Understanding Consumer Learning: Motivation, Cues, Response, and Reinforcement

1. CHAPTER 7 CONSUMER LEARNING

2. CONSUMER LEARNING Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior. Learning is - Intentional (acquired by search for information) Incidental (acquired by accident/without much effort)

3. ELEMENTS OF CONSUMER LEARNING MOTIVATION Motivation is based on needs and goals. It acts as a spur to learning. The degree of involvement determines the consumer’s level of motivation to search for knowledge/information about a product/service. After uncovering the consumer motives, the marketers try to teach the motivated consumer segments why & how their products will fulfill the consumer’s need.

4. CUES Cues are the stimuli that give direction to the motives. Price, styling, packaging, advertising and store displays all serve as cues that suggests a specific way to satisfy a motive. Cues serve to direct consumer drives when they are consistent with the consumer expectations. Marketers must be careful to provide cues that do not upset those expectations.

5. RESPONSE How individuals behave constitutes their response. Learning can occur even when responses are not overt. Which response the consumer makes depends heavily on previous learning. REINFORCEMENT Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli.

6. SCHOOL OF THOUGHTS CONCERNING THE LEARNING PROCESS • Behavioral learning theories Behavior theorists focus on observable behaviors that occur as the result of exposure to stimuli. • Cognitive learning theories Cognitive theorists view learning as a function of purely mental processes.

7. BEHAVIORAL LEARNING THEORIES Stimulus-response theories - Based on the premise that observable responses to specific external stimuli signal that learning has taken place. When a person acts (responds) in a predictable way to a known stimulus, he/she is said to have learned. These are concerned with the inputs & outcomes of learning – The stimuli that consumers select from the environment & the observable behaviors that results.

8. Classical Conditioning Classical conditioning is useful in explaining how consumers learn very simple kinds of behavior. Ivan Pavlov, a Russian psychologist, was the first to describe conditioned learning in his studies with dogs. According to him, when a stimulus, that is paired with another stimulus that elicits a known response, serves to produce the same response when used alone.

9. Pavlovian model of classical conditioning Unconditioned stimulus (meat paste) Unconditioned response (salivation) Conditioned stimulus (bell) AFTER REPEATED PAIRINGS: Conditioned stimulus (bell) Conditioned response (salivation)

10. Strategic Applications of Classical Conditioning • Repetition Repetition increases the strength of association between a CS and an Us and slows the process of forgetting. The effectiveness of repetition is somewhat dependent upon the amount of competitive advertising. Some marketing scholars, not all, believe that just three exposures to an advertising are needed. (three-hit theory)

11. Advertising wearout can be moderated by – • Cosmetic variations - Using different backgrounds, spokespersons, print types while repeating the same theme. • Substantive variations - Changing advertising content across different versions of an ad.

12. 2. Stimulus generalization Learning depends not only on repetition but also on the ability of individuals to generalize. If an individual is incapable of making the same response to slightly different stimuli (stimulus generalization), not much learning will take place. Stimulus generalization explains why some imitative products succeed in the marketplace.

13. The principle of stimulus generalization is applied by the marketers for various reasons- • Product line, form and category extension Adding the related products, forms and category to target new market segments. • Family branding The practice of marketing a whole line of company products under the same brand name. • Licensing Allowing a well known brand name to be affixed to products of another manufacturer.

14. 3. Stimulus discrimination It is the opposite of stimulus generalization and results in the selection of a specific stimulus from similar stimuli. • Positioning • Product differentiation

15. Instrumental (operant) Conditioning Instrumental conditioning is more helpful in explaining complex, goal-directed activities. According to this theory, learning occurs with habits formed as a result of rewards received for certain responses or behaviors. (trial-and-error process)

16. B. F. Skinner, American psychologist, developed his model of learning by working with animals, such as rats and pigeons. (Placing them in skinner box) According to Skinner, most individual learning occurs in a controlled environment in which individuals are rewarded for choosing an appropriate behavior.

17. A model of instrumental conditioning Try Brand A Unrewarded Try Brand B Unrewarded Stimulus situation Try Brand C Unrewarded Try Brand D Reward Repeat behavior

18. Reinforcement of behavior Skinner distinguished two types of reinforcement – Positive reinforcement - Events that strengthen the likelihood of a specific response Negative reinforcement- Unpleasant/negative outcome that serves to encourage a specific behavior Forgetting and extinction • Forgetting occurs because of lack of use. • Extinction occurs because of lack of reinforcement.

19. Strategic Applications of Classical Conditioning 1. Customer satisfaction (reinforcement) To maximize satisfaction, marketers must be certain to– • Provide the best possible product for the money. • Avoid raising expectations for product performance beyond what the product can deliver. • Provide reinforcement from other elements in the purchase situation - (Environment, Attention/services provided by employees, Amenities) • Develop a close personalized relationship with customers. (relationship marketing)

20. 2. Reinforcement schedules Types of reinforcement schedules Total (or continuous) reinforcement Total satisfaction with the basic product or service each time it is used. Systematic (fixed ratio) reinforcement Reinforcement every “nth” time the product is purchased. Random (variable ratio) reinforcement Rewards on a random basis or on an average frequency basis.

21. 3. Shaping Reinforcement performed before the desired consumer behavior actually takes place is called shaping. 4. Massed versus distributed learning When the goal is an immediate impact, the advertisers generally use a massed schedule. When the goal is long-term repeat buying on a regular basis, a distributed schedule is preferable.

22. Modeling or Observational Learning Modeling/observational learning is the process through which individuals learn behavior by observing the behavior of others & the consequences of such behavior.