Consumer learning

Dr Ajitabh Dash
Introduction
• Learning is a process of acquisition of
knowledge, skill and expertise about
something through education, training,
practice and experience.
• Learning refers to a relatively permanent
change in behaviour that is caused by
experience.
Elements Explanation Example

Motivation A need that initiates A man is shopping in a

action mall and feels hungry

Cues - A stimulus or symbol to Smell of cakes and

drive action pastries
store with good display
of goodies to eat
Billboards

Response Action to satisfy need. The man goes and buys

- The reaction or the pastry.
behaviour relative to a
drive or a cue

Reinforcement The feedback a consumer He likes the pastry and

receives. asks for more.
- The reward or action. He does not find it good
Motivation: identifying or helping the consumer identify
the sub-conscious and hidden motives
triggering off motives and desires
In both these ways, the consumer would be
motivated to search for information
Cues: All the 4Ps could act as cues and give
direction to motives; eg. the packaging of
the product (colorful design; easy to carry;
reusable containers), price (discounts,
sales), place (store display, store layout,
window dressing) and promotion
(advertisement).
Response : May be overt/learning for the favorable image about the product and the
future brand may get created /

Reinforcement develop brand loyalty /Brand Inertia

Types of learning
• Intentional learning:
– Consumers set out to specifically learn information
devoted to a certain subject
– Example- A consumer wishes to purchase a washing
machine. For this, he will have to seek out information
intentionally to understand the different types of
washing machines available in the market.
• Unintentional learning:
– Consumers simply by reacting (or responding) to the
environment
– here consumers learn without trying to learn.
– Example: the consumer goes to a mall to buy a Washing
Machine; there in the store, he attends a demonstration of
a new microwave oven that is being launched.
 Two Major Learning Theories

Behavioral Learning Cognitive Learning

• Based on • Learning based on

observable mental
behaviors information
(responses) that processing
occur as the result • Often in response
of exposure to to problem solving
stimuli
 Behavioral Learning
• Classical Conditioning
• Instrumental (Operant) Conditioning
 Classical Conditioning

• A behavioral learning theory according to

which a stimulus is paired with another
stimulus that elicits a known response that
serves to produce the same response when
used alone.
• Stimulus Response
 Example of Nivea
• Before conditioning
– Grandmother (US) Love and affection, Happiness
and delight (UR) Nivea Cream (Neutral stimulus)
No response
• During conditioning
– Grandmother (US) + Nivea Cream (CS) Love and
affection, Happiness and Delight (UR)
• After conditioning
• Nivea Cream (CS) Love and affection,
Happiness and Delight (UR)
• Repetition:
– Increases the association between the conditioned
and unconditioned stimulus
– Slows the pace of forgetting
– Advertising wearout is a problem
– Cosmetic/Substantive variation variation are used
to avoid advertisement wearout.
• Stimulus generalization
– Having the same response to slightly different
stimuli
– Helps “me-too” products to succeed
– Useful in:
– product extensions
– family branding
– Licensing
• Stimulus discrimination- Different USP
Example of stimulus generalisation
Example of Stimulus discrimination
• Consumers respond to learning via classical
conditioning when:
- the level of perceived risk is low (and cognitive
effort is not required)
- products are low on differentiation
- purchases are routine; convenience goods and
impulse items.
 Instrumental (Operant) Conditioning

• Occurs as the individual learns to perform

behaviors that produce positive outcomes and
to avoid those that yield negative outcome
• A behavioral theory of learning based on a
trial-and-error process
• positive reinforcement in the form of a reward,
the response is strengthened, and appropriate
behaviour. is learned.
• Eg: Dove
• Negative Reinforcement: As a strategy this
implies, that a marketer should encourage
consumers to make purchases of their brands (act
out behavior) to avoid the negative
consequences.
• Eg: Dr. Fixit
• Policy Bazzar
Types of Reinforcement
 Examples
• Punishment : Smoking Leads to cancer
• Extinction : Koutons Retail
 Cognitive Learning
• Cognitive learning focuses on problem solving
and consumer thinking.
• It is closely tied to information processing and
how consumers store, retain, and retrieve
information.
Information Processing and Memory
 Example
• A person watches an advertisement for a
brand (sensory memory). When he pays
attention to the advertisement, it moves to his
short-term memory. The inputs are processed
here in the short-term memory, and if it is
found to be of relevance and interest, it moves
to the long-term memory.
• Example: Apple
 Passive Learning
• Passive learning
– Also called split-brain theory
• Left Brain
– Rational
– Active
– Realistic
• Right Brain
– Emotional
– Metaphoric
– Impulsive