Consumer LearningProf: Hari Iyer

ObjectiveThis presentation is to understand how the consumer learns and how the learning process determines our marketing strategy.

Consumer BehaviourA consumer is a human being who walks, talks, breathes, laughs, sings, dances, etc.

The way in which he/she does all that is called Behaviour.

If we can understand the Consumer Behaviour we would be in a better state to make our decisions in business.

BehaviourReflexes

Responses

These components of behaviour are triggered by stimulus

Relevance

Classical Conditioning

HelloHello

Hello

Hello

Hello

HelloHEllo

HelloHeyyY!!

I Love You <3

Strategy

• Repetition

• Stimulus Generalisation

• Stimulus Diffrentiation

Stimulus Generalization and Marketing

• Product Line, Form and Category Extensions

• Family Branding

• Licensing

The ability to select a specific stimulus from among similar

stimuli because of perceived

differences.

Stimulus Discrimination

Positioning Differentiation

Instrument (Operant) ConditioningA 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.

A Model of Instrumental Conditioning

Stimulus Situation (Need good-looking jeans)

Try Brand D

Try Brand C

Try Brand B

Try Brand A

UnrewardedLegs too tight

UnrewardedTight in seat

UnrewardedBaggy in seat

RewardPerfect fit

Repeat Behavior

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.

Instrumental Conditioning and Marketing

• Customer Satisfaction (Reinforcement)

• Reinforcement Schedules• Shaping

Reinforcement

Positive Reinforcement

• Positive outcomes that strengthen the likelihood of a specific response

• Example: Ad showing beautiful hair as a reinforcement to buy shampoo

Negative Reinforcement

• Unpleasant or negative outcomes that serve to encourage a specific behavior

• Example: Ad showing wrinkled skin as reinforcement to buy skin cream

Instrument (Operant) Conditioning

Other Concepts in Reinforcement

• Punishment• Choose reinforcement rather than punishment

• Extinction• Combat with consumer satisfaction

• Forgetting• Combat with repetition

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

Cognitive Learning Theory

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

Models of Cognitive Learning

SequentialStages of Processing

Promotional Model

Tri-competent Model

Making Model

AdoptionModel

Decision Process

Attention CognitiveAwarenessKnowledge

Awareness Knowledge

Interest Desire

Affective EvaluationInterest Evaluation

Persuasion

Action Conative

Post Purchase PurchaseEvaluation

Trial Adoption

Decision Confirmation

Examples

• Cameras

• Mobiles

• Cars

Understanding the type of product

Depends on the type of the product & service

Low priced/ routine /habitual reminder advertisement periodic promotion

• Prominent shelf position

New products

• High advertising

• Free sampling

• Special price offer

• High value coupons

Low knowledge about the product

• Ads with detail info

• Sales personnel

Consumer learning

• Learning can be intentionally as well as unintentionally.

• A 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

Elements of Learning Theories

• Unfilled needs lead to motivationMotivation

• Stimuli that direct motivesCues

• Consumer reaction to a drive or cueResponse

• Increases the likelihood that a response will occur in the future as a result of a cueReinforcement

Measures of Consumer Learning

• Recognition and Recall Measures• Aided and Unaided Recall

• Cognitive Responses to Advertising

• Copy testing Measures

• Attitudinal and Behavioral Measures of Brand Loyalty

Thank You

Rohan Bagda B005Sahil Kyal B009

Mohit Sharma B012Amrit Singh B015

Harsh Kumar Jhunjhunwala B017Avishi Garg B032

Akul Singhal B040