Consumer Learning

Consumer Learning

• Learning is the process of consumers acquiring

knowledge related to purchase/consumption and
application of this knowledge and experience to
future circumstances.
 Intentional & Incidental Learning
• Intentional learning is acquired as the result
of a search for information.
– Customer looking to buy electric car may actively
search about it and even use it to learn
• Incidental learning is acquired by accident or
without much effort.
– One comes across a product that a friend is using
– Upgrades like new version of operating system
(Windows 10)
 Four Elements of Learning
• Motives: Unfulfilled needs lead to motivation,
which spurs learning.
• Cues are stimuli that direct motivated behavior
• Response is an individual’s reaction to a cue
• Reinforcement is the reward—the pleasure,
enjoyment, and benefits—that the consumer
receives after buying and using a product or
service
Two Major Learning Theories

Behavioral Learning Cognitive Learning

• Based on • Learning based on

observable mental
behaviors information
(responses) that processing
occur as the result
of exposure to
stimuli
 Behavioral Learning
• Behavioral learning (aka stimulus-response
learning) is concerned with the inputs and
outcomes of learning
• Three forms of behavioral learning:
I. Classical Conditioning
II. Instrumental (or operant) Conditioning
III. Observational (or modeling) Learning
 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.

7
Model of Classical Conditioning

9
Chapter Seven Slide
 10
Chapter Seven Slide
 I. Classical Conditioning: Ivan Pavlov
• Classical conditioning is viewed as a “knee-
jerk” (or automatic) response that builds up
through repeated exposure and reinforcement
• Conditioned learning results when a stimulus
that is paired with another stimulus that elicits
a known response produces the same
response when used alone
• Pavlov proved classical conditioning through
experimentation on dogs
Application concepts related to
Classical Conditioning

1. Need for repetition

2. Stimulus generalization
3. Stimulus discrimination
 Need for Repetition
• Repetition is the key to forming associations between condition
and unconditioned stimuli
• Repetition helps association between brands and fulfillment of
needs.
• Repetition can slow down the process of forgetting

• Three-hit theory: Some marketing scholars believe that just three

exposures to an advertisement are needed:
1. To make consumers aware of the product,
2. To show consumers the relevance of the product, and
3. To remind them of its benefits.
This exposure pattern is called the three-hit theory.
• Advertising wear-out: The point at which an individual becomes
satiated with numerous exposures, and both attention and
retention decline – is a problem to watch out for
• Restating the same message in different formats tend to reduce the
likelihood of advertising wear-out.
 Stimulus Generalization
•Dog in Pavlov’s experiment could learn to salivate not
only to the sound of a bell, but also to similar sounds
such as jangling keys or coins
•This concept of responding the same way to the slightly
different stimuli is called stimulus generalization.
•Applications of stimulus generalization
– Product line extensions
– Product form extensions
– Family branding
– Licensing
• Helps ‘’me-too’’ products as well
 Stimulus Generalization
• Product line extensions are additions of related items to an
established brand; these are likely to be adopted because they
come under a known and trusted brand name.
– Horlicks, Junior Horlicks, Women’s Horlicks
• Product form extension: Offering the same product in a different
form but under the same brand.
– Dettol soap, liquid soap
• Family branding: Marketing different products under the same
brand name.
– Sony TVs, Cameras, Laptops
• Licensing: Contractually allowing a well-known brand name to be
affixed to the products of another manufacturer. The names of
designers, manufacturers, celebrities, corporations, and even
cartoon characters are attached, for a fee (i.e., “rented out”) to a
variety of products, enabling the licensees to achieve instant
recognition and implied quality for the licensed products.
 Stimulus Discrimination
• Stimulus discrimination is the opposite of
stimulus generalization
• Here, a specific stimulus is selected from
among similar stimuli
• Aim is to “teach” consumers to discriminate
among similar products (i.e., similar stimuli)
and form a unique image for a brand in their
minds (core objective of positioning)
 Instrumental Conditioning
(Operant conditioning)
• Instrumental conditioning (or operant
conditioning) is based on the notion that learning
occurs through a trial-and-error process, with
habits formed as a result of rewards received for
certain responses or behaviors.
• American psychologist B.F. Skinner constructed
the model of instrumental conditioning
• Skinner says, “most learning occurs in
environments where individuals are ‘rewarded’
for choosing an appropriate behavior
 Instrumental Conditioning (Skinner Box)
• Experimented with Rats and
Pigeons (Skinner Box)
• If animals behaved as
Skinner desired—pressing a
particular lever or pecking
keys –Skinner rewarded
them with food pellets
• Skinner learning model:
Taught Pigeons to play ping-
pong and even to dance
Model of Instrumental Conditioning
 Reinforcing Behavior
• Skinner distinguished two types of reinforcement to get
the repeated response
• Addition of Positive reinforcement rewards a particular
behavior and thus strengthens the likelihood of a specific
response during the same or similar situation
• Removal of Negative reinforcement (removal of an
unpleasant stimulus) strengthens the likelihood of a given
response during the same or similar circumstances
• Punishment is not negative reinforcement. It helps
discourage/reduce certain behavior
 Observational Learning (Modeling)

