CHAPTER SEVEN Consumer Learning Learning Objectives 1 To

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. 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. Chapter Seven Slide 3

In Terms of Consumer Learning, Are These New Products Likely to Succeed? Chapter Seven Slide 4

These Ads Might Induce Learning Due to the Familiar Names Chapter Seven Slide 5

Learning • The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior Chapter Seven Slide 6

Elements of Learning Theories Motivation Cues Response Reinforcement • Unfilled needs lead to motivation • Stimuli that direct motives • Consumer reaction to a drive or cue • Increases the likelihood that a response will occur in the future as a result of a cue Chapter Seven Slide 7

Two Major Learning Theories Behavioral Learning Cognitive Learning • Based on observable behaviors (responses) that occur as the result of exposure to stimuli • Learning based on mental information processing • Often in response to problem solving Chapter Seven Slide 8

Behavioral Learning • Classical Conditioning • Instrumental (Operant) Conditioning Chapter Seven Slide 9

Classical 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. Chapter Seven Slide 10

Models of Classical Conditioning Figure 7 -2 a Chapter Seven Slide 11

Figure 7 -2 b Chapter Seven Slide 12

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. Chapter Seven Slide 13

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 Chapter Seven Slide 14

Why Did Gillette Use Two Different Ads to Advertise the Same Product? Chapter Seven Slide 15

Repetition of the Message with Varied Ads Results in More Information Processing by the Consumer Chapter Seven Slide 16

Strategic Applications of Classical Conditioning 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 Chapter Seven Slide 17

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? Chapter Seven Slide 18

Which Concept of Behavioral Learning Applies to the Introduction of These Two Products? Chapter Seven Slide 19

Stimulus Generalization Chapter Seven Slide 20

What Is the Name of the Marketing Application Featured Here and Which Concept of Behavioral Learning Is It Based On? Chapter Seven Slide 21

Product Category Extension Stimulus Generalization Chapter Seven Slide 22

Strategic Applications of Classical Conditioning 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 Chapter Seven Slide 23

What Are the Names of the Marketing Application and the Behavioral Learning Concept Featured Here? Chapter Seven Slide 24

Stimulus Discrimination Product Differentiation Chapter Seven Slide 25

Instrumental (Operant) Conditioning • A behavioral theory of learning based on a trial-anderror process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors. Chapter Seven Slide 26

A Model of Instrumental Conditioning Figure 7. 9 Chapter Seven Slide 27

Reinforcement of Behavior Positive Negative • Positive outcome • Strengthen likelihood • Negative outcome • Encourages behavior Chapter Seven Slide 28

Reinforcement of Behavior Extinction • A learned response is no longer reinforced • The link is eliminated between stimulus and reward Forgetting • The reinforcement is forgotten Chapter Seven Slide 29

Strategic Applications of Instrumental Conditioning • • Customer Satisfaction (Reinforcement) Reinforcement Schedules Shaping Massed versus Distributed Learning Chapter Seven Slide 30

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 Chapter Seven Slide 31

Information Processing and Cognitive Learning • Cognitive Learning – Learning involves complex mental processing of information – Emphasizes the role of motivation Chapter Seven Slide 32

Information Processing and Memory Stores - Figure 7. 10 Chapter Seven Slide 33

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? Chapter Seven Slide 34

Theoretical Models of Cognitive Learning - Table 7. 1 Promotional Tricompetent Generic Model Framework Knowledge Evaluation Behavior Attention Interest Desire Action Cognitive Affective Conative Decision. Making Model Innovation Adoption Model Awareness Knowledge Awareness Innovation Decision Process Knowledge Interest Evaluation Persuasion Purchase Trial Decision Postpurchase Adoption Confirmation Evaluation Chapter Seven Slide 35

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 Chapter Seven Slide 36

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 Chapter Seven Slide 37

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 didn’t 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 Chapter Seven Slide 38

Marketing Applications of Involvement • Ads in video games • Avatars • Sensory appeals in ads to get more attention • Forging bonds and relationships with consumers Chapter Seven Slide 39

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 Chapter Seven Slide 40

Hemispheral Lateralization and Passive Learning • Hemispheral lateralization – Also called split-brain theory • Left Brain – Rational – Active – Realistic • Right Brain – – Emotional Metaphoric Impulsive Intuitive Chapter Seven Slide 41

What Is the Name of the Learning Theory Concept Featured in This Ad and How Is It Applied to Air Travel? Chapter Seven Slide 42

Hemispheric Lateralization Both Sides of the Brain are Involved in Decision Chapter Seven Slide 43

How Is Passive Learning Applied to the Promotional Appeal Featured in This Ad? Chapter Seven Slide 44

The Ad is Targeted to the Right Brain Chapter Seven Slide 45

Measures of Consumer Learning Brand Loyalty • Recognition and Recall Measures • Brand Loyalty Chapter Seven Slide 46

Measures of Consumer Learning Brand Loyalty Three groups of factors Four types of loyalty • Personal degree of risk aversion or variety seeking • The brand’s reputation and availability of substitutes • Social group influences • • No loyalty Covetous loyalty Inertia loyalty Premium loyalty Brand Equity – the value inherent in a well-known brand name Chapter Seven Slide 47