Consumer Behavior Chapter 4 - Exam 1

Cognitive Learning Theory

• Internal learning processes • People are problem solvers

Gamification - Social Marketing

• More than 75 utilities use a service from a company called Opower that awards badges to customers when they reduce their energy consumption. • Customers can compare their progress with their neighbors' and broadcast their achievements on Facebook.

Memory lapses

• Omitting • Averaging: or normalizing the memories by not reporting extreme cases • Telescoping: inaccurate recall of time

Illusion of Truth Effect

• Phenomenon of people remembering a claim is true when they have been told the claim is false. • You can tell a lie, but once it's been told - you create a node of information • People believe what they want to believe • Clinton and Trump ex: they both say things that we know are lies, but if you're a supporter of either, you'll believe or support what they say

Learning

• Relatively permanent change in behavior (caused by experience) • The experience can be direct or it can be observed. Learning is an ongoing process.

Narrative Memory

- A description of a product that is written as a story, is often an effective way to convey product information - Paints a picture - Helps us remember through images

Negative Reinforcement

- Ad showing how the person not wearing polarized sunglasses isn't as successful - Negative reinforcement shows how a negative outcome can be avoided.

Observational Learning

- Occurs when we watch the actions of others and note the reinforcements they receive for their behaviors. - In these situations, learning occurs as a result of vicarious rather than direct experience. - This type of learning is a complex process; people store these observations in memory as they accumulate knowledge and then they use this information at a later point to guide their own behavior. - Particularly when we are preoccupied with other demands, we are likely to mimic others' behaviors as a social default.

Conditioned Issues

- Repetition - Stimulus generalization - Stimulus discrimination - Extinction

Follower brands

- Ride their coattails because the first product's introduction is likely to be distinctive, and for the time being, no competitors divert our attention. - Tends to stand out or are more memorable based on their differences

Pavlov's Conditioned Response

- Salivation • The drooling of these canine consumers because of a sound was a conditioned response (CR).

Pioneering brand

- The first brand of something - Created the scheme for expectations

How do we learn to be consumers?

- consumer socialization - parent's influence - TV's influence

Incidental Learning

Casual, unintentional acquisition of knowledge

Extinction

Occurs when there is no reinforcement. In other words, the conditioning is not activated because it is not reinforced.

Variable Interval Reinforcement

One doesn't know when the reward will be offered. Because you don't know exactly when to expect the reinforcement, you have to respond at a consistent rate.

Neglecting Parents

Parents are detached from their children and don't exercise much control over what the children do

Problems with Memory Measures

Response biases Memory lapses Illusion of Truth effect

Memory Systems

Sensory memory Short term Long term

Script

Sequence of events an individual expects to occur.

Consumer Socialization Process

The process of consumer socialization begins with infants. Within the first two years, children request products they want. By about age 4, most kids make purchases with the help of parents and grandparents.

Variable-Ratio Schedule

This is the type of schedule used by slot machines.

Gamification - Employee Performance

• Some restaurants enlist a service called Objective Logistics to rank the performances of waiters on a leaderboard, rewarding the good ones with plum shifts and more lucrative tables

Cognitive Learning Theory Model

• We learn about products by observing others' behavior • Attention → - The consumer focuses on a model's behavior • Retention → - The consumer retains this behavior in memory • Production processes → - The consumer has the ability to perform the behavior • Motivation → - A situation arises wherein the behavior is useful to the consumer • Observational learning - The consumer acquires and performs the behavior earlier demonstrated by a model

Halo Effect

• You buy an iPhone and a MacBook because you feel like they'll give you the same satisfaction since they're both Apple products • People also react to other, similar stimuli in much the same way they responded to the original stimulus; we call this generalization a halo effect.

Gamification - Endowed Progress Effect

• a carwash gave one set of customers a buy-eight-get-one-free card, while a second set of customers got a 10-wash card that had been punched twice. • A dynamic digital environment (whether in-store, on a laptop, or on a tablet or phone) that resembles a sophisticated videogame platform • Multiple short- and long-term goals • Rapid and frequent feedback • A reward for most or all efforts in the form of a badge or a virtual product • Friendly competition in a low-risk environment • A manageable degree of uncertainty

Service Scripts

- As consumers we learn service scripts that guide our behavior in commercial settings. - Expectations on how a situation is going to play out

Schema

- Cognitive framework we develop through experience. - The scheme in which we fit the information into - These schemas have loads of information - As marketers we have to make sure the right information is attached to the right schema

Look Alike Packaging

- Distinctive packaging designs create strong associations with a particular brand. - Companies that make generic or private-level brands and want to communicate a quality image often exploit this linkage when they put their products in similar packages to those of popular brands.

