Consumer Learning

1. Consumer Learning

2. Consumer Learning • Learning is the process by which individuals acquire the purchase & consumption knowledge & experience that they apply to future related behavior. • Learning takes place if an individual behaves, reacts or responds as a result of experience in a manner different from the way the person formerly behaved.

3. Elements of Learning • Motivation- is the driving force that impels individuals to action. • If a consumer has motivation to learn something, there is increased likelihood that learning will take place. • Example Bicycle riding for fitness. • Cues- are relatively small stimuli , not strong enough to arouse consumers but have the potential of providing direction to motivated activity.

4. Elements of Learning • An advertisement for an exotic trip that includes bike riding may serve as a cue for bike riders. • Cues serve to direct consumer drives when they are consistent with the consumer expectations. Marketers must be careful to provide cues that do not upset those expectations.

5. Elements of Learning • Response- The way an individual reacts to a cue or stimuli is the response leading to learning. • The automobile producer that provides consistent cues to consumers may not always succeed in stimulating a purchase. • But if the maker has been able to form a favorable image of the product in consumers mind then it is likely that the consumer will consider that make. Positioning

6. Elements of Learning • Reinforcement-increases the likelihood that a specific response will occur in the future as the result of particular cues. • If the consumer have positive experiences about a product there is likelihood that the repurchase will take place. • For example the cream to fight acne or pimples.

7. Behavioral learning theories • There are two behavioral theories with great relevance to marketing are • Classical Conditioning • Instrumental Conditioning

8. Classical Conditioning • Conditioning refers to a kind of automatic response to something as a result of repeated exposure to it. • For an example if a child gets excited every time she/he thinks of going to McDonalds , the reaction may be conditioned from many pleasant visits to the restaurant.

9. Pavlovian model of Classical Conditioning Unconditioned stimulus- Meat Paste Unconditioned Response SALIVATION Conditioned Stimulus- Bell Conditioned stimulus- Bell Conditioned Response SALIVATION

10. Recall Value Strategic application of classical conditioning • Repetition- The consumers have a tendency to forget & one proven method of increasing retention of learning is repetition. • Although the principle of repetition is well established among advertisers, not everyone agrees how much repetition is required. • The experts believe that three exposures to an advertisement are needed.

11. Strategic application of classical conditioning • The effectiveness of repetition is dependent on the amount of competing advertising to which the consumer is exposed. • The higher the level of competing ads, the greater the likelihood that interference would occur , causing consumers to forget previous learning that resulted from repetition.

12. Strategic application of classical conditioning • Stimulus Generalization- Learning depends not only on repetition but also on ability of individuals to generalize it. • The dog could learn to salivate not only to the sound of bell but also to somewhat similar sounds. • Stimulus Generalization explains why sometimes imitative me too products succeed in the market place. Copies of Luxury Brands

13. Strategic application of classical conditioning • Consumers confuse them with the original product they have seen advertised. • It also explains why the private label brands try to make their packaging closely resemble the national brand leaders.

14. Strategic application of classical conditioning • Product Line form and Category extensions- The principle of stimulus generalization is adopted by marketers to product line, form & category extensions. • In line extensions the marketers add related products to an already established brand, knowing the new products are more likely to be adopted when they are associated with a known & trusted brand name.

15. Strategic application of classical conditioning • The Stimulus generalization is frequently used in family branding by the marketers. • Stimulus Discrimination- is the opposite of stimulus generalization & results in the selection of a specific stimulus from among similar stimuli. • Stimulus discrimination is widely used in positioning strategy of the companies.

17. Instrumental Conditioning • Instrumental Conditioning theory says that learning occurs through a trial & error method. • In Instrumental conditioning the stimulus that results in most satisfactory response is the one that is learned. • For example the consumers are likely to patronize only that store that carries clothing that meets their needs.

18. Instrumental Conditioning • This theory says that the consumers learn through the trial & error process in which some purchase behavior results in more favorable outcomes than other purchase behaviors.

19. Reinforcement of behavior • Reinforcement is anything that increases the strength of response & tends to induce the repetition of behavior. Reinforcement can be positive as well as negative. • Positive reinforcement consists of events that strengthen the likelihood of a specific response. Using a shampoo that leaves the hair silky & soft is likely to result in the repeat purchase of the product.

20. Reinforcement of behavior • Negative reinforcement is an unpleasant or negative outcome that also serves to encourage a specific behavior. • An ad that shows a model with wrinkled skin is designed to encourage consumers to buy & use the advertised cream. • Many insurance companies also use this theory to propel the sale of their products.