Consumer Behaviour

for Visvesvaraya Technological University (VTU),

Belgaum, Karnataka 2008 Syllabus, MBA students
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Learning
Notes prepared by: Nelson Castelino, (2008-10, MBA, SJEC)
The process by which individuals acquire the purchase and consumption knowledge and experience that they apply
to future related behavior
Marketers must teach consumers:
where to buy
how to use
how to maintain
how to dispose of products

Learning Theories
Behavioral Theories:  behavioral theory is based on  observable behaviors (responses) that occur as the result of
exposure to stimuli.
Cognitive Theories : Learning is based on  mental information processing, it is also often in response to problem
solving.

Elements of Consumer Learning

•    MOTIVATION:
“It is the processes that lead people to behave as they do”.
It occurs when a need arises that a consumer wishes to satisfy. Motivation is based on needs and goals. It acts as a
spur of learning. Uncovering consumer motives is one of the prime tasks of marketers, who then try to teach
motivated consumer segments why and how their products will fulfill the consumer’s needs.

•    CUES:
“It is a stimulus that suggests a specific way to satisfy a silent motive”.
If motives serve to stimulate learning, cues are the stimuli that give direction to these motives. In the marketplace,
price, styling, packaging, advertising and store displays all serve as cues to help consumers fulfill their needs in
product-specific ways. Cues serve to direct consumer drives when they are consistent with consumer expectations.
Marketers must be careful to provide cues that do not upset those expectations.

•    RESPONSE:
“Response means how individuals react to a drive or cue or how they behave”.
Learning can occur even when responses are not overt. The automobile manufacturer that provides consistent cues
to a consumer may not always succeed in stimulating a purchase. A response is not tied to a need in a one-to-one
 fashion. If the manufacturer succeeds in forming a favorable image of a particular automobile model in the
consumer’s mind, when the consumer is ready to buy, it is likely that he or she will consider that make or model.
•    REINFORCEMENT:
“A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the
future in response to a particular cue or stimulus”.
It increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli.
Through positive reinforcement, learning has taken place.
BEHAVIORAL LEARNING THEORIES:
ð  Behavioral learning theories are sometimes referred to as stimulus-response theories because they are based on the
premise that observable responses to specific external stimuli signal that learning has taken place.

v  CLASSICAL CONDITIONING:
·         “A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a
known response that serves to produce the same response when used alone”.
·         Early classical conditioning theorists regarded all organisms as relatively entities that could be taught certain
behaviors through repetition or conditioning. The word conditioning mean a kind of “knee-jerk” or automatic
response to a situation built up through repeated exposure. E.g., If you get a headache every time you think of
visiting a doctor. Pavlov’s demonstration of conditioned learning in his studies with dogs is also a good example of
it.
·         An unconditioned stimulus might consists of a well-known brand symbol (such as Neutrogena name) that implies
demonstration of dermatologists’ endorsement and pure. This previously acquired consumer perception of
Neutrogena is the unconditioned response.
·         Conditioned stimuli might consist of new products bearing the well-known symbol (such as the items depicted in
new products bearing the well-known symbol and the conditioned response would be trying these products because
of the belief that they embody the same attributes with which the Neutrogena name is associated.

•    Ivan Pavlov’s Dogs Experiment:

–        Unconditioned stimulus (UCS) – Naturally capable of causing a response.
–        Conditioned stimulus (CS) – Does not initially cause a response
–        Conditioned response (CR) – Response generated by repeated paired exposures to UCS and CS.  Eventually,
through learned association and repetition, the CS will cause the CR.
•    Examples:
–        Pairing a likeable celebrity with a new product in advertising or associating a likeable song with a particular
product.
–        Pairing product purchase with the use of a credit card.
§ Researcher’s Argumentation:
Researchers have argued that the examples given are really nothing more than mood encoding, and that the positive
affect tag is the effective mechanism.

Cognitive Associative Learning:

·         “Classical conditioning is viewed as the learning of associations among events that allows the organism to
anticipate and represent its environment”.
·         From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge.
·         Contemporary behavioral scientist view classical conditioning as the learning associations among events that allow
the organisms to anticipate and represent its environment. According to this view, the relationship or contiguity
between the conditioned stimulus and the unconditioned stimulus influence expectations, which in turn influence
their behavior.

