and Memory


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 channels

 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 behavior

 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 information



1.
2.
There are many theories about how people learn
They fall into two general categories:
Behavioral learning theories
Cognitive theories




1.
2.
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:
Classical conditioning
Instrumental/operant 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 alone

Schematic Presentation of Classical Conditioning
Conditioned
Stimulus (CS)
Unconditioned
Stimulus (US)
Elicits Unconditioned
Response (UR)



The use of a well-known, admired individual to advertise a product can condition consumers to have positive feelings about the product
“Cause marketing”


1.
2.
3.
Three basic concepts derive from classical conditioning
Repetition
Stimulus generalization
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 result

 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


1.
2.
3.

Marketers use this principle to take advantage of a well-known and trusted brand in a number of ways
Product line extensions
Product form extension
Product category extension
Referred to as the halo effect

 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.)

 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 learning

Schematic Presentation of Operant Conditioning
Increased or Decreased
Probability of Response

 A reward given to acknowledge a desired behavior and increase the probability it will be repeated
1.

Positive reinforcement
Events that strengthe n the likelihood of a specific response
2.


Negative reinforcement
A negative outcome that also serves to encourage a specific behavior
Fear appeals

 Punishment discourages behavior as opposed to encouraging behavior to avoid a negative result

 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 reward

 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 situation



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.
2.
Continuous/total (every time)
Systematic/fixed ratio (every “nth” time)
3.
Random/variable ratio

Continuous Reinforcement Intermittent Reinforcement
Time
Forgetting occurs more quickly
Time
Forgetting occurs gradually over time and the residual effects of learning persist

 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 about what is best for us

 Primary implication is to emphasize the importance of providing information to consumers
 Providing information can be a promotional strategy as well

 Also called Neo-Pavlovian theory
 Learning involves not only the acquisition of new reflexe s; it is the acquisition of new knowledg e about the world
 Under this theory, consumers are viewed as information seekers who use logical and perceptual relations among events, along with their own preconceptions, to form a sophisticated representation of the world

 Marketers draw on both cognitive and operant conditioning theories
 Providing information about a product (e.g., eggs are OK to eat) draws on cognitive theory
 Providing rewards (e.g., frequent flyer miles, coupons, etc.) draws on classical conditioning theory

 The process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior
 Role models tend to be people consumers admire because of traits such as appearance, accomplishment, skill, or social class

 Another alternative form of observational learning involves representation of negative consequences of not using the advertised product


1.
2.

A consumer’s consistent preference for and purchase of a specific brand
In high-involvement purchases (e.g., a car) it reduces risk and facilitates selection
In low-involvement purchases (e.g., tissues) it saves time and effort
Brand loyalty generally results from consistent positive experiences with a company and/or its products


1.
2.
3.

There has been a recent decline in brand loyalty
Boredom or dissatisfaction with the products
Variety-seeking
Increased concern with price
To counter these actions, marketers have adopted a number of programs (e.g., frequent flyer) that reward brand loyalty