BUS 367 CH 9

Marketing Implications: Operant Conditioning

- direct mail or personal contact after a sale that congratulate the purchaser for marking a wise purchase - giving extra reinforcement for purchasing brand ex: discount coupon - giving free product samples

Short Term Memory

- working memory, currently active or in use - limited capacity to store info and sensations - hold info while they analyze/interpret it - Maintenance Rehearsal: must refresh information, this the continual repetition of a piece of info in order to hold it in current memory for use in problem solving or transferred to long term memory. Done by repeating brand names several times in the ads - Chunking: organizing items into groups of related items that can be processed as single unit - Elaborative activities: use of previously stored experiences, values, attitudes, beliefs, feelings to interpret and evaluate information in working memory and add to previously stored info

Describe analogical reasoning

Analogical reasoning allows consumers to use an existing knowledge base to understand a new situation or object the use of analogy is a form of analytical reasoning

What is meant by analytical reasoning?

Analytical reasoning is most complex form of cognitive learning, involving individuals' engaging in creative thinking to restructure and recombine existing information as well as new information to form new association and concepts Information from a credible source that contradicts or challenges one's existing beliefs will often trigger reasoning

Going up pyramid:

Brand Salience (deep, broad brand awareness) —> Brand performance + Brand imagery (points of parity & points of difference) —> Consumer judgments + Consumer feelings (rational & emotional reactions—> Consumer-brand resonance (intense, active loyalty)

What is a brand image? Why is this important?

Brand image refers to the schematic memory of a brand contains the target market's interpretation of product's attributes, benefits, usage situations, users, and manufacturer/marketer characteristics It's what we think of and feel when we hear or see a brand name company image and store image are similar except they apply to companies and stores rather than brands Consumers tend to prefer brands and outlets with images that meet their needs and expectations

Brand Image and Brand Positioning

Brand image: refers to schematic memory of a brand - perceived product attributes + benefits + usage situations

JUSGEMENT

Brand quality value, satisfaction Brand credibility expertise, trustworthiness, likeability brand consideration relevance brand superiority differentiation

Distinguish between learning via classical conditioning and learning that occurs via operant conditioning

Classical conditioning refers to process of using existing relationships between a stimulus and response to bring about the "learning" of the same response to a different stimulus that consistently appears with the original stimulus. Operant conditioning (instrumental learning) differs in that the learner must first engage in the desired behavior and then receive an appropriate reward

What do we mean by cognitive learning and how does it differ from conditioning theory approach to learning?

Cognitive learning is all mental activities of humans as they work to solve problems or cop with situations involves learning ideas, concepts, attitudes, facts that contribute to our ability to reason, solde problems, and learn relationships without direct experience or reinforcement Cognitive learning can range from simple info acquisition (iconic rote learning) to complex, creative problem solving (analytical reasoning) Unlike conditioning theory, it doesn't require any for of conditioning (rewards or unconditioned stimuli)

What happens when consumers forget?

Conditioned learning extinction: desired response decays or dies out Cognitive learning retrieval failure: info that's available in LM cannot be retrieved

Marketing Implications: Classical Conditioning

Consistently advertising a product on exciting sport programs may result in product itself generating an excitement response Christmas music played in stores may elicit emotional responses associated w/ giving and sharing, which in turn may increase the propensity to purchase Most common in low-involvement situations where low levels of processing effort and awareness are involved

What is customer brand based equity?

Customer brand based equity maintains that brands create value by eliciting differential customer response to marketing activities

SALIENCE

Depth of brand awareness ease of recognition and recall strength and clarity of category membership Breadth (range of knowledge) of brand awareness purchase consideration consumption consideration to fully understand brand recall, we need to appreciate product category structure, or how product categories are organized in memory

Iconic Rote Learning

Learning a concept or association between 2 or more concepts in absence of conditioning EX: Tylenol is headache remedy - low involvement learning

What is iconic rote learning? How does it differ from classical conditioning? Operant conditioning?

Learning of an association between 2 concepts in absence of conditioning. That is, the association is formed without died reward (operant conditioning) or pairing the stimulus with an unconditioned response (classical conditioning)

Describe low-involvement learning. How does it differ from high involvement learning?

Low involvement learning is where the consumer has little or no motivation to learn the material high involvement learning is when the individual is highly motivated to learn the material Low involvement involves same processes as high involvement but classical conditioning, iconic rote learning, and modeling are most common. Repetition is important for low involvement (iconic rote learning) High involvement learning includes operant conditioning and analytical reasoning

What is product positioning? Repositioning?

