Study Unit 3 -Part 2. Consumer Learning SIM University. All rights reserved. Introduction. In this presentation, you will learn:

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1 Study Unit 3 -Part 2 Consumer Learning Introduction In this presentation, you will learn: Consumer learning process Various theories of learning

2 Consumer Learning in Marketing Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour Elements of Learning Theories Motivation Unfilled needs lead to motivation Cues Stimuli that direct motives Response Consumer reaction to a drive or cue Reinforcement Increases the likelihood that a response will occur in the future as a result of a cue

3 Two Major Learning Theories Behavioural Learning Learning based on observable behaviours (responses) that occur as the result of exposure to stimuli Cognitive Learning Learning based on mental information processing Often in response to problem solving Behavioural Learning Theories Classical Conditioning (through repetition) A behaviourallearning 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 Examples in marketing: Use of jingles and coloursin advertisements, established brands such as Colgate, Dettol and Oral B Instrumental (Operant) Conditioning

4 Strategic Applications of Classical Conditioning Repetition Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Advertising wear-out is a problem Stimulus Generalisation Having the same response to slightly different stimuli Helps me-too products to succeed Useful in product extensions, family branding and licensing Stimulus Discrimination Opposite of stimulus generalisation This discrimination is the basis of positioning which looks for unique ways to fill needs Behavioural Learning Theories Instrumental or Operant Conditioning A behavioural theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from specific responses or behaviours Objective Consumers to remember or learn the stimuli that lead to the most satisfactory response

5 Reinforcement of Behaviour Positive reinforcement Communicates positive outcomes Strengthen likelihood of behaviour Negative reinforcement Communicates negative outcomes Reinforce positive behaviour Extinction Reinforcement doesn t result in positive response Link between stimulus and reward is erased from memory Forgetting Happens when usage decreases Reminders / CRM Strategic Applications of Instrumental Conditioning Achieve high customer satisfaction (Reinforcement) Develop reinforcement schedules Total (or continuous) reinforcement free dessert Systemic (fixed ratio) reinforcement stamp card Random (variable ratio) reinforcement casino Shaping Mental reinforcement before behaviouroccurs early bird discounts Massed vs. distributed learning Media planning -intensive over a short period or progressive over a longer period?

6 Observational Learning (Modeling or Vicarious Learning) Modelling or observational learning Media messages use of credible and reliable sources to front their campaigns Cognitive Learning Cognitive Learning Learning based on mental activity is known as cognitive learning Emphasizes the role of motivation

7 Theoretical Models of Cognitive Learning Generic Framework Promotional Model Tricompetent Model Decision- Making Model Innovation Adoption Model Innovation Decision Process Knowledge Attention Cognitive Awareness Knowledge Awareness Knowledge Evaluation Interest Desire Affective Evaluation Interest Evaluation Persuasion Behaviour Action Conative Purchase Postpurchase Evaluation Trial Adoption Decision Confirmation Theoretical Models of Cognitive Learning Involvement Degree of personal relevance that the product or purchase holds for that customer High involvement purchases are very important to the consumer while low-involvement hold little relevance, have little perceived risk, and have limited information processing

8 Marketing Applications of Involvement Involvement increases brand loyalty and likelihood of repeat purchase How can marketers increase 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

9 Hemispheral Lateralisation and Passive Learning Hemispheral lateralisation(also called split-brain theory) TV ads with high visuals? Print ads with concise information and details? Right Brain Emotional Metaphoric Impulsive Intuitive Left Brain Rational Active Realistic 17 Measures of Consumer Learning Brand Loyalty Recognition and recall measures Brand loyalty Three groups of factors Personal degree of risk aversion or variety seeking The brand s reputation and availability of substitutes Social group influences Four types of loyalty No loyalty non-user Covetous loyalty non-user but high attachment Inertia loyalty no attachment user Premium loyalty high attachment user

10 Summary In this presentation you have learned: Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Reflection Questions Neutrogena, the cosmetic company, has introduced a new line of shaving products for men. How can the company use stimulus generalisation to market these products? Is instrumental conditioning applicable to this marketing situation? If so, how?