CB Learning 1

8/2/2019 CB Learning 1

1/89

Click to edit Master subtitle style

LEARNING


2/89

Consumer Learning

Marketers want to teach consumers about products, product attributes, and potential consumer

benefits

about where to buy their products, how to use them how to maintain them, even how to dispose of them

Marketers want their communications to be noted,believed, remembered, and recalledtheyreinterested in every aspect of learning process


3/89

Perspectives in Learning

Behavioral perspective behavioral theorists focus almost exclusively on

observable behaviors (responses) that occur as the result

of exposure to stimuli Classical conditioning Operant conditioning

Cognitive learning perspective view learning as a function of purely mental processes


4/89

Learning - defined

The process by which individuals acquire the purchase andconsumption knowledge and experience that they apply tofuture related behavior.

Learning is aprocess it continually evolves and changes as aresult of newly acquired knowledge or from actual experience

Both newly acquired knowledge and personal experience serve asfeedbackto the individual and provide the basis forfuturebehaviorin similar situations

Also, great deal of learning is also incidental,acquired by accident or without much effort


5/89

These elements must be present

for learning to occur

Motivation Cues Response Reinforcement


6/89

Motivation

Degree of relevance, orinvolvement, withthe goal, is critical to how motivated the

consumer is to search for knowledge orinformation about a product or service


7/89

Cues

If motives serve to stimulate learning,

cues are the stimuli that give direction to

the motives Pricestylingpackaging

advertisingstore displays serve as cues

to help consumers fulfill their needs


8/89

Response

How individuals react to a cuehow theybehave

A need or motive may evoke a wholevariety of responses

The response a consumer makes depends heavily onprevious learning that, in turn, depends on howrelated responses were reinforced previously


9/89

Reinforcement

Reinforcement increases the likelihood thata specific response will occur in the future

as the result of particular cues or stimuli


10/89

Behavioural Learning Theories

Stimulus-response theories When a person responds in a predictable way to a known

stimulus, he or she is said to have learned

Behavioral theories concerned with inputs &outcomes of learning, notprocess

Classical conditioning and Instrumental (oroperant)conditioning


11/89

Classical Conditioning

Conditioned learning results when astimulus that is paired with another stimulus

elicits a known response and serves toproduce the same response when used alone

Psychologist Pavlovs experiments with thedog


12/89

The process of classical learning

Conditioned stimulus

Unconditioned stimulus Response

Conditioned stimulus Response


13/89

Reasons for learning

Form of association Associative Learning Stimulus substitution, conditioned stimulus

acquires the capacity of substitutingunconditioned stimulus

Information & expectation, unconditionedstimulus becomes the signal of CS


14/89

Applying classical conditioning

Conditioned stimulus

Unconditioned stimulus

Response

Conditioned stimulus Response

Dettol brand

uncompromised protectionfrom germs

Trust / purchase

Other products / lineextensions from Dettol brand

Trust/purchasebelievinginthesameattributeofuncompromised

protectionfromgerms


15/89

Strength of learning depends upon

Forward conditioning (CS should precede the US) Temporal proximity

Number of repetitions Unconditioned Stimulus which is biologically or

symbolically salient Novelty of Conditioned Stimulus


16/89

Concepts arising out of Classical

Conditioning

Repetition Stimulus Generalization Stimulus Discrimination


17/89

Repetition

Increases the strength of the association and slows down theprocess of forgetting

However after a certain number of repetitions, retentiondeclines - advertising wearout

Can be decreased by varying the ad messages

cosmetic variation (same message, different executions Surfdaag acchey hain campaigns) or

substantive variation (conveying more than one product

feature using different ad content) Substantively varied ads more effective

3 Hit Theory


18/89

Stimulus Generalization

Learning depends not only on repetition, but also on abilityof individuals to generalize

Stimulus generalization explains why imitative me tooproducts succeed in the marketplace: confusion withoriginal product

Private label packaging closely resembles national brand leaders


19/89

Use of Stimulus Generalization

Product line extensions Product form extensions including different sizes,

different colors, different flavours New product category Family Branding Licensing brand-names, cartoon characters,

celebrity/designer names Flip-side: Counterfeiting


20/89

Stimulus Discrimination

Opposite of stimulus generalization

Selection of specific stimulus from among similar stimuli Consumers ability to discriminate among similar stimuli is

the basis of positioning strategy

Comparative ads

Unlike imitators who hope consumers will generalize theirperceptions & attribute special characteristics of market

leaders products to their products, leaders want consumersto discriminate among similar stimuli


21/89

Classical Conditioning in

Indian context

Lux soap beauty of film stars Pears gentle, soft baby-like skin Pepsi youth & cricket Kingfisher use of jingle & good times


