Consumer Learning SCCT2083

Topic 5
Consumer
Learning

SCCT2083 Media Audience
Analytics

Learning

+ Definition: Applying your knowledge and past
experiences to present circumstances.

Open Ended

You need to buy a new mobile phone.

Which brand will you consider?

How did you learn about the brand and phone model?

Explain

Elements of Consumer Learning

CONSUMER LEARNING
+ A process that evolves and changes as consumer acquire
knowledge from experience, observation and interactions
with others and newly acquired knowledge affects future
behavior.

+ Ranges from simple and often reflective responses to
marketing stimuli, to learning abstract concepts and
marketing decisions about purchasing complex and
expensive products.

Elements of Consumer Learning

Reinforcement:

The reward (the
pleasure, enjoyment
and benefits) that the consumer receives after
buying and using a
product or service.

Response:

The reaction to a
cue.

Cues:

Stimuli that guide
the consumer’s
actions.

Motivation:
Unfilled needs lead
to motivation, that
drives the consumer
to learn.

Multiple Choice

You need a mobile phone is a ___________

• Motivation

• Cues

• Response

• Reinforcement

Multiple Choice

The advertisement of the new iPhone is a

• Motivation

• Cues

• Response

• Reinforcement

Multiple Choice

Which of the answers below is NOT an appropreate response for a phone advertisement?

• Awareness of the brand

• Interest to buy the phone

• Desire to own an iPhone

• Need to buy a mobile phone

Theories of Learning

•Behavioral Learning Theories: Focus on observable
behaviors.

•Classical Conditioning

•Instrumental Conditioning

•Cognitive Learning Theories: Emphasize internal thought
processes.

•Observational Learning

•Information Processing

Classical Conditioning

•Definition: Learning through association.

•Key Components:

•Unconditioned Stimulus (UCS) – a stimulus that occurs naturally in response to a
given circumstances.

•Conditioned Stimulus (CS) – a stimulus that became associated with a particular
event or feeling because of repetition.

•Conditioned Response (CR) – a response to conditioned stimulus

•Example: Pavlov’s dogs - associating a bell (CS) with food (UCS) to
produce salivation (CR).

Multiple Choice

Dato' Siti Nurhaliza, the brand ambassador for VIVO is an example of ____________

• Unconditioned Stimulus

• Conditioned Stimulus

• Conditional Response

• Unconditioned Response

Applications of Classical
Conditioning in Marketing

• Advertising: Pairing products with positive stimuli
(music, attractive models).

• Branding: Creating strong associations with brands.

• Example: Associating a soft drink with a happy social
event.

Associative Learning

+ View classical conditioning as learning of associations
among events that enable consumers to expect and
anticipate events.

+ The consumer is an information seeker who uses logical
and perceptual relations among events, along with
his/her own preconceptions, to form sophisticated
representation of the world

Repetition

+The key to forming associations between brands and fulfillment of needs.

+Increases the strength of the association between two stimuli and slows down
forgetting connection.

+Advertising Wear-Out – at some point where an individual becomes satiated with
numerous exposures, both attention and retention decline.

+Three-Hit Theory – belief that just three exposures to an advertisement are
needed:

1.

to make consumers aware of the product

2.

to show consumers the relevance of the product

3.

To remind them of its benefits

Stimulus Generalization

+ Explains why some imitative me-too products succeed in
the marketplace: consumers confuse them with original
product they have been advertised.

Stimulus Generalization

+ Product Line Extensions – Additions of related items to an
established brand.

+ Product Form Extensions – Offering the same product in a
different form but under the same brand.

+ Family Branding – consist of marketing different products
under the same brand name

+ Licensing – Contractually allowing a well-known brand name
to be affixed to the products of another manufacturer

Multiple Choice

The products in the photo can be related to which concept?

• Product line extension

• Product form extension

• Family branding

• Licensing

Multiple Choice

The photo represent which concept?

• Product Line Extension

• Product Form Extension

• Family Branding

• Licensing

Stimulus Discrimination

+ The opposite of stimulus generalization

+ The selection of a specific stimulus from among similar
stimuli

Instrumental Conditioning

• Definition: Based on a notion that learning occurs
through a trial-and-error process, with habits formed
because of rewards received for certain responses or
behaviors. Learning through rewards and punishments.

• The stimulus that results in the most rewarded response
is the one that is learned.

• Example: Loyalty programs rewarding repeat purchases.

Instrumental Conditioning

REINFORCING BEHAVIOR
Positive Reinforcement: Rewards a particular behavior and thus
strengthens the likelihood of a specific response during the same or
similar situation.
Negative Reinforcement: Removing an unpleasant stimulus and it
strengthen the likelihood of a given response during the same or
similar situation
Punishment: Introducing an unpleasant outcome to reduce a
behavior.

Instrumental Conditioning

+ EXTINCTION & FORGETTING

Extinction– occurs when a learned response is no longer reinforced and
the link between the stimulus and the expected rewards breaks down.

Forgetting- often related to the passage of time, and thus is also called
‘decay’.

