Consumer Learning CHAPTER SEVEN. Learning The process by which individuals acquire the purchase and...

Consumer Learning

CHAPTERSEVEN

Learning

• The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Chapter Seven Slide

Elements of Learning Theories

• Motivation – Unfilled needs lead to motivation• Cues – Stimuli that direct motives• Response – Consumer reaction to a drive or cue• Reinforcement – increases the likelihood that a

response will occur in the future as a result of a cue

Two Major Learning Theories

4Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Behavioral Learning• Classical Conditioning: A stimulus is repeatedly

paired with another stimulus that elicits a known response. After some time the new stimulus produces the same response when used alone.

• Instrumental (Operant) Conditioning: Based on a trial-and-error process. Repetitions and their positive outcomes result in the formation of a habit.


Strategic Applications of Classical Conditioning

Repetition: Increases the association between the conditionedand unconditioned stimulus; Slows the pace of forgetting;Advertising wearout is a problem

Stimulus generalization: Having the same response to slightlydifferent stimuli; Helps “me-too” products to Succeed; Usefulin: product extensions, family branding; licensing

Stimulus discrimination: Selection of a specific stimulus fromsimilar stimuli; Opposite of stimulus generalization. ThisDiscrimination is the basis of positioning which looks forUnique ways to fill needs

A Model of Instrumental ConditioningFigure 7.9


Reinforcement of Behavior• Positive reinforcement strengthens likelihood

of repeat behavior• Negative reinforcement encourages

alternative behaviors• Extinction: When a learned response is no

longer reinforced, the link between stimulus and reward is broken

• Forgetting: The reinforcement is forgotten

Reinforcement of Behavior

• Customer Satisfaction (Reinforcement)• Reinforcement Schedules• Shaping• Massed versus Distributed Learning


Information Processing and Memory Stores - Figure 7.10


Retention

• Information is stored in long-term memory– Episodically: by the order in which it is acquired– Semantically: according to significant concepts

• Total package of associations is called a schema

Associative Knowledge Network.

Hamburgers

McDonald’s

BurgerKing

BigMac

Wendy’s

Double

QuarterPounder

Fries

Whopper

Tasty

Frosty

Single

ChickenMcNuggets

BestCombination

Had it last night

Involvement and Passive Learning Topics

• Definitions and Measures of Involvement• Marketing Applications of Involvement• Central and Peripheral Routes to Persuasion• Hemispheral Lateralization and Passive

Learning


Marketing Applications of Involvement

• Ads in video games• Avatars• Sensory appeals in ads to get more

attention• Forging bonds and relationships with

consumers


Central and Peripheral Routes to Persuasion


Hemispheral Lateralization and Passive Learning

• Hemispheral lateralization– Also called split-brain theory

• Left Brain– Rational– Active– Realistic

• Right Brain– Emotional– Metaphoric– Impulsive– Intuitive


Measures of Consumer LearningBrand Loyalty

• Personal degree of risk aversion or variety seeking; Reputation and availability of the brand; Social group influences

• No loyalty Brand Equity – the value• Covetous loyalty inherent in a well-known• Inertia loyalty brand• Premium loyalty

Consumer Attitude Formation and Change

CHAPTEREIGHT

Attitude

A learned predisposition to

behave in a consistently favorable or

unfavorable manner with respect to a

given object.

21Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide

What Are Attitudes?

• The attitude “object”• Attitudes are a learned predisposition• Attitudes have consistency• Attitudes occur within a situation


Structural Models of Attitudes

• Tricomponent Attitude Model• Multiattribute Attitude Model• The Trying-to-Consume Model• Attitude-Toward-the-Ad Model

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 23Chapter Eight Slide

Cognition

A Simple Representation of the Tricomponent Attitude Model - Figure 8.3


The Tricomponent Model• Cognitive: Knowledge and perceptions acquired

by a combination of direct experience with the attitude object and related information from various sources

• Affective: Emotions or feelings about a particular product or brand (attitude object)

• Conative: The likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object

Functional Theory of Attitude

Primary functions performed by attitudes :– Adjustive or utilitarian function– Ego defensive – Value expressive– Knowledge defensive

Multiattribute Multiattribute Attitude Attitude ModelsModels

examine the composition of

consumer attitudes in terms of selected product attributes or

beliefs.


