1. Consumer Learning

2. Importance of Learning Marketers must teach consumers: where to buy how to use how to maintain how to dispose of products

3. Consumer Learning A process by which individuals acquire the purchase and consumption knowledge and experiencethat they apply to future related behavior

4. Learning Processes Intentional: learning acquired as a result of a careful search for information Incidental: learning acquired by accident or without much effort

5. Elements of Learning Theories Motivation Cues Response Reinforcement

6. Reinforcement A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.

7. Behavioral Learning Theories Classical Conditioning Instrumental Conditioning Modeling or Observational Learning

8. 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.

9. 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.

10. PavlovianModel of Classical Conditioning Unconditioned Stimulus Meat paste Unconditioned Response Salivation Conditioned Stimulus Bell AFTER REPEATED PAIRINGS Conditioned Stimulus Bell Conditioned Response Salivation

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

12. Relevance to Marketing Conditioned Stimuli – Brand Image Unconditioned Stimuli – New Additions to the Brand Response – Acceptance of the Brand

13. Cognitive Associative Learning Classical conditioning is viewed as the learning of associations among events that allows the organism to anticipate and represent its environment. For the conditioning to happen, The conditioned stimuli should precede the Unconditioned stimuli Repeated pairing of Conditioned and Unconditioned stimuli Conditioned stimuli is new and unfamilier Unconditioned stimuli is biologically or symbolically salient.

14. Strategic Applications of Classical Conditioning Repetition Stimulus Generalization Stimulus Discrimination

15. Repetition Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Cosmetic variations reduce satiation. Substantive Variations are the changes in advertising content.

16. Three-Hit Theory Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective The number of actual repetitions to equal three exposures is in question.

17. Stimulus Generalization The possibility of other similar stimuli replacing a known conditioning stimuli.

18. Stimulus Generalization and Marketing Product Line, Form and Category Extensions Family Branding Licensing Generalizing Usage Situations

19. Stimulus Discrimination The ability to discriminate a specific stimulus from among similar stimuli because of perceived differences. Positioning Differentiation

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

21. Instrumental Conditioning Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors. A favorable experience is instrumental in teaching the individual to repeat a specific behavior.

22. Instrumental Conditioning and Marketing Customer Satisfaction (Reinforcement) Extinction and Forgetting Reinforcement Schedules Total / continuous reinforcement Fixed / systematic reinforcement Variable / random reinforcement

23. Shaping Performance of Reinforcement before the actual consumer behaviour. Massed versus Distributed Learning

24. Reinforcement Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behavior Example: Ad showing wrinkled skin as reinforcement to buy skin cream Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response Example: Ad showing beautiful hair as a reinforcement to buy shampoo

25. Other Concepts in Reinforcement Punishment Choose reinforcement rather than punishment Extinction Combat with consumer satisfaction Forgetting Combat with repetition

26. Observational Learning A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning.

27. Consumers Learn by Modeling

28. Cognitive Learning Theory This theory is based on the premises that the kind of learning most characteristics of human beings is problem solving, which enables individuals to gain some control over their environment.

29. Appeal to Cognitive Processing

30. Information Processing A cognitive theory of human learning patterned after computer information processing that focuses on how information is stored in human memory and how it is retrieved.

31. Information Processing and Memory Stores Sensory Store Working Memory (Short-term Store) Long-term Store Sensory Input Rehearsal Encoding Retrieval Forgotten; lost Forgotten; lost Forgotten; unavailable

32. Rehearsal and Learning Rehearsal is repeating the information or relating it to other information. Rehearsal makes the information available for short term memory so that the encoding can happen. Encoding is the process where a word or visual image is selected to represent a perceived object.

33. Retention Information is stored in long-term memory Episodically: by the order in which it is acquired Semantically: according to significant concepts

34. Models of Cognitive Learning Innovation Adoption Model Decision-Making Model Tricompetent Model Innovation Decision Process Promotional Model Sequential Stages of Processing Attention Cognitive Knowledge Awareness Awareness Knowledge Affective Evaluation Interest Evaluation Persuasion Interest Desire Action Conative Purchase Postpurchase Evaluation Trial Adoption Decision Confirmation

35. Involvement Theory A theory of consumer learning which postulates that consumers engage in a range of information processing activity from extensive to limited problem solving, depending on the relevance of the purchase.

36. Split Brain Theory Figure 7.14 Right/ Left Brain Hemispheres specialize in certain functions

37. Encouraging Right and Left BrainProcessing

38. Issues in Involvement Theory Involvement Theory and Media Strategy Involvement Theory and Consumer Relevance Narrow categorisers Broad categorisers Central and Peripheral Routes to Persuasion High involvement – Central route of persuasion Low involvement – Peripheral route of Persuasion. Measures of Involvement

39. Central and Peripheral Routes to Persuasion A theory that proposesthat highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).

40. Elaboration Likelihood Model (ELM) A theory that suggests that a person’s level of involvement during message processing is a critical factor in determining which route to persuasion is likely to be effective.

41. The Elaboration Likelihood Model Involvement HIGH LOW Central Route Peripheral Route Message Arguments Influence Attitudes Peripheral Cues Influence Attitudes

42. Measures of Consumer Learning Recognition and Recall Measures Aided and Unaided Recall Cognitive Responses to Advertising Copytesting Measures Attitudinal and Behavioral Measures of Brand Loyalty

43. Phases of Brand Loyalty Cognitive Loyalty- Peoples thought about object Affective Loyalty– refers to moods, feeling or emotional responses to the object Conative Loyalty– refers to behavioural intention or willingness to act. Action / Behaviour Loyalty.

44. Brand Loyalty As A Function of Relative Attitude and Patronage Behavior Repeat Patronage High Low Latent Loyalty Loyalty High Relative Attitude No Loyalty Spurious Loyalty Low