Topic 5 Learning Memory PDF

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TOPIC 5- LEARNING AND MEMORY OUTLINE - How consumers learn about product & services - Classical and Instrumental conditioning - Memory The picture of Consumer Behaviour

Learning: is the process by which individuals acquire the knowledge and experience that they apply to future related behaviour. - This definition of learning can be looked at more specifically. It is important to realize that it is a process, that it changes over time as new knowledge and experiences are gained by the consumer. New knowledge and experience serve as feedback to the consumer and will influence their future behaviour. Ways of learning: - Simple association between a Stimulus and a Response e.g. logo recognition (“Coca Cola” and “refreshing soft drink”). - Complex cognitive activity e.g. a woman shopping for a new kind of perfume may remember the reactions her friend received on wearing that brand for several months, and she may base her purchase behaviour on these reactions. The Learning Process - Leaning: a relatively permanent change in behaviour caused by experience: o Direct experience o Learning from others (vicarious learning) o Incidental learning: causal unintentional acquisition of knowledge e.g. you may learn about brands even when not using them (association from advertising) - Learning is an ongoing process: constantly being revised. Elements of learning theories: - Motivation: unfilled needs lead to motivation. o It is important because it will differ from one consumer to the next. We may all have a need, but some are more motivated to fulfill the need versus another. Often, a consumer does not realize they have a need. - Cues: stimuli that direct motives. o Is the stimulus that helps direct a consumer’s motives. They include price, styling, packaging, advertising, and store displays. - Response: consumer reaction to a drive or cue. o A consumer will have a response to a drive or a cue. The response is how the consumer behaves after being exposed to a cue or developing motivation.

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Reinforcement: increases the likelihood that a response will occur in the future as a result of a cue. o Finally, reinforcement is tied to the likelihood that the response will occur in the future. Two major learning theories - Behavioral learning: based on observable behaviors (responses) that occur as the result of exposure to stimuli. - Cognitive learning: learning based on mental information processing. Often in response to problem solving. A Behaviorist Perspective on Leaning The Consumer as a “Black Box”

Behavioral Leaning Theories - Assume that leaning takes place as the result of responses to external events. - View is represented by two major approaches to learning: o (1) Classical Conditioning o (2) Instrumental Conditioning - People’s experiences shaped by feedback (rewards and punishments) they receive as they go through life. Conditioning Theories: There are two well-known types of behavioral learning theories: classical conditioning and instrumental conditioning. Instrumental conditioning is also called operant conditioning. It means to condition behaviour using consequences. It refers to voluntary behaviors, while classical conditioning works to condition responses to involuntary behaviors. -

Classical: o Pavlov’s Experiment: Phase 1  Food (UCS) leads to Salivation (UR)  Tone (CS): No response o Phase 2: Tone (CS) is repeatedly paired with Food (UCS)  Tone is sounded before the food is presented o Phase 3: The tone (CS) elicits a new CR  The tone by itself causes salivation

This is Pavlov’s experiment. As explained on the previous slide, the dog learned, was conditioned to salivate from the bell after it was repeatedly paired with the unconditioned stimulus of the meat paste.

Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response. Over time, the second stimulus causes a similar response because it is connected with the first stimulus. Ivan Pavlov, a Russian physiologist who conducted research on digestion in animals, first demonstrated this phenomenon in dogs. He paired a neutral stimulus (a bell= with a stimulus known to cause salivation in dogs (meat). Meat was unconditioned stimulus (UCS) because it was naturally capable of causing the response. Over time, the bell became conditioned stimulus (CS). The bell did not initially cause salivation but the dogs learned to associated the bell with meat and began to salivate at the sound of the bell. The salivation because of a sound was a conditioned response (CR). Models of Classical Conditioning example with a consumer

How marketers can use Classical Conditioning? Classical Conditioning in Marketing - Brands (CS) should be paired with a strong US o Emotional responses and positive feelings (UR) associated with US should spill over the brand. o After repetition, brand should elicit the same emotional responses and positive feelings (CR). - Important is finding a strong UCS to which a product can be paired. o E.g. babies, sexy models, beautiful scenery. Classical Conditioning example 2

Classical Conditioning example 3

For Coca-Cola & Maserati: How have they used classical conditioning in their marketing? Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response. http://www.youtube.com/watch?v=tcXQimc6Fiw https://www.youtube.com/watch?v=K3YxqjUvu1M Requirements for Classical Conditioning - Forward conditioning: CS (conditioned stimulus) should be before UCS (unconditioned stimulus). - UCS (unconditioned stimulus) and CS (conditioned stimulus) belong logically to eachother. - Better to have a CS that is novel and unfamiliar. - Better to have a UCS that is biologically or symbolically salient. - Repetition Classical Conditioning Orders - Temporal order is important o Best conditioning: CS precedes UCS (forward) o Worst conditioning: UCS precedes CS (backward) Repetition - Conditioning effects are more likely to occur after CS and the UCS have been paired a number of times. o Contiguity: consistent pairing of product with UCS. - When the UCS is not paired with the CS  Extinction.

