Consumer BehaviorConsumer Behavior

Behavioral LearningBehavioral Learning

Learning ConceptsLearning Concepts

Behavioral Learning: Behavioral Learning: Classical & Operant Classical & Operant ConditioningConditioning

Analogous Model of Analogous Model of Classical ConditioningClassical Conditioning

Neo-Pavlovian Classical Neo-Pavlovian Classical ConditioningConditioning

Positive vs Negative Positive vs Negative ReinforcementReinforcement

Schedule of Schedule of ReinforcementReinforcement

Relationship between discriminative stimulus, the behavior and the reinforcer

Strategic Applications of Strategic Applications of Conditioning TheoriesConditioning Theories

Observational & Social Observational & Social LearningLearning

Figure 3-1: The Consumer As a “Black Box”: A Figure 3-1: The Consumer As a “Black Box”: A Behaviorist Perspective on LearningBehaviorist Perspective on Learning

Behavioral LearningBehavioral Learning

The process in which experience with the The process in which experience with the environment leads to relatively permanent environment leads to relatively permanent change in behavior or potential for such changechange in behavior or potential for such change

It does not take into account for changes in It does not take into account for changes in physiology due to growth, injury, disease or those physiology due to growth, injury, disease or those induced by drugsinduced by drugs

Three major approaches to Behavioral learningThree major approaches to Behavioral learning1.1. Classical ConditioningClassical Conditioning2.2. Operant ConditioningOperant Conditioning3.3. Vicarious or Observational learningVicarious or Observational learning

Classical ConditioningClassical Conditioning

Previously neutral stimulus, called the Previously neutral stimulus, called the conditioned stimulus (CS), is repeatedly conditioned stimulus (CS), is repeatedly paired with eliciting stimulus called the paired with eliciting stimulus called the unconditioned stimulus (UCS). After number unconditioned stimulus (UCS). After number of such pairing, the ability to elicit response of such pairing, the ability to elicit response is transferred to CS. The response elicited is transferred to CS. The response elicited by CS is called the conditioned responseby CS is called the conditioned response

Meat Powder

(Unconditioned Stimulus)

Saliva

(Unconditioned response)

Bell (Conditioned

Stimulus)

Meat Powder

(Unconditioned Stimulus)

Saliva (Unconditioned Response)

Bell

(Conditioned Stimulus)

Saliva

(Conditioned response)

Classical Conditioning

Analogous Model of Classical Conditioning

Unconditioned StimulusIce cream

Conditioned StimulusMusic

Unconditioned ResponseCraving for ice cream

Conditioned StimulusMusic

Conditioned ResponseCraving for ice cream

AFTER REPEATED PAIRINGS

Classical Conditioning in ConsumersClassical Conditioning in Consumers

1.1. Pairing of pictures of beautiful landscape and air Pairing of pictures of beautiful landscape and air freshenersfresheners

2.2. Credit card buyingCredit card buyingSign tracking: The attention drawing ability of Sign tracking: The attention drawing ability of unconditioned and conditioned stimuliunconditioned and conditioned stimuliHigher order conditioningHigher order conditioning: the ability of a : the ability of a conditioned stimulus to condition another conditioned stimulus to condition another previously neutral stimuluspreviously neutral stimulus

Neo-Pavlovian ConditioningNeo-Pavlovian Conditioning

Forward Conditioning (CS Precedes US)Forward Conditioning (CS Precedes US) Repeated Pairings of CS and USRepeated Pairings of CS and US A CS and US that Logically Belong to Each A CS and US that Logically Belong to Each

OtherOther A CS that is Novel and UnfamiliarA CS that is Novel and Unfamiliar A US that is Biologically or Symbolically A US that is Biologically or Symbolically

SalientSalient

Symbolic Pairing of CS and UCSSymbolic Pairing of CS and UCS

Symbolic Pairing of CS and UCSSymbolic Pairing of CS and UCS

Instrumental Instrumental (Operant) (Operant)

ConditioningConditioning

A behavioral theory of learning based on a

trial-and-error process, with habits forced as the result of positive

experiences (reinforcement)

resulting from certain responses or behaviors.