• Observational learning (or modeling) is the

process through which individuals learn
behavior by observing the behavior of
others and the consequences of such
behavior.
– Kids learn by observing parents
– Young employees learn by observing seniors
 Cognitive Learning
• A lot of learning occurs through consumer
thinking and problem solving.
• Sometimes we resolve purchase-related
dilemmas instantly (behavioral learning).
• In other situations, we search for information and
carefully evaluate what we learned. This kind of
learning, called cognitive learning, consists of
mental processing of data rather than instinctive
responses to stimuli.
• Cognitive Learning is based on Information
Processing
Information Processing
• Sensory store: It is the mental “space” in the human mind where sensory
input lasts for just a second or two. If it is not processed immediately, it is
lost.
• Short-term store: It is where information is processed and held for just a
brief period.
• Rehearsal is the process of silent, mental repetition of information –
helps to retain it in short term memory
– The transfer process takes from 2 to 10 seconds. If information is not
rehearsed and transferred, it is lost in about 30 seconds or less.
– The amount of information that can be held in short-term storage is limited to
about four or five items.
• Long-term store: It is the mental “space” where information is retained for
extended periods of time.
– Although it is possible to forget something within a few minutes after the
information reaches long-term storage, it is more common for data in long-
term storage to last for days, weeks, or even years.
• Encoding is the process by which we select a word or visual image to
represent a perceived object
 Hemispheric Lateralization (split-brain theory)

• Hemispheric lateralization (split-brain theory) stems from

medical research done in the 1960s.
• Its premise is that the human brain is divided into two
distinct cerebral hemispheres that operate together, but
“specialize” in processing different types of cognitions.
• The left hemisphere is the center of human language; it is
the linear side of the brain and primarily responsible for
reading, speaking, and reasoning.
• The right hemisphere of the brain is the home of spatial
perception and nonverbal concepts; it is nonlinear and the
source of imagination and pleasure.
• Left brain: Rational, active, and realistic (Computers)
• Right brain: Emotional, imaginative, impulsive, and
intuitive (manager’s imaginative business decisions)
 Left and Right Brain
• Printed, verbal and static information in newspapers is
processed by the left brain
• Print media are considered as high involvement
• Moving images and pictorial information as low
involvement, right brain activity.
• The right brain’s passive processing of information is
consistent with classical conditioning. Repetition of ad is the
key factor in producing purchase behavior
• TV ads are most effective when they are of short (15-20 sec)
and repeated frequently
• Pictorial cues are effective at generating recall and
familiarity with the brand.
• Verbal cues (trigger left brain) generate cognitive activity
 Measures of Consumer Learning
• Marketers attempt to measure to what extent
consumers have learned the information
contained in promotional messages
• The most popular measures of consumer
learning are:
– Recognition
– Recall
 Recognition and Recall Measures
• Recognition and recall tests measure whether
consumers remember seeing an ad and the extent to
which they have read it and can recall its content.
• Recognition tests are based on aided recall
• Recall tests use unaided recall
• Recognition test: Consumer is shown an ad and asked
whether he remembers seeing it and can remember
any of salient points
• Recall test: Consumer is asked whether he has read a
specific magazine or watched a specific TV show, and if
so, whether he can recall any ads seen, the product
and brand advertised, and any notable points about
the offerings