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.
 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.
 .

The process by which individuals acquire the

purchase and consumption knowledge and
experience that they apply to future related
behavior
Elements of Learning Theories
Marketing Implication (Motivation)
The marketer can play an important role by

(i) identifying or helping the consumer identify the

sub-conscious and hidden motives;

(ii) triggering off motives and desires;

In both these ways, the consumer would be motivated to

search for information, in so far as that product/service
would help satisfy the need/want. 
Marketing Implication (Cues)
All the 4Ps could act as cues and give direction to motives; eg.

• the packaging of the product (colorful design; easy to carry;

reusable containers),

• price (discounts, sales),

• place (store display, store layout, window dressing) and

• promotion (advertisement). 
Marketing Implication (Response)
This response could take various forms: 

- It may be overt and lead to an action; the consumer may decide

to purchase the product/brand. Or, 

- The response may just be learning for the future, i.e. the
purchase is postponed for future; he decides to buy at a later
date. Or, 

- A favorable image about the product and the brand may get
created; the consumer develops an intention to buy; as and when
the consumer decides to make the purchase, he would consider
that brand. 
Marketing Implication (Reinforcement)
If a person buys a particular product/brand, and the
purchase leads to satisfaction and delight, and lives up
to expectations, the consumer would feel that he has got
value for money. Through a positive reinforcement,
learning would take place, and the consumer would
prefer to buy the same product/brand in future. On the
other hand, if he feels dissatisfied, again learning would
take place and he would learn not to buy the same
product/brand in future. In fact, positive reinforcement
could develop brand loyalty. 
Nature and Characteristics of Learning: 

a) Learning involves a change in behavior; in terms of consumer learning, it implies

that a consumer who is exposed to the marketing stimuli, may react to it through its
purchase and consumption; if his experience is satisfying, he would repeat the
purchase behavior in favor of the brand. In case he is not satisfied, he would switch
over to another brand. Thus leaning involves a change in behavior. 

b) The change in behavior occurs because of experience, there has to be some kind of
an experience for learning to occur. This experience could be direct (self-
experience) or indirect (experiences of others, and word of mouth). A consumer
learns about a product/service category and the varying brands either on his own or
from others. His pleasant experiences with the product/service category, leads to a
positive opinion about the brand, and would eventually develop into brand loyalty.
On the contrary, his unpleasant experience, leads to a negative word of mouth and
switchover to other brands. 
Cont.
c) Apart from experiences, consumer learning also reflects the impact of (i) marketing
(commercial) and non-marketing communication (interpersonal/non-commercial), as
well as (ii) background characteristics. 

Marketing communication (advertisements, publicity, personal selling, sales force etc.)

as well as interpersonal communication have a big role to play in consumer learning.
The marketer educates the consumer about the product/service category, attributes,
benefits, features, price etc. The consumer also learns about the brand from the dealer
or even from the packaging/labeling. Interpersonal communication with family, friends,
peers (word-of-mouth), opinion leaders etc. also impacts consumer learning. 
Cont.
d) Learning is a cognitive process and can only be inferred through our actions and
behavior. Learning includes exposure to information, its processing and storage; this
entire process cannot be observed directly, and is only reflected in our behavior. In terms
of consumer behavior, we could explain consumer learning by observing the behavior of
consumers in a store. For example, majority of the people who buy health tonic for their
children purchase the Complan brand. This would give an input to the dealer that
Complan is a popular brand and is favoured over Boost and Bournvita. Heinz India Pvt.
Ltd. would be able to interpret this behavior on the part of the consumers as customer
satisfaction and popularity with its brand Complan. On the other hand, GlaxoSmithKline
and Cadbury would infer that they need to improve upon Boost and Bournvita
respectively. 
Cont.
e) Learning is a continuous process. A person is exposed to information/ knowledge
and/experiences all the time; he interprets these, learns from them and stores these in
his memory for retrieval. This addition of knowledge to the memory bank may
alter/modify existing information (this entire bank is called the Associative Network). 

