memory & cognitive learning.ppt

7/27/2019 Memory & Cognitive Learning.ppt

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Memory & Cognitive Learning

CONSUMER BEHAVIOR



Memory . . .

. . . affects the exposure, attention,

and comprehension stages

. . . allows consumers to anticipate the

stimuli they might encounter



Multiple-Store Model of Memory

• Three different types of memory storage:

– Sensory Memory

– Short-Term Memory

– Long-Term Memory



Inputs

Sensory memory

Short Term Memory

( Working Memory Available Capacity

Affectand

arousal Long TermMemory

RetrievalEncoding

A Simplified Memory Model



• 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 is

temporarily 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.



• 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.



Relationship amongst Memory Systems

Sensory Memory

temporary storage of

sensory information

capacity: High

Duration:<second for

vision, few seconds for

hearing

Attention

Information

that passes

through

attention istransferred to

STM

Short-term

Memory

Brief storageof

information

Capacity:

limited

Duration:less than 30

second

Elaborative Rehearsal

Information subjected to

elaborative rehearsal or

deep processing is

transferred to LTM

Long-Term Memory

Relatively Permanent storage

of information

Capacity: unlimited

Duration: Long or Permanent



Sensory Memory . . .

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

second.



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.

– Elaboration means allocating processingcapacity to comprehend the information

– If information in short-term memory is notrehearsed/elaborated, it is lost within 30

seconds.



The Limited Capacity of Short-Term Memory:Miller’s Law

• Miller’s 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.



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? Argubale:

a. No: People actively manage the informationthey receive to avoid becoming overloaded i.e. ―stop far short of being overloaded‖

b. Yes: Because this information overload actuallydecreases the quality of their purchase decision



Involvement & Short-Term Capacity

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

chemicals including caffeine has the same effect.)• Low involvement tends to keep a consumer’s

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

Under low involvement, capacity is at 5 +/-1 bits.




For print media advertising:

For low involvement products keep copy

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

For electronic media advertising, follow

the KISS rule (― Keep It Simple, Stupid!‖).



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.



Recognition and Recall

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

• Recall tasks are when the consumer must retrievethe information from long-term memory with thehelp of cues but without prompting. Requiresgreater depth of encoding. Recall impacts the size

of the consideration set, which is the set of product choices retrieved from memory that aredeemed satisfactory options.



Universe of potential brands

Awareness SetKnown Brands

Unawarenessset

ConsiderationSet: Brands given

consideration

Inert SetBrands viewed

with Indifference

Inept SetUnacceptable

brands



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.



Relative Superiority of Picture 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



Memory-Control Processes . . .

. . . are the methods of handling informationwhich may operate

consciously orunconsciously toinfluence the encoding,placement, and retrieval

of information.



Encoding Process

Rehearsal and Elaboration influence whether or notinformation will be transferred from STM to LTM

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

For a new topic greater amount of rehearsal orelaboration is required

With familiar topics person becomes more adept atcoding information on it by drawing associations

between it and the information they already have inmemory, and storage process speeds upproportionally



Encoding Process

Marketing Implications:

i. Understanding of encoding process in developingbrands

ii. The closer the brand name fits with consumer’sassociation 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 consumer’s existingknowledge structure.



Retrieval and Response

Generation• Response generation is when a person developsa response by actively reconstructing thestimulus.

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



Retrieval and response GenerationMarketing Implications

A major goal of marketers is to improveconsumer’s ability to retrieve information frommemory. E.g.

i. Providing retrieval cues on the packaging of products (such as logo, color etc.) to assistconsumer’s memories during decision making.

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



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.



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 consumer’sperception of what or how much he or sheknows about a product class.

• Knowledge of others is what information aconsumer has about another.



How Do Consumers Gain

Knowledge?• Cognitive Learning: process of

forming associations, solving

problems, and gaining insights.• Learning Through Education:

Receiving information from firms who

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



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.

ii. Information on the extent of consumerknowledge should influence promotionstrategy. A message targeted toknowledgeable prospects can be much morecomplex than addressed to a novice



Gestalt Theory of CognitiveKnowledge

Gestalt psychologists believe that physiological andpsychological events do not influence behavior

in isolation of each other.

– Key idea: whole is greater than sum of parts.

– E.g. Perception of service quality in a restaurant(physiological) could be directly influenced by the

quality of time spent there with friends/family(psychological)

1 1 3+ =



Associationist Approaches to

Cognitive Knowledge1. The Serial-Position Effect:

• Serial learning concerns how people put intomemory and recall information that is receivedin 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.



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 of the material may be required before items in themiddle can be recalled





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 thebeginning or end of series of televisionads




Position

in series

early Late

Trials

to

Learn

Few

Many



2. Paired Associate Learning• Consumers learn to pair response words/objects

with stimulus• Example – Brands & Tag Lines: Addidas – ―Impossible is nothing‖ McDonalds – ― I’m lovin it‖

Nike – ―Just do it‖ Mountain Dew – ―Do the Dew‖ • Example – Brands & Celebrities • Rolex & Roger Federer

• Nike & Maria Sherapova• Tag Heur and SRK • Pepsi & Shahid Afridi



Conditions for paired associatelearning

• The response words are easily pronounceable

• Consumer is familiar with both the stimulus(brand) and response object (endorser)

• Stimulus and response words are meaningful

• The stimulus and response words are easilyassociated (make sense)

• Caution: Sometimes negative associations canalso occur between (stimulus) brand andresponse object (endorser)



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 of memory nodes that represent the storedsemantic concepts.

