Chapter 7 Consumer Learning

Copyright 2007 by Prentice Hall Chapter Outline The Elements of Consumer Learning Behavioral Learning Theories Cognitive Learning Theory Measures of Consumer Learning Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior Marketers must teach consumers: where to buy how to use how to maintain how to dispose of products Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Learning Theories Behavioral Theories Based on observable behaviors (responses) that occur as the result of exposure to stimuli Cognitive Theories Learning based on mental information processing Often in response to problem solving Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Discussion Question For Coca-Cola: How have they used behavioral theory in their marketing? Cognitive theory? How have they built brand loyalty? Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall weblink Copyright 2007 by Prentice Hall

Elements of Learning Theories Motivation Cues Response Reinforcement Copyright 2007 by Prentice Hall

Behavioral Learning Theories Classical Conditioning Instrumental Conditioning Modeling or Observational Learning Copyright 2007 by Prentice Hall

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. Copyright 2007 by Prentice Hall

Models of Classical Conditioning Figure 7-2a Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Figure 7-2b Copyright 2007 by Prentice Hall

We now associate this product with strength. Copyright 2007 by Prentice Hall

Strategic Applications of Classical Conditioning Basic Concepts Repetition Stimulus generalization Stimulus discrimination Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Advertising wearout is a problem Copyright 2007 by Prentice Hall

Strategic Applications of Classical Conditioning Basic Concepts Repetition Stimulus generalization Stimulus discrimination Having the same response to slightly different stimuli Helps “me-too” products to succeed Useful in product extensions Copyright 2007 by Prentice Hall

Discussion Question Stimulus Generalization How does CVS Pharmacy use stimulus generalization for their private brands? Do you think it is effective? Should this be allowable? weblink Copyright 2007 by Prentice Hall

Strategic Applications of Classical Conditioning Basic Concepts Repetition Stimulus generalization Stimulus discrimination Selection of a specific stimulus from similar stimuli This discrimination is the basis of positioning which looks for unique ways to fill needs Copyright 2007 by Prentice Hall

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. Copyright 2007 by Prentice Hall

Types of Reinforcement Positive Negative Forgetting Extinction iWon Video Copyright 2007 by Prentice Hall

A Model of Instrumental Conditioning Figure 7-10 Copyright 2007 by Prentice Hall

Instrumental Conditioning and Marketing Customer Satisfaction (Reinforcement) Reinforcement Schedules Shaping Massed versus Distributed Learning Copyright 2007 by Prentice Hall

Observational Learning A process by which individuals observe how others behave in response to certain stimuli and reinforcements. Also known as modeling or vicarious learning. Copyright 2007 by Prentice Hall

The consumer observes a positive response by two teens. Copyright 2007 by Prentice Hall

Cognitive Learning Theory Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment. Copyright 2007 by Prentice Hall

Information Processing Relates to cognitive ability and the complexity of the information Individuals differ in imagery – their ability to form mental images which influences recall Copyright 2007 by Prentice Hall

Information Processing and Memory Stores - Figure 7.14 Copyright 2007 by Prentice Hall

Information Processing Movement from short-term to long-term storage depends on Rehearsal Encoding Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Discussion Question How do advertisers drive consumers to rehearse information? When does this work against the advertiser? Can you think of examples of advertisements which drive you to rehearse? Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Retention Information is stored in long-term memory Episodically: by the order in which it is acquired Semantically: according to significant concepts Total package of associations is called a schema Copyright 2007 by Prentice Hall

Table 7.1 Models of Cognitive Learning Promotional Model Tricompetent Model Decision-Making Model Innovation Adoption Model Innovation Decision Process Sequential Stages of Processing Attention Cognitive Awareness Knowledge Awareness Knowledge Interest Desire Affective Evaluation Interest Evaluation Persuasion Action Conative Purchase Postpurchase Evaluation Trial Adoption Decision Confirmation Copyright 2007 by Prentice Hall

Issues in Involvement Theory Consumer Relevance Central and Peripheral Routes to Persuasion Measure of Involvement Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Consumer Relevance Involvement depends on degree of personal relevance. High involvement is: Very important to the consumer Provokes extensive problem solving Copyright 2007 by Prentice Hall

Central and Peripheral Routes to Persuasion Central route to persuasion For high involvement purchases Requires cognitive processing Peripheral route to persuasion Low involvement Consumer less motivated to think Learning through repetition, visual cues, and holistic perception Copyright 2007 by Prentice Hall

Peripheral route to persuasion Copyright 2007 by Prentice Hall

Measures of Consumer Learning Recognition and Recall Measures Aided and Unaided Recall Cognitive Responses to Advertising Attitudinal and Behavioral Measures of Brand Loyalty Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Brand Loyalty Function of three groups of influences Consumer drivers Brand drivers Social drivers Four types of loyalty No loyalty Covetous loyalty Inertia loyalty Premium loyalty Copyright 2007 by Prentice Hall

Harley-Davidson Has Strong Brand Loyalty weblink Copyright 2007 by Prentice Hall

Copyright 2007 by Prentice Hall Brand Equity Refers to the value inherent in a well-known brand name Value stems from consumer’s perception of brand superiority Brand equity reflects learned brand loyalty Brand loyalty and brand equity lead to increased market share and greater profits Copyright 2007 by Prentice Hall