Example of Extinction - In the 1980s, the Lacoste crocodile was an exclusive logo symbolizing casual elegance. - When it was repeated on baby clothes, and other items, it lost its cache and began to be replaced by contenders such as the Ralph Lauren Polo Player. Repetition - Too much repetition  advertising wear-out.

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Optimal amount of exposures to a marketing communication = 3 o 1st exposure = creating brand awareness o 2nd exposure = demonstrate relevance to consumer o 3rd exposure = remind the product’s benefits “Wear-out” problem- people are tired to see the same repeated many times.

What can marketers do to avoid wear-out problem? Strategic application of repetition - Increases the association between the conditioned and unconditioned stimulus. - Slows the pace of forgetting - Advertising wear-out is a problem. For the association between the unconditioned and the conditioned stimuli to become strong, the exposure to the pairing must be repeated. In addition, the repetition is important so that the association is remembered by the subject. Of course, too much repetition can also be a problem. Think of the ad you have just seen so many times you feel like you can’t stand to see it again. This advertising wearout can be a big problem for advertisers, which is why they change their ads frequently. This web link is for a fun site which lists songs that have been used in advertisements. How are songs in ads an example of classical conditioning? Stimulus Generalization - Tendency of a stimulus similar to a CS to evoke similar, conditioned responses e.g. Pavlov’s dogs also started to salivate on the sound of key jangling (sound similar to ringing of a bell). Examples of stimulus generalization: (lookalike logos and look-alike packaging)

Me too products

…even counterfeit stores

Me too: packaging

Examples of stimulus generalization - Brand and line extensions (brand, line, and product category

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Family branding

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Licensing (Ralph Lauren paint)

Stimulus generalization is when a consumer applies a conditioned response to a stimulus that is not the same but is similar to a conditioned stimuli. An example you might recognize is when we react to someone in a certain way because they remind us of someone we know and have interacted before. Stimulus generalization can be helpful as marketers extend their product line, product form, and product category. - Having the same response to slightly different stimuli. - Helps “me-too” products to succeed. - Useful in: o Product extensions o Family branding o Licensing Stimulus discrimination “Unique combination of CS and UCS.” - Ability to differentiate between a CS and other stimuli that have not been paired with an UCS. - Stimulus discrimination occurs when an UCS does not follow a stimulus similar to a CS. When this happens, reactions weaken and will soon disappear. Part of the learning process involves making a response to some stimuli but not to other, similar stimuli. - Example: Apple wants consumers to resist other lower priced smartphones that use a similar touch screen design but are not the genuine iPhone. Strategic application of Discrimination - It is closely linked to a concept of positioning. Marketers want you to think of their product differently than the rest when you are looking at the shelf in the grocery store. Using the example of the brand Tylenol, the manufacturer would want you to know that it is superior to the store brand. - Selection of specific stimulus from similar stimuli. - Opposite of stimulus generalization. - This discrimination is the basis of positioning which looks for unique ways to fill needs.

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Instrumental or Operant There are two well -known types of behavioral learning theories: classical conditioning and instrumental conditioning. Instrumental conditioning is also called operant conditioning. It means to condition behavior using consequences. It refers to voluntary behaviors, while classical conditioning works to condition responses to involuntary behaviors.

Motivation and emotion - People are driven to heighten positive emotion or mood and to reduce negative feelings. - Emotional reactions in turn influence the likelihood that we will engage in an activity next timethey positively or negatively reinforce us. - Social media platforms also strongly relate to our moods. - Its common for people to express their moods and alto their emotional reactions to products and these posts can be a treasure trove for marketers who want to learn more about their offering make people feel. - A technique called sentiment analysis refers to a process that scours the social media universe to collect and analyze the words people use when they describe a specific product or company. Valence of goals - Positively valued goals: consumers are motivated to approach the goal and will seek out products that will be instrumental in attaining it. - Avoiding negative goals: consumers are motivated to avoid a negative outcome structuring their purchases or consumption activities. Instrumental conditioning - Instrumental (operant) conditioning occurs as the person learns to perform behaviors that produce positive outcomes and avoid those that result in negative outcomes. o Reinforcement = increase the behaviour o Punishment = decrease the behaviour - Instrumental conditioning occurs in three ways: o Positive reinforcement: where a reward is delivered following a behavior e.g. you can clean you room and get a hug from your parents or roomates. o Negative reinforcement: where a negative outcome is avoided by performing a behaviour e.g. you put a sunscreen on to avoid getting sunburned. o Punishment: where a behaviour is followed by unpleasant events e.g. you arrive at work late and the boss gives you more night shifts. A model of instrumental conditioning