Too MUCH exposure leads to advertising wear out

- Example: Izod crocodile on clothes - Even when associations are established, too much exposure can turn negative. In that case, the association may change in terms of whether it is perceived as positive or negative. That's what happened to Izod when its logo became too exposed on a variety of clothing and products.

Positive Reinforcement

- Example: Polarized sunglasses → better fishing - Positive reinforcement comes in the form of a reward

Decay

- If you don't use it, you'll lose it - The structural changes that learning produces in the brain simply go away

Components of Conditioning

- Ivan Pavlov, a Russian physiologist who conducted research on digestion in animals, first demonstrated this phenomenon in dogs. - Unconditioned Stimulus - Conditioned Stimulus - Conditioned Response

Episodic Memory

- Relate to events that are personally relevant - Strong memories; flash forward memories

We perform behaviors that are reinforced

- Responses to classical conditioning are fairly simple and involuntary, but the responses we make to instrumental conditioning are related to obtaining a goal. We may learn the desired behavior over a period of time as a shaping process rewards our intermediate actions. One way that instrumental conditioning may occur is through positive reinforcement.

Stimulus Generalization

- Stimulus generalization refers to the tendency of stimuli similar to a CS to evoke similar, conditioned responses. For example, Pavlov noticed in subsequent studies that his dogs would sometimes salivate when they heard noises that only vaguely resembled a bell, such as keys jangling.

Salience

- The importance and strength of a stimulus impacts whether or not you remember it - Refers to its prominence or level of activation in memory - The extent to which it stands out helps you remember it

State-dependent retrieval

- We tend to remember or recall information better if we were in the same state/mood as when we saw the information the first time - Retrieval illustrates that we are better able to access information if our internal state is the same at the time of recall as when we learned the information.

Classical Conditioning

- a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response of it's own - Over time, the second stimulus causes a similar response because we associate it with the first stimulus.

Behavioral Learning Theories

- assume that learning takes place as the result of responses to external events - Psychologists who subscribe to this viewpoint do not focus on internal thought processes. Instead, they approach the mind as a "black box" and emphasize the observable aspects of behavior. - The observable aspects consist of things that go into the box (the stimuli or events perceived from the outside world) and things that come out of the box (the responses, or reactions to these stimuli).

Pavlov's Conditioned Stimulus

- bell • He paired a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs • Over time, the bell became a conditioned stimulus (CS). The bell did not initially cause salivation but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only.

The process of stimulus generalization is critical to

- branding and packaging decisions that try to capitalize on consumer's positive associations with an existing brand or company name. - Marketers can base some strategies on stimulus generalization.

Pavlov's Unconditioned Stimulus

- dog food - The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response.

Instrumental Conditioning occurs in one of three ways:

1) positive reinforcement 2) negative reinforcement 3) punishment

Cognitive Development

1. Limited 2. Cued 3. Strategic

Spreading Activations

A marketing message may activate our memory of a brand directly or indirectly. If it activates a node, it will also activate other linked nodes much as tapping a spider's web in one spot sends movement reverberating across the web. The process of spreading activation allows us to shift back and forth among levels of meaning. The way we store a piece of information in memory depends on the type of meaning we initially assign to it. This meaning type then determines how and when something activates the meaning.

Retro brand

An updated version of a brand from a prior historical period. The Mini Cooper, PT Cruiser, and Volkswagon's New Beetle are all retro brands.

Strategic Cognitive Development

Children 12 and older spontaneously employ storage-and-retrieval strategies.

Cued Cognitive Development

Children between the ages of 6 and 12 employ these strategies but only when prompted to do so.

Limited Cognitive Development

Children who are younger than age 6 do not employ storage-and-retrieval strategies.

Repetition Increases Learning

Conditioning effects are more likely to occur after the conditioned stimulus (CS) and the unconditioned stimulus (UCS) have been paired several times. Repeated exposures to the association increase the strength of the associations and prevent decay of these associations in memory.

Forgetting

Decay State-dependent retrieval Salience Hybrid ads

Activation Models of Memory

Explain that depending on the nature of the processing task different levels of processing occur that activate some aspects of memory rather than others.

Family Branding

Family branding enables products to capitalize on the reputation of a company name.

Encoding Memory

In the encoding stage, information enters in a way the system will recognize.

Storage Stage Memory

In the storage stage, we integrate this knowledge with what is already in memory and "warehouse" it until it is needed.

Licensing

Licensing allows companies to rent well-known names.

Product line extensions

Marketers can use product line extensions by adding related products to an established brand.

