consumer learning

Amity Business School

Amity Business SchoolMBA Class of 2014, Semester II

Consumer Behavior

Ms.Vandana Gupta


Consumer Learning


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


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


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


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.


Models of Classical ConditioningFigure 7-2a


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





discrimination

• Having the same response to slightly different stimuli

• Helps “me-too” products to succeed

• Useful in product extensions

Basic Concepts


Discussion QuestionStimulus Generalization

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

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





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


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.


Types of Reinforcement• Positive• Negative• Forgetting• Extinction


A Model of Instrumental Conditioning


Instrumental Conditioning and Marketing

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


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.


The consumer observes a

positive response by two teens.


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.


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


Information Processing and Memory Stores


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

storage depends on– Rehearsal– Encoding


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


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

Persuasion• Measure of Involvement


Consumer Relevance• Involvement depends on degree of

personal relevance.• High involvement is:

– Very important to the consumer – Provokes extensive problem solving


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


Measures of Consumer Learning

• Recognition and Recall Measures– Aided and Unaided Recall

• Cognitive Responses to Advertising• Attitudinal and Behavioral Measures of

Brand Loyalty


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


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

consumer learning

Education

operant

reinforcement

sameresponse