Learning and Memory. The Importance of Consumer Learning to New Product Success Why did these products fail? –Ben-Gay Aspirin –Frito-Lay Lemonade Why.

Learning and MemoryLearning and Memory

The Importance of Consumer The Importance of Consumer Learning to New Product SuccessLearning to New Product Success

Why did these products fail?

– Ben-Gay Aspirin– Frito-Lay Lemonade

Why did PocketPaks succeed?

DefinitionDefinition

““A process by which individuals acquire A process by which individuals acquire the purchase and consumption the purchase and consumption

knowledge and experience that they knowledge and experience that they apply to future related behavior.apply to future related behavior.

PerceptionPerception LearningLearning

Two Schools of LearningTwo Schools of Learning

Behavioural Learning Theories

Based on “Blackbox” and passive acquisition of habits.

t1t2t3t4t5

S1S2S3S4S5

B1B2B3B4B5

““Focus on S, B Focus on S, B and T. “External and T. “External

World”World”Cognitive Learning Theory

Based on active information processing by the individual.

S1S1 ““Focus on Focus on Memory and Memory and Processing. Processing.

“Internal World”“Internal World”

IP

LTM

B1B1

Pavlovian Model of Classical Pavlovian Model of Classical ConditioningConditioning

Unconditioned StimulusMeat paste (S1)

Conditioned StimulusBell (S2)

Unconditioned ResponseSalivation (R1)

Conditioned StimulusBell (S2)

Conditioned ResponseSalivation (R1)

AFTER REPEATED PAIRINGSAFTER REPEATED PAIRINGS

Analogous Model of Classical Analogous Model of Classical ConditioningConditioning

Unconditioned StimulusSuperbowl

Conditioned StimulusBudweiser

Unconditioned ResponseFun

Conditioned StimulusBudweiser

Conditioned ResponseFun

AFTER REPEATED PAIRINGSAFTER REPEATED PAIRINGS

Conditions for Optimal Conditions for Optimal ConditioningConditioning

Forward Conditioning (CS Precedes US)Repeated Pairings of CS and USA CS and US that Logically Belong to Each

OtherA CS that is Novel and UnfamiliarA US that is Biologically or Symbolically

Salient

Basic Concepts of Classical Basic Concepts of Classical ConditioningConditioning

RepetitionStimulus GeneralizationStimulus Discrimination

RepetitionRepetitionRepetition increases

strength of associations and slows forgetting but over time may result in advertising wearout.

Cosmetic variations reduce satiation.

Figure 7.3 Cosmetic Variations in Ads

Stimulus Stimulus GeneralizationGeneralization

The inability to perceive differences between slightly

dissimilar stimuli.

Stimulus Generalization and Stimulus Generalization and MarketingMarketing

Product Line, Form and Category Extensions

Family Branding Licensing 1 Look-alike packaging Potential problems

Back

Figure 7.5 Figure 7.5 Product Line Product Line

ExtensionExtension

Figure 7.6 Product Form Figure 7.6 Product Form ExtensionsExtensions

Figure 7-8Figure 7-8Shoe Shoe

Manufacturer Manufacturer Licenses Licenses Its NameIts Name

Masked BrandingMasked Branding

Stimulus Stimulus DiscriminationDiscrimination

The ability to select a specific stimulus from among similar stimuli because of perceived

differences.

Stimulus Discrimination and Stimulus Discrimination and Marketing Marketing

PositioningDifferentiation

Figure 7.9 Figure 7.9 Stimulus Stimulus

DiscriminationDiscrimination

Learning through BehaviorLearning through Behavior

Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of experiences (reinforcement) resulting from certain responses or behaviors.

A Model of Instrumental A Model of Instrumental ConditioningConditioning

Need good-

looking jeans

Try Brand D

Try Brand C

Try Brand B

Try Brand A

Neg resultLegs too tight

Neg resultTight in seat

Neg resultBaggy in seat

RewardPerfect fit

Repeat Behavior

Learning through BehaviorLearning through Behavior

Instrumental (Operant) Conditioning

Instrumental: behavior seen as an instrument to reach a specific goal. .

