Chapter 3 Learning and Memory CONSUMER BEHAVIOR, 8e Michael Solomon

Learning Objectives When you finish this chapter you should understand why: It’s important for marketers to understand how consumers learn about products and services. Conditioning results in learning. Learned associations can generalize to other things, and why this is important to marketers. There is a difference between classical and instrumental conditioning. We learn by observing others’ behavior. Prentice-Hall, cr 2009

Learning Objectives (cont.) Memory systems work. The other products we associate with an individual product influences how we will remember it. Products help us to retrieve memories from our past. Marketers measure our memories about products and ads. Prentice-Hall, cr 2009

The Learning Process Products as reminders of life experiences Products + memory = brand equity/loyalty Learning: a relatively permanent change in behavior caused by experience Incidental learning: casual, unintentional acquisition of knowledge Prentice-Hall, cr 2009

Learning is a Process Our tastes are formed as a result of a learning process, sometimes with painful results. Prentice-Hall, cr 2009

Behavioral Learning Theories Behavioral learning theories: assume that learning takes place as the result of responses to external events. Prentice-Hall, cr 2009 Figure 3.1

Types of Behavioral Learning Theories Classical conditioning: a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Instrumental conditioning (also, operant conditioning): the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. Prentice-Hall, cr 2009

Classical Conditioning Ivan Pavlov and his dogs Rang bell, then squirt dry meat powder into dogs’ mouths Repeated this until dogs salivated when the bell rang Meat powder = unconditioned stimulus (UCS) because natural reaction is drooling Bell = conditioned stimulus (UC) because dogs learned to drool when bell rang Drooling = conditioned response (CR)  Click to play Pavlov’s dog game Prentice-Hall, cr 2009

Marketing Applications of Repetition Repetition increases learning More exposures = increased brand awareness When exposure decreases, extinction occurs Example: Izod crocodile on clothes However, too MUCH exposure leads to advertising wear out Prentice-Hall, cr 2009

Discussion In the 1980’s, the Lacoste crocodile was an exclusive logo symbolizing casual elegance. When it was repeated on baby clothes and other items, it lost its cache and began to be replaced by contenders such as the Ralph Lauren Polo Player. Can you think of other logos that have lost their prestige due to repetition? Prentice-Hall, cr 2009

Marketing Applications of Stimulus Generalization Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses. Family branding Product line extensions Licensing Look-alike packaging Prentice-Hall, cr 2009

Discussion Some advertisers use well-known songs to promote their products. They often pay more for the song than for original compositions. Why do advertisers do this? How does this relate to learning theory? How do you react when one of your favorite songs turns up in a commercial? If you worked for an ad agency, how would you select songs for your clients? Prentice-Hall, cr 2009

Instrumental Conditioning Behaviors = positive outcomes or negative outcomes Instrumental conditions occurs in one of these ways: Positive reinforcement Negative reinforcement Punishment Extinction Prentice-Hall, cr 2009

Instrumental Conditioning Prentice-Hall, cr 2009 Figure 3.2

Instrumental Conditioning (cont.) Reinforcement schedules include: Fixed-interval (seasonal sales) Variable-interval (secret shoppers) Fixed-ratio (grocery-shopping receipt programs) Variable-ratio (slot machines) Prentice-Hall, cr 2009

Positive Reinforcement The power of positive reinforcement. Prentice-Hall, cr 2009

Cognitive Learning Theories: Observational Learning We watch others and note reinforcements they receive for behaviors Vicarious learning Socially desirable models/celebrities who use or do not use their products Prentice-Hall, cr 2009

Applications of Instrumental Conditioning Principles 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 Prentice-Hall, cr 2009

Loyalty to Brands Rewarding consumers with frequent flyer miles is an effective way to reinforce them and build brand loyalty. Prentice-Hall, cr 2009

Cognitive Learning Theory Is learning cognitive or not? Learning conscious or not? Expectations are created that a stimulus will be followed by a response, forming expectations require mental activity… so conditioning occurs based on conscious hypothesis Evidence for non-conscious knowledge, (people do process at least some information in automatic passive way) Respond to new stimulus according to existing categories Prentice-Hall, cr 2009

Cognitive Learning Theory Observational learning: Occurs when people watch the actions of others and note reinforcements received for their behaviors Learning occurs as a result of vicarious (on behalf), rather than direct, experience. Prentice-Hall, cr 2009

Observational Learning (cont.) Modeling: imitating others’ behavior Prentice-Hall, cr 2009 Figure 3.3

Applications of Cognitive Learning Principles Consumers learn vicariously by seeing others receive reinforcement for their behaviors. Marketers can reinforce or punish consumers indirectly by showing what happens to desirable models who do or do not use their products. Prentice-Hall, cr 2009