Multiattribute Attitude Models

• The attitude-toward-behavior model: Is the attitude toward behaving or acting with respect to an object, rather than the attitude toward the object itself

• Corresponds closely to actual behavior• Theory-of-reasoned-action model:

Includes subjective norms in addition to attitude

The Fishbein Model

m

iiiEBA

1where,

A = Attitude towards a brandBi = Belief that the brand possesses attribute iEi = Evaluation or desirability of attribute iI = attribute 1, 2, … m

Example of TC/MA Model.

Theory of Theory of Trying to Trying to ConsumeConsume

for the many cases the action or outcome

is not certain but instead reflects the

consumer’s attempt to consume (or purchase).


Attitude-Attitude-Toward-the-Toward-the-

Ad ModelAd Model

a consumer forms various feelings (affects)

and judgments (cognitions) as the result

of exposure to an advertisement, which, in

turn, affect the consumer’s attitude toward the ad and attitude toward the

brand.


A Conception of the Relationship Among Elements in an Attitude-Toward-the-Ad Model - Figure 8.6


Issues in Attitude Formation

• How attitudes are learned– Conditioning and experience– Knowledge and beliefs


Issues in Attitude Formation

• Sources of influence on attitude formation– Personal experience– Influence of family– Direct marketing and mass media

• Personality factors


Attitude Change

• Altering Components of the Multiattribute Model– Changing relative evaluation of attributes– Changing brand beliefs– Adding an attribute– Changing the overall brand rating

• Changing Beliefs about Competitors’ Brands


Elaboration Elaboration Likelihood Likelihood

Model Model (ELM)(ELM)

Customer attitudes are changed by two

distinctly different routes to persuasion:

a central route or a peripheral route.


Elaboration Likelihood Model


Behavior Can Precede or Follow Attitude Formation


Attribution Theory

• Internal attribution• External attribution

– Towards others– Towards things

• Defensive attribution


Communication and Consumer Behavior

CHAPTERNINE

Basic Communication ModelFigure 9.1

Noise NoiseNoise

Noise Noise

The Communications Process

• The Source/Sender (Message Initiator)– Formal sources (marketers)– Informal sources (friends, family, reference groups, etc.)

• Encoding• The Message• The Medium• The Receiver/Target audience (Decoding)• Feedback - the Receiver’s Response• Noise

Issues with CredibilityCredibility of Informal Sources: Word of mouth or opinionleadership (not always credible), Buzz agents, viral marketing…Credibility of Formal Sources: role, affiliations, intentions, pastperformance, reputation, appearance, etc. Neutral sources have thegreatest credibilitySpokesperson/Endorser Credibility: Synergy betweenendorser and type of product, demographic characteristics ofendorser, corporate credibilityMedia Credibility: Perception of magazines, TV/radio showsMessage Credibility: Topic, Appeals, Arguments, Style, etc.Receiver variables: Involvement, motives, congruency, mood,…Sleeper Effect: Consumer forgets the source over time

Overcoming Psychological Noise

• Repeated exposure• Contrast• Customized promotional messages• Effective positioning• Offering unique value propositions• Using non-traditional media• Etc.

Message Structure and PresentationMessage framing: Positive/Negative framingOne-Sided versus Two-Sided Messages: Depends on nature of the audience and nature of competitionFirst or last: Order Effects: Primacy, Recency, Order of benefits, Brand name

Advertising Appeals• Comparative• Fear• Humor• Abrasive• Sex• Audience participation• Timely• Celebrities (Testimonial, Endorsement, Actor,

Spokesperson)

4747Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide

Feedback Determining Effectiveness

• Exposure Effects (how many received the message)– People meters

• Persuasion Effects (was the message received and interpreted correctly?)– Message Attention, Interpretation, and Recall– Physiological measures– Attitudinal measures– Recall and recognition measures

• Sales Effect: Did the ads increase sales?

48Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine Slide

The Family and Its Social Class Standing

CHAPTERTEN

The Changing U.S. Family

• Types of families– Nuclear– Extended (including joint)– Single-parent

• Changes in household spending patterns

50Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Ten Slide

Consumer Socialization

The process by which children acquire the

skills, knowledge, and attitudes necessary to

function as consumers.


Other Functions of the Family

• Economic well-being• Emotional support• Suitable family lifestyles


Family Decision Making

• Dynamics of Husband-Wife Decision Making– Husband-Dominated– Wife-Dominated

• Expanding Role of Children In Family Decision Making– Choosing restaurants and items in supermarkets– Teen Internet mavens– Pester power


The Family Life Cycle

• Traditional Family Life Cycle– Stage I: Bachelorhood– Stage II: Honeymooners– Stage III: Parenthood– Stage IV: Postparenthood– Stage V: Dissolution

• Modifications - the Nontraditional FLC


Nontraditional FLC Family Stages

Alternative FLC Stage Definition/Commentary

Childless couples Increasingly acceptable with more career-oriented married women and delayed marriages

Couples who marry later in life Likely to have fewer or no children

Couples with first child in late 30’s or later Likely to have fewer children. Want the best and live quality lifestyle

Single parents I High divorce rate - about 50% lead to this

Single parents II Child out of wedlock

Single parents III Single person who adopts

Extended family Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.


Social Class

The division of members of a society

into a hierarchy of distinct status classes,

so that members of each class have either higher or lower status than members of other

classes.


Social Class Measure and DistributionTable 10.8


Social Class Measurement

• Subjective Measures– Self-Reporting: individuals are asked to estimate their

own social-class positions– Reputational method: individuals are asked to

estimate social-class positions of people they know

• Objective Measures– individuals answer specific socioeconomic questions

and then are categorized according to answers


Objective Measures

Single variable indices: Occupation, Education, Income

Composite variable indices: 1. Index of Status Characteristics: weighted index

of Occupation, Source of income, House Type and Dwelling Area

2. Socioeconomic Status Score (Census Bureau): Occupational status, family income, educational attainment

Geodemographic Clusters

• A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets

The Affluent Consumer• Growing number of households can be classified

as “mass affluent” with incomes of at least $75,000

• Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income


The Mass MarketLower Middle Class (non-professional white collar)• The “middle” 50% of household incomes - households earning

between $25,000 and $85,000• Emerging markets middle class• Moving up to more “near luxuries”

+Working Class• Households earning $40,000 or less control more than 30% of

the total income in the U.S.• Tend to be more brand loyal than wealthier consumers.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 62Chapter Ten Slide

The Techno Class

• Having competency with technology• Those without are referred to as

“technologically underclassed”• Parents are seeking computer exposure for

their children• Geeks now viewed as friendly and fun


Consumer Behavior and Social Class

• Clothing, Fashion, and Shopping: lower classes – logo T-shirts, caps etc., upper classes – subtle fashions; preference for stores where similar social classes shop.

• The Pursuit of Leisure: upper classes – concerts, museum, college football; lower classes – fishing, baseball, DIY; middle classes: increasing emphasis on “experiences” that bring family together, etc.

• Saving, Spending, and Credit: convenience vs. necessity

• Social Class and Communication: middle classes – broader and longer point of view


Influence of Culture on Consumer Behavior

CHAPTERELEVEN

Culture

The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society.

