Amity Business School
Amity Business School
MBA Class of 2014, Semester II
Consumer Behavior
Ms.Vandana Gupta

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Consumer Learning

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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

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Elements of Learning Theories
• Motivation
• Cues
• Response
• Reinforcement

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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

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Behavioral Learning Theories
• Classical Conditioning
• Instrumental Conditioning
• Modeling or Observational Learning

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ClassicalClassical
ConditioningConditioning
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.

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Models of Classical Conditioning
Figure 7-2a

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

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

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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?

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Strategic Applications of Classical
Conditioning
• 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
Basic Concepts

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InstrumentalInstrumental
(Operant)(Operant)
ConditioningConditioning
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.

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Types of Reinforcement
• Positive
• Negative
• Forgetting
• Extinction

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A Model of Instrumental Conditioning

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Instrumental Conditioning and Marketing
• Customer Satisfaction (Reinforcement)
• Reinforcement Schedules
• Shaping
• Massed versus Distributed Learning

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ObservationalObservational
LearningLearning
A process by which
individuals observe
how others behave
in response to
certain stimuli and
reinforcements.
Also known as
modeling or
vicarious learning.

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The consumer
observes a
positive
response by
two teens.

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CognitiveCognitive
LearningLearning
TheoryTheory
Holds that the kind
of learning most
characteristic of
human beings is
problem solving,
which enables
individuals to gain
some control over
their environment.

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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

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Information Processing and Memory
Stores

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Information Processing
• Movement from short-term to long-term
storage depends on
– Rehearsal
– Encoding

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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

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Issues in Involvement Theory
• Consumer Relevance
• Central and Peripheral Routes to
Persuasion
• Measure of Involvement

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Consumer Relevance
• Involvement depends on degree of
personal relevance.
• High involvement is:
– Very important to the consumer
– Provokes extensive problem solving

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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

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Measures of Consumer Learning
• Recognition and Recall Measures
– Aided and Unaided Recall
• Cognitive Responses to Advertising
• Attitudinal and Behavioral Measures of
Brand Loyalty

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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

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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