Neo-Pavolvian Theory:
·         Optimal conditioning-is the creation of a strong association between the conditioned stimulus (CS) and the
unconditioned stimulus (US)-requires:
1)      Forward Conditioning (i.e., the CS should precede the US);
2)      Repeated pairings of the CS and the US;
3)      A CS and US that logically belong together;
4)      A CS that is novel and unfamiliar;
5)      A US that is biologically or symbolically salient.
·         This model is known as NEO-PAVLOVIAN CONDITIONING.
·         Under NEO-PAVLOVIAN theory, the consumer can be viewed as an information seeker who uses logical and
perceptual relations among events, along with his or her own preconceptions, to form a sophisticated representation
of the world.

STRATEGIC APPLICATIONS OF CLASSICAL CONDITIONING:

ð  The three basic concepts derive from classical conditioning are:
1)      Repetition
2)      Stimulus Generalization
3)      Stimulus Discrimination

1)      REPETITION:
ð  “Repetition increases strength of associations and slows forgetting but over time may result in advertising wear
out”. Cosmetic variations reduce satiation.
ð  Research suggests that there is a limit to the amount of repetition that will aid retention. Although some over learning
(i.e., repetition beyond what is necessary for learning) aids retention, at some point, an individual can become
satisfied with numerous exposures, and both attention and retention will decline.

Substantive Variations:
ð  “These are changes in advertising content across different versions of an advertisement”. For Example, Stressing two
different attributes of the same product.

Three Hit Theory:

•    Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective.
•    Some marketers just focus on three exposures of advertisement. 1) Product Awareness 2) Showing of Relevance of
the product 3) Remainder of products’ benefits.
•    Other marketers focus on at least 11 to 12 repetitions to increase the likelihood that consumer will actually receive
the three exposures basic to the so-called Three hit theory.
•    The effectiveness of repetition is somewhat dependent upon the amount of competitive advertising to which the
consumer is exposed.

2)      STIMULUS GENERALIZATION:
ð  “It is the inability to perceive differences between slightly dissimilar stimuli”.
ð  It is defined as making of same response with slightly different stimuli-not much learning takes place. Stimulus
generalization explains why some “me too” products succeed in the marketplace. Consumer confuse them with the
original product they have been advertised. It also explains why manufacturers of private-label brands try to make
their packaging closely resemble the national brand leaders.

·   Product Line, Form, and Category Extensions:

Marketers to product line, form, and category extensions apply the principle of stimulus generalization. Marketers
also offer product category extensions that generally target new market segments. If the image of the parent brand is
one of quality and the new item is logically linked to the brand, consumers are more likely to bring positive
associations to the new offerings introduced as product line, form, or category extensions.

·   Family Branding:
The practice of a whole line of company products under the same brand name-is another strategy that capitalizes on
the consumer’s ability to generalize favorable brand associations from one product to others.

·   Licensing:
Allowing a well-known brand name to be affixed to products of another manufacturer-is a marketing strategy that
operates on the principle of stimulus generalization. The names of designers, manufacturers, celebrities, corporations
and even cartoon characters are attached for a fee (i.e., “rented”) to a variety of products, enabling the licensees to
achieve instant recognition and implied quality for the licensed products. E.g. Calvin Kline or McDonalds.
3)      STIMULUS DISCRIMINATION:
ð  “The ability to select a specific stimulus from among similar stimuli because of perceived differences”.
ð  Stimulus discrimination is the opposite of stimulus generalization and results in the selection of a specified stimulus
from among similar stimuli. The consumer’s ability to discriminate among similar stimuli is the basis of positioning
strategy that seeks to establish a unique image for a brand in the consumer’s mind.

·   Positioning:
The image or position that a product or service holds in the mind of the consumer is critical to its success. When a
product or service holds in the mind of the consumer is critical to its success. When a marketer targets consumers
with a strong communication program that stresses the unique ways in which its product will satisfy the consumer’s
needs, it wants the consumer to differentiate its product will satisfy the consumer’s needs, it wants the consumer to
differentiate its product from among competitive products on the shelf.

·   Product Differentiation:
Most product differentiation strategies are designed to distinguish a product or brand from that of competitors based
on an attribute that is relevant, meaningful, and valuable to consumers. Many marketers successfully differentiate
their brands on an attribute that may actually be irrelevant to creating the implied benefit, such as a noncontributing
ingredient or a color. It is often difficult for a marketer to unseat a brand once stimulus discrimination has occurred.
One explanation is that leader usually the first in the market and had to teach customer for a longer period to
associate with the brand name.

v  INSTRUMENTAL (OPERANT) CONDITIONING:

