Marketing Chp 4

product data

Recall tends to be more important in situations in which consumers do not have ________.

Products help us to retrieve memories from our past.

Retrieval is 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.

observational learning process

The __________ is very complex and includes attention, retention, production processes, and motivation. People store these observations in memory as they accumulate knowledge and then use them later to help them guide their behavior.

von Restorff Effect

The ___________________ is well known to memory researchers. It shows that almost any technique that increases the novelty of a stimulus also improves recall.

Instrumental learning

The airline industry pioneered which type of learning strategy when it introduced "frequent flyer" programs in the early 1980s to reward loyal customers?

Variable-interval reinforcement

Which of the following types of reinforcement is the type used in "secret shopping" situations?

Encoding Storage stage Retrieval Episodic memories Narrative Activation models of memory

1 In the encoding stage, information enters in a way the system will recognize. 2 In the storage stage, we integrate this knowledge with what is already in memory and "warehouse" it until it is needed. 3 During retrieval, we access the desired information Episodic memories relate to events that are personally relevant A narrative, or a description of a product that is written as a story, is often an effective way to convey product information 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.

Cognitive Development: Limited Cued Strategic Multiple-intelligence theory

1 Limited—Children who are younger than age 6 do not employ storage-and-retrieval strategies. 2 Cued—Children between the ages of 6 and 12 employ these strategies but only when prompted to do so. 3 Strategic—Children 12 and older spontaneously employ storage-and-retrieval strategies. 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.

Spreading Activation: Brand-specific Ad-specific Brand identification Product category Evaluative reactions

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. The meaning types are listed in the slide. Brand-specific meaning refers to memory stored in terms of the claims the brand makes. Ad-specific meaning refers to memories stored in terms of the medium or content of the ad itself. Brand identification is memory stored in terms of the brand name. Product category meaning is memory stored in terms of how the product works or where it should be used. Evaluative reactions is memory stored as positive or negative emotions. Within a knowledge structure, we code elements at different levels of abstraction and complexity. Meaning concepts (like "macho") get stored as individual nodes. We may combine these concepts into a larger unit we call a proposition or a belief. A proposition links two nodes together to form a more complex meaning. For example, "Axe is cologne for macho men" is a proposition. One type of schema that is especially relevant to consumer behavior is a script. A script is a sequence of events an individual expects to occur.

Levels of knowledge: Schema Script Service scripts

A schema is a cognitive framework we develop through experience. Script is a sequence of events an individual expects to occur. As consumers we learn service scripts that guide our behavior in commercial settings.

slide 26

According to the information-processing perspective, there are three distinct memory systems: sensory memory, short-term memory, and long-term memory. Each plays a role in processing brand-related information, as summarized in the figure. Sensory memory stores the information we receive from our senses. This storage is temporary. If the information is retained for further processing, it passes through an attentional gate and transfers to short-term memory. Short-term memory also stores information for a limited period of time, and it has limited capacity. This system is working memory. It holds information we are currently processing. 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. A chunk is a configuration that is familiar and the person can think about it as a unit. Long-term memory is the system that allows us to retain information for a long period of time. A cognitive process we call elaborative rehearsal allows information to move from short-term memory to long-term memory.

as a result of responses to external events

Behavioral learning theory assumes that learning takes place ___________.

Components of Conditioning -Unconditioned stimulus -Conditioned stimulus -Conditioned response Conditioning Issues -Repetition -Stimulus generalization -Stimulus discrimination -Extinction

Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, the second stimulus causes a similar response because we associate it with the first stimulus. Ivan Pavlov, a Russian physiologist who conducted research on digestion in animals, first demonstrated this phenomenon in dogs. He paired a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs. The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. 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 drooling of these canine consumers because of a sound was a conditioned response (CR). 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. Stimuli similar to a CS may evoke similar responses. This is known as stimulus generalization. Conditions may also weaken over time especially when a UCS does not follow a stimulus similar to a CS. This is called stimulus discrimination.

does not initially elicit this response

Classical conditioning occurs when a stimulus that naturally elicits a response is paired with another stimulus that ____________.

There are two theories which are types of behavioral learning theories: classical conditioning and instrumental conditioning.

Classical conditioning: a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Instrumental conditioning (also, operant conditioning): the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. 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. We'll cover more about classical conditioning on the next slide.

stimulus generalization

Companies make branding and packaging decisions that try to capitalize on consumers' positive associations with an existing brand or company. This process is known as_______________.

Repetition increases learning More exposures = increased brand awareness When exposure decreases, extinction occurs However, too Much exposure leads to advertising wear out Example: Izod crocodile on clothes

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. Many classic advertising campaigns consist of product slogans repeated often to enhance recall. The Rolaids campaign which asked, 'How do you spell relief? ROLAIDS' is a personal favorite. But for this to work, the UCS must repeatedly be paired with the CS. Otherwise, extinction occurs. Extinction means that the association is forgotten. 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.

marketplace

Consumer socialization is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the __________.

