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    Memory & Cognitive Learning

    CONSUMER BEHAVIOR

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    Learning Concepts

    Multiple store modelof memory

    Involvement & short-term capacity

    Recognition & Recall Picture vs Word

    Memory Memory ControlProcess

    Encoding Process Retrieval & Response

    Generation

    Three types ofknowledge

    Gestalt Theory of

    Cognitive Knowledge Associationist theoryof knowledge

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    Memory . . .

    . . . affects the exposure, attention,

    and comprehension stages

    . . . allows consumers to anticipate the

    stimuli they might encounter

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    Multiple-Store Model of Memory

    Three different types of memory storage:

    Sensory Memory

    Short-Term Memory

    Long-Term Memory

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    Inputs

    Sensory memory

    Short Term Memory

    ( Working MemoryAvailable Capacity

    Affectand

    arousal Long TermMemory

    RetrievalEncoding

    A Simplified Memory Model

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    Sensory memory happens in the pre-attention

    stage where a stimulus is briefly analyzed todetermine if it will receive additionalprocessing.

    Short-term memory is where information istemporarily stored while people are activelyprocessing it. Is like RAM in a computer.

    Long-term memory is connected to short-

    term memory through encoding and retrievalprocesses. Is like the disk drive in acomputer.

    Memory works like parallel processors.

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    Encoding is the transfer of information

    from short-term memory to long-termmemory for permanent storage.

    Retrieval is the process of accessinginformation stored in long-term memory

    so that it can be utilized in short-termmemory.

    Retrieval is a constructive process.

    Information in ads received afterproduct experience can change theperception of the experience.

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    Relationship amongst Memory Systems

    Sensory Memory

    temporary storage of

    sensory information

    capacity: High

    Duration:

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    Sensory Memory . . .

    . . . consists of firingof nerve cells, short-term in duration,usually less than a

    second.

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    Short-Term Memory. . .

    . . . is the site where information istemporarily stored while being processed.

    Is also called working memory.

    Rehearsal is silently repeating information toencode it into long-term memory.

    If information in short-term memory is notrehearsed it is lost within 30 seconds.

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    The Limited Capacity of

    Short-Term Memory

    Millers Law is the recognition that people can handle 7(+/- 2) bits of information at a time. In consumer contexts, however, STM is closer to 5 +/- 2 bits of

    information.

    Information Overload describes the situation in whichmore information is received than can be processed inshort-term memory.

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    Marketing Implications

    Two questions with marketing implications:

    i. Can consumers become overloaded? Researchhas yielded an unequivocal yes to the question

    ii. Do consumers become overloaded?Controversial research:

    a. People actively manage the information theyreceive to avoid becoming overloaded i.e. stop

    far short of being overloadedb. Yes they do; this information overload actually

    decreases the quality of their purchase decision

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    Involvement & Short-Term Capacity

    High involvement makes the consumer morearoused and attentive, expanding the short-termmemory capacity to full 7 +/-2 bits. (Caffeine has

    the same effect.) Low involvement tends to keep a consumers

    arousal levels low so the consumer focusesrelatively little memory capacity on the stimulus.

    Under low involvement, which is common in CBcontexts, capacity is at 5 +/1 bits.

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    Marketing Implications

    Television advertising

    In low involvement keep copy points

    maximum to four (copy point isconsidered equivalent to a chunk) .

    For companies that advertise on TV and

    radio the lesson is keep your messagesimple

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    Time Required to Transfer

    Information. . .. . . the consumer's goal to eitherrecognize or recall a task. Itrequires 2-5 seconds for recognition

    task and 5-10 seconds for recalltask to transfer the information toLTM.

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    Recognition and Recall

    Recognition tasks are when information is placedbefore the consumer. The goal is to determine ifthe information has been seen before.

    Recall tasks are when the consumer must retrievethe information from long-term memory withoutany prompting. Requires greater depth ofencoding. Recall impacts the size of the

    consideration set, which is the set of productchoices retrieved from memory that are deemedsatisfactory options.

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    Universe ofpotential brands

    Awareness SetKnown Brands

    Unawarenessset

    ConsiderationSet: Brands given

    consideration

    Inert SetBrands viewed

    with Indifference

    Inept SetUnacceptable

    brands

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    Clutter iswhen there

    are toomany stimulimaking recall

    moredifficult.

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    Long-Term Memory

    . . . has essentially unlimited capacity to store

    information permanently. Stored information is either semantic or visual.