Instrumental Conditioning

+ CUSTOMER SATISFACTION & RETENTION

Reinforce customer satisfaction by consistently providing High Quality

Frequent shopper programs are based on the notion that the more a
consumer uses the service, the greater the rewards.

Instrumental Conditioning

+ REINFORCEMENT SCHEDULES

Continuous Reinforcement – a reward is provided after each transaction

Fixed Ratio Reinforcement – provides reinforcement every nth time the
product or service is purchased

Variable Ratio Reinforcement – rewards consumers on a random basis

Instrumental Conditioning

+ SHAPING

Reinforcement performed before the desired consumer behavior takes
place.

Shaping increases the probability that certain desired consumer behavior
will occur.

Instrumental Conditioning

+ MASSIVE VS DISTRIBUTED LEARNING

Massive Learning

Learning schedule is bunched up all at once

Produces more initial learning

When advertisers want an immediate impact

Distributed Learning

Learning schedule is spread out over a period of time

Usually results in learning that persists longer

When the goal is long-term repeat buying on a regular basis

Observational Learning

+ The process through which individuals learn behavior by
observing the behavior of others and the consequences
of such behavior.

Storing Information

+ SENSORY STORE

The mental ‘space’ in the human mind where sensory input last for just a
second or two.

+ SHORT-TERM STORE

Where information is processed and held for just a brief period.

Rehearsal – the silent, mental repetition of information

+ LONG-TERM STORE

Where information is retained for extended periods of time.

Information Rehearsal & Encoding

+ ENCODING

The process by which we select a word or visual image to represent a
perceived object

+ INFORMATION OVERLOAD

When consumers received too much information and then have difficulty
encoding and storing it

Information Rehearsal & Encoding

+ CHUNKING

The process by which consumers recode what they have already encoded

Often results in recalling additional relevant information

+ RETRIEVAL

The process by which people recover information from the long-term
store

Frequently triggered by external cues

Cognitive Learning

+ The systemic evaluation of information and alternatives
needed to solve a recognized but unfilled need or
unsolved problem.

+ Involves deliberate mental processing of information

+ Occurs when a person has a goal and must search for
and process data to make a decision or solve problem

Cognitive Learning Theory

+ Definition: Learning based on mental processes.

+ Key Concepts:

•Information Processing: Encoding, storing, and retrieving information.

•Observational Learning: Learning by observing others.

+ Example: Consumers learn about new products by
watching demonstrations.

Consumer Involvement

+ The degree of personal relevance that the product or
purchase holds for the consumer.

+ High-Involvement Purchase – very important to the
consumer and thus provoke extensive problem solving and
information processing

+ Low-Involvement Purchase – not very important, hold little
relevance, have little perceived risk and provoke limited
information processing

Outcomes & Measures of Consumer
Learning

RECOGNITION & RECALL MEASURES
+ To determine whether consumers remember seeing an ad and the extend
to which they have read it and can recall its content.

+ Recognition Test – the consumer is shown an ad and asked whether
he/she remembers seeing it and can remember any of it salient points.

+ Recall Test – the consumer is asked whether she/he read a specific
magazine or watched a specific TV show, and if so, whether he/she can
recall any ads or commercials seen, the product and brand advertised,
and any notable points about the offerings promoted.

Outcomes & Measures of Consumer
Learning

BRAND LOYALTY
+ A measure of how often consumers buy a given brand,
whether they switch brands and if they do, how often, and the
extent of their commitment to buying the brand regularly.

+ Degree of Brand Loyalty depends on:

The consumer’s risk aversion or variety seeking

The brand’s reputation and availability of substitute brands
Social group influences and peers’ recommendations

Outcomes & Measures of Consumer
Learning

BRAND EQUITY

+ Represents the intrinsic value of a brand name

+ Stems from the foundations of brand loyalty – the
consumer’s perception of the brand’s superiority, the
social esteem that using it provides and the customer’s
trust and identification with the brand.

Observational Learning in Marketing

• Modeling: Imitating the behavior of others.

• Influencers: Using social media influencers to showcase
product usage.

• Example: Tutorials on YouTube demonstrating product
features.

Factors Affecting Consumer Learning

+ Repetition: Increases strength of associations.

+ Relevance: How pertinent the information is to the
consumer.

+ Environment: Context in which learning occurs.

+ Feedback: Positive or negative outcomes that shape
future behavior.

Case Study: Successful Application
of Consumer Learning

+ Example: Coca-Cola’s consistent use of classical
conditioning through advertisements associating their
drink with happiness and togetherness.

+ Outcome: Strong brand loyalty and high consumer
retention.

Challenges in Consumer Learning

+ Overcoming Habitual Buying: Encouraging consumers
to try new products.

+ Changing Perceptions: Modifying existing beliefs about
a brand.

+ Retention: Ensuring learned information remains in
consumer memory.

Conclusion

+ Summary: Recap of key points on consumer learning
and its impact on consumer behavior.

+ Future Trends: Innovations in how marketers can
leverage learning theories.

+ Q&A: Open the floor for questions and discussion.

References

+ Textbook: Schiffman, L. G., & Wisenbilt, J. (2019).
Consumer Behavior. Pearson.