Recognition versus recall Problems with memory measures Response biases Memory lapses Omitting Averaging Telescoping Illusion of truth effect

How do we know if our marketing messages are designed to help consumer remember them? We can measure recognition and recall. In a 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. Of course, measures of memory can be faulty. For one, they may be contaminated by response biases. For example, people tend to give yes responses to questions regardless of the question. People also suffer from memory lapses. Typical problems include omitting facts, averaging (or normalizing the memories by not reporting extreme cases), and telescoping (inaccurate recall of time). The illusion of truth effect may occur as well. This effect refers to the phenomenon of people remembering a claim is true when they have been told the claim is false.

Forgetting: Decay Interference State-dependent retrieval Highlighting effect Salience Von Restorff effect Mixed and Unipolar emotions Hybrid Ads

In a process of decay, the structural changes that learning produces in the brain simply go away. Forgetting also occurs as a result of interference; as we learn additional information, it displaces the previous information. The phenomenon of state-dependent 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. Highlighting effect, which occurs when the order in which consumers learn about brands determines the strength of association between these brands and their attributes. The salience of a brand refers to its prominence or level of activation in memory. The von Restorff Effect is well-known to memory researchers; it shows that almost any technique that increases the novelty of a stimulus also improves recall. We recall mixed emotions (e.g., those with positive and negative components) differently than unipolar emotions that are either wholly positive or wholly negative. Hybrid ads include a program tie-in

We learn about products by observing others' behavior.

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. 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.

How does Instremental Conditioning occur? Positive reinforcement Negative reinforcement Punishment

Instrumental conditioning (or operant conditioning) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. Whereas responses in classical conditioning are involuntary and fairly simple, we make those in instrumental conditioning deliberately to obtain a goal. We may learn the desired behavior over a period of time as a shaping process rewards our intermediate actions. Instrumental conditioning occurs in one of three ways: 1) positive reinforcement, 2) negative reinforcement, and 3) punishment. Positive reinforcement comes in the form of a reward. Negative reinforcement shows how a negative outcome can be avoided. Punishment occurs when unpleasant events follow a response. Extinction occurs when there is no reinforcement. In other words, the conditioning is not activated because it is not reinforced.

Repetitive reinforcement

Instrumental conditioning occurs in one of three ways. Of the following, which is NOT one of those ways?

reward

Instrumental learning occurs when a learner receives a _____________ after he or she performs the desired behavior.

Negative-interval reinforcement

It is important for marketers to determine the most effective reinforcement schedule to use when they reward consumers who respond as they hope to their requests. Which of the following is NOT one of those effective reinforcement schedules?

Conditioning results in learning.

Learning is a relative.ly permanent change in behavior caused by experience. The experience can be direct or it can be observed. Learning is an ongoing process

Learning Incidental learning

Learning is a relatively permanent change in behavior caused by experience. The learner need not have the experience directly, however; we can also learn when we observe events that affect others.2 We learn even when we don't try: We recognize many brand names and hum many product jingles, for example, even for products we don't person- ally use. We call this casual, unintentional acquisition of knowledge incidental learning. Learning is an ongoing process. Our knowledge about the world constantly updates as we are exposed to new stimuli and as we receive ongoing feedback that allows us to modify our behavior when we find ourselves in similar situations at a later time. The concept of learning covers a lot of ground, ranging from a consumer's simple association between a stimulus such as a product logo (e.g., Coca-Cola) and a response (e.g., "refreshing soft drink") to a complex series of cognitive activities (e.g., writing an essay on learning for a consumer behavior exam).

ascending levels of mastery

Like gamification, employee performance, social marketing, and store and brand loyalty are examples of ways to motivate and reward based on _________________.

Frequency marketing

Many domains of human (and business) activity share the common need to motivate and reward people to achieve ascending levels of mastery. Which of the following does NOT motivate and reward people for ascending to new levels of mastery?

Frequency marketing

Marketing Applications of Instrumental Conditioning Principles

Our brains process information about brands to retain them in memory.

Memory is a 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. In the encoding stage, information enters in a way the system will recognize. In the storage stage, we integrate this knowledge with what is already in memory and "warehouse" it until it is needed. During retrieval, we access the desired information.

Marketers may resurrect popular characters to evoke fond memories of the past. Nostalgia Retro brand

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. One way to do this is to introduce retro brands. A retro brand is an updated version of a brand from a prior historical period. The Mini Cooper, PT Cruiser, and Volkswagen's New Beetle are all retro brands.

Cognitive Learning Processes: Internal Learning Processes We learn about products by observing others' behavior.

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. 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. Modeling is the process of imitating the behavior of others. In the figure illustrated, you can see that for a marketer to instigate observational learning, four conditions must be met. First, the consumer's attention must be directed to the appropriate model and that person must be someone the consumer wishes to emulate. Second, the consumer must remember what the model says or does. Third, the consumer must convert this information into actions. Fourth, the consumer must be motivated to perform these actions.

