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Learning & Consumer Behavior

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Presentation on theme: "Learning & Consumer Behavior"— Presentation transcript:

1 Learning & Consumer Behavior
Prabu Doss. K

2 Introduction Learned connections between products and memories are a potent way to build brand loyalty It is an ongoing process Relatively a permanent change in behavior caused by experience Experience may even be by observing

3 The Learning Process Much of our learning happens intentionally (intentional learning). We carefully search for information We learn even when we are not trying- recognizing ad jingles This casual and unintentional acquiring of knowledge is called incidental learning

4 Behavioral Learning Theories
Assume that learning takes place as the result of responses to external events. View is represented by two major approaches to learning: 1) Classical Conditioning 2) Instrumental Conditioning People’s experiences shaped by feedback they receive as they go through life Actions result in rewards and punishments, which influences future responses to similar situations.

5 Classical Conditioning
Unconditioned stimulus (UCS) – Naturally capable of causing a response. (meat powder) Conditioned stimulus (CS) – Does not initially cause a response (bell) Conditioned response (CR) – Response generated by repeated paired exposures to UCS and CS (drooling). Eventually, through learned association and repetition, the CS will cause the CR.

6 Classical Conditioning
Stimulus generalization: Tendency of a stimulus similar to a CS to evoke similar, conditioned responses (imitations can dampen the original brand) Masked branding: Deliberately hiding a product’s true origin Stimulus discrimination: Occurs when a UCS does not follow a stimulus similar to a CS.

7 Lexus uses Masked Branding

8 Application of Stimulus generation
Applications of Stimulus Generalization: Family branding Product line extensions Look-alike packaging Applications of Stimulus Discrimination: Consumers learn to differentiate a brand from its competitors Unique attributes of the brand

9 Instrumental Conditioning
Occurs as the individual learns to perform behaviors that produce positive outcomes and avoid behaviors that yield negative outcomes Also called “Operant Conditioning” Occurs one of the two ways: Positive reinforcement Negative reinforcement Extinction: When a positive outcome is no longer received, the learned stimulus-response connection will not be maintained.

10 Examples for positive & negative reinforcement

11 Instrumental conditioning
Reinforcement Schedules: Fixed-interval reinforcement Variable-interval reinforcement Fixed-ratio reinforcement Variable-ratio reinforcement

12 Applications of instrumental conditioning
Reinforcement of Consumption: Thank you Rebates Follow-up phone calls Frequency Marketing: Reinforces regular purchases by giving them rewards with values that increase along with the amount purchased Frequent flyer miles

13 Cognitive Learning theory
Stresses on the importance of internal mental process People are problem solvers, who actively use information

14 Observational Learning
Occurs when people watch the actions of others and note reinforcements received for their behaviors Learning occurs as a result of vicarious, rather than direct, experience. This is also called as Modeling or vicarious learning

15 Information Processing
Very complex in nature, information's are kept temporarily in sequential storehouses before any further action takes place Sensory store/sensory memory Short-term store (working memory) Long-term store

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