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Review so far: How to influence consumer

behavior?
Business mindset
Marketing concept:
CV, CS, CR

Reason to buy:
- Needs or problems
- Perception

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Consumer Learning
Consumer learning is a process that evolves and
changes as consumers acquire knowledge from
experience, observation, and interactions with
others and newly acquired knowledge affects
future behavior. It ranges from simple and often
reflexive responses to marketing stimuli (such
as packaging, product colors, and promotional
messages), to learning abstract concepts and
making decisions about purchasing complex and
expensive products.
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Consumer Learning
Example:
- on line booking for flight
- save cash via ATM
- MRT
- GeNose Test
- other examples?

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Consumer Learning

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 Learning
• Intentional vs. incidental learning
Intentional learning is acquired as the
result of a search for information,
while incidental learning is acquired by
accident or without much effort.

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 Learning
• Four elements of learning:
– Motives  come from unfilled needs
– Cues  stimuli that direct motivated
behavior
– Responses  an individual’s reaction to a
drive or cue
– Reinforcement  the reward—the pleasure,
enjoyment, and benefits—that the consumer
receives after buying and using a product or
service
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Behavioral Learning
Behavioral learning (aka stimulus-response
learning) is concerned with the inputs and
outcomes of learning.
Three forms of behavioral learning: (1)
classical conditioning, (2) instrumental (or
operant) conditioning, and (3) behavioral
(or modeling) learning.

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1. Classical Conditioning
Classical conditioning is viewed as a “knee-jerk” (or
automatic) response that builds up through
repeated exposure and reinforcement. The
unconditioned stimulus occurs naturally in
response to given circumstances, the conditioned
stimulus becomes associated with a particular
event or feeling as a result of repetition, and the
conditioned response is a response to the
conditioned stimulus. The strategic applications of
classical conditioning associative learning, the need
for repetition, stimulus generalization, and stimulus
discrimination.
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Classical Conditioning

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Classical Conditioning

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Applications of Classical Conditioning
• Associative learning  learning of
associations among events
• Need for repetition  for increasing the
strength between two stimuli
– Advertising wear-out
– Three-hit theory  three exposures to an
advertisement are needed: one to make
consumers aware of the product, a second to
show consumers the relevance of the
product, and a third to remind them of its
benefits
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Stimulus Generalization
Responding the same way to slightly different
stimuli is called stimulus generalization
•Product line extensions  add related items.
Example: Lifebuoy shampoo to soap
•Product form extensions  same product,
different form under the same brand.
Example: syrup, tablet, pill
•Family branding  marketing different
product categories under the same brand.

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Stimulus Generalization
• Licensing  contractually allowing a brand
name to be affixed to the products of
another manufacturers

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Stimulus Discrimination

Stimulus discrimination is the opposite of

stimulus generalization. Its purpose is the
selection of a specific stimulus from among
similar stimuli. The core objective of
positioning is to “teach” consumers to
discriminate among similar products

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2. Instrumental Conditioning or
Operant

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Definition
• Positive reinforcement rewards a particular
behavior and thus strengthens the likelihood
of a specific response during the same or
similar situation.
• Negative reinforcement is the removal of an
unpleasant stimulus and it strengthens the
likelihood of a given response during the same
or similar circumstances. On the other hand,
punishment is designed to discourage
behavior.

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Definition
• Extinction occurs when a learned response
is no longer reinforced and the link between
the stimulus and the expected reward
breaks down.
• Forgetting is often related to the passage of
time, and thus is often called decay.

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Reinforcement Schedules

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 Reinforcement Schedules
With continuous reinforcement, a reward is
provided after each transaction.
A fixed ratio reinforcement schedule provides
reinforcement every nth time the product or
service is purchased (say, every third time).
A variable ratio reinforcement schedule rewards
consumers on a random basis

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Other Applications of Instrumental Learning

• Shaping  occurs by having the

reinforcement BEFORE the behavior occurs.
In this situation, the consumer can be given
the offer of a reward before they actually
make their decision and purchase a product
• Massed vs. distributed learning  putting
together an advertising campaign vs ads
repeated on a regular basis

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3. Observational Learning

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Cognitive Learning

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Information Processing
• Storing information
– Sensory store  the mental “space” in the
human mind where sensory input lasts for
just a second or two
– Short-term storage  information is
processed and held for just a brief period
– Long-term storage  the mental “space”
where information is retained for extended
periods of time, last for days, weeks, or
even years
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 Information Processing
• Rehearsal  mental repetition of
information, transferred to the long-term
store
– Encoding  the process by which we select
a word or visual image to represent a
perceived object.
– Information Retrieval

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Information Processing
• Retention
– Chunking  the process during which
consumers recode what they have already
encoded; results in recalling additional
relevant information
– Retrieval  the process by which people
recover information from the long-term
store; it is frequently triggered by external
cues.

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Cognitive Learning

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Recognition and Recall Measures

• Aided recall (recognition)

• Unaided recall (recall)

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 e d
fi n
e
D Brand Equity
The intrinsic value of a brand name.
This value 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.

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