ð  “A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive
experiences (reinforcement) resulting from certain responses or behaviors”.
ð  It requires a link between a stimulus and a response. In Instrumental Conditioning, the stimulus that results in the most
satisfactory response is the one that is learned. In consumer behavior terms, it suggests that consumers learn by trial
and error process in which some purchase behaviors results in more favorable outcomes (i.e., rewards) than other
purchase behaviors. A favorable experience is “instrumental” in teaching the individual to repeat a specific behavior.
•          Occurs as the individual learns to perform behaviors that produce positive outcomes and avoid behaviors that yield
negative outcomes.
•          This learning process is most closely associated with psychologist B.F. Skinner, who demonstrated the effects of
instrumental conditioning by training pigeons to dance and play Ping-Pong. 
•          Operant conditioning is the process in which the frequency of occurrence of a behavior is modified by the
consequences of the behavior.  That is, the consequences of a purchase will affect the probability of a re-purchase. 

·   Reinforcement of a behavior:

Positive Reinforcement:
“Positive outcomes that strengthen the likelihood of a specific response”.
Negative Reinforcement:
“Unpleasant or negative outcomes that serve to encourage a specific behavior”.

ð  Skinner distinguished two types of reinforcement (or reward) that influence the likelihood that a response will be
repeated. The first type, positive reinforcement, consists of events that strengthen the likelihood of a specific
response. E.g., using a shampoo that leaves your hairs, feeling silky and clean is likely to result in a repeated
purchase of the shampoo. Negative reinforcement is an unpleasant or negative outcome that also serves to
encourage a specific behavior. E.g., buying of an antivirus software for you computer. Fear appeals in ad messages
are examples of negative reinforcement such as life insurance commercials rely on negative reinforcement to
encourage consumers to encourage the purchase.

·   Punishment:
   “Choose reinforcement rather than punishment”.

·   Forgetting and Extinction:

 - Forgetting à “Combat with repetition”.
   - Extinction à “Combat with consumer satisfaction”.

·   Factors Involving Forgetting:

Time: à Forgetting is rapid at first and then levels off
Interference à Old information in memory interferes with learning similar, new material. 

ð  When a learned response is no longer reinforced, it diminishes to the point of extinction, that is, to the point at which
the link between the stimulus and the expected reward is eliminated. If a consumer is no longer satisfied with the
service a retail store provides, the link between the stimulus (the store) and the response (expected satisfaction) is no
longer reinforced, it is “unlearned”. There is a difference, however, between extinction and forgetting. Forgetting is
often related to the passage of time; this is known as the process of decay. Marketers can overcome forgetting
through repetition and can combat extinction through the deliberate enhancement of consumer satisfaction.

·   Strategic/Marketing applications of instrumental conditioning:

Marketers effectively utilize the concepts of consumer instrumental learning when they provide positive
reinforcement by assuring customer instrumental learning when they provide positive reinforcement by assuring
customer satisfaction with the product, the service, and the total buying experience.

·   Customer Satisfaction (Reinforcement):

The objective of all marketing efforts should be to maximize customer satisfaction. Marketers must be certain to
provide the best possible product for the money and to avoid raising consumer expectations for product (or services)
performance beyond what the product can deliver. Aside from the experience of using the product itself, consumers
can receive reinforcement from other elements in the purchase situation, such as the environment in which the
transaction or service takes place, the attention and service provided by employees, and the amenities provided. E.g.:
most frequent shopper programs are based on enhancing positive reinforcement and encouraging continued
patronage. The more a consumer uses the service, the greater the rewards.

·         Relationship Marketing:
Relationship marketing develops a closed personalized relationship with customers-is another form of non product
reinforcement. Knowing that she will be advised of a forthcoming sale that selected merchandise will be advised of
a forthcoming sale, or that selected merchandise will be set aside for her next visit cements the loyalty that a
consumer may have for a retail store.

·   Reinforcement Schedules:
Marketers have found that product quality must be consistently high and provide customer satisfaction with each use
for desired consumer rewards do not have to be offered each time the transaction takes place; even an occasional
reward provides reinforcement and encourages consumer patronage. The promise of possibly receiving a reward
provides positive reinforcement and encourages consumer patronage. Marketers have identified three types of
reinforcement schedules:

1) Total or Continuous Reinforcement:

An example of total or continuous reinforcement schedule is the free after-dinner drink or fruit plate always served
to patrons at certain restaurants. The basic product or service rendered is expected to provide total satisfaction
(reinforcement) each time it is used.

2) Systematic (Fixed Ratio) Reinforcement:

A fixed ratio reinforcement schedule provides reinforcement every nth time the product or service is purchased. (Say
every third time). For example, a retailer may send a credit voucher to account holders every three months based on
a percentage of the previous quarter’s purchases.