22/89

Operant conditioning

The process of operant conditioning some action on the part of respondent is

instrumental in bringing out the change in theenvironment if the change is positive likelihood of the

response occurring again increases and if the

change is negative the likelihood decreases due to this reinforcement (either positive or

negative) behavior is learned


23/89

Operant / Instrumental

Conditioning

Psychologist B.F. Skinner Learning is a trial and error process Occurs in a controlled environment, where

individuals are rewarded for appropriate

behaviour


24/89

Reinforcement

Positive Reinforcement: events thatstrengthen the likelihood of a specific

response Negative Reinforcement: unpleasant or

negative outcome to encourage a specificbehavior (in order to avoid that outcome)

not to be confused with punishment, which isdesigned to discourage behavior


25/89

PositiveReinforcement

Advertisement for

The Economist


26/89

PositiveReinforcement

Advertisement forThe Economist


27/89

NegativeReinforcement


28/89

NegativeReinforcement


29/89

Fear Appeals Negative Reinforcement


30/89

Fear Appeals Negative Reinforcement


31/89

S

trength

ofrespons

e

Conditioning Extinction

End of pairing of US + CSPairing of US + CS

The phenomenon of extinction


32/89

Extinction

When a learned response is no longer reinforced, itdiminishes to the point of extinction

Different from forgetting implies lack ofuse/consumption, rather than lack of reinforcement


33/89

Non-product reinforcement

Customer Satisfaction through service andamenities provided

Relationship marketing Service Recovery


34/89

Operant conditioning

Shaping behavior - a method of successiveapproximation

Schedule of reinforcement Total (continuous reinforcement) e.g. product quality

Systematic (fixed ratio)

Random (variable ratio)


35/89

Massed vs Distributed Learning

Should a learning schedule be spread out over aperiod of time (distributed learning), or should itbe bunched up all at once (massed learning)?

Massed advertising produces more initial learning,Distributed schedule usually results in learning thatpersists longer


36/89

Observational Learning /

Modeling Learning takes place in the absence of direct

reinforcement too Modeling is the process through which individuals

learn behavior by observing the behavior of othersand the consequences of such behavior Role models usually people they admire because of

appearance, accomplishment, skill

Also called vicarious learning


37/89

Observation of a

positive response fromthe two teens


38/89

Cognitive Learning Theory


39/89

Cognition

Cognition refers to the processing of the informationabout the environment that is received through thesenses

Cognitive processes involves 1. The selection of information

2. Alterations in the received information

3. Association of items of information with each other in thethought

4. The elaboration of the information in thought

5. The storage of information in the memory

6. The retrieval of the stored information


40/89

Cognitive Learning

Learning through information processing which is seen as most characteristic of human beings

Involves problem solving- enables them to gain somecontrol over their environment


41/89

Information Processing Role of Memory


42/89

Information Processing

Product info processed by attributes, brands,comparisons between brands

Intensity or degree of info processing can vary byindividual

Individuals also differ in imagery their ability toform mental images which influences recall


43/89

Role of Memory in Learning

There are 3 different sequential storehouses forkeeping information in the brain:

Sensory store Short-term Store Long-Term Store


44/89

Sensory Store

Data comes to us in fragments Smell, shape, colour and feel conveyed through different senses, in

parallel, to the brain synchronized and perceived as a singleimage

Image of sensory input lasts for a couple of seconds if notprocessed immediately it - lost forever

Brain tags all perceptions with a +ve or ve value whichtends to remain till further information is processed

making first impressions last


45/89

Short Term Store

Working memory

Information is processed and held temporarily Looking at a telephone number and then forgetting it seconds later

when about to dial


46/89

Long Term Storage

Long-Term Storage: Here information is stored forrelatively long periods: days, weeks, months, years.

Rehearsing: Failure to rehearse an input either by repeatingit or relating it to other data, can lead to data fading or dataloss.

Competition for attention can also lead to the short term storagehandling only a few inputs.

Encoding is when we use a word or visual to represent theperceived object. Brand logos are a great example

Learning visually takes less time than learning verbal information


47/89

Information Processing and

Memory Stores


48/89

Retention

Information in L-T storage is constantly organized& reorganized

Individuals - gain more knowledge - expand their

network of relationships Process known as activation i.e. relating new data to

old to make the material more meaningful Recoding of what is already encoded to include larger amounts

of info chunking. Knowledgeable consumers able to store

more complex chunks of info about a category The total package of associations brought to mind

when a cue is activated is called a schema


49/89

Retrieval

Process by which we recover info from LT memory Triggered by situational cues

Distinctive brands have quicker retrieval Dramatic ads Kurkure badal ja campaign

Interference Effects in retrieval Confusion with competitive ads ads can act as recall for

competing brands New learning can interfere with old learning & vice versa


50/89

Applying Information Processing to

Marketing Practice Various models eg. AIDA use the sequential info

processing concept

Marketers must be careful about Selection of media Existence of a frame of reference- first mover advantage


