reinforcement

The phenomenon of extinction

Conditioning Extinction

Strength of response

Pairing of US + CS

End of pairing of US + CS

Extinction

When a learned response is no longer reinforced, it diminishes to the point of extinction Different from forgetting implies lack of use/consumption, rather than lack of reinforcement

Non-product reinforcement

Customer Satisfaction through service and amenities provided Relationship marketing Service Recovery

Operant conditioning

Shaping behavior - a method of successive approximation Schedule of reinforcement

Total (continuous reinforcement) e.g. product quality Systematic (fixed ratio) Random (variable ratio)

Massed vs Distributed Learning

Should a learning schedule be spread out over a period of time (distributed learning), or should it be bunched up all at once (massed learning)?

Massed advertising produces more initial learning, Distributed schedule usually results in learning that persists longer

Observational Learning / Modeling

Learning takes place in the absence of direct reinforcement too Modeling is the process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior

Role models usually people they admire because of appearance, accomplishment, skill

Also called vicarious learning

Observation of a positive response from the two teens

Cognitive Learning Theory

Cognition

Cognition refers to the processing of the information about the environment that is received through the senses Cognitive processes involves
1. 2. 3.

4. 5. 6.

The selection of information Alterations in the received information Association of items of information with each other in the thought The elaboration of the information in thought The storage of information in the memory The retrieval of the stored information

Cognitive Learning

Learning through information processing which is seen as most characteristic of human beings Involves problem solving - enables them to gain some control over their environment

Information Processing Role of Memory

Information Processing

Product info processed by attributes, brands, comparisons between brands Intensity or degree of info processing can vary by individual Individuals also differ in imagery their ability to form mental images which influences recall

Role of Memory in Learning

There are 3 different sequential storehouses for keeping information in the brain:

Sensory store Short-term Store Long-Term Store

Sensory Store

Data comes to us in fragments

Smell, shape, colour and feel conveyed through different senses, in parallel, to the brain synchronized and perceived as a single image

Image of sensory input lasts for a couple of seconds if not processed immediately it - lost forever Brain tags all perceptions with a +ve or ve value which tends to remain till further information is processed making first impressions last

Short Term Store

Working memory Information is processed and held temporarily

Looking at a telephone number and then forgetting it seconds later when about to dial

Long Term Storage

Long-Term Storage: Here information is stored for relatively long periods: days, weeks, months, years. Rehearsing: Failure to rehearse an input either by repeating it or relating it to other data, can lead to data fading or data loss.

Competition for attention can also lead to the short term storage handling only a few inputs.

Encoding is when we use a word or visual to represent the perceived object. Brand logos are a great example

Learning visually takes less time than learning verbal information

Information Processing and Memory Stores

Retention

Information in L-T storage is constantly organized & reorganized

Individuals - gain more knowledge - expand their network of relationships Process known as activation i.e. relating new data to old to make the material more meaningful

Recoding of what is already encoded to include larger amounts of info chunking. Knowledgeable consumers able to store more complex chunks of info about a category

The total package of associations brought to mind when a cue is activated is called a schema

Retrieval

Process by which we recover info from LT memory Triggered by situational cues Distinctive brands have quicker retrieval

Dramatic ads Kurkure badal ja campaign Confusion with competitive ads ads can act as recall for competing brands New learning can interfere with old learning & vice versa

Interference Effects in retrieval

Applying Information Processing to Marketing Practice

Various models eg. AIDA use the sequential info processing concept Marketers must be careful about

Selection of media Existence of a frame of reference- first mover advantage

Models of cognitive learning

Attention - Interest - Desire - Action Attention - Interest - evaluation - trial - adoption Knowledge - Persuasion -Decision Confirmation Awareness - knowledge - Evaluation - Purchase Post purchase evaluation

Involvement Theory

Consumer Involvement

Degree of personal relevance that the product holds for that consumer High involvement purchases important to the consumer evoke extensive problem solving & info processing

House high perceived financial risk Anti-dandruff shampoo- high perceived social risk

Low involvement purchases not very imp provoke limited info processing

How can one measure involvement?