Instrumental ConditioningInstrumental Conditioning– Instrumental ConditioningInstrumental Conditioning

B.F. SkinnerB.F. Skinner

– Positive ReinforcementPositive Reinforcement– Negative ReinforcementNegative Reinforcement– PunishmentPunishment

Behavioral Learning TheoriesBehavioral Learning Theories

A Model of Instrumental Conditioning

Stimulus Situation

(Need good-looking jeans)

Try Brand D

Try Brand C

Try Brand B

Try Brand A

UnrewardedLegs too tight

UnrewardedTight in seat

UnrewardedBaggy in seat

RewardPerfect fit

Repeat Behavior

ReinforcementReinforcement

Positive Positive ReinforcementReinforcement: : Positive outcomes Positive outcomes that strengthen the that strengthen the likelihood of a likelihood of a specific responsespecific response

Example: Ad showing Example: Ad showing beautiful hair as a beautiful hair as a reinforcement to buy reinforcement to buy shampooshampoo

Negative Negative Reinforcement:Reinforcement: Unpleasant or negative Unpleasant or negative outcomes that serve to outcomes that serve to encourage a specific encourage a specific behaviorbehavior

Example: Ad showing Example: Ad showing wrinkled skin as wrinkled skin as reinforcement to buy reinforcement to buy skin creamskin cream

Negative ReinforcementNegative Reinforcement

Positive Reinforcement:Positive Reinforcement:

Schedules of ReinforcementSchedules of Reinforcement1.1. Fixed – interval reinforcementFixed – interval reinforcement. Positive reinforcement . Positive reinforcement

is provided after fixed period of time has passed. Sale on is provided after fixed period of time has passed. Sale on the last day of the monththe last day of the month

2.2. Fixed-ratio reinforcementFixed-ratio reinforcement. Reinforcement occurs only . Reinforcement occurs only after a fixed number of responses. This schedule after a fixed number of responses. This schedule motivates people to continue performing the same motivates people to continue performing the same behavior over and over again. Frequent flyer programbehavior over and over again. Frequent flyer program

3.3. Variable ratio reinforcementVariable ratio reinforcement the person is reinforced the person is reinforced after a certain number of responses, but he or she does after a certain number of responses, but he or she does not know how many responses are required. People in not know how many responses are required. People in such situations tend to respond at a very high and steady such situations tend to respond at a very high and steady rates, this type of behavior is very difficult to distinguish. rates, this type of behavior is very difficult to distinguish. Attraction to slot machinesAttraction to slot machines

Discriminative stimuliDiscriminative stimuli Discriminative stimuli are stimuli that only Discriminative stimuli are stimuli that only

occur in the presence of a reinforcer. They occur in the presence of a reinforcer. They are signals which indicate that the are signals which indicate that the reinforcer will be given if desired behavior reinforcer will be given if desired behavior is emitted. Because the discriminative is emitted. Because the discriminative stimuli is invariably paired with reinforcer stimuli is invariably paired with reinforcer the likelihood of operant response the likelihood of operant response occurring increases. The organism learns occurring increases. The organism learns to emit the operant response when to emit the operant response when discriminative stimulus is present, and not discriminative stimulus is present, and not emit when stimulus is absent.emit when stimulus is absent.

Discriminative stimuliDiscriminative stimuli The message and information that The message and information that

consumers receive about products and consumers receive about products and services are discriminative stimuli – that is services are discriminative stimuli – that is they signal the reinforcements from they signal the reinforcements from purchase.purchase.

Discriminative stimuli are found in Discriminative stimuli are found in advertising, on product packaging, and in advertising, on product packaging, and in brand namesbrand names

Companies with broad product lines usually Companies with broad product lines usually prominently identify each product as prominently identify each product as member of the same familymember of the same family

Discriminative

stimuliBehavior Reinforcer

Relationship between discriminative stimulus, the behavior and the reinforcer

Strategic Applications of Strategic Applications of Conditioning TheoriesConditioning Theories

RepetitionRepetition Stimulus GeneralizationStimulus Generalization Stimulus DiscriminationStimulus Discrimination

RepetitionRepetition Repetition increases strength of Repetition increases strength of

associations and slows forgetting but associations and slows forgetting but over time may result in over time may result in advertising wear-advertising wear-out.out.

Cosmetic variations Cosmetic variations reduce satiation. reduce satiation. E.g. Ads by Lux, Sunsilk etc. E.g. Ads by Lux, Sunsilk etc.

Substantive VariationsSubstantive Variations

Changes in advertising content across Changes in advertising content across different versions of an advertisement with different versions of an advertisement with no changes in cosmetic features. E.g. Ding no changes in cosmetic features. E.g. Ding Dong BubbleDong Bubble

Individuals exposed to substantively varied Individuals exposed to substantively varied ads process more information about product ads process more information about product attributes and were also more resistant to attributes and were also more resistant to change in the face of competitive attackchange in the face of competitive attack

Cosmetic VariationsCosmetic Variations

Three-Hit TheoryThree-Hit Theory

Repetition is the basis for the idea that three Repetition is the basis for the idea that three exposures to an ad are necessary for the ad exposures to an ad are necessary for the ad to be effectiveto be effective

The number of actual repetitions to equal The number of actual repetitions to equal three exposures is in question.three exposures is in question.

