1. 5 ConsumerLearning 5 Consumer Learning

2. Learning Is a Key to Consumer Behavior 9-1 Culture Subcultures Social class Family Friends Institutions Personal experiences Advertising Mass media Learning Values Attitudes Tastes Preferences Skills Feelings Products/brand features Symbolic meanings Behaviors Purchase and use behaviors Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Consumer Learning A relatively permanent change in behavior that is caused by experience (Solomon)

4. Learning –Incidental Learning Casual, unintentional –Vicarious Learning Observation The Learning Process

5. Elements of Learning Theories 1.Motivation 2.Cues 3.Response 4.Reinforcement

6. Cognitive Learning Theory Focuses on humans as active, adaptive processors of information and stresses the importance of internal mental processes. Focuses on humans as active, adaptive processors of information and stresses the importance of internal mental processes. Is learning conscious or not? Is learning conscious or not?

7. Behavioral Learning Theories Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.

8. Behavioral Learning Theories I. Classical Conditioning II. Instrumental Conditioning III. Modeling or Observational Learning

9. I. 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.

10. Classical Conditioning Pavlov’s dogs Objects (stimuli) associated with a response may bring about the response Stimuli and responses

11. Pavlov, His Staff and Dog in his Classical Conditioning Laboratory

12. A. Pavlovian Model of Classical Conditioning Unconditioned Stimulus Meat paste Conditioned Stimulus Bell Unconditioned Response Salivation Conditioned Stimulus Bell Conditioned Response Salivation AFTER REPEATED PAIRINGS

13. B. Analogous Model of Classical Conditioning Unconditioned Stimulus Dinner aroma Conditioned Stimulus 6 O’clock news Unconditioned Response Salivation Conditioned Stimulus 6 O’clock news Conditioned Response Salivation AFTER REPEATED PAIRINGS

14. Basic Concepts of Classical Conditioning 1.Repetition 2.Stimulus Generalization 3.Stimulus Discrimination

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

16. Stimulus Generalization and Marketing 1.Product Line Extensions 2.Family Branding 3.Me-too Products 4.Similar Name 5.Licensing 6.Generalizing Usage Situations

17. 3. Stimulus Discrimination The ability to select a specific stimulus from among similar stimuli because of perceived differences.

18. Stimulus Discrimination and Marketing Positioning. is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind. Differentiation offering products with unique customer benefits or features not available from competitive offerings.

19. Developing Competitive Differentiation Product Service Image People Areas for Competitive Differentiation Areas for Competitive Differentiation

20. Classical Conditioning Process Conditioned stimulus (Brita water filtration pitcher) Conditioned stimulus (Brita water filtration pitcher) Association develops through contiguity and repetition Unconditioned stimulus (waterfall) Unconditioned stimulus (waterfall) Unconditioned response (freshness, purity) Unconditioned response (freshness, purity) Conditioned response (freshness, purity) Conditioned response (freshness, purity)

21. This Brita ad uses classical conditioning

22. Consumer Examples Advertising: pairing product with images of desired affect Product: Evoke image of object associated with positive affect (e.g., Mustang; Coke Bottle)

23. II. 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.

24. Operant Conditioning (B.F. Skinner)

25. INSTRUMENTAL (OPERANT) CONDITIONING BEHAVIOR REINFORCEMENT NEGATIVE REINFORCEMENT PUNISHMENT LIKELIHOOD OF BEHAVIOR LIKELIHOOD OF BEHAVIOR { NOT the same thing!

26. Consumer Learning by Operant Conditioning 9-4 Increases probability of response to stimulus Stimulus (Rice Popcorn) Desired response (consumption) Reinforcement (pleasant taste) Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

27. Increase or decrease in probability of repeat behavior (purchase) Increase or decrease in probability of repeat behavior (purchase) Instrumental Conditioning Process Positive or negative consequences occur (reward or punishment) Positive or negative consequences occur (reward or punishment) Behavior (consumer uses product or service) Behavior (consumer uses product or service)

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

29. 1. Reinforcement: An Example You eat a cake (behavior) ----> good taste (reward) ----> more likely to eat cake on another occasion

30. Negative Reinforcement (not the same as punishment!) Aversive stimulus exists Behavior ----> termination of aversive stimulus ----> repetition of behavior during aversive stimulus

31. Negative Reinforcement: An Example Headache (aversive stimulus) Aspirin (behavior) ---> Headache cessation ----> Likely to consume aspirin during future headaches

32. 2. PUNISHMENT Behavior ----> Negative consequences -----> Behavior less likely to be repeated when punishment is anticipated (mostly)

33. Punishment: Examples Parking meters Gas taxes Fees for non-ATM banking transactions Over-base rate utility charges

34. More Punishment Examples Voidance of warranty if product is serviced by competitor Social ostracism for failure to wear deodorant

35. 3. Extinction Behavior which is not reinforced tends to become extinct gradually

36. The Process of Shaping in Purchase Behavior 9-5 Consume a free sample of Rice Popcorn that was sent to your home Purchase a second package using the discount coupon that accompanied the free sample Repurchase the product at full price Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

38. Reinforcement Schedule Fixed-Interval Reinforcement Variable-Interval Reinforcement Fixed-Ratio Reinforcement Variable-Ratio Reinforcement

39. Reinforcement scheduling Fixed-Interval Reinforcement. –After a specified time period has passed, the first response that is made brings the reward. Last day of the seasonal sale. Variable-Interval Reinforcement. –Time that must pass before reinforcement is delivered varies around some average. Requires consistent response. Random quizzes.

40. Reinforcement scheduling Fixed-ratio reinforcement occurs only after a fixed number of responses. –“Get your fourth car wash free.” Variable-ratio reinforcement occurs where the subject is reinforced after some (unknown) number of responses. –Slot machines

41. III. Observational Learning (Vicarious Learning) A process by which individuals observe the behavior of others, remember it, and imitate it. Also known as modeling. Most useful for vicarious learning!

42. 4 Necessary Conditions for Observational Learning 1.Consumer must be direct to the appropriate model. 2.Consumer must remember the event. 3.Consumer must convert information into actions. 4.Consumer must be motivated to perform the actions.

43. Consumer Learning Summary Consumer Learning I.The Learning Process II.Elements of Learning Theories 1.Motivation 2.Cues 3.Response 4.Reinforcement III.Behavioral Learning Theory 1.Classical Conditioning a.Repetition b.Stimulus Generalization 1.Product Line Extensions 2.Family Branding 3.Me-too Products 4.Similar Name 5.Licensing 6.Generalizing Usage Situations c.Stimulus Discrimination 2.Instrumental (Operant) Conditioning 1.Reinforcement 2.Punishment 3.Extinction 4.Shaping 3.Observational Learning (Vicarious Learning)