    Semantic memory deals with the encoding andstorage of words and meanings. Visual deals with

    the storage of images. Long term memory is essentially permanent.

    l f

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    Relative Superiority ofPicture Versus Word Memory

    Visual images or pictures tend to be morememorable than their verbal counterparts,especially when there is low-involvement on thepart of the consumer.

    Words that have high-imagery content are easierto encode and retrieve than words low in imageryand concreteness.

    Words and pictures should be used to complementeach other in ads.

    Verbal material is better recalled in highinvolvement conditions.

    In high involvement information processingadvertisers usually get better results if theypresent different information via verbal andpictorial means

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    Memory-Control Processes . . .

    . . . are the methods ofhandling informationwhich may operate

    consciously orunconsciously toinfluence the encoding,placement, and retrieval

    of information.

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    Encoding Process

    Rehearsal influences whether or not information will betransferred from STM to LTM

    The way information is coded will have great impacton speed of transfer as well as on the placement ofthat information

    For a new topic repetition of stimulus during rehearsalor attempt to link it to other information alreadypresent in the LTM is required.

    With familiar topics person becomes more adept at

    coding information on it by drawing associationsbetween it and the information they already have inmemory, and storage process speeds upproportionally

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    Encoding Process

    Marketing Implications:

    i. Understanding of encoding process in developingbrands

    ii. The closer the brand name fits with consumersassociation about the product class, the better will behis/her ability to recall the name

    iii. Highly concrete names ( ocean, orchestra, frog, andblossom) are easily visualized and remembered betterthan less concrete names (history, truth, moment)

    because they are coded both visually and verbally andalso because they fit better into consumers existingknowledge structure,.

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    Retrieval and Response

    Generation Response generation is when a person developsa response by actively reconstructing thestimulus. Information received after exposure to

    a stimulus (e.g., ads) can impact responsegeneration of the original stimulus.

    Retrieval cues create a response by providing ameans of assisting the active reconstruction ofthe stimulus.

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    Retrieval and response GenerationMarketing Implications

    A major goal of advertisers is to improveconsumers ability to retrieve information frommemory

    i. Provide retrieval cues on the packaging ofproducts to assist consumers memories duringdecision making.

    ii. Assisting consumers retrieval and responsegeneration to employ music in advertisements.There is evidence that people retrieve sungmessages better than spoken one

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    Consumer Knowledge . . .

    . . . is the amount of experience with and

    information a person has about particularproducts or services.

    As knowledge increases, a consumer canthink about a product across a greaternumber of dimensions and make finerdistinctions between brands.

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    Three Types of Knowledge:

    Objective knowledge is the correctinformation about a product class that aconsumer has stored in long-term memory

    Subjective knowledge is the consumersperception of what or how much he or sheknows about a product class.

    Knowledge of others is what information aconsumer has about another.

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    How Do Consumers Gain

    Knowledge? Cognitive Learning: process offorming associations, solving

    problems, and gaining insights. Learning Through Education:

    Obtaining information from firms who

    are trying to teach the consumer. Learning Through Experience: Actualcontact/use of products.

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    Consumer KnowledgeMarketing Implications

    i. As consumers knowledge increases, theybecome better organized, grow more efficientand accurate in their information processing,and display better recall of information.Managers need to consider the state of

    consumer knowledge when they aredeveloping a productii. Information on the extent of consumer

    knowledge should influence promotion

    strategy. A message targeted toknowledgeable prospects can be much morecomplex than addressed to a novice

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    Gestalt Theory of CognitiveKnowledge

    Gestalt psychologists believe that biological andpsychological events do not influence behavior

    in isolation of each other.

    People perceive the inputs from the environment aspart of the total context.

    Focused on the active, creative nature of learning

    and action.

    Key idea: whole is greater than sum of parts.

    1 1 3+ =

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    Associationist Approaches to

    Cognitive Knowledge Serial learning concerns how people put into

    memory and recall information that is received

    in a sequential manner. Serial-Position effect occurs when the order of

    presentation of information in a list influencesrecall of the information in the list.

    The S-P effect is the basis for the higher pricepaid for book-end ads i.e., ads at thebeginning and end of a commercial TV break.

