This presentation covers the short description of Consumer Behavior- Perception and Learning, complemented by examples and Case studies. Prepared by Jasleen Kaur and Ishika, MBA, Indira Gandhi Delhi Technical University for Women, using Canva free version.
6. Case Study-APPLE
Apple
Now the customer wants a better
battery life product!!
Perception is the king of business. Perception is providing to
customers what they never expected or imagined they needed. But
the day they see the product or service, they will embrace it en mass.
16. CONSUMER
LEARNING
• Learning is applying past knowledge and experience to present
circumstances and behaviour of purchasing.
• 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 behaviour.
Example : DOVE
Repetition and Reinforcement are main elements :
Repetition : Restating the campaign's key message in many forms(various
comm. channels)
Reinforcement : Involves rewarding those who try the new product.
NOTE: Marketing strategies are based on communicating with the consumer.
Marketers want their communications to be noted, believed, remembered
and recalled.
17. DOVE
Dove was launched in year 1956 in US and it is firt
ventured in India market in 1993 with its soap offering.
The brand's heritage was associated with "moisturization".
• The proposition of the brand at a deeper level was
associated with the " Real beauty " And motivating
women to be confident about themselves. Real beauty,
care and trust were some of the associations of the brand
that were extended to other categories like lotions, face
wash, deodorants and hair oil.
• Dove consumers have had the opportunity to learn about
the brand, associate with its benefits and repeat buy the
brand as they feel that the brand has been rewarding.
All these are concepts of learning. Hence Dove uses the
concept of generalization to extend itself into several
categories.
18. ELEMENTS OF LEARNING IN CONTEXT OF
CONSUMER BEHAVIOUR
Learning consists of 4 elements :
MOTIVES : Unfilled needs lead to motivation, which spurs learning.
Example : Men and women who want to take up bicycle riding for fitness and recreation and are motivated
to learn all they can about bike riding and practice often. They will look into articles or other sources to get
info about price, quality etc. Conversely those who are not interested in bike riding are likely to ignore all
the information that involve biking or hiking. The degree of relevance or involvement determines the
consumer's level of motivation to search for info about a product or service.
CUES : are stimuli that direct motivated behaviour. If motives serve to stimulate learning, cues
are the stimuli that give direction to the motives. Example: An Ad for an exotic trip that includes bike
riding may serve as cue for bike riders, who may suddenly recognize that they need a vacation. Here
the Ad is the cue (or stimulus) that suggests a specific way to satisfy a particular motive.
• In the marketplace : price, styling, packaging, advertising, and store displays all serve as cues to
help consumers fulfil their needs in product-specific ways.
• Cues serve to direct consumer drives when they are consistent with their expectations
19. 3. RESPONSE :
• How individuals react to a cue—how they
behave—constitutes their response.
• A response is not tied to a need in a
one-to-one fashion.
• A need or motive may evoke a whole variety of
responses.
• Example: There are many ways to respond to
need for physical exercises besides riding
bicycles. Cues provide some direction, but there
are many cues competing for customer's
attention. which response the consumer makes
depends heavily on previous learning that, in
turn, depends on how related responses were
reinforced previously.
4. REINFORCEMENT:
• Reinforcement increases the likelihood that a
specific response will occur in the future as the
result of particular cues or stimuli.
• If a consumer is rewarded, that consumer
has learnt to associate the purchase with a
pleasant feeling and is likely to repeat the learnt
behaviour and become a loyal customer
• Example : If a customer visits a restaurant for
first time and liked the quality of food, services
and feels that he/she received value for the
money paid then it is very likely that he/she will
visit again. If becomes a regular customer then
owner should further reinforce the customer's
continued patronage by giving some rewards
like a free softdrink or discounts.
20. • Behavioural learning theories are sometimes called stimulus-response
theories because they are based on the premise that observable responses to
specific external stimuli signal that learning has taken place.
• When a person responds in a predictable way to a known stimulus, he or she is
said to have “learned.”
• Behavioural theories are most concerned with the inputs and outcomes of
learning, not the process.
• Two theories relevant to marketing are classical conditioning and instrumental
(or operant) conditioning.
21. CLASSICAL CONDITIONING
• Early classical conditioning theorists regarded all organisms as passive recipients
that could be taught certain behaviours through repetition (i.e., conditioning).
Conditioning involved building automatic responses to stimuli.
