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Learning & Memory in Consumer Behaviour

Nov 26, 2014

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Keshav Bhatia

This is a presentation for anyone interested in learning & memory theories in consumer behaviour
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Page 1: Learning & Memory in Consumer Behaviour

LearningLearning

Page 2: Learning & Memory in Consumer Behaviour

Consumer LearningConsumer LearningConsumer Learning is an important component of their

behavior. Learning occurs intentionally when a problem is recognized & information is acquired about products which might solve the problem. Consumer Learning can also occur unintentionally & can this can influence the behavior of consumers.

One benefit is that learning mechanism is that consumers are able to adapt to a changing environment.

Learning (Definition)

A relatively permanent change in behavior occurring as a result A relatively permanent change in behavior occurring as a result of experience. The change is permanent & therefore excludes of experience. The change is permanent & therefore excludes changes brought about by fatigue or other short lived changes brought about by fatigue or other short lived influences. influences.

Page 3: Learning & Memory in Consumer Behaviour

Types of Learned Behavior

Physical Behavior: We mimic the behavior of others in responding to ever day's life situations. E.g. We learn to walk & talk with others & learn to respond to purchase situations & learning these activities from others.

Symbolic Situation: We learn symbolic meaning that enable efficient communication through the development of languages. Symbols allows marketers to communicate with brand names, slogans & signs.

Affective Learning: Humans learn to value certain elements of their environment & dislikes others. This means that consumer learn many of their wants, goals & motives as well as what product satisfy them. Learning also influence customer development of favorable & unfavorable attitudes towards a company & its attitude.

Page 4: Learning & Memory in Consumer Behaviour

Principal Element of LearningPrincipal Element of LearningConsumer learn in many ways. However 4 elements seem to be

fundamental to a vast majority of situations – motives, cues, response & reinforcement.

Motives: Motives arouse individuals & increase their readiness to respond. It is essential, since it activates the energy needed to engage in learning activity.

Cues: A cue can be described as a weak stimulus not strong enough to arouse consumers but capable of providing direction to a motivated activity, that is, it influence the manner in which the consumer respond to motives.

Response: A response may be viewed as a mental or physical activity the consumer makes in reaction to a stimulus. Responses appropriate to a particular situation are learned over time through experience in facing the situation

Page 5: Learning & Memory in Consumer Behaviour

Reinforcement : This is anything that follows the response & increases the tendency of the response to reoccur in a similar situation. Because reinforced behavior tends to be repeated, consumers can learn to develop successful means of responding to their needs & changing conditions.

An accomplishment of a learning task is itself a reinforcing experience. Thus consumers may learn about products by merely by evaluating their relevance to solving consumption problems. Window shopping activity & informal discussion with friends or salesperson can be aspects of such learning activity.

Principal Element of LearningPrincipal Element of Learning

Page 6: Learning & Memory in Consumer Behaviour

Theories of LearningTheories of LearningBehavioral Learning Theories

Behavioral learning theories are refer to as stimulus-response theories. Because they are based on the assumption that observable responses to external stimuli meant that learning has happened.

Conditioning refers to a learning based on association of a stimulus (information) & response (behavior of feeling). The word conditioning seems to have a negative connotation & makes us feel it is brainwashing. 2 behavioral theories with great relevance to marketing are:

Classical Conditioning; &

Instrumental (Operant) Conditioning;

Page 7: Learning & Memory in Consumer Behaviour

Classical ConditioningThe process of using an established relationship between a The process of using an established relationship between a

stimulus & a response to brind about the learning of the stimulus & a response to brind about the learning of the same response to a different stimulus is called classical same response to a different stimulus is called classical conditioningconditioning

Consumer Learning Through Classical Conditioning

UCS (unconditioned stimulus)

Popular Music

CS (conditioned stimulus)

Soft Drink

UCR (unconditioned response)

Positive Emotion

CR (conditioned response)

Positive Emotion

Page 8: Learning & Memory in Consumer Behaviour

Classical Conditioning

3 concepts derived from classical conditioning are important for application 3 concepts derived from classical conditioning are important for application in consumer behavior are:in consumer behavior are:

Repetition: it increases the strength of the association between the Repetition: it increases the strength of the association between the unconditioned stimulus & conditioned stimulus & slows the process of unconditioned stimulus & conditioned stimulus & slows the process of forgetting. forgetting.

Stimulus Generalization: this is often referred to as the ‘rub off’ effect & Stimulus Generalization: this is often referred to as the ‘rub off’ effect & occurs when a response to one stimulus is elicited by a similar but distinct occurs when a response to one stimulus is elicited by a similar but distinct stimulus.stimulus.

Stimulus Discrimination: It refers to the process of learning to respond but Stimulus Discrimination: It refers to the process of learning to respond but differently to similar but distinct stimuli. At some point stimulus differently to similar but distinct stimuli. At some point stimulus generalization becomes dysfunctional because less & less similar stimuli generalization becomes dysfunctional because less & less similar stimuli are still being group together.are still being group together.

Page 9: Learning & Memory in Consumer Behaviour

Operant ConditioningInstrumental Learning or operant conditioning differs from

classical conditioning primarily in the role & timing of reinforcement. Reinforcement plays a much larger role in operant conditioning than it does in classical conditioning.