Consumer learning as a continual process where knowledge is ever evolving as a result

of –

(i) marketing stimuli (watching or reading about newer products/services and brands,
their features, prices etc. and thinking about them); or,

(ii) discussion with family, friends, peers, colleagues, blogs and public forums; or,

(iii) direct experiences (self) and indirect experiences (Word-of-Mouth). This

knowledge gets integrated into the memory with the other information stored
earlier; infact, this newly acquired information would alter/modify existing
information, and acts as a basis for future purchase. 
Cont.
f) Learning may be specific/intentional, ongoing and incidental. 

- Consumer learning is specific/intentional when it is directed to a specific need and

problem solving; it is deliberate in nature and specific to the situation, where the
person intends making an immediate purchase. 

Example: student enters college and needs to buy a laptop so that he can work on his
assignments. So he searches for information, talks to dealers, friends etc. and obtain
knowledge. 

- Ongoing learning is long drawn; the consumer intends making the purchase
sometime in the future, and is searching for information and adding up to his
associated network. 

Example: the same student, has been thinking of purchasing the laptop since the past
five years, and over these past 5-6 years, he has been gathering information specific to
the laptop as a product category and also about the various brands available. 
Cont.
- In incidental learning, learning occurs incidentally as a byproduct of something else;
It is not deliberately sought and is totally unintentional; it is acquired by accident or
without much effort. 

Example: the student goes to a mall; he has gone there to help his mother buy a
microwave oven; there in the store, he attends a demonstration of a new laptop that is
being launched. 
The First Artificial Sweetener, Saccharin

Saccharin was discovered in 1878 by Constantin Fahlberg.  Fahlberg accidentally

tasted a mixture of sulfobenzoic acid with phosphorus (V) chloride and ammonia
to create benzoic sulfinide—or, saccharin and later found that it is human health
friendly.
Approaches to learning: Two Major Learning
Theories
LEARNING THEORIES 
There are two approaches to the study of learning, viz., the
behavioral approach to learning, and the cognitive approach to
learning. According to the behavioral theorists, learning takes
place in response to events/happenings in a person’s external
environment. On the other hand, the cognitive theorists believe
that learning takes place as a result of a person’s conscious and
deliberate information processing and storage activity.
 Classical Operant Conditioning
Conditioning (Instrumental)
Learning Learning

It is a process of It is a type of learning

behavior modification in which an individual's
made famous by behavior is modified
Ivan Pavlov and his by its antecedents and
experiments consequences.
conducted with dogs.

Ivan B. F. Skinner
Pavlov
 Classical Conditioning by Ivan Pavlov
Behavioral theorists do not concentrate on the dynamics of the learning process.
Their major concern is on viewing learning as a response to events/happenings
in a person’s external environment. The main proponents of this approach were
Pavlov. 
11
 Exampl
e
Dinner aroma

You are hungry

8 O'clock News

8 O'clock News You are hungry

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Marketing Implication

In classical conditioning, the goal is to get consumers to associate

brands with a particular feeling or response.

Coca-Cola, for example, has successfully associated their brand with

happiness and satisfaction. By associating the beverage with physical
activities and environmental factors like sports, the sun, and the beach
—things that make you thirsty—Coca-Cola has positioned itself in the
minds of consumers across the world as a thirst quencher. So when
you’re hot, when you’ve exercised, or when you’re at the beach, there’s
a good chance you start thinking about a Coke.
 How effective conditioning can create a very
favourable strategy for marketers...

• The cola’s (Pepsi and Coke) have used Classical Conditioning very effectively
over the years.
• Thirst (An Unconditioned Response) is generated by various environmental and
physical factors like heat, sports, workout, dehydration etc. (These
are Unconditioned Stimuli).
• Pepsi and Coke have strategically placed and associated their products with all the
above Unconditioned Stimuli like heat, sports, etc repeatedly.
• They have also used key words in their branding like “Thanda Matlab Coca Cola”.
This has played the part of a Conditioned Stimulus which is placed along with
the Unconditioned Stimuli every time (hence the sponsorships for major sporting
events).
• Over time the Conditioned Stimulus (Cola drink) becomes a signal for the
arrival of the Unconditioned Stimulus (heat, dehydration) for the brain and we
feel thirsty just by seeing a big poster of Coke or Pepsi without actually
experiencing any of the above environmental or physical factors. Thus, we don’t
only have a Coke/Pepsi when we are thirsty, we feel thirsty when we see a
Coke/Pepsi!
Coca cola pool boy advertisment
Other
examples

