Consumer Learning Ppt 5t2ew

VED PRAKASH PANDEY AND SOURABH SRIVASTAVA MBA -3rd SEM. SECTION-B UIM

A person who purchases goods and services for personal use. A consumer is a person or group of people that are the final s of products and or services generated within a social system. A consumer may be a person or group, such as a household.

The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior First, consumer learning is a process; that is, it continually evolves and changes as a result of newly acquired knowledge (which may be gained from reading, or observation, or thinking) or from actual experience. Both newly acquired knowledge and experiences serve as to the individual and provide the basis for future behavior in similar Situation.

Consumer Examples  Advertising: pairing product with images of desired affect  Product: Evoke image of object associated with positive affect (e.g., Mustang; Coke Bottle)

Two Major Learning Theories  Behavioral Learning

 Cognitive Learning

 Based on observable

 Learning based on

behaviors (responses) that occur as the result of exposure to stimuli.

mental information processing  Often in response to problem solving.

Elements of Learning Theories  Motivation – Unfilled needs lead to

motivation  Cues – Stimuli that direct motives  Response – Consumer reaction to a drive or cue  Reinforcement – increases the likelihood that a response will occur in the future as a result of a cue

Reinforcement of Behavior  Positive reinforcement strengthens likelihood of

repeat behavior  Negative reinforcement encourages alternative

behaviors  Extinction: When a learned response is no longer

reinforced, the link between stimulus and reward is broken  Forgetting: The reinforcement is forgotten

Behavioral Learning  Classical Conditioning: A stimulus is repeatedly paired

with another stimulus that elicits a known response. After some time the new stimulus produces the same response when used alone.  Instrumental (Operant) Conditioning: Based on a

trial-and-error process. Repetitions and their positive outcomes result in the formation of a habit.

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Drivers for brand loyalty  Consumer drivers  Brand Drivers  Social drivers ( group influencers)  No loyalty  Covetous loyalty  Inertia loyalty  loyalty

PERCENTAGE OF S OF THESE PRODUCTS WHO ARE LOYAL TO ONE BRAND CIGARETTES MAYONNAISE TOOTHPASTE COFFEE HEADACHE REMEDY FILM BATH SOAP KETCHUP LAUNDRY DETERGENT BEER AUTOMOBILE PERFUME PET FOOD

71% 65% 61% 58% 56% 56% 53% 51% 48% 48% 47% 46% 45%

SHAMPOO SOFT DRINK TUNA FISH GASOLINE UNDERWEAR TELEVISION TIRES BLUE JEANS BATTERIES ATHLETIC SHOES CANNED VEGETABLE GARBAGE BAGS

44% 44% 44% 39% 36% 35% 33% 33% 29% 27% 25% 23%

A Conception of the Relationship Among Elements in an Attitude-Toward-the-Ad Model

Brand Loyalty vs. Habit  Habit: consumer picks product without much thought; may be due to convenience  Loyalty: consumer actively seeks out product

Issues with Credibility Credibility of Informal Sources: Word of mouth or opinion leadership (not always credible), Buzz agents, viral marketing… Credibility of Formal Sources: role, affiliations, intentions, past performance, reputation, appearance, etc. Neutral sources have the greatest credibility Media Credibility: Perception of magazines, TV/radio shows Message Credibility: Topic, Appeals, Arguments, Style, etc. Receiver variables: Involvement, motives, congruency, mood,… Sleeper Effect: Consumer forgets the source over time

Determining Effectiveness  Exposure Effects (how many received the message)  People meters

 Persuasion Effects (was the message received and interpreted correctly?)  Message Attention, Interpretation, and Recall  Physiological measures  Attitudinal measures

 Recall and recognition measures

 Sales Effect: Did the ads increase sales?

Consumer Behavior and Social Class  Clothing, Fashion, and Shopping: lower classes – logo

T-shirts, caps etc., upper classes – subtle fashions; preference for stores where similar social classes shop.  The Pursuit of Leisure: upper classes – concerts, museum, college football; lower classes – fishing, baseball; middle classes: increasing emphasis on “experiences” that bring family together, etc.  Saving, Spending, and Credit: convenience vs. necessity  Social Class and Communication: middle classes – broader and longer point of view

Consumer needs are the basis of all modern marketing.  Needs are the essence of the marketing concept.  The key to company’s survival, profitability, and growth in

highly competitive marketplace is its ability to identify and

satisfy unfulfilled consumer needs better and sooner than competitors.

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