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Programme : BBA -5th Semester

Dr Monika Suri Associate Professor ,

AURO UNIVERSITY

Consumer Behaviour

Week 4 Session : Consumer as an Individual- Consumer Learning Process and theories

The Primary objectives of this course :

1. To Define consumer behavior in the context of individual as well as institutional buying and understand its influence on corporate strategy

2. To Analyze marketing environments and segment them on the basis of consumer behavior

3. To Understand internal and external/environmental determinants of consumer behavior to select appropriate marketing tools to influence consumer decision making.

Teaching Pedagogy: Lecture ,Discussion, Audio-Visuals, Case Studies , Situation Analysis , Live Projects , Psychometric Test

etc.

Module Objectives

Consumer Learning Process and theories

Learning Objectives • To Understand the Nature and Characteristics of Learning

• To Understand the Application of Learning Theories in Developing Product Positioning Strategies

Lecture Outline•Process of learning•Approaches to learning-classical conditioning and operant (instrumental conditioning )

Weekly -CoverageTraining Pedagogy • Lecture• Role Play• Individual & Group Exercise &Discussion

• Audio Visual lectures • Videos • Psychometric Test • Case studies • Projects • Etc

5

Process of Learning

A process by which individuals acquire the purchase and

consumption knowledge and experience that they apply to

future related behaviour.

Learning Processes

• Intentional – learning acquired as a result of a careful

search for information Incidental

-- learning acquired by accident or without much effort

Importance of Learning

• Marketers must teach consumers:–where to buy–how to use–how to maintain–how to dispose of products

Learning Theories Behavioural Theories:

Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.

Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving.

Elements of Learning Theories

• Motivation• Cues• Response• Reinforcement

Behavioural Learning Theories

• Classical Conditioning• Instrumental Conditioning• Modeling or Observational

Learning

Classical Conditioning

• Pairing a stimulus with another stimulus that elicits a known response to produce the same response when used alone.

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12

Brands and Their Associations

• Margo Brand of Soaps Association with ....................• Cafe Coffee Day’s association with ...............................• Robin Blue’s association with.........................................• Rolex and Omega watches associations with ................• Nike’s association with ....................................................• Saffola’s association with ................................................• iPhone’s association with.................................................• Lux Soap’s association.....................................................

13

Brands and Their Associations

• Margo Brand of Soaps Association with Neam and Beauty• Cafe Coffee Day’s association with Relaxation and

Socializing • Robin Blue’s association with Whiteness of Clothes • Rolex and Omega watches associations with Prestige • Nike’s association with a youthful attitude • Saffola’s association with healthy cooking • iPhone’s association with technological trends and fashion• Lux Soap’s association with celebrities for several decades

Instrumental (Operant) Conditioning

• Learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement)

Classical Conditioning and Marketing Strategy

• Identify and pair product with a known, well-liked stimulus– More attention– More favourable attitudes– Greater intention to buy the product– Learning of key attributes

• Use stimulus generalization effectively» Continued

Instrumental Conditioning

• Consumers learn by means of trial and error process in which some purchase behaviours result in more favorable outcomes (rewards) than other purchase behaviours.

• A favorable experience is instrumental in teaching the individual to repeat a specific behaviour.

Instrumental Conditioning and Marketing

• Make the product the ultimate reward• Provide samples and free trials• Provide non-product rewards• Practice relationship marketing• Reinforcement Schedules

– Shaping• Massed versus Distributed Learning

Measures of Consumer Learning• Recognition and Recall Measures

– Aided and Unaided Recall• Cognitive Responses to Advertising• Copy-testing Measures• Attitudinal and Behavioural Measures of Brand Loyalty

Cognitive Learning Theory

• Learning through problem solving, which enables individuals to gain some control over their environment.

Three types:– Observational learning – Reasoning

Observational Learning

• Individuals learn by observing the behaviour of others, and consequences of such behavior.

• Also known as modeling learning.

Models of Cognitive Learning Based on Sequential Information Processing

• Generic Framework (K-E-B)

• Promotional Model (A-I-D-A-S)

• Tri-component Model (C-A-B)

• Decision Making Model (A-K-E-P-P-E)

• Innovation Adoption Model ( A-I-E-T-A)

• Innovation Decision Model (K-P-D-Confirmation )