3) Random or Variable Ratio Reinforcement:

This schedule rewards consumers on a random basis or an average frequency basis (such as every third or tenth
transaction). Variable ratios tend to engender high rates of desired behavior and are somewhat resistant to
 extinction-perhaps because, for many consumers, hope springs eternal. Other examples of variable ratio require
certain consumer behaviors for eligibility.
 
-  Shaping:
“It is the reinforcement for incremental steps toward the desired behavior.  This is the same principle that
underlies animal training”.
Reinforcement performed before the desired consumer behavior actually takes place is called shaping. Shaping
increases the probabilities, that certain desired consumer behavior will occur. Many retailers provide some form of
preliminary reinforcement (shaping) to encourage consumers to visit only their store. For example, some retailers
offer loss leaders-popular products at several discounted prices-to the first hundred or so customer to arrive, since
those customers are likely to stay to do so much of their shopping.

·   Massed versus Distributed Learning:

Timing has an important influence on consumer learning. Should a learning schedule be spread out over a period of
time (distributed learning), or should it be “bunched up” all at once (massed learning)?  The question is important
for advertisers planning a media schedule, because massed advertising produces more initial learning, whereas a
distributed schedule usually results in learning that persists longer. When advertisers want an immediate impact
(e.g., to introduce a new product or to counter a competitor’s blitz campaign), they generally use a massed schedule
to hasten consumer learning. When the goal is long-term repeat buying on a regular basis, a distributed schedule is
preferable.

Other Strategies:

·   Frequent flyer miles:

Rewarding consumers with frequent flyer miles is an effective way to reinforce them and build brand loyalty.
·   Brand loyalty
·   Slot machines
·   ‘Sales’

v  MODELING OR OBSERVATIONAL LEARNING:

ð  “It is a process by which individuals observe the behavior of others, and consequences of such behavior.  It is
also known as modeling or vicarious learning”.
ð  Occurs when people watch the actions of others and note reinforcements received for their behaviors. Learning occurs
as a result of vicarious, rather than direct, experience.
ð  Learning theorists have noted that a considerable amount of learning takes place in the absence of direct
reinforcement, either positive or negative, through a process called by psychologists modeling or observational
learning (also called vicarious learning).

Modeling:
ð  It is the process through which individuals learn behavior by observing the behavior of others and the consequences of
such behavior. Their role models are usually people they admire because of such traits as appearance,
accomplishments, skill, and even social class.
ð  Consumer models with which the target audience can identify are shown achieving positive outcomes to common
problem situations through the use of the advertised product.
  COGNITIVE LEARNING THEORY:

ð  Holds that the kind of learning most characteristic of human beings is problem solving, which enables
individuals to gain some control over their environment.
ð  A considerable amount of learning takes place as a result of consumer thinking and problem solving. Sudden learning
is also a reality. When confronted with a problem, we sometimes see the solution instantly. We are likely to search
for information on which to base decision possible for our purposes. Learning based on mental activity is called
“cognitive learning”. It holds that the kind of learning most characteristics of human beings is problem solving,
which enables individuals to gain some control over their environment.

Information Processing:
ð  A cognitive theory of human learning patterned after computer information processing that focuses on how
information is stored in human memory and how it is retrieved.
ð  Information processing is related to both the consumer’s cognitive ability and the complexity of the information to be
processed. Consumer processes product information by attributes, brands, comparisons between brands, or a
combination of these factors.
ð  Consumers also differ in terms of imagery-that is, in their ability to form mental images- and these differences
influence their ability to recall information. Individual differences in imagery processing can be measured with tests
of imagery vividness (the ability to evoke clear images), processing style (preference for and frequency of visual
versus verbal processing), and daydream (fantasy) content and frequency.

HOW CONSUMER STORE, RETAIN, AND RETRIEVE INFORMATION:

ð  Of central importance to the processing of information is the human memory. A basic research concern of most
cognitive scientists is discovering how information gets stored in memory, how it is retained, and how it is retrieved.

Structure of Memory:
ð  Because information processing is kept temporarily before further processing: a sensory store, a short term store, and a
long-term store.

·   Sensory Stage:
ð  All data come to us through our senses; however, the senses do not transmit whole images as a camera does. Instead,
each sense receives a fragmented piece of information (such as the smell, color, shape, and feel of a flower) and
transmits it to the brain in parallel, where the perceptions of a single instant are synchronized and perceived as a
single image, in a single moment of time. The image of a sensory input lasts for a just a second or two in the mind’s
sensory store. If it is not processed, it is lost immediately.
 ·   Sensory Memory à “It is a temporary storage of information from our senses”.

