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Learning and Consumption related Behaviour According to Schiffman and Kanuk (2001), from a marketing perspective, consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Danny abramovich -learning is a change in behaviour which comes with experience ,directly by observing events that affect others. Learning is therefore relatively permanent behavioral change or potential behavioral change. In other words, as we learn, we alter the way we perceive our environment, the way we interpret the incoming stimuli, and therefore the way we interact, or behave. John B. Watson (1878-1958) was the first to study how the process of learning affects our behavior, and he formed the school of thought known as Behaviorism. Behavioral Psychology is interested in how our behavior results from the stimuli both in the environment and within ourselves. The results have helped us learn a great deal about our behaviors, the effect our environment has on us, how we learn new behaviors, and what motivates us to change or remain the same. Learning can be effective when the consumer learns to dislike or like a product. For example, preferring one store to the other because of the attitude exerted by another or avoiding foods that made you sick soon after consumption enable marketers to rely on the phrase ‘experience is the best teacher’ because learning is not all knowledge based. Consumers may use brand image, store image or even reassurance to make a decision on what and where to buy. Theories of Learning There are two major theories of learning; A. B. Behavioural Learning Theories Cognitive Learning Theories A. Behavioural Learning Theories (Stimulus Response Theories see pg 10) These suggest that learning occurs as a result of exposure to a stimulus. The environment stimuls should motivate the consumer to buy the product. 1. Classical Conditioning (Pavlov Theory) Classical and Operant Conditioning Classical Conditioning, was actually discovered accidentally by Ivan Pavlov(1849-1936). During his experiments, he would put meat powder in the mouths of dogs who had tubes inserted into various organs to measure bodily responses. What he discovered was that the dogs began to salivate before the meat powder was presented to them. Then, the dogs began to salivate as soon as the person feeding them would enter the room. He soon began to gain interest in this phenomenon and abandoned his digestion research in favor of his now famous Classical Conditioning study. Basically, the findings support the idea that we develop responses to certain stimuli that are not naturally occurring. When we touch a hot stove, our reflex pulls our hand back. It does this instinctually, no learning involved. It is merely a survival instinct. But why now do some people, after getting burned, pull their hands back even when the stove is not turned on? Pavlov discovered that we make associations which cause us to generalize our response to one stimuli onto a neutral stimuli it is paired with. Pavlov began pairing a bell sound with the meat powder and found that even when the meat powder was not presented, the dog would eventually begin to salivate after hearing the bell. Since the meat powder naturally results in salivation, these two variables are called the unconditioned stimulus (UCS) and the unconditioned response(UCR), respectively. The bell and salivation are not naturally occurring; the dog was conditioned to respond to the bell. Therefore, the bell is considered the conditioned stimulus(CS), and the salivation to the bell, the conditioned response (CR). Many of our behaviors today are shaped by the pairing of stimuli. Classical conditioning simply refers to a situation whereby a given stimulus triggers a certain response. Many modern advisers use classical conditioning in similar ways. It is thus an automatic response to a situation and it develops as a result of exposure to a situation. According to Pavlov’s theory, it can be argued that consumers will be learning a marketing effort by a repeated exposure to the same message through adverts. This repeated exposure results in brand familiarity. Learning points through Pavlov’s theory Awareness of a stimuli resulting in exposure Timing of the offer Repetition has an effect of strengthening behaviour Environment learning behaviour is exhibited or shown in an environment that promotes it. Shaping marketers can direct their customers in a certain direction by concentrating focus on certain features or details or situation Using this classical conditioning is meant only to create a new habit. Critics of Classical Conditioning Critics argue that one does not have to be involved in an act for them to learn. They believe that people can observe the behaviour of other people; remember it and imitate. Learning is a mental process. Marketing implications of Classical Conditioning i) ii) iii) iv) v) vi) Marketers should use repeat exposure to make consumers learn about a product Repeated exposure creates brand familiarity and this can be achieved through advertisements. Repeated exposure may lead to boredom therefore there is need to be creative and to vary the message or use different people and media. Marketers can produce brand knockoff/ imitations to capitalise on brand name e.g chicken slice,nokia Marketers design attractive packages Colours and graphics used should be consistent so that consumers are familiar with them. vii) Marketers should come up with family brand names, product line extensions etc. Operant/Instrumental Conditioning Perhaps the most well known Behaviorist is B. F. Skinner (1904-1990). While reputation and stimulus generalisation are used to explain how consumers behave at the market place, they do not explain all the activities classified as consumer learning. The term "Operant" refers to how an organism operates on the environment, and hence, operant conditioning comes from how we respond to what is presented to us in our environment. It can be thought of as learning due to the natural consequences of our action e.g valuation of the product. According to this theory, consumers learn by trial and error process before a behaviour results in a more favourable outcome. The classic study of Operant Conditioning involved a cat who was placed in a box with only one way out; a specific area of the box had to be pressed in order for the door to open. The cat initially tries to get out of the box because freedom is reinforcing. In its attempt to escape, the area of the box is triggered and the door opens. The cat is now free. Once placed in the box again, the cat will naturally try to remember what it did to escape the previous time and will