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    Serial Position Effect

    Explanation:Beginning and end of the list become anchors inlearning. Because of limitation of STM, people

    pick reference points for when to start and endthe learning process. Since only limited amountsof information can be stored in STM at a time, itis those items right around the beginning andend of the list (the reference points) that are

    recalled most readily. Many more repetitions ofthe material may be required before items in themiddle can be recalled

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    Serial Position Effect

    Marketing Implications

    i. Key information in the advertisement

    should be placed at the beginning andend of the message

    ii. Advertisers should strive to get theircommercials placed either at the

    beginning or end of series of televisionads

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    Serial Position Effect

    Position

    in series

    early Late

    Trials

    to

    Learn

    Few

    Many

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    Paired Associate Learning People are asked to pair response word with

    stimulus word Example: Stimulus and Response Pairs:GilletteThe best a man can getMcDonalds Im lovin it

    LiptonChai Chaheyai Learning is speeded up if stimulus and responseitems can be readily associated with each otherand already familiar to the subject

    Learning is especially rapid if mental images aredeveloped of the linkage of stimulus andresponse words

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    Conditions for paired associatelearning

    The stimulus and response words are easilypronounceable

    The person is familiar with both the stimulus andresponse words

    Stimulus and response words are meaningful The stimulus and response words are easily

    associated Visual images are created to link the stimulusand response words together

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    Law of Contiguity

    Stimuli that are experienced together becomeassociated in memorye.g., Nike-TigerWoods; called paired associate learning.

    Some findings: Make pairs (i.e. stimulus-response words) easily

    pronounceable, familiar, meaningful. Use visual images to link stimulus-response words

    together.

    Remember: Negative associations can occurbetween product and another stimulusattack style political ads seek to create suchassociations for opposing candidates.

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    Semantic Memory Networks . .

    .. . . refer to how people store themeanings of verbal material in long-

    term memory. Semantic memory is organized into

    networks each of which is a series ofmemory nodes that represent the storedsemantic concepts.

    Information is recalled via spreadingactivation.

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    Five Types of Information Stored in Nodes

    Types of information Brand names

    Brands characteristics/attributes

    Ads about brand Product category

    Evaluative (affective) reactions to the brand and thead

    This information represents a consumers brandknowledge i.e., a brand node and theassociations in memory connected to it.

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    Measuring Semantic MemoryNetworks

    Guided Associations Think of your university/college

    What are the first three words or images thatcome to mind. (e.g., Ph.Ds, BBA program,HEC Ranking)

    Select one of these words (e.g., BBA), nowthink of three words or images that youassociate with BBA program, etc.

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    Semantic Memory Network:important for semiosis analysis.

    I.U.

    Ph.Ds BBA Program HEC Ranking

    Dr. X Dr. Y Jobs Acad. Further edu. Other Inst.

    Q.T Bus. Eco. Companies Best value CBM IBA

    Grades Cl.fellows Class Money Career Friends

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    Schemas . . .

    . . . are organized sets of expectations andassociations about an object.

    When new information is inconsistent with a

    schema, consumers engage in more diligentprocessing and, consequently, have improvedmemory about the stimulus.

    Can derive from network analysis.

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    Forgetting

    People forget because

    even though informationhas been placed in long-term memory, it may beextremely difficult toretrieve. This is called a

    retrieval failure.

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    Interference Processes

    Retroactive interference occurs when laterlearned material interferes with the recallof information learned earlier.

    Proactive interference occurs when earlierlearned material interferes with learning

    and recall of information learned later.

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    The von Restorff Effect . . .

    . . . occurs when a highly unique item in aseries is recalled more easily.

    Illustrated by absurdity in advertisements,e.g. some of the recent Mountain Dew ads

    Also illustrates information salience, which isthe idea that unique, novel, moving,

    contrasting, colorful, etc. stimuli are moreeasily encoded and retrieved.

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    The von Restorff Effect

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    The Zeigarnik Effect . . .

    . . . occurs if a task

    is interrupted,material relevant tothe task tends to beremembered. E.g.,

    stories that are cutin the middle----,

    Here, build a storyabout a person doing

    something difficult, andthen stop just beforeclimax. Will increaseinterest in and recall

    of story.

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    Zeigarnik Effect

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    Time and Forgetting

    The recall of verbalinformation decreasesover time.

    Rapid forgetting thatoccurs immediatelyafter learning has

    been shown to occurin advertising as well.

    Time and Forgetting

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    Time and Forgetting

    After people learned a list of words, the percentage ofwords they could remember decreased dramatically atfirst, and then leveled off. The rapid forgetting takesplace in advertising as well.

    Zielske had an advertisement for a product run for agroup of housewives once a week for 13 weeks.

    At the end of 13 weeks period 63% of respondentscould recall having seen the ad. The ad was not shownto them for 13 weeks. After 20 weeks, those who couldrecall had dropped to under 30%, by the 9th monthfewer than 10% of respondents could remember the ad.