Authoritarian Parents

Parents are hostile, restrictive and emotionally uninvolved

Indulgent Parents

Parents communicate more with their children about consumption related matters and are less restrictive

Levels of Knowledge

Schema Script Service Scripts

Retrieval Memory

Something gets triggered in our minds that allows us to retrieve that information

Five Stages of Consumer Development

Stage 1: Observing Stage 2: Making requests Stage 3: Making selections Stage 4: Making assisted purchases Stage 5: Making independent purchases

Fixed Interval Reinforcement

The first response made brings the reward and then on a specific set interval, future rewards are given.

Spacing effect

The tendency for us to recall printed material more effectively when the advertiser repeats the target item periodically, rather than presenting it repeatedly in a short time period

Multiple Intelligence Theory

This influential perspective argues for other types of intelligence, such as athletic prowess or musical ability, beyond the traditional math and verbal skills psychologists use to measure IQ.

Gamification

Turning routine actions into fun experiences

Punishment

Unpleasant event follows a behavior or response

Nostalgia

describes the emotions where we view the past with longing. We reference the good old days. • When marketers play on nostalgia, they want us to attach our fond memories to new products

When exposure decreases,

extinction occurs

Conditioning results

in learning

Brand Equity

in which a brand has strong positive associations in a consumer's memory and commands a lot of loyalty as a result.

Hybrid ads

include a program tie-in

More exposures =

increased brand awareness; Many classic advertising campaigns consist of product slogans repeated often to enhance recall.

The other products we associate with an individual product

influence how we will remember it

Long term and short term memory are

interdependent systems

Product Category

is memory stored in terms of how the product works or where it should be used

Proposition

links two nodes together to form a more complex meaning. For example, "Axe is cologne for macho men" is a proposition

Evaluative Reactions

memory stored as positive or negative emotions

Brand Identification

memory stored in terms of the brand name

Short term memory

o Brief storage of information currently being used o This system is working memory o It holds information we are currently processing. o Our memories can store verbal input acoustically or semantically. We store this information by combining small pieces into larger ones in a process we call chunking. o A chunk is a configuration that is familiar and the person can think about it as a unit o Capacity: limited o Duration: less than 20 seconds

Long term memory

o Relatively permanent storage of information o A cognitive process we call elaborative rehearsal allows information to move from short-term memory to long-term memory. o Capacity: unlimited o Duration: long or permanent

Sensory Memory

o Temporary storage of sensory information o Immediate after you see something o If the information is retained for further processing, it passes through an intentional gate and transfers to short-term memory o Capacity: high o Duration: less than 1 second (vision) or a few seconds (hearing)

Instrumental Conditioning (or Operant Conditioning)

o The individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes o Instrumental conditioning is also called operant conditioning. It means to condition behavior using consequences. It refers to voluntary behaviors, while classical conditioning works to condition responses to involuntary behaviors.

Response biases

people tend to give yes responses to questions regardless of the question

Memory

process of acquiring information and storing it over time so that it will be available when we need it. Many people assume the mind works with an information processing approach. Data are input, processed, and output for later use in revised form.

There is a difference between classical and instrumental conditioning, but both

processes help consumers learn about products

Ad Specific

refers to memories stored in terms of the medium or content of the ad itself

Brand Specific

refers to memory stored in terms of the claims the brand makes

Fixed Ratio Reinforcement

reinforcement only occurs after a fixed number of responses.

Typical Recognition Test

researchers show ads to subjects one at a time and ask if they have seen them before. In contrast, free recall tests ask consumers to independently think of what they have seen without being prompted first.

Retrieval

the process whereby we recover information from long-term memory. Many things affect our ability to retrieve information. One of those is how the marketer presents the information.

Recall

you can reproduce the memory or thought without help

Recognition

you've just seen it before

Stimulus Discrimination

• A sound that is very different may not lead to the same response • Conditions may also weaken over time especially when a UCS does not follow a stimulus similar to a CS. This is called stimulus discrimination.

Theories of Learning

• Behavior learning theories focus on the stimulus-response connections • Cognitive theories focus on consumers as problem solvers who learn when they observe relationships

Repetition

• Conditioning effects are more likely to occur after the conditioned (CS) and unconditioned (UCS) stimuli have been paired a number of times. This effect is known as repetition.

Gamification - Store and Brand Loyalty

• Foursquare gives people virtual badges when they check in at a local cafe or restaurant. Some of them check in as often as they can to compete for the honor of being named "mayor" of the location.

Marketing Applications of Instrumental Conditioning Principles

• Frequency marketing - Reward programs

How does Instrumental Conditioning Occur?

• Instrumental conditioning (or operant conditioning ) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. - We associate this learning process with the psychologist B. F. Skinner, who demonstrated the effects of instrumental conditioning by teaching pigeons and other animals to dance and perform other activities when he systematically rewarded them for desired behaviors.