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CLASSICAL CONDITIONING OPERANT CONDITIONING

It was introduced by Ivan Pavlov. It was introduced by B.F Skinner.


The Unconditioned stimulus is paired with a The behavior being taught is followed by
neutral stimulus so that the neutral stimulus reinforcement or punishment to either
eventually becomes the conditioned stimulus strengthen or weaken the desired behavior
and brings out the conditioned response.
The Role of the learner is passive. Learning is The role of the learner is active. The learner
an unconscious process. The learner plays no changes their behavior depending on the
active role in the adoption of behavior. reinforcement or punishment they receive.
Nature of response is automatic and The subject chooses their response voluntarily,
involuntary depending upon the rewards and punishments.
The response is acquired by the association of The response is acquired by associating the
events. Behaviour is controlled by the stimulus response with its consequences. Behaviour is
that precedes the response. controlled by consequences that follow the
response.
No reward or punishment is involved. Reward and punishment is used for behavior
modification
Through conditioning, a new stimulus comes to Through conditioning, a new stimulus produces
produce old behavior a new behaviour.
The subject develops expectation that The subject develops an expectation that a
conditioned stimulus signals the arrival of the response will be reinforced or punished, this
unconditioned stimulus. defines their behavior

LAW OF RECENCY
The recency effect is a person's tendency to remember the most recently seen or presented
information best. For instance, if you are trying to memorize a list of items, the recency effect
means you are more likely to recall the things from a list that you studied last. This is one of
the components of the serial position effect, which says the position of items on the list
affects how well those items are recalled.

Example:
For example, if you are trying to recall items from a shopping list that you accidentally left at
home. You can easily remember the last few things you wrote down. However, you can't
seem to recall any of the items in the middle of your list.
Example 2: The waiter at a restaurant lists several different specials. But, when you want to
order, you can only recall the last two or three options that he had mentioned.
Example 3: As you are researching for a new product that you are interested in buying, you
are most likely to pay attention to the last thing you heard about it and your first impression
of it. If the first thing and the last thing you hear about the product are positive, you are more
likely to buy it, even if your extensive research revealed negative findings of that product
between those two times.
Example 4: You have an easier time remembering events from your immediate past than
when you try to recall things from the distant past. For instance, while you might have a little
trouble remembering what you had for lunch today, recalling what you ate three weeks ago
would be much more difficult (or even impossible).

LAW OF EXERCISE
Connections are strengthened further with practice and weakened when the practice is
discontinued, reflecting the adage "use it or lose it." The learner must practice what has been
learned to understand and remember the learning. Practice strengthens the learning
connection; disuse weakens it. Exercise is most meaningful and useful when a skill is learned
within the context of a real-world application.
Example 1: a child who learned cycling in his childhood will forget how it's done in
adulthood if he stopped cycling after his childhood. 
Example 2: A bachelor's student will not be able to remember the formulas he studied in
grade 9 because he stopped recalling them.
Example 3: A girl who learned knitting will forget how it is done if she stops practicing it. 

Brewing innovation
The world's largest coffee retailer, Starbucks, pulled itself out of the financial meltdown
of 2008 by aligning its operations with customer demands through social media.
Shezray Husain, Feroz Khanand Waqas Mirza | Print Edition: Sept 28, 2014
Founded in 1971 in Seattle, Starbucks is present in 50 states in the US and 43 countries. It is one of
the most respected brands, winning awards such as "Best Business", "Most Admired Company", "100
Best Corporate Citizens" and so on. While its quality is unquestionable, its price has always been
higher than those offered by the domestic coffee houses in various countries.

This was one of the reasons why the company took a hit during the economic slowdown of 2008 as
customers opted for cheaper options for their everyday coffee. Starbucks was forced to shut 600 shops
that were not making profits. By March 30, 2008, its profit had fallen 28 per cent compared to the
same period in 2007. In 2009, it closed another 300 stores and laid off 6,700 employees.
On January 8, 2008, Howard D. Schultz returned as CEO of Starbucks after a gap of eight years,
replacing Jim Donald. Schultz had nurtured the company since 1982 when it had only four outlets. He
had served as CEO from 1987 to 2000 and had presided over the companys public offering in 1992.
Upon coming back, he found that apart from the worsening economic condition in the US, the
company's rapid expansion had distracted it from making its cafes an inviting place with new
products. In addition, Starbucks also faced competition from McDonald's, which had, in 2008, started
setting up coffee bars that sold espresso.