Observational Learning: Social default and modeling The consumer's attention must be directed to the appropriate model. The consumer must remember what the model says or does. The consumer must convert this information into actions. The consumer must be motivated to perform these actions.

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. Modeling (not the runway kind) is the process of imitating the behavior of others

How do we learn to be consumers? Consumer socialization Parent's influence Authoritarian Neglecting Indulgent

Parents exhibit different styles when they socialize their children. They may be authoritarian, neglecting, or indulgent. Authoritarian parents are hostile, restrictive, and emotionally uninvolved. Neglecting parents are detached from their children and don't exercise much control over what the children do. Indulgent parents communicate more with their children about consumption-related matters and are less restrictive.

Retrieving Memories: Pioneering brand Follower brands Spacing effect

Pioneering brand is the first brand to enter a market. Follower brands that ride their coattails because the first product's introduction is likely to be distinctive, and for the time being, no competitors divert our attention. Spacing effect describes 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.

The other products we associate with an individual product influence how we will remember it.

Recent research suggests that long-term memory and short-term memory are interdependent systems. Depending on the nature of the processing task, different levels of processing occur that activate some aspects of memory rather than others. These approaches are called activation models of memory. The more effort it takes to process information, the more likely it is that information will transfer into long-term memory. According to these activation models of memory, an incoming piece of information gets stored in an associative network that contains many bits of information. These storage units are knowledge structures - like a complex spider web filled with pieces of data. Incoming information gets put into nodes that connect to one another. Figure 4.6 shows an associative network for perfumes.

Stimulus generalization -Halo effect Stimulus discrimination Classical Conditioning Principle -Brand equity

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. 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. Stimulus discrimination occurs when a UCS does not follow a stimulus similar to a CS. When this happens, reactions weaken and will soon disappear. Brand equity, in which a brand has strong positive associations in a consumer's memory and commands a lot of loyalty as a result.

Gamification: Endowed progress effect Store and brand loyalty Social marketing Employee performance

The fast-growing strategy of gamification turns routine actions into experiences as it adds gaming elements to tasks that might otherwise be boring or routine. 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 ●● 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. ●● 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. ●● 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.

Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses. -Family branding -Product line extensions -Licensing -Look-alike packaging

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. Family branding enables products to capitalize on the reputation of a company name. Marketers can use product line extensions by adding related products to an established brand. Licensing allows companies to rent well-known names. 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.

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

There are several learning theories which range from those that focus on connections between actions and consequences to those that focus on understanding complex relationships and problem solving.

Slide 13

This figure will help you to "reinforce" the relationships among these four conditions. In addition to deciding whether to use positive reinforcement, negative reinforcement, or punishment, marketers also have to decide on a schedule. Marketers need to determine the most effective reinforcement schedule to use because this decision relates to the amount of effort and resources they must devote when they reward consumers who respond as they hope to their requests. Several schedules are possible. In a fixed interval reinforcement, the first response made brings the reward and then on a specific set interval, future rewards are given. With 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. In fixed ratio reinforcement, reinforcement only occurs after a fixed number of responses. The last type of reinforcement schedule is the variable-ratio schedule. This is the type of schedule used by slot machines.

incidental learning.

We call this casual, unintentional acquisition of knowledge

Nostalgic memory

Which of the following is NOT one of the memory systems that play a role in retaining and processing information from the outside world?

Detention

Which of these items is NOT one of the components of the observational learning process?

Passive parents

Which of these parental styles is NOT listed as one that parents exhibit when socializing their children?

Making independent purchases

Which of these stages is the final stage of consumer development?

Instrumental conditioning

Which type of conditioning occurs in three ways (positive reinforcement, negative reinforcement, and through punishment)?

Behavioral learning theories

__________ assume that learning takes place as the result of responses to external events.

Consumer socialization

__________ is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace.

Authoritarian

__________ parents tend to have negative views about advertising and often censor the types of media that their children see.

Observational learning

__________________ occurs when the consumer performs a behavior as a result of seeing someone else performing it and being rewarded for it.

Recall

____________________tends to be more important in situations in which consumers do not have product data at their disposal, so they must rely on memory to generate this information.

Classical conditioning

___________________occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response.

Learning

a relatively permanent change in behavior caused by experience

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). classical conditioning and instrumental conditioning. According to the behavioral learning perspective, the feedback we receive as we go through life shapes our experiences. Similarly, we respond to brand names, scents, jingles, and other marketing stimuli because of the learned connections we form over time. People also learn that actions they take result in rewards and punishments; this feedback influences the way they will respond in similar situations in the future. Consumers who receive compliments on a product choice will be more likely to buy that brand again,

The von Restorff Effect explains why unusual advertising or distinctive packaging tends to facilitate ________.

brand recall