The Invisible Hand of Culture: Each individual perceives the world through his own cultural lens

Nature of Culture

Culture Satisfies Needs: Culture Is Learned: Enculturation; Acculturation;

Language and Symbols; RitualsCulture in Inculcated: Passed on from one

generation to the nextCulture is Dynamic: Evolves because it fills needs;

Certain factors change culture (technology, population shifts, economic development, wars, changing values, influences from other countries)

The Measurement of Culture• Content Analysis: systematically analyzing the

content of verbal and/or pictorial communication. Is frequently used to determine prevailing social values of a society.

• Consumer Fieldwork: Field Observation (natural setting, subject unaware, focus on observation of behavior); Participant Observation

• Value Measurement Instruments: Rokeach Value Survey (RVS); List of Values (LOV); VALS

68Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eleven Slide

Value Measurement Survey Instruments


American Core Values(Values must be pervasive, enduring & Customer-related)


Subcultures and Consumer Behavior

CHAPTERTWELVE

SubcultureSubculture

A distinct cultural group that exists as an

identifiable segment within a larger, more

complex society.

72Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide

Relationship Between Culture and Subculture - Figure 12.2


Nationality Subculture - Hispanic

• Stronger preference for well-established brands

• Prefer to shop at smaller stores• Some are shifting food shopping to non-

ethnic American-style supermarkets• Youths are more fashion conscious than

non-Hispanic peers


Religious Subcultures

• 200+ organized religious groups in the U.S.• Primary organized faiths include:

– Protestant denominations– Roman Catholicism– Islam– Judaism

• Consumer behavior symbolically and ritualistically associated with the celebration of religious holidays.


Regional Subcultures

• Many regional differences exist in consumption behavior– Westerners have a mug of black coffee– Easterners have a cup of coffee with milk and sugar– White bread is preferred in the South and Midwest– Rye and whole wheat are preferred on the East and

West coasts


Major Racial SubculturesAfrican American

• The African American Consumer– 13 percent of the U.S. population– Purchasing power estimated at $845 billion


Major Racial SubculturesAfrican American

• Prefer leading brands over private-label brands

• Brand loyal• Higher than average trips to grocery store

and higher spending• Spend more then other segments on

telephone services


Major Racial SubculturesAsian American

• Fastest growing racial segment• Diverse group including 6 major ethnicities:

– Chinese, Filipino, Indian, Vietnamese, Korean, and Japanese

• 95% live in metropolitan areas and business ownership is high


Region of Residence for Selected Subcultural Groups – Figure 12.7


Major Age Subcultures


Generation Y

• According to sources, born 1977-1994 OR 1982-2000

• Three groups– Gen Y Adults – 19-28– Gen Y Teens – 13-18– Gen Y Tweens 8-12

• Twixters – 21-29 and live with parents


Generation X

• Born between 1965 and 1979

• Also referred to as Xers, busters, or slackers

• Do not like labels, are cynical, and do not want to be marketed to


Baby Boomers

• Born between 1946 – 1964• More than 40 percent of the adult population• Motivated consumers• Not anxious to retire and handle it as:

– Opportunity for a new start– A continuation of preretirement life– Unwelcome disruption– Transition to old age


Older Consumers

• Roughly 65 years and older• Growing segment due to better medical care,

declining birthrate and the aging of the large baby boomer segment

• Three segments by age– The Young-Old (65-74)– The Old (75-84)– The Old-Old (85 and older)


Older Consumers

• Segmentation can also be done on motivations and quality-of-life orientation

• Cyberseniors


Issues in Understanding Gender as a Subculture

• Sex Roles and Consumer Behavior– Masculine vs. Feminine Traits

• Consumer Products and Sex Roles• Women as depicted in Media


Working Women

• Segments of ALL women– Stay-at-home– Plan-to-work– Just-a-job working– Career-oriented working


Subcultural Subcultural InteractionInteraction

Marketers should strive to understand how

multiple subcultural memberships jointly influence consumers

behavior


Consumer Decision Making

and Beyond

CHAPTERFIFTEEN

Levels of Consumer Decision Making

• Extensive Problem Solving– A lot of information needed– Must establish a set of criteria for evaluation