Schultz shot off a letter to the employees on the day he took office once again as CEO. He said, "The
company must shift its focus away from bureaucracy and back to customers." He made his objective
very clear: "Reigniting the emotional attachment with customers.
"The previous leadership had blamed the economy and the higher cost of dairy products for the slump
in business. They had also stated this as a reason to hike prices. However, Schultz took an entirely
different view of the situation. He told the employees, "The company shouldn't just blame the
economy; Starbucks's heavy spending to accommodate its expansion has created a bureaucracy that
masked its problems."
In a departure from conventional strategies like "a redo of the store layout", Starbucks soon embarked
on a technology-oriented strategy. An environment where employees could think freely about the
organisation and contribute in terms of strategies and ideas was fostered. As a result, a community
involvement concept was developed.
In March 2008, "My Starbucks Idea" was rolled out for customers to exchange ideas with each other
and directly with the company. As part of this, customers were able to give opinions on everything
such as products, services, layout, advertising, corporate social responsibility, in-store music and so
on. More than 93,000 ideas were shared by about 1.3 million users on social media, and page views
per month rose to 5.5 million.
After the 2007/08 crisis, Starbucks had to rebuild its customer relationships and show the world that it
cared for quality and consistency. It also had to give a leg up to the altruistic component of the brand
such as community building and care for the environment. Through the "My Starbucks Idea"
customers had a direct link with the headquarters and of course Starbucks was listening. Soon
Starbucks's ubiquity became an asset as customers from around the world had an opportunity to
connect with each other, spawning like-minded communities like the 'free Wi-Fi group', 'soy group',
'comfy chair group' or 'frappuccino lovers'.
Starbucks implemented over 100 ideas. Through this initiative, the coffee retailer built a robust fan
base. By giving customers a platform to voice their ideas and views on the brand and by responding to
it, it was able to reignite the brand trust.
Starbucks soon realised that it had to project its 'cool' element via social media-based marketing. The
organisation must never look desperate or too keen to increase its sales. So the company refrained
from pushing too many products, causes or offers to its followers. The focus was more on building
and engaging with the community.
One of the accidental tweets from Starbucks was just a smiley face that received a lot of admiration
from the community. Tweets such as 'keep calm and make coffee' is in line with its idea of keeping a
cool image and building a community. Starbucks's use of social media points to the fine balance it
maintained between spontaneous and well-planned posts. The social media platforms have also helped
the company swiftly mitigate and manage any information that causes harm to its global identity. In
2009, when rumours of Starbucks's profits being spent on Israel army surfaced, the company used the
social media outlets effectively to refute it and restore its image of a peace-loving organisation.

MOBILE APPS
The company embraced mobile apps much before its competitors. Very early in the race, Starbucks
had linked its social media strategy objectives with technology channels like mobile apps. It was
carefully designed to appeal to the masses and specifically to the segment that made up its online
community. Through its iPhone app features like store locator, nutrition-based information and
rewards programme, it integrated and enhanced its social media community fabric. The head start in
technology adoption has helped the company come up with trend-setting ideas.
One of them was the move to help its customers personalise the company's offerings. The initiative,
'MyStarbucksSignature' allowed consumers to develop their own signature drinks (hot or cold coffee),
name the drink and share the new flavour with the community. In this way, Starbucks informs the
consumer of the wide range of product offering they have at their stores across the world. It also
shows the consumer how to order this cup and what it will look like. The only modification a
consumer can do in his or her signature drink is in the ingredient mix and quantity. This way the
supply network is only slightly disrupted at the retail and service end. Everything else related to
ingredients and distribution remains completely untouched.
In 2008, the marketing teams had started a promotion to increase customer visits to stores during
breakfast hours. It included a free pastry with a coffee bought before 10:30 a.m. The initiative created
traction online and over one million people across the US queued up at Starbucks outlets.
Such social media promotions were much less expensive than the companys promotions at its stores
or putting up billboards across cities. The awareness and response was also more than that from
promotions through traditional channels like television advertisements.
Employees and baristas too were always an integral part of Starbucks online and social media
community. It has a separate page for its employees, which is used to generate and debate ideas.
An example of employees contributing to its success is its Twitter page. The chain's voice on Twitter
is 28-year-old Brad Nelson, a former barista. In 2008, when the company was looking for ideas to re-
engage with its customers, Nelson suggested that he could begin a Twitter handle for the brand.
Today, Starbucks has 775,000 followers.

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