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Consumer Behavior

Hussain A. Al Awami, B.Sc. Pharm., M.Sc., MBA

Chapter VII: Consumer Learning

Hussain A. Al Awami, B.Sc. Pharm., M.Sc., MBA

Definition

Clarification

Change

Continuous

Why Consumer Learning is Important?

Elements of Learning • Motivation • Cues • Response • Re-inforcement .

.Motivation • The degree of relevance or “Involvement”.

g.. don’t put prestigious product in low level store). • It’s the opportunity to try or use the product. . • Marketers should be careful to provide the right environment (e.Cues • Cues are the stimuli that give direction to specified motives.

.Response • How individual react to a drive or cue “How they behave” • Response might not result in sale now. car advertisement) .g. but it could provide opportunity in future (e.

.Reinforcement • Reinforcement increases the likelihood that a specified response will occur in the future as the result of particular cues or stimuli.

Example of reinforcement .

What Learning Means? • We know that we learn.. • Two major theories: Behavioral Learning Theory & Cognitive Learning Theory . But HOW? • No single universal theory of how people learn….

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Behavioral Learning Theories • Also called stimulus-response theories. Stimulus Stimulus Consumer Consumer Response Response Consumer’s Black Box .

Behavioral Learning Theory Classical Conditioning Instrumental Conditioning Modeling or Observational Learning .

conditioning) .Classical Conditioning • Classical conditioning theorists regarded all organisms as relatively passive entities that could be taught certain behaviors through repetition (i..e.

Ivan Pavlov • Conditioning learning results when a stimulus that is paired with other stimulus that elicits a known response serves to produce the same response when used alone. .

Explanatory diagram Unconditioned stimulus Unconditioned Response Salivation Conditioned stimulus Conditioned stimulus Conditioned Response Salivation .

The same with other example .

it’s the acquisition of new knowledge . • Not acquisition of new reflex.The link to cognitive learning • Some Behavioral scientists view classical conditioning as the learning of associations among events that allows the organism to anticipate and “represent” its environment.

Forward conditioning (CS precede US) Repeated pairing They should be logically belong together CS that is novel and unfamiliar US that is biologically or symbolically salient Its called Neo-Pavlovian conditioning . 3. 5.Optimal conditioning 1. 4. 2.

Concepts in classical conditioning Concepts in classical conditioning Repetition Stimulus Generalization Stimulus discrimination .

Repetition • Repetition increases the strength of association .

Usually follow this curve 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 .

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Advertising wearout • Cosmetic variations in the adz (using different backgrounds. different advertising spokesperson) . different print types.

Advertising wearout. continue • Substantive variations are changes in adz content • Substantive seems to be more effective and more resistance to competitor attacks .

Example of substantive variation .

Video example .

Example of video substantive variation .

Another ADZ .

Repetition • No ideal repetition! • Some marketers believe in “three-hit theory” – Awareness – Relevance – Remind about benefits .

Competitive advertising • The higher the competitive adz. the lower is the response due to interference .

Stimulus generalization • Consumers respond to stimulus near to the original stimulus. .

Positive effect .

Negative effect .

.Counterfeiting problem • Products just look like original! • Causing severe loss to original company. • Branded companies try to use regulatory as well as technology to avoid this problem.

.Stimulus Discrimination • Its opposite to generalization which is the selection of specific stimulus from other similar stimulus. • Positioning and product differentiation utilizing the product attributes.

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Instrumental Conditioning .

however. • Learning occurs through Trial & Error process. it concentrate in learning concept of stimuli. with habits formed as a result of rewards received for certain responses or behaviors. .Definition • They use the same concept of stimulus and response.

Reinforcement of Behavior • Positive reinforcement – Positive effect when using particular product • Negative reinforcement – Negative effect when NOT using particular product .

Extinction Vs Forgetting .

Extinction • Happens when learned response is no longer reinforced. .

Forgetting • Happens when customer did not used the product for long time. .

Strategic application of instrumental conditioning .

Examples • Upscale beauty saloons offers coffee .

.Modeling or observational learning • Defined as the process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior.

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Cognitive Learning Theory .

• Cognitive theory involves complex mental processing of information. .Cognitive learning theory • People learn from thinking and problem solving situations. • People search for information to take purchase decisions.

Information Processing • Brain uses inputs (information) and process them to get certain output just like the computers. • Experienced people in using the product learned even faster and deeper. . • Different people have different cognitive ability and utilization is different.