*Remark: Here is a model of instrumental conditioning. You can see this consumer tried on four brands. The first three brands ended with no rewards – they simply did not fit. The final brand, Brand D gave the consumer the reward of a perfect fit. The consumer has learned that these jeans are a good fit and will likely repeat this behavior the next time they are in the stimulus situation of needing good-looking jeans. Can you think of products that…  Promise “good things will happen” if you buy them?  Tell you that you will be “punished” if you don’t buy them? Positive reinforcement - A behavior that is rewarded is more likely to occur again - Examples o a woman who gets compliments after wearing a specific brand of perfume will be more likely to buy that brand again o an ad showing beautiful hair as a reinforcement to buy shampoo o satisfaction with a product makes you buy again - When a positive outcomes is no longer received, the learned stimulus-response connection will not be maintained  Extinction Negative reinforcement - A behavior that avoids negative outcomes is more likely to occur - Examples o a painkiller that effectively removes your headache will be more likely to be bought again o an ad showing wrinkled skin as a reinforcement to buy skin cream o fear appeal http://www.youtube.com/watch?v=RoZ0wqsdwvY o https://www.youtube.com/watch?v=L1U71SqJ3vM&feature=related Punishment - A behavior that leads to negative outcomes is less likely to occur - Examples o a detergent that does not clean your laundry properly will not be bought again o a person that is being ridiculed by his friends for a bad smelling perfume will not buy that perfume again Instrumental conditioning (four types of learning outcomes)

Identify the following as positive reinforcements, negative reinforcement or punishment: 1. Loud signal in a car when the key is turned on; driver must put on safety belt in order to eliminate irritating signal. 2. Studying for an exam to get a high grade. 3. Studying for an exam to avoid getting a poor grade. 4. Getting a parking ticket. 5. Going to your favorite café for your usual great cup of coffee. Instrumental conditioning rules - An important factor in operant conditioning is the set of rules by which appropriate reinforcements are given for a behaviour. o Ratio = Number o Fixed ratio reinforcement o Variable ratio reinforcement. o Interval = Time o Fixed interval reinforcement o Variable interval reinforcement Reinforcement schedules- Ratio - Fixed-ratio reinforcement o reward after a fixed number of "correct" behaviors o emphasize repeated performance of behavior - Variable-ratio reinforcement o reward after a variable number of "correct" behaviors o this schedule tends to build the strongest associations Reinforcement schedules- Interval - Fixed-interval reinforcement o wait a given period of time and then reward first behavior o people learn timing of schedule - Variable-interval reinforcement o wait a variable period of time and then reward behavior o leads to a more steady performance of behavior Example. Frequency Marketing - Reinforces regular purchases by giving rewards with values that increase along with the amount purchased - Rewarding consumers with frequent flyer miles is an effective way to reinforce them and build brand loyalty. Classical vs. Instrumental Conditioning

Two major learning theories - Behavioral learning: based on observable behaviors (responses) that occur as the result of exposure to stimuli. - Cognitive learning: learning based on mental information processing. Often in response to problem solving.

Cognitive learning theory - Cognitive learning occurs as a result of mental processes. For example, observational learning takes place when a consumer performing a behaviour as a result of seeing someone else performing it and being rewarded for it. - This perspective views people as problem solvers who actively use information from the world around them to master their environment. Observational learning model

Applications of Cognitive Learning Principles - Consumers learn vicariously by seeing others receive reinforcement for their behaviors - Marketers can reinforce or punish consumers indirectly by showing what happens to desirable models who do or do not use their products The role of learning in memory - Memory refers to the storage of learned information. - The way information is encoded when it is perceived determines how it will be stored in memory. - The memory systems known as sensory memory, short-term memory and long-term memory each play a role in retaining and processing information from the outside world.

*Remark: OBJECTIVE: Our brains process information about brands to retain them in memory Contemporary approaches to the study of memory employ an information-processing approach. They assume that the mind is in some ways like a computer. Data are input, processed and output for later use in revised form. This figure summarizes the memory process.

Memory systems

Sensory memory: Concentrate on the 4 dots in the middle of the picture for about 30 secs. Then take a look at the wall and start blinking your eyes. You will see a circle light… continue looking at that circle… What do you see? Storing of information in memory - Information is not stored in isolation, it is incorporated into knowledge structures, where it is associated with other related data. - The location of product information in associated network and the level of abstraction at which it is coded help determine when and how this information will be activated at a later time. - Some factors that influence the likelihood of retrieval include the level of familiarity with an item, its salience in memory and whether the information was presented in pictorial or written form. Knowledge structure: hierarchical value maps *Remark: Figure shows three different hierarchical value maps from a study of consumers’ perceptions of cooking oils in three European countries. England and Denmark are shown in the slide.

 Why is it important for marketers to know knowledge structure of consumers?

Products as memory makers - Products also play a role as memory markers. - They are used by consumers to retrieve memories about past experiences and are often valued for their ability to do this. - This function also contributes to the use of nostalgia in marketing strategies. Measuring memory in marketing - Memory for product information can be measured through recognition and recall techniques. - Consumers are more likely to recognize an advertisement if it is presented to them than to recall one without being given any cues. Problems with memory measures - Response bias – results obtained from a measuring instrument are not necessarily due to what is being measured, but rather to something else about the instrument or the respondent. - Memory lapses – people are prone to unintentionally forgetting information. - Memory for facts vs. feelings – it is very difficult to take ‘feelings’ out of impressions about ads (especially if the ad raises strong emotions)....