Consumer Learning by Operant Conditioning

Stimulus

(Popcorn)

Desired Response

(Consumption)

Reinforcement

(Pleasant Taste)

Increased probability of response to the stimulus

Page 10: Learning & Memory in Consumer Behaviour

Operant ConditioningOperant conditioning often involves actual usage of the product.

Thus, a great deal of marketing strategy is aimed at securing an initial trial. Free samples, special discount prices on new products & contests all present rewards offered to consumers to try a particular brand.

The Process of Shaping Purchase Behavior

Consume a free sample of biscuits that was given at your home by salesman

Purchase a second package using the discount coupon that was given with the sample

Purchase the product at full price

Page 11: Learning & Memory in Consumer Behaviour

Operant Conditioning is marketers beyond maintaining consistent quality to ensure reinforcement. The other applications include:

Direct mail or personal contact after a sale that congratulates the purchaser for making a wise purchase.

Giving ‘extra’ reinforcement for shopping at a store, such as discount or prizes.

Giving ‘extra’ reinforcement to purchase a brand such as gifts or rebates.

Giving free product sample or coupons to encourage trail.

Making store interiors pleasant place to shop by providing entertainment, controlled temperature, exciting displays etc.

Page 12: Learning & Memory in Consumer Behaviour

Difference Between Conditioning MethodsDifference Between Conditioning Methods

Classical Conditioning

•Involves an already established response to

another stimulus

•The outcome is not dependent on learner’s

actions

•Influences development & change in opinion

tastes & goals

Operant Conditioning

•No previous stimulus response connection

necessary.

•The outcome is dependent on learner’s

actions

•Influences changes in goal-directed behavior

Page 13: Learning & Memory in Consumer Behaviour

Theories of LearningTheories of LearningCognitive Learning Theories

Learning theorists have found that considerable learning takes place in the absence of direct reinforcement. Cognitive Learning includes all the mental activities of human as they work to solve their problems or cope with situations. It involves learning ideas, concepts, attitudes & facts that contribute to our ability to reason, solve problems & learn relationships without direct experience or reinforcement.

Iconic Rote Learning: This involves learning the association between 2 or more concept in the absence of conditioning.

Vicarious Learning/ Modeling: It is not necessary for consumers to directly experience a reward or a punishment to learn.

Reasoning/Analogy: The most complex form is Reasoning/analogical reasoning. In this individuals use creative thinking to combine existing & new information to form new association & concepts.

Page 14: Learning & Memory in Consumer Behaviour

The shape shows that learning is rapid in initial stages. However, The shape shows that learning is rapid in initial stages. However, in the later stage, as the amount learned accumulates, the rate in the later stage, as the amount learned accumulates, the rate of additional learning per trial decreases.of additional learning per trial decreases.

Rate & Degree of Learning (Curve)

x

Y

Number of Practice Trials

A

M

O

U

N

T

L

E

A

R

N

E

D

Page 15: Learning & Memory in Consumer Behaviour

Cognitive Learning TheoriesExtinction: We can ‘unlearn’ material or behavior that has

been previously learned. This unlearning process is termed ‘extinction’ & occurs when overtime, a learned response is made to a stimulus, but reinforcement does not occur. The resistance to extinction also becomes stronger when:

Impelling motives are strong;

The number of previously enforced trial is large;

The amount of reward during learning trial is large;

Reward is delayed during the learning process;

A partial reinforcement schedule occurs during learning.

Forgetting: The loss of retained material due to non-use or interference from some other learning task. Retention is the amount of previously learned material that is remembered.

Page 16: Learning & Memory in Consumer Behaviour

The shape shows that they have to repeat advertisement to prevent The shape shows that they have to repeat advertisement to prevent people from forgetting their products & brands. However designing people from forgetting their products & brands. However designing effective methods to minimize forgetting requires some understanding effective methods to minimize forgetting requires some understanding of human memory.of human memory.

Hours since Learning

Percentage of Material Retained

1 4 24 480

100

90

80

70

60

50

40

30

20

10

Recall

Recognition

Page 17: Learning & Memory in Consumer Behaviour

MemoryMemory

Memory is the total accumulation of prior learning experiences. Memory is important because what we can remember can have a profound impact on our consumption decision. Thus it is critical for marketer to understand the nature of memory processing.

What is Memory? Consumer Memory contain a vast storehouse of knowledge about products, services, shopping excursions & consumption experiences. Retrieval is the process of accessing what we have stored in our memory. Both Memory & Retrieval are important because whatever information is we store about a product may be retrieved later & used to influence how we act towards it & the decisions that we make about it.

Page 18: Learning & Memory in Consumer Behaviour

Types of MemoryTypes of Memory

Sensory Memory; The ability to store sensory experiences temporarily as they are produced is called sensory memory.

Short term Memory; Represents that portion of memory where incoming information is encoded & interpreted in the light if existing knowledge. It is also called Active & learning Memory.

Long Term memory; Part of memory where information is stored for later use. The information stored may be autobiographical (personal experience) or semantic (information not derived from specific episodes.)