consumer behaviour learning

• 1. Consumer Learning Module 4

2. + 3. Learning The process by which individuals acquire thepurchase and consumption knowledge and experience that they apply to future related behavior 4. The Elements Of Consumer Learning Motivation: Motivation is important to learning theory.Motivation is based on needs and goals. Motivation acts as a spur to learning Cues: If motives serve to stimulate learning, cuesare the stimuli that give direction to these motives. An advertisement for an exotic trip that includes bike riding may serve as a cue for bike riders, who may suddenly recognize that they need a vacation. The ad is the cue, or stimulus, that suggests a specific way to satisfy a salient motive. In the marketplace price, styling, packaging, advertising, and store displays all serve as cues to help consumers fulfill their needs in productspecific ways. 5. Response: How individuals react to a drive orcue- how they behave- constitute their response. Learning can occur even when responses are not overt. Reinforcement: Reinforcement increases thelikelihood that a specific response will occur in the future as the result of particular cues or stimuli. 6. + 7. Behavioral Learning Theories Classical Conditioning Instrumental Conditioning 8. Classical ConditioningA 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. 9. Models of Classical Conditioning 10. Analogous Model of Classical Conditioning 11. In a consumer behaviour context, anunconditioned stimulus might consists of a wellknown brand symbol (such as the Neutrogena name) that implies dermatologists endorsement and pure (chemically free) products. This previously acquired consumer perception of Neutrogena is the unconditioned response. Conditioned stimuli might consist of new products bearing the well-known symbol (of Neutrogena), and the conditioned response would be trying these products because of the belief that they embody the same attributes with which the Neutrogena name is associated. 12. Neo-Pavlovian Model: Under neo-Pavloviantheory, the consumer can be viewed as an information seeker who uses logical and perceptual relations among events, along with his or her own pre-conceptions, to form a sophisticated representation of the world. Conditioning is the learning that results from exposure to relationships among events in the environment; such exposure creates expectations as to the structure of the environment. 13. Strategic Applications of Classical Conditioning Basic Concepts Repetition Increases the Stimulusassociation between the conditioned and unconditioned stimulus Slows the pace of forgettinggeneralization Stimulus discrimination Although some overlearningaids retention, at some point an individual can become satiated with numerous exposures, and both attention and retention will 14. Strategic Applications of Classical Conditioning Basic Concepts Repetition Having the same Stimulusresponse to slightly different stimuli Useful in product extensionsgeneralization Stimulus discrimination 15. Strategic Applications of Classical Conditioning Basic Concepts Repetition Selection of a specific Stimulusstimulus from among similar stimuli This discrimination is the basis of positioning which looks for unique ways to fill needsgeneralization Stimulus discrimination 16. Honda Amaze USP- Indias most fuel efficient compact sedan Waiting Period: 4-5 months Price Range : (Rs Lakh)- 4.99-7.66 17. Honda Amaze 18. Maruti DZireUSP: Largest sold compact sedan with Maruti reliability Waiting Period: 1-2 months Price range: (Rs lakh): 4.92-7.50 19. Maruti DZire 20. 24 21. Harley Davidson motorcycles25 22. Hidesign leather bag26 23. Instrumental (Operant) ConditioningInstrumental 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 behaviour. This model of learning applies to many situations in which consumers learn about products, services, and retail stores. 24. Types of Reinforcement Positive: Consists of events that stengthen thelikelihood of a specific response. Using a shampoo that leaves your hair feeling silky and clean is likely to result in a repeat purchase of the shampoo. Negative: It is an unpleasant or negative outcome that also serves to encourage a specific behavior. Fear appeals in ad messages are examples of negative reinforcement. Many life insurance advertisements rely on negative reinforcement to encourage the purchase of life insurance. 25. Extinction: When a learned response is no longerreinforced, it diminishes to the point of extinction. If a consumer is no longer satisfied with the service a retail store provides, the link between the stimulus (the store) and the response (expected satisfaction) is no longer reinforced, and there is little likelihood that the consumer will return. Forgetting: Here the behaviour is unlearned because of lack of use rather than lack of reinforcement. Forgetting is often related to the passage of time; this is known as the process of decay. Marketers can overcome forgetting through repetition,and can combat extinction through the deliberate enhancement of consumer satisfaction. 26. Fear appeal (Negative reinforcement) United India Assurance: Today. A picture of Safety Tomorrow. An invitation to Disaster Your Protection Is Our Concern Take Cover Under United India Tonight Sleep Better Than Your Neighbour It Costs So Little To Insure Your Household Belongings 27. Instrumental Conditioning and Marketing Customer Satisfaction (Reinforcement) Relationship marketing Shaping ( Reinforcement performed before thedesired consumer behaviour actually takes place is called shaping). Massed versus Distributed Learning (Should a learning schedule be spread out over a period of time (distributed learning) or should it be bunched up all at once (massed learning)? When advertisers want an immediate impact (e.g., to introduce a new product or to counter a competitors blitz campaign), they generally use a massed schedule to hasten consumer learning. However, when the goal is long-term repeat buying on a regular basis, a distribution schedule is preferable. A distributed schedule, with ads repeated on a regular basis, usually results in more long-term learning and is relatively immune to extinction. 