Chapter 5Why Marketers are Concerned about How Consumers LearnWhat is Learning?Range of Learning SituationsLearning TheoriesBehavioral Learning TheoriesClassical ConditioningSlide 8Slide 9Strategic Applications of Classical Conditioning1. Repetition2. Stimulus GeneralizationSlide 133. Stimulus DiscriminationOperant (Instrumental) ConditioningOperant ConditioningReinforcementPunishmentExtinctionStrategic Applications of Instrumental ConditioningReinforcement SchedulesSlide 22Reinforcement Schedules & ForgettingCognitive Learning TheoryMarketing Implications of Cognitive Learning TheoryCognitive Associative LearningImplications for MarketersVicarious (Observational) LearningSlide 29Brand LoyaltySlide 31Consumer LearningConsumer Learningand Memoryand MemoryChapter 5Consumer Learningand MemoryWhy Marketers are Concerned about How Consumers LearnMarketers want to “teach” consumers about their productsproduct attributeswhere to buy themhow to use and dispose of themThey want to know how effective they have been in communicating with the consumerdirectly, through advertisements Indirectly, through product appearance, packaging, price and distribution channelsWhat is Learning?Generally, learning is a process by which changes occur in the content or organization of an individual’s long-term memoryFrom a marketing standpoint, learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviorRange of Learning SituationsLearning occurs at various levels of consumer involvementLow-level involvement: consumers have little or no motivation to process the informationHigh-involvement learning: consumers are highly motivated to process the informationLearning TheoriesThere are many theories about how people learnThey fall into two general categories:1. Behavioral learning theories2. Cognitive theoriesBehavioral Learning TheoriesAre also referred to as stimulus-response theories because based on premise that observable responses to specific external stimuli signal learning has taken placeWhen a person responds in a predictable way to a known stimulus, he or she is said to have learnedThere are two behavioral theories with relevance to marketing:1. Classical conditioning2. Instrumental/operant conditioningClassical ConditioningThe theory that conditioned learning results when a stimulus that is paired with a stimulus that elicits a known response serves to produce the same response when used aloneClassical ConditioningSchematic Presentation of Classical ConditioningConditioned Stimulus (CS)Unconditioned Stimulus (US)Unconditioned Response (UR)ElicitsComes to ElicitThe use of a well-known, admired individual to advertise a product can condition consumers to have positive feelings about the product“Cause marketing”Strategic Applications of Classical ConditioningThree basic concepts derive from classical conditioning1. Repetition2. Stimulus generalization3. Stimulus discriminationIncreases the strength of the association between a conditioned stimulus and an unconditioned stimulus (learning)It is used by advertisers when scheduling media exposure for an advertising campaignToo much repetition can lead to advertising wearoutConsumers may become annoyed with repetitive ads and develop a negative image of the product as a result1. Repetition2. Stimulus GeneralizationLearning relies not only on repetition, but on peoples’ ability to generalize--that is, respond in the same way to slightly different stimuliExplains why some manufacturers try to make their generic/store brands similar in appearance to name brandsMarketers use this principle to take advantage of a well-known and trusted brand in a number of ways1. Product line extensions 2. Product form extension 3. Product category extensionReferred to as the halo effect3. Stimulus DiscriminationOpposite of stimulus generalizationResults in the selection of a specific stimulus from among similar stimuliForms the basis for marketers’ positioning strategyPermits marketers to differentiate their product from competitors’ (through, e.g. different features, colors, ingredients, etc.)Operant (Instrumental) ConditioningB.F. SkinnerLearning occurs through trial and errorHabits are formed as a result of rewards for certain behaviorsConsumers who try different brands, models, styles until they find the one that “fits” are engaged in instrumental learningOperant ConditioningSpecific BehaviorReinforcementor PunishmentIncreased or DecreasedProbability of ResponseSchematic Presentation of Operant ConditioningReinforcementA reward given to acknowledge a desired behavior and increase the probability it will be repeated1. Positive reinforcementEvents that strengthen the likelihood of a specific response2. Negative reinforcementA negative outcome that also serves to encourage a specific behaviorFear appealsPunishmentPunishment discourages behavior as opposed to encouraging behavior to avoid a negative resultExtinctionWhen a learned response is no longer reinforced, it diminishes to the point of extinction—i.e., there is no longer a link between the stimulus and the expected rewardStrategic Applications of Instrumental ConditioningCustomer SatisfactionIn order to keep its customers, a marketer or business must maximize positive reinforcementThis can be done through the product itselfCan also be done with other elements of the purchase situationReinforcement SchedulesThe pattern in which reinforcements are givenMarketers have found that while product quality needs to remain high to satisfy consumers, non-product positive reinforcement does not have to be offered every timeThree types of reinforcement schedules:1. Continuous/total (every time)2. Systematic/fixed ratio (every “nth” time)3. Random/variable ratioTimeTimeBehavior MaintenanceBehavior MaintenanceReinforcement Schedules & ForgettingForgetting occurs more quicklyForgetting occurs gradually over timeand the residual effects of learning persistContinuous Reinforcement Intermittent ReinforcementCognitive Learning TheoryLearning based on mental activity (i.e. thinking and problem-solving)Unlike simpler organisms, we learn not only by trial and error, but by searching for information evaluating the information, and making a decision
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