• Ivan Pavlov was the first to describe conditioning and to propose it as a general
model of how learning occurs.
a)For Pavlov, conditioned learning results when a stimulus that is paired with another
stimulus elicits a known response and serves to produce the same response when used alone.
b)He used dogs to demonstrate his theories.
c)The dogs were hungry and highly motivated to eat.
d)Pavlov sounded a bell and then immediately applied a meat paste to the dogs’ tongues, which
caused them to salivate.
e)After a sufficient number of repetitions of the bell sound, followed almost immediately by the
food, the bell alone caused the dogs to salivate.
22. • In a consumer behaviour context, an
unconditioned stimulus might consist of a well-
known brand symbol.
• A previously acquired consumer perception of a
brand is the unconditioned response.
• Conditioned stimuli might consist of new products
under an existing brand name.
• The conditioned response would be consumers
trying these products because of the belief that they
embody the same attributes with which the brand
name is associated
23. THE FOLLOWING ARE SOME EXAMPLES OF HOW BRANDS HAVE BUILT THIER
ASSOCIATIONS :
• Margo Brand of soap's associations with neem (which is considered good for the skin)
over several years (later endorsed by a celebrity)
• Cafe Coffee Day's associations with relaxation and socializing.
• Robin Blue's association with whiteness of clothes.
• Nike's association with a youthful attitude
• iPhone's associations with technology trends.
24. Strategic Applications of Classical Conditioning
Three basic concepts derive from classical conditioning: repetition, stimulus generalization, and
stimulus discrimination.
Repetition works by increasing the strength of the association between a conditioned stimulus and an
unconditioned stimulus and slows the process of forgetting.
a)After a certain number of repetitions, attention and retention declines.
b)This effect is known as advertising wear out and can be decreased by varying the advertising messages.
c)The effectiveness of repetition is somewhat dependent upon the amount of competitive advertising to which
the consumer is exposed.
Learning depends not only on repetition, but also on the ability of individuals to generalize. Making
the same response to slightly different stimuli is called stimulus generalization. Stimulus generation explains
why imitative “me too” products succeed in the marketplace: consumers confuse them with the original product
they have seen advertised.
Stimulus discrimination is the opposite of stimulus generalization and results in the selection of specific
stimulus from among similar stimuli.
a)The consumer’s ability to discriminate among similar stimuli is the basis of positioning strategy, which seeks to
establish a unique image for a brand in the consumer’s mind.
25. INSTRUMENTAL CONDITIONING
Like classical conditioning, instrumental conditioning requires a link between a stimulus and
a response.
• However, in instrumental conditioning, the stimulus that results in the most satisfactory
response is the one that is learned.
• Instrumental learning theorists believe that learning occurs through a trial-and-error process,
with habits formed as a result of rewards received for certain responses or behaviours.
• According to American psychologist B. F. Skinner, most individual learning occurs in a controlled
environment in which individuals are “rewarded” for choosing an appropriate behaviour.
In consumer behaviour terms, instrumental conditioning suggests that consumers learn by
means of a trial-and-error process in which some purchase behaviours result in more favourable
outcomes (i.e., rewards) than other purchase behaviours.
A favourable experience is instrumental in teaching the individual to repeat a specific
behaviour. Example : In a marketing context, the consumer who tries several brands and styles of
jeans before finding a style that fits her figure (positive reinforcement) has engaged in instrumental
learning.
26. Reinforcement of Behaviour
Skinner distinguished two types of reinforcement (or reward) influence, which provided that the likelihood for a
response would be repeated.
• The first type, positive reinforcement, consists of events that strengthen the likelihood of a specific
response.
• Negative reinforcement is an unpleasant or negative outcome that also serves to encourage a
specific behaviour. Fear appeals in ad messages are examples of negative reinforcement.
In a marketing context, the consumer who tries
several brands and styles of jeans before finding a
style that fits her figure (i.e REINFORCEMENT) has
engaged in instrumental learning. Presumably, the
brand that fits best is one she will continue to buy.
this model of instrumental conditioning is
presented in this figure.
29. Weber's law tells us that consumers can spot changes in
a stimulus based upon the relative change in the
strength of the stimulus.
• In other words, if the stimulus is strong to begin with,
then a relatively small change in the intensity of that
stimulus is unlikely to be picked up on. The reverse is
true, where a large change in stimulus is likely to be
noticed.
• this principle of Weber’s law is called as “Just Noticeable
Difference(JND)“. Steuart Henderson Britt (1975)
In our cheese example, that stimulus was the number
of slices of cheese, from 10 slices to 9 slices. The
change was subtle in proportion to the original
number of slices, so it was not very easily noticed.
WEBER'S LAW