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CHAPTER SEVEN
Consumer Learning
Learning Objectives
1. To Understand the Process and Four Elements of Consumer Learning. 2. To Study Behavioral Learning and Understand Its Applications to Consumption Behavior. 3. To Study Information Processing and Cognitive Learning and Understand Their Strategic Applications to Consumer Behavior.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 2
Learning Objectives (continued)

4. To Study Consumer Involvement and Passive Learning and Understand Their Strategic Affects on Consumer Behavior. 5. To Understand How Consumer Learning and Its Results Are Measured.
In Terms of Consumer Learning, Are These New Products Likely to Succeed?
Chapter Seven Slide
These Ads Might Induce Learning Due to the Familiar Names
Chapter Seven Slide
Learning
The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
Process:- Continually evolves Knowledge :- Reading , discussion , Observation & thinking or Experience Knowledge / Experience ----> Feedback--->Future Behavior
Learning
Intentional
Incidental
7
4-Elements of Learning Theories

(Must be present in order for Learning to Occur)
Motivation Cues
Unfilled needs lead to motivation
Stimuli that direct motives
Response
Reinforcement
Consumer reaction to a drive or cue

Increases the likelihood that a response will occur in the future as a result of a cue
Learning Theories Chart

Two Major Learning Theories
Behavioral Learning Behavioral Learning //

Stimulus Response Stimulus Response Learning Learning
Cognitive Learning
Classical Conditioning
Instrumental / Operant Conditioning
Modeling / Observational learning

9

Behavioral Learning Based on observable behaviors (responses) that occur as the result of exposure to stimuli
Cognitive Learning Learning based on mental information processing Often in response to problem solving
Behavioral Learning
Cognitive Associative Learning /Neo Pavlovian Conditioning
Instrumental (Operant) 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.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 12
Models of Classical Conditioning Figure 7-2a
Figure 7-2b
Discussion Questions
For Coca-Cola or another beverage company:
How have they used classical conditioning in their marketing? Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response.
Strategic Applications of Classical Conditioning

Basic Concepts
Repetition Stimulus generalization Stimulus discrimination Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Advertising wearout is a problem
Cosmetic Variations

Diff. Ad with same Central Theme More then 1 feature

Substantive Variations
Why Did Gillette Use Two Different Ads to Advertise the Same Product?
Repetition of the Message with Varied Ads Results in More Information Processing by the Consumer

Basic Concepts
Repetition Stimulus generalization Stimulus discrimination
Having the same response to slightly different stimuli Helps me-too products to succeed Useful in:
product extensions family branding licensing
Discussion Questions Stimulus Generalization

How does a pharmacy like CVS or Rite Aid use stimulus generalization for their private brands? Do you think it is effective? Should this be allowable?
Which Concept of Behavioral Learning Applies to the Introduction of These Two Products?
Stimulus Generalization
What Is the Name of the Marketing Application Featured Here and Which Concept of Behavioral Learning Is It Based On?
Product Category Extension Stimulus Generalization

Basic Concepts
Repetition Stimulus generalization Stimulus discrimination
Selection of a specific stimulus from similar stimuli Opposite of stimulus generalization This discrimination is the basis of positioning which looks for unique ways to fill needs
What Are the Names of the Marketing Application and the Behavioral Learning Concept Featured Here?
Stimulus Discrimination Product Differentiation
Learning Theories Chart

Behavioral Learning Behavioral Learning //

Stimulus Response Stimulus Response Learning Learning
Cognitive Learning
Instrumental / Operant Conditioning
Modeling / Observational learning

28
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.
A Model of Instrumental Conditioning Figure 7.9
Reinforcement of Behavior
Positive
Positive outcome Strengthen likelihood
Negative
Negative outcome Encourages behavior
Reinforcement of Behavior
Extinction A learned response is no longer reinforced The link is eliminated between stimulus and reward Forgetting The reinforcement is forgotten
Strategic Applications of Instrumental Conditioning

Customer Satisfaction (Reinforcement)
Relationship Marketing
Reinforcement Schedules
Total, Systematic and Random
Shaping Massed versus Distributed Learning

Massed : Produce more initial learning, Immediate learning Distributed : learning Lasts longer, Long term repeat buying on regular basis Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 33
Observational Learning (modeling or vicarious learning)