once again find the area to press. The more the cat is placed back in the box, the quicker it will press that area for its freedom. It has learned, through natural consequences, how to gain the reinforcing freedom. We learn this way every day in our lives. Imagine the last time you made a mistake; you most likely remember that mistake and do things differently when the situation comes up again. In that sense, you’ve learned to act differently based on the natural consequences of your previous actions. The same holds true for positive actions. If something you did results in a positive outcome, you are likely to do that same activity again. Reinforcement The term reinforce means to strengthen, and is used in psychology to refer to anything stimulus which strengthens or increases the probability of a specific response. All of these things increase the probability that the same response will be repeated. There are four types of reinforcement: positive, negative, punishment, and extinction. Positive Reinforcement. Adding something in order to increase a response. The most common types of positive reinforcement is praise and rewards, and most of us have experienced this as both the giver and receiver e.g mobile banking cell c Negative Reinforcement. Think of negative reinforcement as taking something negative away in order to increase a response. The elimination of this negative stimulus is reinforcing and will likely increase the chances consumers banking with your bank eg high interest rates. Punishment. Punishment refers to adding something aversive in order to decrease a behaviour .e.g parking tickets. The punishment is not liked and therefore to avoid it, he or she will stop behaving in that manner. Extinction. When you remove something in order to decrease a behavior, this is called extinction. Eg closing time of beerhalls Research has found positive reinforcement is the most powerful of any of these. Adding a positive to increase a response not only works better, but allows both parties to focus on the positive aspects of the situation. Punishment, when applied immediately following the negative behavior can be effective, but results in extinction when it is not applied consistently. Punishment can also invoke other negative responses such as anger and resentment. a) Cognitive Learning Theory (through thinking and problem solving) This theory suggests that learning is based on mental activity when confronted with a problem. Consumers search for information on which to base decisions and carefully evaluate that information. If the information is adequate, they can then embark on a trial purchase and then finally purchase or reject the product. The major steps are; Awareness Information search create awareness to consumers adverts, brochures Evaluation according to information given Trial try competitor, red post purchase dissonance Adoption/rejection It has been discovered that not all consumers go through this entire process. Others realise a need then go straight to buying that product. As a result, they differentiate the different types of buying behaviour into high involvement and low involvement. i) Involvement Theory It is sometimes called the Brain Split theory/Hemispheral Laterization Theory. The premise for the theory is that the left and right spheres of the brain specialise in the kind of information the process. The left hemisphere is primarily responsible for cognitive activities such as reading, speaking and processing of information. Regarding Low involvement products (are habitual products bought without thought), the left side is supposed to be rational, active and realistic. The right side of the brain is concerned with non-verbal, timeless, pictorial and holistic information. This side is emotional, metaphoric, impulsive and intuitive. High involvement products (expensive needs much thought) The television is considered a high brain activity therefore low involvement media (tv) whereas print media is a high involvement media. Passive processing is consistent with classical conditioning which stress reputation of the advert to produce purchase behaviour. Disturbance on the left side of the brain will have an impact on the right side of the brain. Question a) Discus that difference between low and high involvement media. b) How would you apply the knowledge of Hemispheral Laterization to the design of television commercials and print adverts? High involvement media Stimulates the cognitive response through detailed processing information.Stimulates the left side of the brain eg print media of Low involvement media Stimulates the emotional and impulsive responses through pictorial adverts Stimulates the right side of the bra in. eg electronic media. Implications of Involvement Theory It enables the marketer to choose the correct advert media for high or low involvement products. For example fashion, the consumer requires a lot of information to make a choice therefore it is advisable to have adverts in print media. For low involvement products, marketers can advertise in low involvement media like the television because consumers learn passively since television adverts are highly pictoral. Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1. Problem Recognition (awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search-- o o Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is chinese food o indian food o burger king o klondike kates etc Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, indian getshighest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. Purchase--May differ from decision, time lapse between 4 & 5, product availability. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an indian meal, may think that really you wanted a chinese meal instead o 3. 4. 5. 6. The marketing strategy is successful if marketers can see a need which a companys product can solve and, offers the best solution to the problem. For a successful strategy, the marketer must lay emphasis on the product/brand image in the consumers mind. Position the product according to the customers likes and dislikes. The brand which matches the desired image of a target market sells well. Sales are important and sales are likely to occur if the initial consumer analysis was correct and matches the consumer decision process. Satisfaction of the consumer, after the sales have been effected, is important for repeat purchase. It is more profitable to retain existing customers, rather than looking for new ones. Types of Consumer Buying Behavior The four type of consumer buying behavior are: Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next .e.g Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.