• Dermi cool – “Aaya mausam thande thande Dermi cool ka”

• Fair n Lovely winter fairness cream – “Sardiyon mein
nikhar ghatega nahin badhega”
 Strategic Applications of Classical Conditioning
(Pavlov theory application)

Basic • Increases the association

Concepts between the
• Repetition conditioned and
• Stimulus unconditioned stimulus
generalization • Slows the pace of
• Stimulus forgetting
discrimination
• Advertising wear out is
a problem

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Why Did Amul Use Different Ads to Advertise the
Same Product?
Repetition of the Message with Varied Ads Results in
More Information Processing by the Consumer
 Strategic Applications of
Classical Conditioning
Basic • Having the same
Concepts response to slightly
• Repetition different stimuli
• Stimulus • Useful in:
generalization  Product extensions
 Family branding
• Stimulus  Licensing
discrimination

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 Strategic Applications of
Classical Conditioning
Basic • Selection of a specific
Concepts stimulus from similar
stimuli
• Repetition • Opposite of stimulus
• Stimulus generalization
generalization • This discrimination is
• Stimulus the basis of positioning
discrimination which looks for
unique ways to fill
needs
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Stimulus discrimination (Pavlov’s theory)

Eventually, the dogs would salivate in response to the sound of the tone
alone (a conditioned response to a conditioned stimulus). Now, imagine
that Pavlov introduced a different sound to the experiment. Instead of
presenting the sound of the tone, let's imagine that he sounded a trumpet.
What would happen?

If the dogs did not drool in response to the trumpet noise, it meant that
they were able to discriminate between the sound of the tone and the
similar stimulus. Not just any noise will produce a conditioned response.
Because of stimulus discrimination, only a very particular sound will
lead to a conditioned response.
Operant Conditioning by B.F.Skinner (American Psychologist)
How Reinforcement and Punishment Modify Behavior

Operant conditioning, sometimes referred to as instrumental conditioning, is a

method of learning that employs rewards and punishments for behavior.
Through operant conditioning, an association is made between a behavior and
a consequence (whether negative or positive) for that behavior.

For example, when lab rats press a lever when a green light is on, they receive
a food pellet as a reward. When they press the lever when a red light is on,
they receive a mild electric shock. As a result, they learn to press the lever
when the green light is on and avoid the red light.
How instrumental conditioning works?

Tastes Good
Termination of aversive stimulus
Tastes bad (Headache ceases after aspirin)
 Instrumental Conditioning (BF Skinner)

Like classical conditioning, instrumental conditioning requires a link

between a stimulus and a response.  However, in instrumental
conditioning, the stimulus that results in the most satisfactory response is
the one that is learned.

Instrumental learning theorists believe that learning occurs through a trial-

and-error process, with habits formed as a result of rewards received for
certain responses or behaviours. 

 In consumer behaviour terms, instrumental conditioning suggests that

consumers learn by means of a trial-and-error process in which some
purchase behaviours result in more favourable outcomes (i.e., rewards)
than other purchase behaviours

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Cont.

In a marketing context, the consumer who tries several brands

and styles of jeans before finding a style that fits her figure
(positive reinforcement) has engaged in instrumental learning.

Fear appeals in ad messages are examples of negative

reinforcement.  Either positive or negative reinforcement can be
used to elicit a desired response. 
 A Model of Instrumental Conditioning

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 Reinforcement of Behavior

Positive Negative
Positive outcome Negative outcome

Strengthen likelihood Encourages behavior

Positive reinforcement is a good thing that happens which rewards a

behavior – Going to the gym made you feel good so you go every other
day.