Find out about:

Importance of a purchase to a buyer & risk perceived Find the level of info searched for

Important to view involvement as a continuum rather than a dichotomy

Marketers efforts to increase involvement

Placing ads / products in highly involving setups online video games, sports programs Using narratives rather than visuals in promotion

Central & Peripheral routes to persuasion

There are two routes through which persuasive messages are processed: the central route and the peripheral route Elaboration Likelihood Model created in 1980 by Richard E Petty and John T Cacioppo

Central & Peripheral

Central processing

For high involvement products/services Thinking actively about argument Involves ELABORATION Comparative ads are processed centrally For low involvement products/services Doesnt involve elaboration Shorthand way to accept/reject an argument CUES

Peripheral processing

Cues allow us to travel along the peripheral route on auto pilot

Non comparative ads are processed peripherally

Marketing Application of ELM

Marketing Application

A central route is popular for communicating with consumers who are more highly involved with the product or issue A peripheral route can be used with a combination of visual cues for influencing less-involved consumers Combinations of both used frequently

Persuasive ad for a High Involvement purchase

Persuasive ad for a High Involvement purchase

Low involvement therefore, crazy ads to catch attention

Hemispheric Lateralization

Split brain theory Brain divided into two distinct cerebral hemispheres which operate together but specialize in different functions Left: linear, rational, realistic responsible for reading, speaking Right: emotional, metaphoric, impulsive, intuitive, nonlinear responsible for non-verbal concepts, source of imagination

Measures of Consumer Learning

Recognition Test Recall Test

TOM

1% 27%

Brand Spont

Total Awareness

70%

Mumbai
Base: All Respondents (listings) 151

Brand Loyalty

The ultimate desired outcome of consumer learning

Behavioural Loyalty Attitudinal Loyalty

All 455 respondents

Aware of KIT KAT MINI 71%
Spont: 27% Aided: 43% Total: 70% Spont: 18% Aided: 67% Total: 85% Spont: 21 Aided: 37% Total: 58%

Never tried KK MINI (38%)

36 % 52 % 27%

Tried KK MINI 33 (%)

34 % 33 % 31 %

Tried Only Once (1%) 0% 2% 1%

Repeat Trialists 34(32%) 31 30

% % %

Mumb Base:151 ai

A'hmd

Base:155

Kolkata

Base:149

Memory & Associative Networks

Associative Network

An incoming piece of information is stored in an associative network containing many bits of related info organised according to some set of relationships Knowledge structures complex spider webs filled with pieces of data

Associative network models

Memory consists of a system of nodes that are linked to other nodes via pathways at different degrees of association When stimulation occurs, nodes can activate each other to generate stronger connections The larger the number of activated nodes, the stronger the connection between nodes is, which in turn creates more significant memories
Source: http://www.ijdesign.org/ojs/index.php/IJDesign/article/view/530/287

Associative network

During the message retrieval process, nodes randomly diffuse through the network and stimulate the activation of other nodes. These stimulated and activated nodes naturally result in strong connections Meanings can be activated indirectly energy spreads across nodes of varying levels As one node is activated, others associated with it are also triggered into activation - process of spreading activation

Associative network

Evoked set all related associations evoked when a certain cue is presented

Associative Networks

Print ads consist of 3 basic elements: a visual element (a picture), a language element (words), and a brand name element (the merchandise) Establishment of correlations and connections among these elements serves to improve the memory of the consumer

Source: http://www.ijdesign.org/ojs/index.php/IJDesign/article/view/530/287

Associative network model of memory

Nodes connected via visual image & wording in long-term memory

(The advertisement uses a look out for children traffic sign as a metaphor for suntan lotion)
Source: http://www.ijdesign.org/ojs/index.php/IJDesign/article/view/530/287

Factors influencing Retrieval

Physiological factors age Recall enhanced when consumer pays more attention to the message in the first place

First mover advantage

Descriptive brand names more effective at recall Context in which the message is presented level of involvement with the program Also, ads shown first in a series of ads are likely to be recalled better than ads shown last