Essential role played by the result of the behavior: Positive versus negative reinforcement.

Marketing Implications: Shaping and Loyalty programs.

Four Types of Learning OutcomesFour Types of Learning Outcomes

Figure 3.2

Learning through BehaviorLearning through Behavior

Instrumental (Operant) Conditioning

Instrumental: behavior seen as an instrument to reach a specific goal. .

Essential role played by the result of the behavior: Positive versus negative reinforcement.

Marketing Implications: Shaping and Loyalty programs.

Instrumental Conditioning and Instrumental Conditioning and Sales PromotionSales Promotion

Unknown product

Try First Purchase

RepeatPurchase

Loyal Consumer

Goal Promotional Shaping Reinforcement.

Consumers should know about the product.

Free Sample with important coupon.

Free Product, Quality and Coupon.

Consumers should

purchase the product for the first time.

Coupon included in purchase with smaller

discount.

Coupon and Product Quality.

Repeat Purchase Coupon with even smaller

discount. Coupon and Product

Quality.

Loyal Consumer No Promotion. Product Quality.

Brown classification (1952)

• Undivided Loyalty ex.: AAAAAAAA

• Divided Loyalty ex.: ABABABAB

• Unstable Loyalty ex.: AAABBBAA

• Non Loyal ex.: ABCDEFGH

Different Types of loyalty ?Different Types of loyalty ?

Brand Brand LoyaltyLoyalty

Consistent preference and/or purchase of the same brand

in a specific product or service category.

Brand Loyalty As a Function of Relative Attitude and Patronage Behavior

LatentLoyalty

No Loyalty

Spurious Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow

Repeat PatronageRepeat Patronage

Relative Relative AttitudeAttitude

Observational Observational LearningLearning

A process by which individuals observe the

behavior of others, remember it, and imitate it. Also known as modeling.

Learning through CognitionLearning through Cognition

Cognitive Learning Theory

A theory of learning based on mental information processing, often in response to problem solving.

Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

Figure 7.12 Figure 7.12 Appeal to Appeal to Cognitive Cognitive

ProcessingProcessing

Learning through the influence of cognition and memory

The consumer plays an active role in the learning process.

L= f(S, Rep.)

L= f (S, Reinf)

L = f (IP).

Learning through CognitionLearning through Cognition

Information Information ProcessingProcessing

A cognitive theory of human learning that focuses on how

information is stored in human memory and how it is

retrieved.

Information Processing and Memory Information Processing and Memory StoresStores

Sensory Store

Sensory Store

Working Memory (Short-term

Store)

Working Memory (Short-term

Store)

Long-term Store

Long-term Store

Sensory Input Encoding Retrieval

Forgotten; lost

Forgotten; lost

Forgotten; unavailable

Sensory StoreSensory Store

The place in which all sensory inputs are housed very briefly before passing into the short-term store.

Short-Term Short-Term StoreStore

The stage of real memory in which information received from the sensory store for

processing is retained briefly before passing into the long-

term store or forgotten.

RehearsalRehearsal

The silent, mental repetition of material. Also, the

relating of new data to old data to make the former

more meaningful.

EncodingEncoding

The process by which individuals select and assign

a word or visual image to represent a perceived object

or idea.

Long-Term Long-Term StoreStore

In information-processing theory, the stage of real

memory where information is organized, reorganized and retained for relatively extended periods of time.

An Associative Network

RetrievalRetrieval

The stage of information processing in which individuals recover

information from long-term storage.

What Is Retrieval?What Is Retrieval?

– Trace Strength Accessibility

– Spreading of Activation Priming

– Retrieval Failures Decay Interference Primacy and Recency Effects

– Retrieval Errors

Measures of Consumers Measures of Consumers LearningLearning

Recognition and Recall Measures– Aided and Unaided Recall

Cognitive Responses to Advertising– Copytesting

Attitudinal and Behavioral Measures of Brand Loyalty