1. CHAPTER NINE Learning, Memory, and Product Positioning McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 2 CHAPTER 9 The Role of Learning

3. 3 CHAPTER 9 Learning Theories and Involvement

4. 4 CHAPTER 9 Learning through Conditioning Conditioning refers to learning based on association of a stimulus and response. Classical (low involvement): using an established relationship between a stimulus and response (Pavlov Dog) Operant (high involvement): molding or shaping behavior by using a reinforcement (Skinner’s pigeon)

5. 5 CHAPTER 9 Classical Conditioning

6. 6 CHAPTER 9 Affective Influence in Trial

7. 7 CHAPTER 9 Operant Conditioning

8. 8 CHAPTER 9 The Process of Shaping

9. 9 CHAPTER 9 Cognitive Learning Cognitive learning encompasses all the mental activities of humans as they work to solve problems or cope with situations. Iconic Rote (low involvement): the association between two or more concepts in the absence of conditioning Vicarious/Modeling (low or high involvement): Observing the outcomes of others’ behaviors and adjusting their own accordingly Reasoning (high involvement): Individuals engage in creative thinking to restructure and recombine existing information as well as new information to form new associations and concepts.

10. 10 CHAPTER 9 Summary of Learning Theories and Involvement

11. 11 CHAPTER 9 Linking Learning to Memory... Characteristics of Learning Strength of Learning Extinction Stimulus Generalization and Stimulus Discrimination Response Environment

12. 12 CHAPTER 9 The Impact of Repetition

13. 13 CHAPTER 9 Repetition Timing on Advertising Recall

14. 14 CHAPTER 9 Forgetting Over Time

15. 15 CHAPTER 9 Total accumulation of prior learning experiences Explicit memory (Remembering) Conscious recollection of an exposure event Implicit memory (Knowing) Non-conscious retrieval of previously encountered stimuli A sense of familiarity, a feeling or a set of beliefs about an item without conscious awareness of when & how they were acquired Memory

16. 16 CHAPTER 9 Short-term Memory Portion of total memory that is currently activated or in use Often refereed to as working memory Analogous to thinking Has limited capacity An active, dynamic process, not a static structure

17. 17 CHAPTER 9 Short-term Memory Information processing activities Elaborative activities Use of previously stored experiences, values, attitudes, beliefs & feelings to interpret & evaluate information in working memory as well as to add relevant previously stored information Serve to redefine/add new elements to memory Maintenance rehearsal Continual repetition of information to hold it in current memory for use in problem solving or transferal to long- term

18. 18 CHAPTER 9 Short-term Memory Short-term memory activities involve Concept Abstraction of reality that capture the meaning of an item in terms of other concepts Similar to dictionary definition of a word Imagery Involves concrete sensory representations of ideas, feelings & objects Permits direct recovery of aspects of past experiences Involves recall & manipulation of sensory images Marketers want to obtain imagery responses than / in addition to verbal ones

19. 19 CHAPTER 9 Long-term Memory Unlimited, permanent storage Semantic memory Basic knowledge/feelings about a concept Understanding of an object / event at its simplest level Episodic memory Memory of sequence of events in which a person participated Often elicit imagery & feelings Recalling long-term memory is not completely objective Memory is sometimes shaped & changed as it is accessed

20. 20 CHAPTER 9 Long-term Memory Schema / Schematic memory /knowledge structure Complex web of associations Pattern of association of concepts & episodes with other concepts & episodes around a particular concept It is what the consumer thinks & feels when the brand name is mentioned Similar to brand image Source is personal experience as well as marketing activities

21. 21 CHAPTER 9 Long-term Memory Schema / Schematic memory /knowledge structure Can contain product characteristics, usage situations, episodes & affective reactions Concepts, events & feelings are Stored within nodes within memory Connected with associative links –Links vary how strongly & directly they are associated with a node Some aspects are relatively permanent

22. 22 CHAPTER 9 Long-term Memory United Colors of Benetton Expensive Posh Fashionable Sleek Informal Parties Festive People Formal Work Place Young Executives

23. 23 CHAPTER 9 Long-term Memory Scripts Memory of how an action sequence should occur A special type of schema Necessary for consumers to shop effectively Difficulty is to teach the consumers about appropriate acquisition, use and disposal behavior

24. 24 CHAPTER 9 Brand Image Schematic memory of a brand Target market’s interpretation of product attributes, benefits, usage situations, users and manufacturer/marketer characteristics In essence, it is what consumers have learned about the brand

25. 25 CHAPTER 9 Product Positioning Decision by a marketer to try to achieve a defined brand image relative to competition within a market segment Often used interchangeably with brand image Marketing mix is manipulated in line with the desired product position

26. 26 CHAPTER 9 Product Positioning Perceptual Mapping Technique for measuring & developing a product’s position Takes consumers’ perception of similar brands & relates these to product attributes

27. 27 CHAPTER 9 Product Positioning Trendy, Youthful, Fast Traditional, Conservative Expensive, Prestigious Economical, Common UCB Westecs I 1 I 2

28. 28 CHAPTER 9 Product Repositioning Deliberate decision to significantly alter the way the market views a product Evolution is natural & inevitable Can involve performance, evoked feelings, situations in which to use or even users

29. 29 CHAPTER 9 Brand Equity Value customers assign to a brand beyond its functional characteristics Implies economic value Based on product position of the brand Source of economic value from a positive brand image comes from Consumers’ behaviors toward existing items with that brand name Principle of stimulus generalization

30. 30 CHAPTER 9 Brand Leverage Often termed family branding, brand extensions or umbrella branding Capitalizing on brand equity by using an existing brand name Sometimes done to bolster the brand image To be effective product must be connected

31. 31 CHAPTER 9 Brand Leverage Successful brand leverage requires the new product to fit with the original product on at least 1 of 4 dimensions: Complement Substitute Transfer Image