1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski MEMORY AND LEARNING

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-2 Memory and learning At the end of this session, you should understand: The nature of consumer learning The main learning theories and their relevance to consumer behaviour The concepts of conditioning and reinforcement The functions of short-term and long-term memory Some marketing implications of learning and memory

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-3 Why did you do that? Your last purchase: – What was it? – How much thinking did you do before making the purchase? – How did you feel about the purchase at the time? – How did past experience with the product, brand or situation influence the purchase or how you felt afterwards?

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-4 Learning – some definitions A process that consumers go through to develop knowledge that will help them in their decision making A change in the content or organisation of a person’s long-term memory

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-5 Marketers and learning Marketers influence consumer decision making by ‘educating’ consumers Marketers want consumers to learn that their product/service offerings are desirable, to buy or use them, and to keep coming back for more

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-6 The learning process Learning occurs through the processing of internal and external stimuli which leads to a change in long- term memory and potentially the behaviour or belief about the marketer’s offerings to the consumer Learning Stimuli: Internal External Information processing Memory

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-7 Brain functions Are you better at art and craft or at setting up the DVD player? It could be that your left or right brain predominates LEFT BRAIN Creative, visual, random, intuitive, integrative, the big picture RIGHT BRAIN Factual, ordered, analytical, one thing at a time, numerical, logical, sequential, objective

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-8 Left and right brain functions The left and right sides of the brain may be opposite but they are also complementary The left brain assists in recalling information, while the right brain organises the information to give a holistic picture Marketers tend to appeal to the right brain as it sees all the information provided, rather than focusing on just ‘bits’ of a message

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-9 Learning theories Behavioural learning theories: – Classical conditioning (a stimulus-response theory focusing on reflex behaviour) – Operant or instrumental conditioning (focusing on reinforcement of behaviour) Cognitive theories - learning is a result of thinking and mental analysis: – Iconic rote learning – Vicarious learning/modelling – Reasoning

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-10 Major approaches to learning

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-11 Classical conditioning A stimulus (food) (UCS) is observed to lead to a response (salivating) (UCR) A new stimulus (bell ringing) (CS) is introduced at the same time as the old stimulus and this is repeated until eventually the second stimulus will achieve the same response (CR) without the original stimulus UCS Unconditioned stimulus UCR Unconditioned response CS Conditioned stimulus CR Conditioned response

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-12 Marketing with classical conditioning Applied in low involvement situations Simplistic, relying on feelings or emotions for learning Emotions about music, humour, celebrity image and lifestyle can be contrived to create new associations with that emotion for product/services Repetition is important Message/stimulus must be relevant to consumer

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-13 How is conditioning being achieved with this advertisement? See EXHIBIT 6.1 Humour is used to create an emotional response in this advertisement, page 170. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-14 Operant (instrumental) conditioning Learning occurs through rewarding or punishing behaviour – Shaping behaviour Should aim to achieve consumer trial Reward – Shop with supermarket and earn discount on fuel purchases Punishment – Cheaper product purchased, product is inferior, or fine for speeding Negative reinforcement – Avoiding negative consequences by purchasing product (e.g. mouthwash to prevent bad breath)

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-15 Marketing and operant conditioning Determine what motivates the consumer Use of shaping - providing or removing the reinforcement May need to entice consumer to try product/service (i.e. use of in-store trial, sales promotion, personal selling, promise of loyalty program) Attempt to minimise ‘punishment’ (i.e. maintain quality, offer ‘no questions’ refunds)

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-16 What is the use of operant conditioning in these messages? See EXHIBIT 6.2 and EXHIBIT 6.3, page 173. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-17 Cognitive theories – rote learning Human beings think, reason and problem solve in order to learn – Rote learning  Low involvement situations  Repetition of concepts such as ‘buy Australian’ lead to purchase of products that repeatedly promote themselves as ‘Australian owned’

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-18 Cognitive theories – modelling/vicarious learning Modelling/vicarious learning is learning through observing and copying the behaviour of others Consumers seek products/services that their friends or role models consume – Modelling/vicarious learning  Using people in ads that consumers aspire to be like and want to copy, such as celebrities or sports heroes  Using people similar to you and your friends in ads

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-19 Cognitive theories - reasoning Complex process of absorbing new information, relating it to existing knowledge and drawing new conclusions This may involve quite changed thinking for consumers – Reasoning  Using logical and informative ads

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-20 Cognitive learning and advertising messages See EXHIBIT 6.5 This informational advertisement for PhysiCAL milk relies on a cognitive learning processes, page 175. PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-21 Memory The total accumulation of prior learning experiences

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-22 Three main stages of memory SENSORY MEMORY SHORT- TERM MEMORY LONG- TERM MEMORY Stimulus information attention encoding retrieval Forgetting rehearsal Information ignored Extinction forgetting

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-23 Schematic memory Interpreting and understanding messages based on previous experiences, known as traces, which are chemical elements stored in the brain

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-24 Schematic memory Local club GRADUATION PARTY What drinks? Restaurant Who to invite? Budget My place What food? Where?

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-25 Sensory memory Receives the incoming stimuli This is the working memory Can only hold a small amount of information at a time

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-26 Short-term and long-term memory Short-term memory – Information is rehearsed – Processing occurs – Information is either forgotten or passed on Long-term memory – Almost unlimited storage potential – It is what is remembered some time after the stimuli has occurred – Information is stored in clusters and linked by other information already in the store

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-27 Forgetting and extinction If a conditioned response no longer occurs when the conditioned stimulus is present, it is known as the disappearance of a memory trace, extinction Forgetting – The information does not pass into the short-term memory – It is not sent on to long-term memory – Retrieval information cannot be recalled  Information that is important to the consumer is more likely to be recalled

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-28 Semantic/episodic memory Semantic memory – Idea of linking products with episodes in consumer’s life – Marketers achieve mental repetition of their message through the consumer’s association of the words in the messages and their meanings Episodic memory – Recall of an actual situation or event

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 6-29 Applying memory to advertising Appeal to senses - attract initial attention – e.g. colours, sounds, size, words, freebies, product samples Ensure immediate rehearsal – short-term memory Assist with transfer to long-term memory: – Word associations – Ask questions – Images that are familiar to the target audience – Use reinforcement – Same logo and slogans on all promotions, packaging, etc. – Use links between words and images Retrieval - use techniques to aid retrieval – e.g. Overall theme of ads match in-store promotions