Stimulus Stimulus GeneralizationGeneralization

The inability to perceive differences

between slightly dissimilar stimuli.

Stimulus Generalization and Stimulus Generalization and MarketingMarketing

Product Line, Form and Category Product Line, Form and Category ExtensionsExtensions

Family BrandingFamily Branding LicensingLicensing Generalizing Usage SituationsGeneralizing Usage Situations

Line Line ExtensionExtension

Product Form ExtensionsProduct Form Extensions

Product Product Category Category

ExtensionsExtensions

Shoe Shoe Manufacturer Manufacturer

Licenses Licenses Its NameIts Name

Stimulus Stimulus DiscriminationDiscrimination

The ability to select a specific stimulus

from among similar stimuli because of

perceived differences.

Positioning

Differentiation

ShapingShaping The reinforcement of behavior that must be The reinforcement of behavior that must be

performed before the desired behavior can be performed before the desired behavior can be achievedachieved

Shaping increases the probability that certain Shaping increases the probability that certain desired consumer behavior will occurdesired consumer behavior will occur

Retailers: Sampling, loss leadersRetailers: Sampling, loss leaders Car dealers:- Car dealers:- 1.1. Encourage customers to visit their showrooms ----- Encourage customers to visit their showrooms -----

incentive to visit showroomincentive to visit showroom2.2. Test drive ----------- some small giftTest drive ----------- some small gift3.3. Purchase of car---------- outstanding service + Purchase of car---------- outstanding service +

rebaterebate

Observational learningObservational learningObservational learning, also called vicarious or social Observational learning, also called vicarious or social

learning, refers to the phenomenon whereby people learning, refers to the phenomenon whereby people develop patterns of behavior by observing the actions of develop patterns of behavior by observing the actions of others.others.

Three important ideas have emerged from observational Three important ideas have emerged from observational learning theory:learning theory:

1.1. View people as symbolic beings who foresee the View people as symbolic beings who foresee the probable consequences of their behavior and vary their probable consequences of their behavior and vary their behavior accordingly (Principles of cognitive learning)behavior accordingly (Principles of cognitive learning)

2.2. People learn by watching the actions of others and People learn by watching the actions of others and noticing the consequences of those actions ( behavioral noticing the consequences of those actions ( behavioral learning)learning)

3.3. People have the ability to generate their own behavior, People have the ability to generate their own behavior, and through self regulatory process, they supply their and through self regulatory process, they supply their own internal rewards and punishments by feeling either own internal rewards and punishments by feeling either self critical or self satisfiedself critical or self satisfied

Observational LearningObservational Learning

Factors Influencing a Model’s Behavior:Factors Influencing a Model’s Behavior:

• The model is physically attractiveThe model is physically attractive

• The model is credibleThe model is credible

• The model is successfulThe model is successful

• The model is similar to the observerThe model is similar to the observer

• The model is shown overcoming difficulties The model is shown overcoming difficulties and then succeedingand then succeeding

Components of Components of Observational LearningObservational Learning

Consumers Consumers Learn by Learn by ModelingModeling

Marketing Uses of Social learning Marketing Uses of Social learning TheoryTheory

1.1. Model’s action can be used to create entirely new types Model’s action can be used to create entirely new types of behaviorsof behaviors

Feature attractive and credible endorsers whose Feature attractive and credible endorsers whose behavior will hopefully be emulated by consumers. In this behavior will hopefully be emulated by consumers. In this type of ad the model’s behavior – using the product - is type of ad the model’s behavior – using the product - is often positively reinforced by having other people often positively reinforced by having other people congratulate the model on his or her purchasecongratulate the model on his or her purchase

2.2. A model can be used to decrease the likelihood that an A model can be used to decrease the likelihood that an undesired behavior will occurundesired behavior will occur

Model is shown being punished for engaging in a Model is shown being punished for engaging in a behavior e.g. anti-drug campaignsbehavior e.g. anti-drug campaigns

Marketing Uses of Social learning Marketing Uses of Social learning TheoryTheory

3.3. Enhance the likelihood that consumers will Enhance the likelihood that consumers will repeat an already learned behaviorrepeat an already learned behavior

4.4. Here the behavior of model acts as Here the behavior of model acts as discriminative stimulus to tell consumers discriminative stimulus to tell consumers when behavior is appropriate. when behavior is appropriate.