consumer learning

Amity Business School

Amity Business SchoolMBA Class of 2014, Semester II

Consumer Behavior

Ms.Vandana Gupta

Amity Business School

Consumer Learning

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Learning• The process by which individuals acquire

the purchase and consumption knowledge and experience that they apply to future related behavior

• Marketers must teach consumers:– where to buy– how to use– how to maintain– how to dispose of products

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Elements of Learning Theories

• Motivation• Cues• Response• Reinforcement

Amity Business SchoolLearning Theories

• Behavioral Theories– Based on observable

behaviors (responses) that occur as the result of exposure to stimuli

• Cognitive Theories– Learning based on

mental information processing

– Often in response to problem solving

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Behavioral Learning Theories• Classical Conditioning• Instrumental Conditioning• Modeling or Observational Learning

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Classical Classical ConditioningConditioning

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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Models of Classical ConditioningFigure 7-2a

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Strategic Applications of Classical Conditioning

• Repetition• Stimulus

generalization• Stimulus

discrimination

• Increases the association between the conditioned and unconditioned stimulus

• Slows the pace of forgetting

• Advertising wearout is a problem

Basic Concepts

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Strategic Applications of Classical Conditioning

• Repetition• Stimulus

generalization• Stimulus

discrimination

• Having the same response to slightly different stimuli

• Helps “me-too” products to succeed

• Useful in product extensions

Basic Concepts

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Discussion QuestionStimulus Generalization

• How does CVS Pharmacy use stimulus generalization for their private brands?

• Do you think it is effective?• Should this be allowable?

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Strategic Applications of Classical Conditioning

• Repetition• Stimulus

generalization• Stimulus

discrimination

• Selection of a specific stimulus from similar stimuli

• This discrimination is the basis of positioning which looks for unique ways to fill needs

Basic Concepts

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Instrumental Instrumental (Operant) (Operant)

ConditioningConditioning

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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Types of Reinforcement• Positive• Negative• Forgetting• Extinction

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A Model of Instrumental Conditioning

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Instrumental Conditioning and Marketing

• Customer Satisfaction (Reinforcement)• Reinforcement Schedules• Shaping• Massed versus Distributed Learning

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Observational Observational LearningLearning

A process by which individuals observe how others behave

in response to certain stimuli and reinforcements. Also known as

modeling or vicarious learning.

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The consumer observes a

positive response by two teens.

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Cognitive Cognitive Learning Learning TheoryTheory

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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Information Processing• Relates to cognitive ability and the

complexity of the information• Individuals differ in imagery – their ability

to form mental images which influences recall

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Information Processing and Memory Stores

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Information Processing• Movement from short-term to long-term

storage depends on– Rehearsal– Encoding

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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• Total package of

associations is called a schema

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Issues in Involvement Theory• Consumer Relevance• Central and Peripheral Routes to

Persuasion• Measure of Involvement

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Consumer Relevance• Involvement depends on degree of

personal relevance.• High involvement is:

– Very important to the consumer – Provokes extensive problem solving

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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

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Measures of Consumer Learning

• Recognition and Recall Measures– Aided and Unaided Recall

• Cognitive Responses to Advertising• Attitudinal and Behavioral Measures of

Brand Loyalty

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Brand Loyalty• Function of three groups of influences

– Consumer drivers– Brand drivers– Social drivers

• Four types of loyalty– No loyalty– Covetous loyalty– Inertia loyalty– Premium loyalty

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Brand Equity• Refers to the value inherent in a well-

known brand name• Value stems from consumer’s perception

of brand superiority• Brand equity reflects learned brand loyalty• Brand loyalty and brand equity lead to

increased market share and greater profits