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 LearnMarketers want to “teach” consumers about their productsproduct attributeswhere to buy themhow to use and dispose of themThey want to know how effective they have been in communicating with the consumerdirectly, 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 memoryFrom 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 SituationsLearning occurs at various levels of consumer involvementLow-level involvement: consumers have little or no motivation to process the informationHigh-involvement learning: consumers are highly motivated to process the informationLearning TheoriesThere are many theories about how people learnThey fall into two general categories:1. Behavioral learning theories2. Cognitive theoriesBehavioral Learning TheoriesAre also referred to as stimulus-response theories because based on premise that observable responses to specific external stimuli signal learning has taken placeWhen a person responds in a predictable way to a known stimulus, he or she is said to have learnedThere are two behavioral theories with relevance to marketing:1. Classical conditioning2. Instrumental/operant conditioningClassical ConditioningThe 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 ElicitThe 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 ConditioningThree basic concepts derive from classical conditioning1. Repetition2. Stimulus generalization3. Stimulus discriminationIncreases 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 campaignToo much repetition can lead to advertising wearoutConsumers may become annoyed with repetitive ads and develop a negative image of the product as a result1. Repetition2. Stimulus GeneralizationLearning relies not only on repetition, but on peoples’ ability to generalize--that is, respond in the same way to slightly different stimuliExplains why some manufacturers try to make their generic/store brands similar in appearance to name brandsMarketers 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 extensionReferred to as the halo effect3. Stimulus DiscriminationOpposite of stimulus generalizationResults in the selection of a specific stimulus from among similar stimuliForms the basis for marketers’ positioning strategyPermits marketers to differentiate their product from competitors’ (through, e.g. different features, colors, ingredients, etc.)Operant (Instrumental) ConditioningB.F. SkinnerLearning occurs through trial and errorHabits are formed as a result of rewards for certain behaviorsConsumers 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 ConditioningReinforcementA reward given to acknowledge a desired behavior and increase the probability it will be repeated1. Positive reinforcementEvents that strengthen the likelihood of a specific response2. Negative reinforcementA negative outcome that also serves to encourage a specific behaviorFear appealsPunishmentPunishment discourages behavior as opposed to encouraging behavior to avoid a negative resultExtinctionWhen 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 ConditioningCustomer SatisfactionIn order to keep its customers, a marketer or business must maximize positive reinforcementThis can be done through the product itselfCan also be done with other elements of the purchase situationReinforcement SchedulesThe pattern in which reinforcements are givenMarketers have found that while product quality needs to remain high to satisfy consumers, non-product positive reinforcement does not have to be offered every timeThree 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 TheoryLearning 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