Consumer Learning

Learning is the process by which individuals (intentionally or

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incidentally) acquire purchase and consumption knowledge that

they use in future consumption behaviour.
4 basic elements of learning exist:
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a) Motivation: The drive that compels you to first go through the

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learning process.
b) Cues: External stimuli that give direction to your motives
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c) Response: Even if the customer may not immediately buy, he

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develops a positive response to the product.

d) Reinforcement of product attributes as intended by the
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company increases the likelihood of repeat purchase

Consumer Learning
Behavioural learning theories: Once learning occurs, it leads
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to predictable behaviour. Following theories of learning

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CLASSICAL CONDITIONING
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First studied by Ivan Pavlov, this theory states that conditioned

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learning results when a stimulus that is paired with another

stimulus to elicit a certain response, produces the same
response when used in isolation. He used the example of dogs.
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Unconditioned stimulus could be the brand name Reliance, that

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has been promoting itself through so many years, and

conditioned stimulus could be any new venture of Reliance.
Consumer Learning
Neo-Pavlovian conditioning says that for optimal conditioning,
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following criteria must be met:

a) CS must come after the US (forward conditioning)
b) There should be repeated pairings of CS and US
c) CS and US must logically belong together
d) CS that is novel and unfamiliar.
e) US should be biologically and symbolically salient
f)
Consumer Learning
 How do marketers use it:
a) Repetition: It increases the strength of association.
However, too much repetition can lead to wear out,
so advertisers make sure advertisements are not
repeated too much and so they innovate on them.
b) Stimulus generalisation: After repeated conditioning,
consumers start generalising stimulus. For instance,
continuous exposure to an advertisement of Dish TV
makes you generalise that all DTH providers are the
same…
 Product extensions, family branding and licensing (like in
the case of celebrities) work on this principle.
a)
Consumer Learning
c) Stimulus discrimination is the main challenge for marketers.
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How to position for competitive advantage.

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INSTRUMENTAL CONDITIONING: This theory states that

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learning through a process of trial and error; so habits are

formed due to the rewards that are gained for certain types of
behaviour.
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Marketers can reinforce behaviour in positive or negative ways to

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suit their ends.

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When reinforcement fails to occur, over time, it can lead to

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forgetting and extinction of the message.

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Consumer Learning
Marketers use this theory in the following ways:
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a) Customer satisfaction
b) Reinforcement schedules:Non-product related rewards need
to be given from time to time.
Total reinforcement is every time the product is purchased.
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Fixed reinforcement is after every nth purchase.

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Random reinforcement does not follow a specific pattern.

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c) Shaping means encouraging reinforcement before actual

purchase takes place. Reliance Retail with Loss leader
concept
d) Mass vs distributed learning: Mass is normally used during
initial launch while distributed is learning is more for long
term reinforcement.
Consumer Learning
MODELLING OR OBSERVATIONAL LEARNING: This is the
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process by which customers acquire learning through observing

the behaviour of others and the consequences of such
behaviour.
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COGNITIVE LEARNING THEORY: It states that consumers learn

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through problem solving and through complex mental

processing of information.
Information processing is related to the individual’s cognitive
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ability and the complexity of the information being processed.

Consumers differ in terms of imagery, the ability to form mental
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images, which will influence their ability to recall information.

Cognition improves with knowledge and experience of a product
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category.
Consumer Learning
How individuals process information:
a) Sensory store: Senses do not transfer whole images like a
camera, rather we receive fragmented information, if we
are attracted to it and we process the information, it stays
further, else it can be lost within a fraction of a second. All
information is tagged with a value, either positive or
negative, and stays that way until the mind processes
further information.
b) Short term store: Some information is held but for a short
term; around 20-30 seconds. If not rehearsed, it may be lost
forever.
c) Long term store: If the information is rehearsed, even for a
few minutes, it tends to stay in our mind, even if dormant,
for long periods of time, even years.
d)
Encoding: We select a word or image normally to associate with

a product. Marketers use the concept of brand imagery.

Consumer Learning
Retention: When new information reaches us, we tend to
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formulate linkages with the information already present in our

long term store. And this way, we develop complex thinking
patterns. Like a product name may get linked to all the
celebrities that have endorsed it.
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Retrieval is when we try to retrieve from the long term store.

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Benefits have better retrieval capability than product features.

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Cognition obviously is more in a high involvement product

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category as compared to a low involvement product category.

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Consumer Learning
INVOLVEMENT THEORY: It is based on the concept of
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hemispherical lateralisation or split brain theory. It says

that our brain consists of two parts: Left brain is associated
with cognitive abilities and analyses verbal information. Right
side is more to do with nonverbal, pictorial, holistic information.
Left brain is the part that is rational, active, realistic
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Right brain is metaphorical, intuitive, emotional and impulsive.

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(classical conditioning)
This theory has a lot to do with media strategy.
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TV is a passive medium. Consumers do right brain processing of

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so much information without even realising it.

Print is more of a high involvement medium where left brain
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comes into play.

Also both sides of the brain are often known to work
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simultaneously.
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Consumer Learning
Products as well as customers can show high/low involvement
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behaviour.
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Central and peripheral route to persuasion: Central is used

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in high involvement purchases, where marketers appeal to

cognitive ability.
Peripheral is used in low involvement purchases, where learning
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occurs through repetition.

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Elaboration likelihood model states that initially the way

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customers get involved decides whether they will use cognition

or passive involvement.
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Comparitive advertisements are known to increase cognition as

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compared to non-comparitive.