51/89

Models of cognitive learning

Attention - Interest - Desire - Action

Attention - Interest - evaluation - trial - adoption

Knowledge - Persuasion -Decision Confirmation

Awareness - knowledge - Evaluation - Purchase -Post purchase evaluation


52/89

Involvement Theory

Consumer Involvement Degree of personal relevance that the product holds for that

consumer

High involvement purchases important to the consumerevoke extensive problem solving & info processing

House high perceived financial risk

Anti-dandruff shampoo- high perceived social risk

Low involvement purchases not very imp provoke limited info processing


53/89

How can one measure

involvement? Find out about:

Importance of a purchase to a buyer & risk

perceived Find the level of info searched for

Important to view involvement as a

continuum rather than a dichotomy


54/89

Marketers efforts to increase

involvement

Placing ads / products in highly involving

setups online video games, sportsprograms

Using narratives rather than visuals inpromotion


55/89

Central & Peripheral routes to

persuasion There are two routes through which

persuasive messages are processed: the

central route and the peripheral route

Elaboration Likelihood Model created in1980 by Richard E Petty and John TCacioppo


56/89

Central & Peripheral

Central processing For high involvement products/services

Thinking actively about argument

InvolvesELABORATION Comparative ads are processed centrally

Peripheral processing For low involvement products/services

Doesnt involve elaboration Shorthand way to accept/reject an argument CUES

Cues allow us to travel along the peripheral route on auto pilot

Non comparative ads are processed peripherally


57/89

Marketing Application of ELM


58/89

Marketing Application

A central route is popular for communicating withconsumers who are more highly involved with the productor issue

A peripheral route can be used with a combination of visualcues for influencing less-involved consumers

Combinations of both used frequently

P i d


59/89

Persuasive adfor a HighInvolvement

purchase


60/89

Persuasive adfor a High

Involvementpurchase


61/89

Low involvement therefore, crazy ads to catchattention


62/89

Hemispheric Lateralization

Split brain theory

Brain divided into two distinct cerebral hemispheres whichoperate together but specialize in different functions

Left: linear, rational, realistic responsible for reading,speaking

Right: emotional, metaphoric, impulsive, intuitive, non-

linear responsible for non-verbal concepts, source ofimagination


63/89


64/89

Measures of Consumer Learning

Recognition Test Recall Test

Mumbai

151

70%

27%

1%

Base: All Respondents(listings)

TOM

Brand Spont

Total Awareness


65/89

Brand Loyalty

The ultimate desired outcome of consumerlearning

Behavioural Loyalty Attitudinal Loyalty


66/89

Aware of KIT KAT MINI71%

Mumbai

Base:151 Base:155

All455 respondents

A'hmd

Spont:27%Aided:43%

Total:70%

Never tried KK MINI(38%)

36%

52%

Tried KK MINI 33(%)

Spont: 18%Aided: 67%Total: 85%

Spont:21Aided:37%Total:

58%

Kolkata Base:149

27% 34%

33%

31%

Tried Only Once(1%)

Repeat Trialists(32%)0% 2% 1% 34

%31%

30%


67/89

Memory & Associative Networks


68/89

Associative Network

An incoming piece of information is stored in anassociative network containing many bits of relatedinfo organised according to some set of

relationships

Knowledge structures complex spider websfilled with pieces of data


69/89

Associative network models

Memory consists of a system of nodes that are linkedto other nodes via pathways at different degrees ofassociation

When stimulation occurs, nodes can activate eachother to generate stronger connections

The larger the number of activated nodes, the strongerthe connection between nodes is, which in turn createsmore significant memories

Source: http://www.ijdesign.org/ojs/index.php/IJDesign/article/view/530/287


70/89

Associative network

During the message retrieval process, nodes randomly diffusethrough the network and stimulate the activation of other nodes.These stimulated and activated nodes naturally result in strong

connections

Meanings can be activated indirectly energy spreads acrossnodes of varying levels

As one node is activated, others associated with it are alsotriggered into activation - process ofspreading activation


71/89

Associative network

Evoked set all related associations evoked whena certain cue is presented


72/89

Associative Networks

Print ads consist of 3 basic elements: a visualelement (a picture), a language element (words), anda brand name element (the merchandise)

Establishment of correlations and connections amongthese elements serves to improve the memory of theconsumer



73/89

Associative network model of memoryNodes connected via visual image & wording in long-term memory

(The advertisement uses a look out for children trafficsign as a metaphor for suntan lotion)