– Information is recalled via spreadingactivation.



Five Types of Information Stored in Nodes

• Types of information – Brand names

– Brand’s characteristics/attributes

– Ads about brand – Product category

– Evaluative (affective) reactions to the brand and thead

• This information represents a consumer’s brandknowledge — i.e., a brand node and theassociations in memory connected to it.



Measuring Semantic MemoryNetworks

• Guided Associations

• Think of your university

– What are the first three words or images thatcome to mind. (e.g., BBA, teachers, courses)

– Select one of these words (e.g. BBA); now

think of three words or images that youassociate with fashion, etc.



Semantic Memory Network:

IU

Courses BBA Teachers

Marketing Accounting MBA Friends Prof. Knowsalot

Sales Banks Finance Companies Jobs Grades

Products Advertising PR Money Career CGPA



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.



Forgetting

People forget because

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

―retrieval failure.‖



Interference

• Interference occurs when:

• later learned material interferes with the

recall of information learned earlier.OR

• earlier learned material interferes withlearning and recall of information learnedlater.



The von Restorff Effect . . .

– . . . occurs when a highly unique, novel, orunexpected item in a message is recalledmore easily.

– Illustrated by absurdity in advertisements



The von Restorff Effect



An Ad using the Von Restorff Effect



The Zeigarnik Effect . . .

. . . occurs if a task

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

stories that are cutin the middle----,



The Zeigarnik Effect..

• Aag …., laga do !

• When the TV channel Aag was about to be launchedthey put up billboards showing fire, creating curiosity inthe target audience of what was the point of such anadvertisement. Leaving an incomplete image in the mindof the people made it a successful technique for theirlaunch and thus completing the task of being

remembered! 46



The Ziegarnik Effect: What willshe say?



Time and Forgetting

• The recall of verbalinformation decreasesover time.

• Rapid forgetting thatoccurs immediatelyafter learning has

been shown to occurin advertising as well.

Time and Fo getting



Time and Forgetting

• In an experiment an advertisement for a product wasshown to a group of housewives once a week for 13weeks.

• At the end of 13 weeks period 63% of respondentscould recall having seen the ad. After this, the ad wasnot shown to them for 13 weeks. After 20 weeks, thosewho could recall had dropped to under 30%; by the 9th month fewer than 10% of respondents could rememberthe ad.

• In another experiment one group of housewives wasshown the same ad once a week with a gap of 4 weeks.In this group the ability to recall the ads increased

slowly; by the end of the year 48% of respondents couldremember the ad.

Time and Forgetting



Time and ForgettingMarketing Implications

i. If advertiser’s 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 of advertisements end

ii. If advertiser’s goal is to build long-term awareness of the 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 consumer’s awareness of thead.



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.

H C i h l b



How Companies can help consumers remember

• Use Easy-to-remember stimuli

Use of concrete words instead of Abstract words

Use of Stimuli that are distinctive or

unique• Put Consumers in a good mood

Brand Image and Product Positioning



Brand Image and Product Positioning

• Brand Image

Schematic memory of a brand

It contains the consumer’s interpretation of theproduct’s attributes, benefits, usage situations, usersand manufacturers’ characteristics

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

o Product Positioning A decision taken by marketers to try and achieve a

defined brand image relative to competition within amarket segment

Product positioning decisions are strategic (long-term)decisions

• Product Repositioning

Refers to a deliberate decision to significantly alter the way abrand is viewed by the consumer

Perceptual Mapping and Product Repositioning



Perceptual Mapping and Product Repositioning

• Perceptual Mapping

• A useful technique in measuring and developingproduct’s positioning

Takes consumer’s perception of how variousbrands are to each other and relates these

perceptions to product attributes

Perceptual Mapping of Automobiles in US Market



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



Brand Equity and Brand Leverage• Brand Equity

The value consumers assign to a brand above and

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

A strong brand equity allows the company to have ―brand leverage‖

• Brand Leverage: Refers to marketers capitalizing on brand equity by

using existing brand for new products

If done correctly , consumers will assign

characteristics of existing brand to the new brand

Brand Leverage



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

d



Brand Leverage Strategies



Brand Leverage Strategies

• Examples of Line Extension: Variants by Sunsilk,Pantene ; new flavors introduced by Lays, Cornettoetc.

• Examples of Brand Extension: Lifebuoy shampoo;

Gillette aftershave, body sprays etc.• Examples of Multibrands: One company marketing

several brands in the same product category – e.g.Head & Shoulders, Pantene and Herbal Essences (by

P & G); Lux, Rexona and Lifebuoy soaps (byUnilever)

• Examples of New Brands: New product category (forthe company), with a new brand – Omore by Engro

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