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CONSUMER LEARNING

• Consumer Learning Theory

• Attitude

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CONSUMER LEARNINGBehavioral Learning Theory (Stimulus-

Consumer-Response)

• To understand learning processes, focus on stimulus and responses

• Assumes that human learning takes place as the result of responses to external events.

• Learning is automatic from external environment.

• Internal thought process has no effect on our learning.

• All species of animals learn in similar (equal ways with the same guiding principles).

• Learning is evidenced by a behavior change.

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CONSUMER LEARNING•One major approach to behavioral

learning is Stimulus-Consumer-Response or Classical conditioning

• … when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus

– Ivan Pavlov’s experiments with Dogs– Pepsi using Britney and ‘We’ll rock you’ in its

commercials– Oral-B toothbrushes with an ‘early warning system’

for timely replacement

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CONSUMER LEARNING

Pavlov’s experiment

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CONSUMER LEARNINGMarketing application of Classical Conditioning Principle

• Repetition– Conditioning effects are more likely to occur

after the conditioned (CS) and unconditioned (UCS) stimuli have been paired a number of times.

– Repeated exposures increase strength of S-R (stimulus-response) associations and prevent decay of these associations in memory (forgetting)

– Slogans, Logos … but beware of ad wear out and competitive advertising

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CONSUMER LEARNINGMarketing application of Classical Conditioning Principle

• Stimulus Generalization– Refers to tendency of stimuli similar to CS

(conditioned stimuli) to evoke similar, conditioned responses

– Explains the success of ‘me-too’ products and private label brands (that make their packaging resemble the Leader) (Fair & Lovely cream and Fair One)

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CONSUMER LEARNINGImplications of Stimulus Generalization

• Product line extension – When brand name and product quality is established, the company can extend its product line (Kazi Regular tea to green tea, Tulshi tea, black tea), Tylenol (J&J) makings its products available in a number of formats (tablets, capsules, gelcaps), strengths (regular, extra-strength and children’s) and package sizes

• Product form extension – Product can be available in different forms (Soft drinks in bottle, can)

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CONSUMER LEARNINGImplications of Stimulus Generalization

• Product category extension – (Arong mango juice to strawberry flavor milk), disposable BIC pens to disposable BIC razors

• Family branding – Varieties of products with the company name (Milk Vita milk, yogurt, ice cream, butter), Pran company adding new food products to its product line under the Pran brand name

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CONSUMER LEARNING• Licensing – Companies often rent well known names

(Tommy Hilfiger, Calvin Klein on caps, clothing, luggage, toys, …. (with the risk of counterfeiting!)

• Positioning – Store brands (Trans Tech TV of Transcom) Vs. Manufacturer’s brands (Philips TV)

• Product differentiation – ‘teaching’ the consumers through a specific logo, statement, music (through advertising and selling) to associate the brand name with a specific product (soft drinks Coke or Pepsi, Grameen phone and Bangla Link with certain musical tones)

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CONSUMER LEARNINGMarketing application of Classical Conditioning Principle

• Stimulus Discrimination

– Occurs when a stimulus similar to a CS is not followed by a UCS. When this happens, reactions are weakened and will soon disappear.

– Imitators want consumers to generalize their perceptions but market leaders want to retain the top spot by convincing consumers to discriminate (by effective positioning – establishing a unique image for a brand in the consumer’s mind)

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CONSUMER LEARNINGCognitive Learning Theory• In contrast to behavioral learning theory

cognitive learning theory provides more stress on internal mental process of learning.

• This view assumes that consumers collect information and interpret them according to their mental ability.–Company may wish to give one meaning from

advertisement but consumers may interpret it differently.

–Suppose Coke is giving impression that after drinking people will be dynamic/active…. …..consumers may interpret it that kids will be hyper after drinking coke.

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CONSUMER LEARNINGCognitive Learning Theory…..

