The Applications of Conditioning in Business

The conditioning is of two types:-

1- Operant Conditioning
2- Classical Conditioning

Operant Conditioning: -
Operant conditioning applies to the process of learning and describes how reinforcement or
punishment modifies an individuals behavior.
A behavior increases in frequency if the outcome of performing this behavior is positive, a
reinforcement. In the same fashion, a behavior occurs less often if the result is negative, a
punishment. Now this all may seem like common sense, yet there are still companies that
provide subpar goods and/or customer service. For example, if someone purchases a t-shirt from
your online store, only to receive it and see that the design is unintentionally off-center and the
seams have fallen out, they will regret their decision to buy from your company. These defects in
the shirt can be seen as a punishment, since the individual spent his or her money and basically
traded it for something that was simply not worth it. Likewise, if a customer comes to your
company with important concerns and your customer department staff member is rude and
unhelpful, he or she will feel a sense of bitterness and frustration. Before you know it, these
customers will no longer want to have anything to do with your company because they fear the
disappointment of losing their time, their money, and even their spirit when they rely on your
company.
On the other hand, if you and your company go above and beyond with your products and
customer service, Receiving a t-shirt that youve purchased and having it be what you expected
for it to be is good, but opening up a package and seeing that the contents are 10 times better
than you predicted is even better. Although you may have spent a good amount of money on this
product, you may end up feeling rewarded because you got more for your money than what you
had anticipated. We all know this feeling. This rewarding feeling as a consequence of purchasing
from your company is a reason for consumers to want to stick with your company to fulfill their
need for the type of product that you offer, whatever the product may be.
Not giving customers what they truly deserve for their moneys worth is a big no-no. If you
punish your customers with bad products and services, they will indubitably shop elsewhere,
especially if their first purchase from your store or their first time contacting your customer
service representative has left them with a second-rate product and/or negative emotions. As
consumers, we like getting what we pay for and having our purchases meet or exceed our
expectations. No one likes to be let down. Treat your customers as though you are building a
relationship with them. You cannot build a relationship if you do not put in the effort to earn the
other partys trust and respect. Since you are building a symbiotic relationship with each
consumer, your company benefits from having customers purchase your goods, and your
customers benefit from receiving products that fulfill their needs. Do what it takes to please each
and every one of your customers, because these relationships need to be mutual and reciprocal if
you want your customers to keep coming back for more.
In short, you should always focus on your customers and their needs in order to reward them for
taking an interest in your company. This reward is a reinforcement that will help you secure a
community of consumers. More consumers means more business, and more business means
more profits. Never forget that by rewarding your customers, you, in turn, are rewarding
yourself.

Classical Conditioning: -
Strategic Applications of Classical Conditioning
Three basic concepts derive from classical conditioning:
1) Repetition:
Repetition means to repeat a specific stimulus to get a desired outcome. It
increases the strength of the association between a conditional stimulus and an
unconditional stimulus and slows the process of forgetting. But there is a limit to
repetition, after which the attention and retention start declining, an effect called
advertising wear out. This effect can be reduced by two different methods:
a) Cosmetic variations:
Variation in the background or advertising spokesperson.
b) Substantive variations:
Using different advertisements for the same product. Three-hit theory:
Marketing scholars believe that only three exposures to an advertisement are needed:
- To make consumers aware. - To show consumers the relevance of the product. -
Remind customers the benefits of the products.
2) Stimulus Generalization:
Making the same response to slightly different stimuli is called stimulus
generalization. The principle of stimulus generalization is applied to following: Product
line, form, and category extensions:
a) Product line extensions:
In product line extensions, the marketer adds related products to an already
established brand, knowing that the new products are more likely to be adapted when
they are associated with a known and trusted brand name.
b) Product form extensions:
Product form extensions, the form of the product is slightly changed like Colgate
mouthwash to Colgate toothpaste.
c) Product category extensions:
Product category extension means to target new market segments. For example
Cadbury, a chocolate manufacturer, introduced Cadburys Premium Celebrations Dry
Fruit. Family branding: The practice of marketing a whole line of company products
under the same brand name is called Family Branding. LG and Samsung are the
companies who effectively use the concept of family branding.

3) Licensing:
 Licensing is a marketing strategy in which a well known brand name is allowed
to be affixed to products of another manufacturer. Licensing can be done by
manufacturers, designers, corporations, celebrities and even cartoon characters for a
specified fee. Corporations can license their names and trademarks for some form of
brand extensions and for purely promotional purposes.
a) Counterfeiting:
The increase in licensing has made counterfeiting a booming business, as
counterfeiters add well-known licensor names to a variety of products without benefit
of contract or quality control.
4) Stimulus Discrimination:
Stimulus discrimination is the opposite of stimulus generalization and results in
the selection of specific stimulus from among similar stimuli. The main objective of this
strategy is to get the consumer to discriminate among similar stimuli.
a) Product differentiation:
Product differentiation means to distinguish a product or brand from that of
competitors on the basis of an attribute that is relevant, meaningful, and valuable to
consumers. Many marketers also differentiate their products on the basis of an
attribute that is irrelevant to creating the implied benefit like the color or the
packaging.