A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior
Information Processing and Cognitive Learning

Cognitive Learning
Learning involves complex mental processing of information Emphasizes the role of motivation
Information Processing and Memory Stores - Figure 7.10
Discussion Questions
How do advertisers drive consumers to rehearse information? When does this work against the advertiser? Can you think of examples of advertisements which drive you to rehearse?
Theoretical Models of Cognitive Learning - Table 7.1

Promotional Tricompetent Generic Model Model Framework DecisionMaking Model Innovation Adoption Model Innovation Decision Process
Knowledge Evaluation Behavior
Attention
Interest Desire Action
Cognitive
Affective Conative
Awareness Knowledge
Awareness
Knowledge
Interest Evaluation Evaluation Persuasion Purchase Trial Decision Postpurchase Adoption Confirmation Evaluation
Involvement and Passive Learning Topics

Definitions and Measures of Involvement Marketing Applications of Involvement Central and Peripheral Routes to Persuasion Hemispheral Lateralization and Passive Learning
Involvement
Degree of personal relevance that the product or purchase holds for that customer. High involvement purchases are very important to the consumer Low-involvement hold little relevance, have little perceived risk, and have limited information processing
Measuring Involvement with an Advertisement - Table 7.3

Subjects respond to the following statements on a 7-point Likert scale ranging from Strongly Agree to Strongly Disagree. The message in the slogan was important to me The slogan didnt have anything to do with my needs The slogan made me think about joining the military
The slogan made me want to join the military

While reading the slogan, I thought about how the military might be useful for me The slogan did not show me anything that would make me join the military I have a more favorable view of the military after seeing the slogan The slogan showed me the military has certain advantages The slogan was meaningful to me The slogan was worth remembering
Marketing Applications of Involvement

Ads in video games Avatars Sensory appeals in ads to get more attention Forging bonds and relationships with consumers
Central and Peripheral Routes to Persuasion

Central route to persuasion
For high involvement purchases Requires cognitive processing
Peripheral route to persuasion

Low involvement Consumer less motivated to think Learning through repetition, visual cues, and holistic perception
Hemispheral Lateralization and Passive Learning

Hemispheral lateralization
Also called split-brain theory
Left Brain
Rational Active Realistic
Right Brain
Emotional Metaphoric Impulsive Intuitive
What Is the Name of the Learning Theory Concept Featured in This Ad and How Is It Applied to Air Travel?
Hemispheric Lateralization Both Sides of the Brain are Involved in Decision
How Is Passive Learning Applied to the Promotional Appeal Featured in This Ad?
The Ad is Targeted to the Right Brain
Measures of Consumer Learning Brand Loyalty

Recognition and Recall Measures Brand Loyalty
Measures of Consumer Learning Brand Loyalty
Three groups of factors

Personal degree of risk aversion or variety seeking The brands reputation and availability of substitutes Social group influences
Four types of loyalty

No loyalty Covetous loyalty Inertia loyalty Premium loyalty
Brand Equity the value inherent in a well-known brand name

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CHAPTER SEVEN

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 2

Learning Objectives (continued)

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 3

In Terms of Consumer Learning, Are These New Products Likely to Succeed?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide

These Ads Might Induce Learning Due to the Familiar Names

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 6

4-Elements of Learning Theories

Unfilled needs lead to motivation

Stimuli that direct motives

Consumer reaction to a drive or cue

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 8

Learning Theories Chart

Behavioral Learning Behavioral Learning //

Modeling / Observational learning

Two Major Learning Theories

Chapter Seven Slide 10

Instrumental (Operant) Conditioning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 11

Models of Classical Conditioning Figure 7-2a

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 13

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 14

Strategic Applications of Classical Conditioning

Diff. Ad with same Central Theme More then 1 feature

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 17

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 18

Strategic Applications of Classical Conditioning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 19

Discussion Questions Stimulus Generalization

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 20

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 21

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 22

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 23

Product Category Extension Stimulus Generalization

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 24

Strategic Applications of Classical Conditioning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 26

Stimulus Discrimination Product Differentiation

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Seven Slide 27

Learning Theories Chart

Behavioral Learning Behavioral Learning //