• Limited Problem Solving– Criteria for evaluation established– Fine tuning with additional information

• Routinized Response Behavior– Usually review what they already know

91Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

Models of Consumers: Four Views of Consumer Decision Making

• An Economic View• A Passive View• A Cognitive View• An Emotional View


Consumer Decision Making

Figure 15.3


Process - Need Recognition

• Usually occurs when consumer has a “problem”, i.e., perceives a difference between an Actual state and Desired state

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 94 Chapter Fifteen Slide

Prepurchase Search

• Begins with internal search and then moves to external search

• The impact of the Internet• There are many factors that increase search

– Product factor– Situational factors– Social acceptability– Consumer factors


Evaluation of Alternatives

• Evoked set• Criteria used for evaluating brands• Consumer decision rules• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying decision rules• Series of decisions• Decision rules and marketing strategy


The Evoked Set Figure 15-5


http://www.physicianreports.com/index.cfm?tv_kw=16&tv_eng=GoogleAdWords

Issues in Alternative Evaluation

• Evoked Set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy


Consumer Decision Rules

• Compensatory– evaluates each brand in terms of each relevant

attribute and then selects the brand with the highest weighted score.

• Noncompensatory– positive evaluation of a brand attribute does not

compensate for a negative evaluation of the same brand on some other attribute

– Conjunctive, disjunctive, or lexicographic


Hypothetical Use of Decision RulesTable 15.7

Decision Rule Mental Statement

Compensatory rule I selected the netbook that came out best when I balanced the good ratings against the bad ratings

Conjunctive rule I selected the netbook that had no bad features

Disjunctive rule I picked the netbook that excelled in at least one attribute

Lexicographic rule I looked at the feature that was most important to me and chose the netbook that ranked highest on that attribute

Affect referral rule I bought the brand with the highest overall rating


The Decision Process for Functionally Illiterate Consumers - Figure 15.6

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 102 Chapter Fifteen Slide

Coping with Missing Information

• Delay decision until missing information is obtained

• Ignore missing information and use available information

• Change the decision strategy to one that better accommodates for the missing information

• Infer the missing information



• Evoked set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy


Output of Consumer Decision Making

• Purchase behavior– Trial purchases– Repeat purchases– Long-term commitment

• Postpurchase evaluation


Postpurchase Evaluation

• Actual Performance Matches Expectations– Neutral Feeling

• Actual Performance Exceeds Expectations– Positive Disconfirmation of Expectations

• Performance Is Below Expectations– Negative Disconfirmation of Expectations


Gifting Behavior

Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance.


CIRCUMSTANCES

Personal accomplishmentFeeling downHolidayFeeling stressedHave some extra moneyNeedHad not bought for self in a whileAttainment of a desired goalOthers

MOTIVATIONS

To reward oneselfTo be nice to oneselfTo cheer up oneselfTo fulfill a needTo celebrateTo relieve stressTo maintain a good feelingTo provide an incentive toward a goalOthers

Reported Circumstances and Motivations for Self-Gift Behavior

Table 15.13


Gifting Relationships - Table 15.14GIFTING RELATIONSHIP

DEFINITION EXAMPLE

Intergroup A group giving a gift to another group

A Christmas gift from one family to another family

Intercategory An individual giving a gift to a group or a group giving a gift to an individual

A group of friends chips in to buy a new mother a baby gift

Intragroup A group giving a gift to itself or its members

A family buys a VCR for itself as a Christmas gift

Interpersonal An individual giving a gift to another individual

Valentine’s Day chocolates presented from a boyfriend to a girlfriend

Intrapersonal Self-gift A woman buys herself jewelry to cheer herself up


Consuming and Possessing

• Consumers find pleasure in possessing, collecting, or consuming

• Products have special meanings and memories


Relationship Marketing

Marketing aimed at creating strong,

lasting relationships with a core group of customers by making them feel good about the company and by giving them some kind of personal

connection with the business.


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