Observational Learning

– Occurs when people watch the actions of others and note the reinforcement they receive for their future behavior. Here learning is not direct rather vicarious

– Also called as Social learning or vicarious learning or modeling

–When you use polo perfume, you observed very positive impression from your partner/friend. So, you continue using in the hope that your friend will repeat that appreciation

13Components of observational learning

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CONSUMER LEARNING• Cognitive Learning Theory continued……..

Involvement Theory– Based on hemispherical lateralization or Split-brain

theory

– Left-hemisphere is primarily responsible for cognitive activities (reading, speaking, attributional information processing) – it’s rational, active and realistic

– Right-hemisphere is concerned with nonverbal, timeless, pictorial and holistic information – it’s emotional, metaphoric, impulsive and intuitive

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Exhibit:Hemispheric Lateralization

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CONSUMER LEARNING• Cognitive Learning Theory continued……..

Involvement Theory

– Impact on Media strategy – TV viewing is considered a right-brain activity (passive learning through low-involvement information processing) and Print media and interactive media are considered high-involvement media.

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CONSUMER LEARNINGMemory and Retrieval

• Memory is availability and Retrieval is accessibility

• Memory affects the exposure, attention, and comprehension stages

• Memory allows consumers to anticipate the stimuli they might encounter

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The Memory Process The Memory Process

External InputsExternal Inputs

EncodingInformation is

Placed in Memory

EncodingInformation is

Placed in Memory

StorageInformation

is Retained in Memory

StorageInformation

is Retained in Memory

RetrievalInformation Stored

in Memory is Found as Needed

RetrievalInformation Stored

in Memory is Found as Needed

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CONSUMER LEARNINGInformation overload• Research finding

– It is difficult for consumers to remember product information from ads for new brands in heavily advertised categories (Mobile package ads)

– Consumers can become cognitively overloaded when they are given a lot of information in a limited time

– Interference: the greater the number of competitive ads in a product category, the lower the recall of brand claims in a specific ad

• Example: many packages of mobile phone operators like Grameen, Robi, Warid, Bangla Link

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CONSUMER LEARNING• Consumers tend to remember the product’s

benefits rather than its attributes (Horlicks — gives additional strength rather than it is tasty, sugar-free etc.)

• Incongruent (or unexpected) elements pierce consumers’ perceptual screens and improve the memorability of an ad when these elements are relevant to the advertising message– Example: ad for prothom alo: change yourself,

change others: two intellectual men while crossing the road discussing about philosophy of helping poor people but hit the poor disable boy

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CONSUMER LEARNING

• Incongruent elements that are not relevant to an ad also pierce consumers’ perceptual screen but provide no memorability for the product.

– Example: Ad for Cookie with only physical appeal

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Attitude• …how positive or negative a person feels

toward an object

• It is general evaluation

Attitude and Intention

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Importance of Attitudes

• Cognitive Function – guide our thoughts

• It is consumers belief about a product. Overall beliefs about the product make the cognitive attitude for that product.– Suppose your belief about Mountain Dew is

– Tasty– Less caffeine – For young people

Attitude and Intention

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Importance of Attitudes………..

• Affective Function – influence our feelings/ emotions– I like Fanta (not from any beliefs but from

emotion)

• Marketers are increasingly giving significant importance to hedonic benefits of a product than utilitarian benefits– Grameen Phone “Stay close”

Attitude and Intention

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Importance of Attitudes………….• Connative Function – affect our behavior• It is consumers’ tendency to respond in a

certain manner toward an object or activity. A series of decisions to purchase or not purchase Diet Coke or to recommend it to friends would reflect the behavioral component.

• Brand interest, as represented by tendencies to seek out the brand on store shelves or search for brand information , also reflects the behavioral component.

