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Unit 3: Consumer Learning - Coggle Diagram
Unit 3: Consumer Learning
Definition: process by which individuals acquire the consumption knowledge from experience, observation & interaction with others and use the knowledge in their future consumption
Elements of Consumer Learning Process
Motivation
Unfilled needs lead to motivation, the driving force impelling people to act
Cues
Stimuli that direct motivated behaviors
Price, styling, packaging, advertising, store display, etc
advertisement serves as the cue, suggesting to consumers a way to satisfy their needs and motivating them to purchase the product or service
Responses
Consumer’s reaction to the cue in an effort to reduce the drive
Many possible ways to respond to a need
Reinforcement
the reward resulting from the response
Benefits, enjoyment or utilities received from a product
Increases the likelihood that a response will occur in the future
Behavioural Learning Theories
Classical Conditioning
achieved through repeated exposure and reinforcement and has found wide application in advertising and promotion
When a particular stimulus is paired with another stimulus, according to Pavlov’s theory = elicited
marketers connect desired cognitive & emotional responses
e.g. conditional stimulus like the brand logo is paired with an unconditional stimulus like a piece of music -> expected to elicit an unconditioned responses of positive mood -> after sufficient exposure, consumer will feel delightful or joyful when they see the brand logo -> positive mood becomes the conditioned response
3 Strategic Applications of Classical Conditioning
Repetition
increases the strength of association and slows down the pace of forgetfulness in consumers
Disadvantage: advertising wear-out and boredom
Solution: Varying the advertising themes for the same product results in consumers processing more information
Stimulus Generalisation
happens when the same response is invoked by slightly different stimuli
enhances consistent learning among consumers as the stimuli are only slightly different
family branding is also a strategic application of stimulus generalization
e.g. Tiger Balm advertised as pain relief, brand name is also used for various products under the same company -> allows for expansion of product line
licensing: popular brand name to be affixed to products made by other manufacturers
e.g. Disney character appears on licensee's product
Stimulus Discrimination
selection of a specific stimulus from among other stimuli
related closely to positioning
important for marketers to teach consumers how to discriminate among multiple stimuli and form a unique brand image in consumers’ minds
specific benefit is strategically chosen as the key differentiating point to inform a customer of the product’s specific uniqueness
Instrumental Conditioning
Consumers learn through a trial-and-error process, with habits formed as the result of rewards received for certain responses or behaviors
Positive reinforcement
rewarding a desired behaviour and increasing the likelihood of repeated purchase
e.g. Mary enjoys the feel of a certain moisturiser on her skin, she will buy it again
Negative reinforcement
removal of an unpleasant outcome is used to encourage a certain behaviour
e.g. illiterate mothers were shown pictures of disabled children who had suffered from polio, the negative reinforcement (i.e., stay safe from polio) drives them to take their own children to vaccination centres
Forgetting & Extinction
occurs when reinforcement is no longer available, and the behaviour-reward link disappears from the consumers’ memory
reinforcement in the form of consumer satisfaction can rekindle the memory and extinguish the chances of extinction
Proper customer relationship management processes reduce the likelihood of forgetfulness or extinction
Strategic Application of Instrumental Conditioning
Customer Satisfaction & Relationship Management
companies need to “Go the Extra Mile” to gain customer satisfaction and loyalty
Reinforcement Schedules
rewards offered to keep customers happy and satisfied
Continuous reinforcement
e.g. the free after-dinner drink every time you dine in a restaurant
Systematic reinforcement (fixed ratio)
e.g. you get a stamp card at the coffee shop and after every 10 visits you receive a free cup of coffee
Random reinforcement (variable ratio)
e.g. getting rewards at random occasions as in lotteries, sweepstakes, or casino visits
Shaping
form of reinforcement which is performed before the desired consumer behaviour actually takes place
e.g. consumer buy products with a coupon at discounted price -> repeat this behaviour a few times -> marketers is trying to shape consumers' purchase behaviour
Massed vs Distributed Learning
Marketers need to be careful to time announcements about new products or services, or improvements upon existing products or services
marketers use mass advertising to instantly impress consumers when introducing a new product or challenging a competitor head on
If a marketer is looking for long-term repeat purchases of his or her product on a regular basis, then distributed schedules are applied
Modelling/ Observational Learning
process by which individuals learn behaviours by observing the behaviour of others and the consequences of such behaviour
Marketers apply observational learning by featuring likeable endorsers in their advertisement
Videos demonstrating product use is also an example of observational learning
Cognitive Learning
A systematic evaluation of information and alternatives needed to solve a recognized but unfilled need or problem
Learning occurs in the form of sequential, mental processing of information when people face problem that they wish to resolve
Information Processing
factors such as age, education, income, culture, ethnicity, gender, location, self-monitoring capability, and risk perception -> influence information processing and recall ability
3 different storehouses of human memory
Sensory Store
temporary storage to keep the information we receive from our senses
Short-Term Store
space where information is processed (i.e., currently being used) and held for a brief period
Long-Term Store
system where information can be held for days, weeks, or even years depending on the context and need
3 components of information processing
Storing
brain has a second or two to capture an image of the advertisement or concept or product
If the image is not processed further, it is lost instantly
important that the marketer and advertiser ensure that the consumer processes information beyond the initial sensory store
Rehearsal & Encoding
transfer of information from short-term store to long-term store depends on rehearsal and encoding
Rehearsal = the silent mental repetition of information
Encoding = selecting a word or a visual image to represent a perceived object
Marketers should come up with stimuli that will impact the sensory store first, then
encourage rehearsal and encoding
impeded by factors such as too much of information and complex information and these may lead to consumere impeded by factors such as too much of information and complex information and these may lead to consumer
Retention & Retrieval
Retrieval = process by which we retrieve information from long-term storage
long-term store alters and adjust material stored
long-term memory stored in 2 ways
Episodically or by the order in which it is acquired
Semantically or according to significant concepts
Theoretical Models of Cognitive Learning
knowledge → evaluation → behaviour
realize a need and set a purchase goal
search and read relevant information -> stage where they are exposed to information, resulting in product knowledge
consumers evaluate the options based on a set of criteria and develop a preference or an attitude -> adopt or reject
Consumer Involvement
Defined as the degree of personal relevance that the purchase decision holds for the consumer
determine how much effort consumers would put into cognitive processing & decision making
central vs peripheral processing (unit 4)
High involvement purchase = require more information
High involved individuals -> difficult to satisfy
Low involvement = makes quick and simple decisions
involvement increases brand loyalty and likelihood of repeat purchase
refer to study guide for examples
Measures of Consumer Learning
Recognition & Recall
determine whether consumers remember the messages and advertisements.
Brand Loyalty
measures consumers' attitude & behaviour toward a brand -> overall feeling and commitment to buying the brand
classified into 4 types
No loyalty
no purchase and no attachment
Covetous loyalty
attachment to brand name but no purchase
Inertia loyalty
purchase is made but with no strings attached and hence no loyalty
Premium loyalty
frequent purchase and high loyalty over a long term = truly loyalty customers
Consumer-drive brand loyalty
stay loyal to the brand on their own accord for whatever self-image-related reasons
Brand-driven loyalty
brand built a reputation over the years -> image & position in consumers mind
Social-factors-driven brand loyalty
Group influences, peer recommendation, and good word-of-mouth lead to loyalty to a brand
Brand Equity
When brand loyalty increases, brand equity also increases, and so does the market share