Product positioning: decision by marketer to try and achieve a defined brand image relative to competition within a market segment. Marketers decide they want the members of a market segment to think and feel in a certain way about a brand Generally expressed in relation to a competitive brand or a usage situation. Product Positioning commonly applied to decisions concerning brands but is also used to describe same decisions for stores, companies, product categories, Product repositioning refers to decision to significantly alter way the market views a product Could involve level of performance, feelings it evokes, the situation in which it should be used, or even who uses it repositioning can be difficult and costly, requiring consumers to unlearn old association and replace them with new ones, taking years to accomplish

2 Important Long term Memory Structures:

Schemas (schematic memory) Scripts

Customer Based Brand Equity

TOP: Resonance sub dimensions: loyalty, attachment, community, engagement Below Left: Judgements sub dimensions: quality, credibility, considerations, superiority Below Right: Feelings sub dimensions: warmth, fun, excitement, security, social approval, self respect Below Left Performance sub dimensions: primary characteristics & secondary features, product reliability, durability & service ability, efficiency & empathy, style & design price Below Right: Imagery sub dimensions: user profiles, purchase & usage situations, personality & values, history, heritage & experiences Bottom: Salience sub dimensions: category identification, needs satisfied

Long Term Memory

Unlimited, permanent storage, deals with string and retrieving info to be used in decisions - Semantic memory - Episodic memory

IMAGERY

User profile demographic & psychographic characteristics actual or aspirational group perceptions - popularity Purchase and Usage situations type of channel, specific stores, ease of purchase time (day, week, month, etc.) location and context of usage Personality and Values sincerity, excitement, competence, sophistication History, Heritage, and Experience nostalgia, memories

Concepts

abstractions of reality that capture meaning of item in terms of other concepts

Cognitive Learning

all mental activities of humans as they work to solve problems or cop with situations involves learning ideas, concepts, attitudes and facts that contribute to our ability to reason, solve problems ,etc... 1. Iconic Rote Learning 2. Vicarious Learning/Model 3. Analytical Reasoning

Learning

any change in content or organization of long term memory or behavior and is the result of information processing

Semantic Memory

basic knowledge & feelings an individual has about a concept — represents person's understanding of object at simplest level

RESONANCE

behavioral loyalty frequency and amount of repeat purchases attitudinal attachment love brand proud of brand sense of community kinship, affiliation active engagement seek info, join club, visit website

What is brand equity?

brand equity is value consumers assign to brand above and beyond any specific functional characteristics of product there is halo effect associated with the reputation of brand such that i has added value or meaning to consumerism

What does leveraging brand equity mean?

brand leverage refers to marketers capitalizing on brand equity can be achieved with family branding, brand extensions, and umbrella branding, as wel las licensing a brand name for other marketing promotions degree to which leveraging brand equity works depends upon degree of stimulus generalization

Schemas:

complex web of associations. contains: product characteristics, usage situations, episodes, and affective reason - Source of scheme: personal experiences but other aspects are based on marketing activities - what consumer thinks and feels when brand name is mentioned - marketers spend a lot of time attempting to develop strong links between brands and desirable product benefits

Imagery

concrete sensory representations of ideas, feelings, and objects - key issue: learning & memory: extent of elaboration - major determinant is consumer motivation or involvement - enhanced when they're involved or interested in brand

Product Positioning

decision by marketer to try to achieve a defined brand image relative to competition within a market segment - important component of bran image is appropriate usage situations for the product or brand

Analytical Reasoning

individuals engage in creative thinking to restructure and recombine existing info as well as new info to form new concepts

Operant Conditioning

involves rewarding desirable behaviors such as brand purchases with positive outcome that serves to reinforce the behavior - more often response is reinforced, more likely it will be repeated in the future that as consumers learn that the response is associated with a positive outcome - requires consumers first engage in a deliberate behavior and come to understand its power in predicting positive outcomes that serve as reinforcement - free samples, special price discounts, contests...

Scripts:

memory of how an action sequence should occur - like purchasing and drinking a soft drink to relieve thirst - necessary for customer to shop effectively - difficulties: teaching consumers the appropriate script for acquiring items in a new man

Episodic memory

memory of sequence of events in which a person participated - personal memories of events often elicit imagery & feelings which the marketers try to evoke bc brand was involved or to associate positive feelings they generate with brand

Define Modeling

modeling or vicarious learning relates to who consumers don't need to experience rewards or punishments to directly learn they can observe outcomes of OTHERS behaviors and adjust their own accordingly. They can use imagery to anticipate the outcome of various courses of action

Vicarious Learning Model

observe outcomes of others' behaviors and adjust their own accordingly. Both low and high involvement situation

Perceptual mappying

offers marketing managers a useful technique for measuring and developing a product's position

What is perceptual mapping?

offers marketing managers useful technique for measuring and developing product's position involves mapping how consumers perceive similarity and dissimilarity between set of competing brands or products the closer 2 brands are in the map, the more they're perceived to be similar and vice carsa dimensions of perceptual map are used to understand attributes consumers use to compare brands

What is meant by stimulus generalization? When do marketers use it?

often referred to as the "rub off effect" once we learned that a particular response that works for us, we are able to capitalize on that learning by transferring it to similar learning situations or stimuli (generalizing) This is particularly useful to marketers in branding, where the use of a family brand allows consumers to learn product quality and performance via stimulus generalization

brand leverage

often termed family branding, brand extensions, or umbrella branding, refers to marketers capitalizing on brand equity by using an existing brand name for new products

Classical Conditioning

process of using an established relationships between one stimulus (music) and response (pleasant feelings) to bring about learning offside response (pleasant feelings) to different stimulus (the brand)

Product Repositioning

refers to deliberate decision to significantly alter way the market views a product - can involve: level of performance feelings it evokes situation in which it should be sued who sues the product

Brand Equity

the value consumers assign to a brand above and beyond the functional characteristics of the product

FEELINGS

warmth fun excitement security social approval self respect