Chapter 7

1. Consumer Behavior,Eighth EditionSCHIFFMAN & KANUK Chapter 7 Consumer Learning

2. The Importance of Consumer Learning to New Product Success • Why did these products fail? • Listerine Toothpaste • Ben-Gay Aspirin • Why did Pocket Packs succeed?

3. Importance of Learning • Marketers must teach consumers: • where to buy • how to use • how to maintain • how to dispose of products

4. Behavioral Theories: Theories based on the basis that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory. Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving. Learning Theories

5. Consumer Learning A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior.

6. Intentional: learning acquired as a result of a careful search for information Incidental: learning acquired by accident or without much effort Learning Processes

7. Consumer learning contd…. • Example • some ads may induce learning (Brand names) even though the consumers attention is elsewhere (on a magzine article rather than the ads on facing page) • Other ads are sought out and carefully read by consumers for making a purchase decision.

8. Elements of Learning Theories • Motivation • Cues • Response • Reinforcement

9. Motivation • The degree of relevance or involvement determines consumer level of motivation to search for • knowledge OR • information about a product or a service.

10. Cues • Motives serve to stimulate learning, • Cues are the stimuli that gives direction to these motives e.g. an ad is a cue for consumer motivation for a specific product or service. • In the market place price, styling, packaging, advertising and the store displays all serve as cues.

11. Cues • Marketers teach motivated consumer segments why and how their products will fulfill the consumers need. • Motives serve to stimulate learning.

12. Response • How individuals react to a drive or cue • How they behave constitute their response e.g. a marketer that provides consistent cues to a consumer may not always succeed in stimulating a purchase.

13. Response contd… • However if marketer succeeds in forming a favorable image of a particular product in consumer’s mind. • It is likely that he or she will consider that product.

14. Reinforcement A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.

15. Figure 7.1 Product Usage Leads to Reinforcement

16. Behavioral Learning Theories • Classical Conditioning • Instrumental Conditioning • Modeling or Observational Learning

17. Classical Conditioning A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.

18. Example • If you usually listen to the 9 o’ clock news while waiting for dinner to be served you would tend to associate the 9 o, clock news with dinner, So that eventually the sounds of the 9 o’ clock news alone might cause your mouth to water even if dinner was not being prepared and even if you were not hungry.

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

20. Figure 7.2B Analogous Model of Classical Conditioning Unconditioned Stimulus Dinner aroma Unconditioned Response Salivation Conditioned Stimulus 9 o’clock news AFTER REPEATED PAIRINGS Conditioned Stimulus 9 o’clock news Conditioned Response Salivation

21. Strategic Applications of Classical Conditioning • Repetition • Stimulus Generalization • Stimulus Discrimination

22. Repetition • Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Figure 7.3 Cosmetic Variations in Ads

23. Three-Hit Theory • Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective • The number of actual repetitions to equal three exposures is in question.

24. Three-Hit Theory • 1) to make consumers aware of the product • 2) to show cosumers the relevance of the product • 3) to remind them of its benefits according to others marketing scholars • 11 to 12 repetitions

25. Stimulus Generalization The inability to perceive differences between slightly dissimilar stimuli.

26. Continued. • It explain why some imitative “me-too” products succeed in the market place. Because • Consumers confuse them with original product they have seen advertised

27. Example • That an individual can learn to take dinner not only to the sound of 9 o’ clock news but also to the some what similar sound of Azan.

28. Stimulus Generalization and Marketing • Product Line, Form and Category Extensions • Family Branding • Licensing • Generalizing Usage Situations

29. Figure 7.5 Product Line Extension(adding related products to an already established brand)

30. Product form extensions • Such as crest toothpaste to to crest whitestrips, • Listerine mouthwash to listerine paks • Bath soaps to liquid soaps

31. Figure 7.6 Product Form Extensions

32. Figure 7.7 Product Category Extensions

33. Family branding • The practice of marketing a whole line of company products under the same brand name

34. Family branding • The practice of marketing a whole line of company products under the same brand name. • A strategy that capitalizes on the consumers ability to generalized favorable brand associations from one product to others: e.g Nestle

35. Licensing • Allowing a well known brand name to be affixed to products of another manufacturer. • A strategy that operates on the principle of stimulus generalizations. • Examples: names of designers, manufacturers, celebrities, corporations and even cartoon characters are attached for a fee i.e rented.

36. Figure 7-8Shoe Manufacturer Licenses Its Name

37. Stimulus Discrimination The ability to select a specific stimulus from among similar stimuli because of perceived differences. Positioning Differentiation

38. Try Brand A Unrewarded Legs too tight Try Brand B Unrewarded Tight in seat Stimulus Situation (Need good-looking jeans) Try Brand C Unrewarded Baggy in seat Try Brand D Reward Perfect fit Repeat Behavior Figure 7.10 A Model of Instrumental Conditioning

39. Instrumental Conditioning • Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors. • A favorable experience is instrumental in teaching the individual to repeat a specific behavior.

40. Instrumental Conditioning and Marketing • Customer Satisfaction (Reinforcement) • Reinforcement Schedules • Shaping • Massed versus Distributed Learning

41. Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response Example: Ad showing beautiful hair as a reinforcement to buy shampoo Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behavior Example: Ad showing wrinkled (smooth) skin as reinforcement to buy skin cream Reinforcement

42. Observational Learning A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious (observational) learning.

43. Model or observational learning • Consumers often observe how others behave in response to certain situations (stimuli) and the ensuing (subsequent) results (reinforcement) that occur & • The imitate (model) the positively reinforced behavior when faced with similar situations.

44. Figure 7.11 Consumers Learn by Modeling

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

46. Figure 7.12 Appeal to Cognitive Processing

47. Information Processing A cognitive theory of human learning patterned after computer information processing that focuses on how information is stored in human memory and how it is retrieved.

48. Figure 7.13 Information Processing and Memory Stores Sensory Store Working Memory (Short-term Store) Long-term Store Sensory Input Rehearsal Encoding Retrieval Forgotten; lost Forgotten; lost Forgotten; unavailable

49. Retention • Information is stored in long-term memory • Episodically: by the order in which it is acquired • Semantically: according to significant concepts

50. Table 7.1 Models of Cognitive Learning Promotional Model Tricomponent Model Decision-Making Model Innovation Adoption Model Innovation Decision Process Sequential Stages of Processing Attention Cognitive Awareness Knowledge Awareness Knowledge Interest Desire Affective Evaluation Interest Evaluation Persuasion Action Conative Purchase Postpurchase Evaluation Trial Adoption Decision Confirmation