Negative outcome is a bad thing that happens which encourages a

behavior. You ate a donut every morning for breakfast so gained a lot
of weight over the past week. This causes you to go to the gym every
other day and to stop eating donuts.
 Reinforcement of Behavior

Extinction
Forgetting
A learned response is no The reinforcement is forgotten
longer reinforced
The link is eliminated
between stimulus and
reward
Extinction and forgetting are easily confused. But think of what the
words mean. If the response, is forgotten it can be brought back just by
remembering. If it is extinct, it is unlearned. The link between the
stimulus and the response is destroyed.
Marketing Implication
The fundamental idea behind operant conditioning is
that the marketer applies great effort to encourage
potential consumers to actually try their product. They
do so by giving away large quantities of the product,
completely free of charge. The end result – the marketer
hopes – is that people who try the product, like it. And
so much so, they become motivated to purchase the
product at full price on an ongoing basis.
Real Life Example
Despite fierce competition and increased health concern
scrutiny, the global energy drink market continues to
flourish. Red Bull and Monster Energy remain market
dominant forces, with both companies occupying a
massive market share, globally.

A major contributing factor to both companies’ success

has been their supreme commitment to unleashing a
full-scale operant conditioning campaign – both
financially and in terms of intensity. And, they do this in
every geographic segment in which they operate.
 RED BULL VIDEO

https://www.youtube.com/watch?v=HoVea9VTMek
Strategic Applications of Instrumental Conditioning

• Reinforcement Schedules can vary

• They can be (otherwise called “Schedules of
reinforcements”
• Marketers will often use random reinforcement as a
bonus for the customer and fixed reinforcement as
loyalty points or rewards.
• 5 TYPES of REINFORCEMENTS
1. Skinner used positive reinforcement to teach rats to press a lever in a
Skinner box. At first, the rat might randomly hit the lever while exploring the
box, and out would come a pellet of food. After eating the pellet, what do you
think the hungry rat did next? It hit the lever again, and received another pellet
of food. Each time the rat hit the lever, a pellet of food came out. When an
organism receives a reinforcer each time it displays a behavior, it is
called continuous reinforcement.

 2. A fixed interval reinforcement schedule is when behavior is rewarded

after a set amount of time. For example, June undergoes major surgery in a
hospital. During recovery, she is expected to experience pain and will require
prescription medications for pain relief. June is given an IV drip with a
patient-controlled painkiller. Her doctor sets a limit: one dose per hour. June
pushes a button when pain becomes difficult, and she receives a dose of
medication. Since the reward (pain relief) only occurs on a fixed interval,
there is no point in exhibiting the behavior when it will not be rewarded.
3.With a variable interval reinforcement schedule, the person or animal
gets the reinforcement based on varying amounts of time, which are
unpredictable. Say that Manuel is the manager at a fast-food restaurant.
Every once in a while someone from the quality control division comes to
Manuel’s restaurant. If the restaurant is clean and the service is fast,
everyone on that shift earns a $20 bonus. Manuel never knows when the
quality control person will show up, so he always tries to keep the
restaurant clean and ensures that his employees provide prompt and
courteous service. 

4. With a fixed ratio reinforcement schedule, there are a set number of

responses that must occur before the behavior is rewarded. Carla sells
glasses at an eyeglass store, and she earns a commission every time she
sells a pair of glasses. She always tries to sell people more pairs of glasses
to increase her commission. She does not care if the person really needs
the prescription sunglasses, Carla just wants her bonus. Fixed ratios are
better suited to optimize the quantity of output, whereas a fixed interval, in
which the reward is not quantity based, can lead to a higher quality of
output.
5. In a variable ratio reinforcement schedule, the number of responses
needed for a reward varies. This is the most powerful partial reinforcement
schedule. An example of the variable ratio reinforcement schedule is
gambling. Imagine that Sarah—generally a smart, thrifty woman—visits Las
Vegas for the first time. She is not a gambler, but out of curiosity she puts a
quarter into the slot machine, and then another, and another. Nothing happens.
Two dollars in quarters later, her curiosity is fading, and she is just about to
quit. But then, the machine lights up, bells go off, and Sarah gets 50 quarters
back. That’s more like it! Sarah gets back to inserting quarters with renewed
interest, and a few minutes later she has used up all her gains and is $10 in the
hole. Now might be a sensible time to quit. And yet, she keeps putting money
into the slot machine because she never knows when the next reinforcement is
coming. She keeps thinking that with the next quarter she could win $50, or
$100, or even more. Because the reinforcement schedule in most types of
gambling has a variable ratio schedule, people keep trying and hoping that the
next time they will win big. This is one of the reasons that gambling is so
addictive—and so resistant to extinction.