Learning and Memory

1. Learning and Memory

2. What is Learning? A change in Behaviour caused by experience What is Consumer learning?

3. Why is it important to understand how consumer’s learn?

4. From a marketer’s perspective learning becomes teaching What do we want to teach them?

5. Learning Theories Behaviorism Cognitive Reasoning Classical Conditioning Vicarious Instrumental Conditioning

6. Classical Conditioning • learning occurs when a stimulus (unconditioned stimulus UCS) elicits a response (unconditioned response UCR) • that is paired with another stimulus (conditioned stimulus CS) that initially does not elicit a response on its own • but will cause a similar response (conditioned response CR) over time because of its association with the first stimulus.

8. Applications of Classical Conditioning • Applications: communications--advertising, public relations, • Goal: identify powerful positive stimulus and associate brand with it. • Examples of powerful, emotion causing stimuli: • beautiful, sexy people • patriotic themes, religious symbols • Music, beautiful scenes • Also, negative stimuli can be associated with competitors. • Requires repetition to make the association stick

9. Credit card insignia may elicit spending responses

10. The bears (UCS) naturally generate positive feelings (UCR) towards them Coke (CS) by itself and before conditioning, does not, illicit any positive feelings But coke (CS) is associated with the bears (UCS) Later ( in the store) you have a positive feeling towards coke (CR) The goal of advertisers is to get the exposed person at the grocery store to associate the positive feeling they had for the ad with the product

11. Event sponsorship • The sponsor (Bayer) wants the person viewing the event (UCS) to project the positive feelings (UCR) they get from the event with their product (CS); I.e. Bayer hopes the positive emotional feeling will transfer to their product outside the sporting context • Positive emotional feeling toward the event can be intense because the person has chosen to be exposed to the event. What happens when the person’s favorite team loses?

12. Instrumental or Operant Conditioning B.F. Skinner

13. Positive Reinforcement Reinforcement of Consumption Punishment Negative Reinforcement

14. Reinforcements Schedules • Interval • Fixed-Interval Reinforcement • Variable-Interval Reinforcement Ratio • Fixed-Ratio Reinforcement • Variable-Ratio Reinforcement

15. Frequency Marketing Sperry & Hutchinson, 1896. Consumer awareness of supermarket savings clubs or frequent-shopper programs (increased in 1997 versus 1996 (72 percent versus 62 percent respectively).

16. ADVANTAGES OF FREQUENT BUYER PROGRAMS • help to retain old customers and win new ones • lower marketing costs and build brands. • They generate increased frequency of visit, stimulate faster purchase cycles, add value • make the sponsoring company stand out from the competition. • They lock in consumer loyalty and make consumers resistant to product or service promotions by competitors. • Effectiveness is easy to measure, and a valuable database is put in place for future programs.

17. Suitability for frequency marketing programs • customers have an ongoing need for your product or service. • customers perceive little differentiation between your product or service and your competitors • customers must consider your frequent buyer benefits to be valuable and definitely worth working for • You must be willing to commit to the program long-termFrequent buyer programs are not short-term. They require a long-term commitment in order to work • The product or service must lend itself to easy collection of proofs of purchase. • Can you afford the program? The rewards, tracking, regular communication, and customer inquiries associated with the program require significant time and monetary resources. • Do your competitors offer a frequency marketing program? If they do but you do not, you may want to give serious consideration to a program.

18. Learning Theories Behaviourism Cognitive Classical Conditioning Instrumental Conditioning Reasoning Observation

19. COGNITIVE LEARNING THEORY • Observational Learning • Reasoning

20. Applications of Cognitive Learning Principles • Modelling

21. The Role of Memory in Learning

22. Stages • Encoding • Storage • Retrieval

24. An Associative Network for Perfumes

25. Draw an associative network for Pepsi • Things to consider might include: • specific brands • a celebrity identified with Pepsi • related activities • related products • where purchased • packaging • attributes • concepts • feelings

26. Nostalgia

27. Nearly 10% of ads use Nostalgia • trend appears to have begun in the 1980s, when marketing campaigns began to employ 1960s music • The baby boomers are aging, entering a phase of life when looking back is natural

28. “Every time I learn something new, it pushes some old stuff out of my brain” Forgetting

30. Recognition Versus Recall • Recognition remembering when shown • Recall: remembering without stimulus

31. Zoom Zoom Zoom • Just for the fun of it • Grab Life By The Horns • Driven • I did it my way • The best a man can get." • The ultimate driving machine • Engineered to be great cars • It's everywhere you want to be • No More Tears • Always low prices. • Good to the last drop Mazda Diet Coke Dodge Nissan Viagra Gillette BMW Chrysler Visa J & J Baby Shampoo Walmart Maxwell House

32. 70 1 exposure / week for 13 weeks 60 50 13 exposures at 4 - week intervals 40 % 30 20 10 0 25 50 week of the year Advertising Recall as a function of Timing and Number of Exposures (Zielske 1959)

33. How Can Marketers improve Memory retention? • Repetition • Repetition of a central theme with some variation • KISS • how many times should a consumer be exposed to an ad before the advertising message is effective. • Meaningful or more vivid/visual material • increase the novelty of a stimulus • Material presented first (primacy) or last (recency) is better retained than material presented in the middle