Attitude and Intention

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Attitudes Component ConsistencyAttitude and Intention

Cognitive Component

Affective Component

Connative Component

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Attitude and Intention

Forming and Changing Attitudes

• The Foundation of Attitudes– Attitudes – based on cognitions or beliefs,

i.e. attitudes can be based on thoughts we have about the information we receive or recall

– Attitudes – based on emotions

– Attitudes – based on behavior

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Attitude and IntentionCognitive Foundations of Attitudes

• The Cognitive Response Model(consumers’ reactions to message affect their attitudes)We may learn from message but not persuadedWe may not learn or attentive but persuadedThe Cognitive Response Model explains we might not learn

from the message directly (what they are intending to recommend us), rather we will be persuaded if we have thoughts that agree with the message.

– Counterarguments (CAs)– Support Arguments (SAs)– Source Derogations (SDs)

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Attitude and IntentionMarketing implications:

– How many thoughts can be developed from the message– Whether these thoughts are favorable or not– Testing marketing communications before placing ads in

media

– Which commercial break? Prime time? (Coca Cola Company does not like to provide add during television news time because they believe that consumers may associate any bad news with coke which is basically a fun product

– Maintain existing belief structures?

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Attitude and Intention

• Communication Source– Spokesperson Credibility– Company Reputation– Sleeper Effect (When a persuasive message is

accompanied with a less reputed cue, it can affect consumers memorability more and more persuasive than less)

How Cognitively Based Attitudes are Influenced

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Attitude and Intention

• The Message–Argument Quality

• Strong Arguments

–Comparative Messages

How Cognitively Based Attitudes are Influenced

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Attitude and Intention

• The Source– Attractiveness

• The Message– Emotional Appeals

– Fear Appeals

How Cognitively Based Attitudes are Influenced

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Attitude and Intention

Change the cognitive component• Change beliefs

– Shifting beliefs about performance of brand on one or more attributes

– Evidence that changing one belief about a brand may result in other belief’s changing to remain consistent

– Diet coke is not harmful for diabetics also change the belief that it is not bad for cholesterol problem

Attitude Change Strategies

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Attitude and IntentionChange the cognitive component• Shift importance

– Consumers focus on some attributes of a product.

– Marketers try to convince consumers that those attributes on which their brands are relatively strong are the most important.

– Subaru car focuses on air bag in the front seat in case of accident

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Attitude and IntentionChange the cognitive component• Add beliefs

– Add new beliefs to the consumers’ existing belief structure.

– IBM introduced a “shock” absorption” feature to protect its laptops from sudden jolts as might occur if it is dropped.

– Now consumer will judge a laptop in future buying with this attribute

– Seylon Tea bag is without staple pin

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Attitude and IntentionChange the cognitive component• Change ideals

– Change the perceptions of ideal brand or situation.

– Always use energy savings bulb in your home to save energy and protect environment.

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Attitude and IntentionChange the affective component• Classical conditioning

– Consumers can be influenced by classical conditioning

– When you want to marketing a new brand which is unknown to consumers, pair the unknown brand repeatedly with some known popular stimulus.

– Like pair the advertisement of that brand with a popular music

– Overtime some positive affect/emotion associated with that music will transfer to the brand

– Some Grameen phone packages with popular music of Rabindra Sanghit

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Attitude and IntentionChange the affective component• Affect toward the add or website

– Consumers may have emotional attraction toward the brand due to emotional effect of advertisement or the website

– Some ad or website can create emotional effect on consumers so that ultimately consumers will have affection for the product which is advertised or put in web.

– ‘From each purchase one taka will be donated to Orphanage center” this ad can create emotional affection for the product

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Attitude and IntentionChange the affective component• Mere exposure

– Affect or brand preference may be increased by mere exposure

– That is, simply presenting a brand to an individual on a large number of occasions might make individual’s attitude toward the brand more positive.

– Thus, repetition of advertisements for low-involvement products may well increase liking for the product (through enhanced familiarity or remembrance)

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Attitude and IntentionChange the behavioral component

– Particularly for low involvement product consumers may show direct behavior without prior cognitive belief or affective components.

– Consumers may try a new product and this behavior can lead directly to affect or cognitions.

– You might buy a diet coke without any affection or cognitive belief.

– Then you find great taste for diet coke and can develop your cognitive belief and affection for diet coke.