State dependant retrieval

People recall messages better if their internal state is the same at the time of recall as when the information was learned Also called mood-congruence effect Importance of planning exposure to marketing communications recreating cues that were present when the info was first presented

Factors influencing retrieval

Prior familiarity with an item enhances its recall

However, extreme familiarity can result in inferior learning and recall less attention paid as additional effort not thought as leading to more knowledge

Salience or prominence of a brand enhances recall why unusual ads work Also, some research suggests superiority of visual messages over verbal messages

The Marketing Power of Nostalgia

Marketers try to evoke memories of good old days or youth, thinking these will translate to what theyre selling today Retro Brand trigger nostalgia, inspire consumers to think back to an era when life was simple, stable

Brand Loyalty

Brand loyalty is the synergy among attitudinal components such as perceived product superiority, customer satisfaction & purchase behaviour itself Behavioural definitions lack precision as they do not distinguish between the real brand loyal buyer and the spurious one, who repeat purchases just out of habit

Measuring propensity to be brand loyal

1.

2.

3.

4.

I would rather stick with a brand I usually buy than stay with something Im not very sure of If I like a brand, I rarely switch from it just to try something different I rarely take chances by buying unfamiliar brands even if it means sacrificing variety I buy the same brands even if they are average

Brand loyalty in Services

Two groups of factors seen key in maintaining customer loyalty:

Switching barriers Reasons that affirm the customers relationship with the service vendor

Measuring reasons to stay loyal

1.

2. 3. 4. 5. 6. 7.

There has not been a bad enough incident to make me switch I am familiar with my current service provider I trust my current service provider I am satisfied with my current service provider I get on well with the staff at my current service provider Staff at my current service provider understand me A complaint was handled well

Brand Equity

Refers to the value inherent in a well-known brand name, stemming from

the consumers perception of the brands superiority Social esteem that using it provides Consumers trust & identification with the brand

Companies leverage existing brand equity through brand extensions rather than launching new brands Brand Equity enables companies to charge premium prices

Brand Equity

Equity is important for low involvement purchases goods bought routinely with little cognitive processing Key Drivers of Equity Perceived Quality, Brand Loyalty, Brand Image and Brand Awareness

Also, COO effects influence brand equity

Measuring Brand Equity

Important to understand the sources of brand equity, how they affect outcomes of interest (e.g., sales) Value of a brand and thus its equity is ultimately derived in the marketplace from words & actions of consumers the real power of a brand is in the thoughts, feelings, images, beliefs, attitudes, experiences that exist in minds of consumers

Assessing potential sources of equity by measuring brand knowledge (consumer mindset)

Two important components of brand knowledge are brand awareness and brand image Brand image is defined as consumer perceptions of and preferences for a brand, as reflected by the various types of brand associations held in consumers' memory

Strong, favorable and unique brand associations are essential as sources of brand equity to drive consumer behavior

Qualitative measures

Free association What comes to your mind when you think of ___ brand? Asking questions like What do you like best about the brand? What are its positive aspects? What do you dislike? What are its disadvantages? What do you find unique about the brand? How is it different from other brands? In what ways is it the same? Who uses the brand? What kind of person? When and where do they use the brand? What types of situations? Why do people use the brand? What do they get out of using it? How do they use the brand? What do they use it for?

Qualitative measures

Projective techniques used in cases where respondents may be unwilling or unable to express their feelings and opinions Brand Personality

Quantitative measures

Brand Awareness

Brand Judgements

Recognition Recall Reliability, durability & serviceability Service effectiveness, efficiency & empathy Style & design Price

Measuring Brand Performance

Brand quality Brand credibility Brand consideration Brand superiority Warmth Fun Excitement Security Social approval Self respect

Brand Feelings

Measuring Brand Imagery (how people think about the brand)

User profiles Purchase & usage situations Personality & Values History, heritage, experiences

Co-Branding

Two brand names featured on a single product Using another products brand equity to enhance the primary ones equity Eg:

Washing machine-detergent Automobile-engine oil