    In another experiment one group of housewives wasshown the ad 4 weeks apart. In this group the ability torecall the ads increased slowly, by the end of the year48% of respondents could remember the ad.

    Time and Forgetting

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    Time and ForgettingMarketing Implications

    i. If advertisers goal is awareness of a product, thanhigh frequency of ads over short period of time will bemost effective. However consumer will rapidly forgetthe commercial message after the burst ofadvertisements end

    ii. If advertisers goal is to build long-term awareness ofthe ad, the commercial should be pulsed so that adsare seen by consumers over a long period of time

    iii. Some advertisers prefer to combine these approachesby using a high-intensity ad campaign to bring out a

    product, and then pulsing regularly after theintroduction to maintain consumers awareness of thead.

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    Affect and Memory

    People are better able to recall informationthat has the same affective quality as theirmood state.

    Affect refers to the feelings, emotions, andmoods that consumers may experience.

    Mood is a transient feeling state that occurs ina specified situation or time.

    How can Marketers help consumers to

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    premember RemindersInvolves reminding them of what the

    company wants them to rememberRetrieval cues at the point of purchase Saying it again and again: The value of

    repetition

    Encourage elaborationStimulus is linked or related to various

    concepts in memory: make use of semanticmemory networks

    Self referencing : relating a stimulus to onesown self and experience (this product is forpeople just like you who are--------------)

    H i h l b

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    How companies can help consumers remember Encourage Multiple Representation in Memory Information stored in long term memory may be

    represented semantically and visual imageryDepending on how people typically represent the to-be-remembered information in memory, efforts toencourage additional forms of representation may beworthwhile

    Importance of consistencyConsistency facilitates remembering. Greaterconsistency among elements within an advertisementincreases what consumer remembers about the adand advertised product

    The product benefits described within an ad arebetter remembered when these benefits areconsistent with those suggested by the advertisedproduct name

    How Companies can help consumers remember

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    How Companies can help consumers remember

    Use Easy-to-remember stimuli

    Use of concrete words instead ofAbstract words

    Stimuli that are distinctive or unique

    are also easier to remember. Put Consumer in a good mood

    Brand Image and Product Positioning

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    Brand Image and Product Positioning

    Brand ImageSchematic memory of a brand

    It contains the target markets interpretation of theproducts attributes, benefits, usage situations,users and manufacturers / marketer characteristics

    It is what we think and feel when we hear or see

    a brand nameo Product PositioningA decision taken by marketer to try and achieve a

    defined brand image relative to competition withina market segment

    Product positioning decisions are strategicdecisions

    The term product positioning involves an explicitreference to brand image relative to another brand.

    Perceptual Mapping and Product Repositioning

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    Perceptual Mapping and Product Repositioning

    Product PositioningA useful technique in measuring and developing

    products positioning

    Takes consumers perception of how variousbrands are to each other and relates these

    perception to product attributes Product Repositioning:Refers to a deliberate decision to significantly alter

    the the way a product is viewed by the market

    This could involve its level of performance, thefeelings it evokes, the situation in which it shouldbe used, or even who uses it

    Perceptual Mapping of Automobiles

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    Stylish, Prestigious, Distinctive

    Practical, Common, Economical

    Staid,

    Conservative

    Older

    Fun

    Sporty

    FastNissan Sentra

    Plymouth Voyger

    Dodge Caravan

    Geo Metro

    Kia Sephia

    Volvo 850 R

    Chrysler LHS

    Buick Park

    Avenue

    Mercedes 400 SE

    Porsche 914Lexus LS 400

    Jeep Grand Cheroke

    Acura Integra

    Ford Taurus

    Honda Civic

    Dodge Neon

    TM1

    TM3

    TM2

    Brand Equity and Brand Leverage

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    Brand Equity and Brand Leverage Brand EquityThe value consumers assign to a brand above and

    beyond the functional characteristics of the productBrand Equity is nearly synonymous with the

    reputation of the brand

    Is based on the image consumers have of the brand

    Brand Leverage (family branding, brand extension,or umbrella branding)

    Refers to marketers capitalizing on brand equity byusing existing brand for new products

    If done correctly , consumers will assigncharacteristics of existing brand to the new brand

    Brand Leverage

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    Brand LeverageSuccessful brand leverage requires that:a. Original brand has a strong positive image

    b. The new product fits well with the originalproduct on at-least one of the threedimensions:

    1. Complement: The two products are used

    together.2. Transfer: The new product is seen by

    consumers as requiring the same

    manufacturing skills as the original3. Image: The new product shares a keyimage component with the original