MRKT 3512 NOTES CHAPTER 5 (AFTER EXAM 1)

Consumer Learning

A process that evolves and changes as consumers acquire knowledge from experience, observation, and interactions with others and newly acquired knowledge affects the future behavior

Types of learning

Intentional Learning vs. Incidental Learning

Four elements of learning

Motives, Cues, responses, reinforcement

Three firms if behavioral learning

Classical conditioning, instrumental conditioning, behavioral learning

Behavior learning (AKA stimulus response learning)

Concerned with the inputs and outcomes of learning

Classical Conditioning example

• Associative learning

• Need for repetition

• Advertising wear-out

• Three-hit theory

Stimulus Generalization

Responding the same way to slightly different stimuli

Stimulus generalization example

• Product line extensions

• Product form extensions

• Family branding

• Licensing

Stimulus Discrimination

Distinctly and exclusively extracted what is most relevant amongst consumers (thickness of yogurt, product material, etc)

Instrumental Conditioning

Learning occurs through a trial and error process with habits formed as a result of rewards received for certain responses or behaviors

Observational Learning

The process through which individuals learn behavior by observing the behavior of others and the consequence of such behavior

Cognitive Learning

Consist of mental processing of data rather than instinctive responses to stimuli

Information Processing Steps

Storing Information, Rehearsal and Retention

Storing Information

• Sensory Store

• Short term storage

• Long term storage

Rehearsal

• Encoding

• Information Retrieval

Retention

• Chunking

• Retrieval

Cognitive Learning (cognitive v Behavioral)

Systematic evaluation of information and alternatives needed to solve a recognize but unfilled need or unsolved problem

Behavioral Learning (Cognitive vs. Behavioral)

Consists of instinctive responses to stimuli, cognitive learning involves deliberate mental processing of information

Brand Loyalty

• Risk aversion / variety seeking

• Brand reputation / substitute availability

• Social Influence

Brand equity

The intrinsic value of a brand name. Stems from the foundations of brand loyalty: The consumers perception of the brands superiority, the social esteem that using it provides, and the customers trust and identification with the brand