74/89

Factors influencing Retrieval

Physiological factors age

Recall enhanced when consumer pays more attention to themessage in the first place

First mover advantage Descriptive brand names more effective at recall

Context in which the message is presented level ofinvolvement with the program

Also, ads shown first in a series of ads are likely to berecalled better than ads shown last


75/89

State dependant retrieval

People recall messages better if their internal state is thesame at the time of recall as when the information waslearned

Also called mood-congruence effect

Importance of planning exposure to marketingcommunications recreating cues that were present when

the info was first presented


76/89

Factors influencing retrieval

Prior familiarity with an item enhances its recall However, extreme familiarity can result in inferior learning and

recall less attention paid as additional effort not thought asleading to more knowledge

Salience or prominence of a brand enhances recall whyunusual ads work

Also, some research suggests superiority of visual messagesover verbal messages


77/89

The Marketing Power of

Nostalgia Marketers try to evoke memories of good old days or

youth, thinking these will translate to what theyre selling

today Retro Brand trigger nostalgia, inspire consumers to think

back to an era when life was simple, stable


78/89

Brand Loyalty

Brand loyalty is the synergy among attitudinal componentssuch as perceived product superiority, customer satisfaction& purchase behaviour itself

Behavioural definitions lack precision as they do notdistinguish between the real brand loyal buyer and thespurious one, who repeat purchases just out of habit


79/89

Measuring propensity to be

brand loyal

1. I would rather stick with a brand I usually buy than staywith something Im not very sure of

2. If I like a brand, I rarely switch from it just to trysomething different

3. I rarely take chances by buying unfamiliar brands even ifit means sacrificing variety

4. I buy the same brands even if they are average


80/89

Brand loyalty in Services

Two groups of factors seen key in maintainingcustomer loyalty:

Switching barriers Reasons that affirm the customers relationship with the

service vendor


81/89

Measuring reasons to stay loyal

1. There has not been a bad enough incident to make meswitch

2. I am familiar with my current service provider

3. I trust my current service provider4. I am satisfied with my current service provider

5. I get on well with the staff at my current service provider

6. Staff at my current service provider understand me

7. A complaint was handled well


82/89

Brand Equity

Refers to the value inherent in a well-known brand name,stemming from

the consumers perception of the brands superiority

Social esteem that using it provides Consumers trust & identification with the brand

Companies leverage existing brand equity through brandextensions rather than launching new brands

Brand Equity enables companies to charge premium prices


83/89

Brand Equity

Equity is important for low involvement purchases goods bought routinely with little cognitiveprocessing

Key Drivers of Equity Perceived Quality, BrandLoyalty, Brand Image and Brand Awareness

Also, COO effects influence brand equity


84/89

Measuring Brand Equity

Important to understand the sources of brand equity, howthey affect outcomes of interest (e.g., sales)

Value of a brand and thus its equity is ultimately derivedin the marketplace from words & actions of consumersthe real power of a brand is in the thoughts, feelings,images, beliefs, attitudes, experiences that exist in minds ofconsumers

Assessing potential sources of equity by


85/89

Assessing potential sources of equity bymeasuring brand knowledge

(consumer mindset)

Two important components of brand knowledge arebrand awareness and brand image

Brand image is defined as consumer perceptions of andpreferences for a brand, as reflected by the various types

of brand associations held in consumers' memory Strong, favorable and unique brand associations are essential

as sources of brand equity to drive consumer behavior


86/89

Qualitative measures

Free association What comes to your mind when you think of ___ brand?

Asking questions like

What do you like best about the brand? What are its positive aspects? What do you dislike? What are its disadvantages?

What do you find unique about the brand? How is it different fromother brands? In what ways is it the same?

Who uses the brand? What kind of person?

When and where do they use the brand? What types of situations? Why do people use the brand? What do they get out of using it?

How do they use the brand? What do they use it for?


87/89

Qualitative measures

Projective techniques used in cases whererespondents may be unwilling or unable to expresstheir feelings and opinions

Brand Personality

Q tit ti


88/89

Quantitative measures Brand Awareness

Recognition

Recall

Measuring Brand Performance Reliability, durability &

serviceability

Service effectiveness, efficiency& empathy

Style & design

Price

Measuring Brand Imagery (how

people think about the brand) User profiles

Purchase & usage situations

Personality & Values

History, heritage, experiences

Brand Judgements Brand quality

Brand credibility

Brand consideration

Brand superiority

Brand Feelings Warmth

Fun

Excitement

Security

Social approval Self respect


89/89

Co-Branding

Two brand names featured on a single product Using another products brand equity to enhance

the primary ones equity Eg:

Washing machine-detergent Automobile-engine oil

CB Learning 1

Documents

Transcript of CB Learning 1