28. Observational LearningA process by which individuals observe how others behave in response to certain stimuli and reinforcements. Also known as modeling or vicarious learning. Their role models are usually people they admire because of such traits as appearance, accomplishment, skill, and even social class. 29. The consumer observes a positive response by two teens. 30. Cognitive Learning TheoryLearning based on mental activity is called cognitive learning. Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment. 31. Information Processing and Memory Stores 32. Information Processing Information processing is related to both theconsumers cognitive ability and the complexity of the information to be processed. Consumers process product information by attributes, brands, comparisons between brands, or a combination of these factors. Consumers with higher cognitive ability apparently acquire more product information and are more capable of integrating information on several product attributes than consumers with lesser ability. 33. Movement from short-term to long-term storagedepends on Rehearsal : The purpose of rehearsal is to holdinformation in short-term storage long enough for encoding to take place. Encoding: It is the process by which we select a word or visual image to represent a perceived object. Marketers, for example, help consumers encode brands by using brand symbols. Kellogs uses Tony the Tiger on its Frosted Flakes, Dell Computer turns the e in its logo on its side for quick name recognition. 34. Retention: Information is stored in longterm memory Episodically: by the order inwhich it is acquired Semantically: according to significant concepts 35. Retrieval: Retrieval is the process by which werecover information from long-term storage. For example, when we are unable to remember something with which we are very familiar, we are experiencing a failure of the retrieval system. 36. Involvement theory Involvement theory developed from a stream ofresearch called hemispheral lateralization, or split-brain theory. The basic premise of splitbrain theory is that the right and left hemispheres of the brain specialize in the kinds of information they process. The left hemisphere is primarily responsible for cognitive activities such as reading, speaking, etc. The right hemisphere of the brain is concerned with nonverbal, pictorial , and holistic information. The left side of the brain is rational, active, and realistic; the right side is emotional, impulsive, and intuitive. 37. Issues in Involvement Theory Consumer Relevance Central and Peripheral Routes to Persuasion Measure of Involvement 38. Consumer Relevance Involvement depends on degree of personalrelevance. High involvement purchases are: Very important to the consumer (e.g., in terms ofperceived risk) Provoke extensive problem solving (information processing) Highly involved consumers find fewer brands acceptable (they are called narrow categorizers); uninvolved consumers are likely to be receptive to a greater number of advertising messages regarding the purchase and will consider more brands (they 39. Central and Peripheral Routes to Persuasion Central route to persuasion For high involvement purchases Requires cognitive processing Peripheral route to persuasion Low involvement purchases Consumer less motivated to think Learning through repetition, visual cues, and holisticperception 40. The Elaboration Likelihood Model ELM suggests that a persons level ofinvolvement during message processing is a critical factor in determining which route to persuasion is likely to be effective. Thus when involvement is high, consumers follow the central route and when involvement is low they follow the peripheral route. 41. Measures of Consumer Learning Recognition and Recall Measures Recognition tests are based in aided recall, whereasrecall tests use unaided recall. In recognition tests, the consumer is shown an ad and asked whether he or she remembers seeing it and can remember any of its salient points. In recall tests, the consumer is asked whether he or she has read a specific magazine or watched a specific television show, and if so, can recall any ads or commercials seen, the product advertised, the brand, and any salient points about the product. Cognitive Responses to Advertising Comprehension Pretesting and Posttesting 42. Attitudinal and Behavioral Measures of BrandLoyalty Brand loyalty is the ultimate desired outcome ofconsumer learning. Attitudinal measures are concerned with consumers overall feelings about the product and the brand (i.e., evaluation), and their purchase intentions. Behavioral measures are based on observable responses to promotion stimuli-repeat purchase behavior rather than attitude towards the product or brand. 43. Four types of loyalty No loyalty no purchase at all and no cognitiveattachment to the brand Covetous loyalty- no purchase but strong attachment and predisposition towards the brand that was developed from the persons social environment Inertia loyalty- purchasing the brand because of habit and convenience but without any emotional attachment to the brand Premium loyalty- high attachment to the brand and high repeat purchase 44. Harley-Davidson Has Strong Brand Loyaltyweblink