Role of Memory in Learning Memory: acquiring information and storing it over time so that it will be available when needed Information-processing approach Mind = computer and data = input/output Prentice-Hall, cr 2009 Figure 3.4

The Role of Memory in Learning Stages of Memory Encoding stage Information entered in a recognizable way Storage stage Knowledge integrated into what is already there and warehoused Retrieval stage The person accesses the desired information Prentice-Hall, cr 2009

How Information Gets Encoded Encode: mentally program meaning The way information is encoded helps to determine how it will be presented Brand name linked to physical characteristics of product, (e.g. Coffee-Mate…) Types of meaning: Sensory meaning, such as the literal color or shape of a package Semantic meaning: symbolic associations, such as the idea that rich people drink champagne Episodic memories: relate to events that are personally relevant Prentice-Hall, cr 2009

Memory Systems Prentice-Hall, cr 2009 Figure 3.5

Memory Systems Sensory Memory: Very temporary storage of information we receive from our senses Short-Term Memory (STM): Limited period of time & limited capacity Working memory (i.e., holds memory we are currently processing) Long-Term Memory (LTM): Can retain information for a long period of time Elaboration rehearsal is required: Process involves thinking about a stimulus and relating it to information already in memory Prentice-Hall, cr 2009

Associative Networks Activation models of memory Associative network of related information Knowledge structures of interconnected nodes Hierarchical processing model [See next slide for an example of an associative network] Prentice-Hall, cr 2009

Associative Networks for Perfumes Prentice-Hall, cr 2009 Figure 3.6

Spreading Activation As one node is activated, other nodes associated with it also begin to be triggered Meaning types of associated nodes: Brand-specific Ad-specific Brand identification Product category Evaluative reactions Prentice-Hall, cr 2009

Levels of Knowledge Individual nodes = meaning concepts Two (or more) connected nodes = proposition (complex meaning) Two or more propositions = schema We encode info that is consistent with an existing schema more readily E.g. Service scripts: A type of schema consisting of a sequence of events expected by an individual Prentice-Hall, cr 2009

Retrieval for Purchase Decisions Retrieving information often requires appropriate factors and cues: Physiological factors (e.g. age) Situational factors Consumer attention; pioneering brand; descriptive brand names Viewing environment (continuous activity; commercial order in sequence) Postexperience advertising effects Prentice-Hall, cr 2009

Retrieval for Purchase Decisions (cont.) Appropriate factors/cues for retrieval (cont.): State-dependent retrieval/mood congruence effect Familiarity Salience/von Restorff effect (mystery ads) Visual memory versus verbal memory Prentice-Hall, cr 2009

Pictorial versus Verbal Cues There is some evidence for the superiority of visual memory over verbal memory. Pictorial ads may enhance recall, but do not necessarily improve comprehension. How many of these Ad icons can you remember from the picture alone? Prentice-Hall, cr 2009

What Makes Us Forget? Decay Interference Retroactive versus proactive Part-list cueing effect Prentice-Hall, cr 2009

Products as Memory Markers Furniture, visual art, and photos call forth memories of the past Autobiographical memories The marketing power of nostalgia Retro brand: updated version of a brand from a prior period Nostalgia index Click image for www.fossil.com Prentice-Hall, cr 2009

Discussion Marketers often evoke memories of the “good old’ days” by marketing products with nostalgic images. Though it seems this strategy targets only middle-aged or older consumers, it can be used toward college students. What “retro brands” are targeted to you? Were these brands that were once used by your parents? What newer brands focus on nostalgia, even though they never existed before? Prentice-Hall, cr 2009

Measuring Memory for Marketing Stimuli Recognition versus recall The Starch Test (A widely used commercial measure of advertising recall for magazines) Problems with memory measures Response biases Memory lapses Memory for facts versus feelings Prentice-Hall, cr 2009

Discussion Ads with celebrities tend to have very high recall rates. Name some ads with celebrities that you can recall easily. Why does the celebrity association with the ad aid your recall? Prentice-Hall, cr 2009

Problems with Memory Measures Response Biases A contaminated result due to the instrument or the respondent, rather than the object that is being measured. Memory Lapses Unintentionally forgetting information: Omitting: Leaving facts out Averaging: “Normalizing” memories by not reporting extreme cases Telescoping: Inaccurate recall of time Memory for Facts Versus Feelings Recall is important but not sufficient to alter consumer preferences More sophisticated attitude-changing strategies are needed. Prentice-Hall, cr 2009

Team homework!! Within your teams, choose a product (e.g. GJU university) Brainstorm and draw an “Associative network” for your team (3-5 levels detailed) What is your conclusion?! What nodes would you try to change? and how? Prentice-Hall, cr 2009