·   Short-Term Store: (Knowing Memory):

ð  It is a temporary storage of info while being processed which holds about 7 (plus or minus 2) chunks of information at
a time (Miller’s Law). It has a limited capacity that may lead to information overload.
ð  It is the stage of real memory in which information is processed and held for just brief period. If information in the
short-term store undergoes the process known as “Rehearsal” (i.e., the silent, mental repetition of information), it is
then transferred to the long-term store. The transfer process takes from 2 to 10 seconds. If information is not
rehearsed and transferred, it is lost in about 30 seconds or less. The amount of information that can be held in short-
term storage is limited to about four or five items.

·   Long-Term Store:
ð  It can retain information for a long period of time and transfer from STM to LTM which is facilitated by chunking,
rehearsal, recirculation, and elaboration. E.g., Pictures are more memorable than words.
ð  The long-term store retains information for relatively extended periods of time. Although it is possible to forget
something within a few minutes after the information has reached long-term storage to last for days, weeks, or even
years.

·   Rehearsal and Encoding:

ð  The amount of information available for delivery from short-term storage to log-term storage depends on the amount
of rehearsal if it is given. Failure to rehearse an input, either by repeating it or by relating it to other data, can result
in fading and eventual loss of the information. Information can also be lost because of competition for attention.

·   Encoding
ð  It is the process by which we select a word or visual image to represent a perceived object. When consumers are
presented with too much information (called information overload), they may encounter difficulty in encoding and
storing it all.

·   Retention:
ð  Information does not just sit in long-term storage waiting to be retrieved. Instead, information is constantly organized
and reorganized as new links between chunks of information are forged. In fact, many information-processing
theorists view the long-term store as a network consisting of nodes (i.e., concepts), with links between and among
them.
ð  The total package of associations brought to mind when a cue is activated is called a schema. Product information
stored in memory tends to be brand based, and consumers interpret new information in a manner consistent with the
way in which it is already organized. Consumers are confronted with thousands of new products each year and their
information search is often dependent upon how similar or dissimilar (discrepant) these products are to product
categories already stored in memory. Consumers recode what they have already encoded to include larger amounts
of information (chunking).
ð  Information is stored in long-term memory in two ways: episodically (by the order in which it is acquired) and
semantically (according to significant concepts).

·   Retrieval:
ð  “Retrieval is the process by which we recover information from long term storage”. In this process, the person
accesses the desired information. Marketers maintain that consumers tend to remember the product’s benefits rather
than its attributes, suggesting that advertising messages are most effective when they link the product’s attributes
with the benefits that consumers seek from the product.
ð  Incongruent elements that are not relevant to an ad also pierce the consumer’s perceptual screen but provide no memo
ability for the product.

Interference:
ð  Old information in memory interferes with learning similar, new material. The greater the number of competitive ads
in a product category, the lower the recall of brand claims in a specific ad. These interference effects are caused by
confusion with competing ads and make information retrieval difficult.
 Limited and Extensive Information Processing:
ð  For a long time, consumer researchers believed that all consumers passed through a complex series of mental and
behavioral stages in arriving at a purchase decision. These stages ranged from awareness (exposure to information)
to evaluation (preference, attitude formation), to behavior (purchase), to final evaluation (adoption or rejection).
This same series of stages is often presented as the consumer adoption process.

INVOLVEMENT THEORY:
ð  “It is a theory of consumer learning which postulates that consumers engage in a range of information processing
activity from extensive to limited problem solving, depending on the relevance of the purchase”. Involvement theory
developed from a stream of research called hemispheral lateralization, or split-brain theory.

INVOLEMENT THEORY AND MEDIA STRATEGY:

ð  Building on the notion of hemisphere lateralization, a pioneer consumer researcher theorized that individuals passively
process and store right-brain (nonverbal, pictorial) information-that is, without active involvement. E.g., T.V is
primarily holistic processing of images viewed on the screen), and TV itself was therefore considered a low-
involvement medium. This research concluded that passive learning occurs through repeated exposures to TV
commercial (i.e., low-involvement information processing) and produces changes in consumer behavior (e.g.,
product purchases) prior to changes in the consumer’s attitude towards the product.
ð  The right-brain processing theory stresses the importance of the visual component of advertising, including the
creative use of symbols. Under this theory, highly visual TV commercials; packaging, and in-store displays
generated familiarity with the brand and induce purchase behavior. Pictorial cues are more effective at generating
recall and familiarity with the product, whereas verbal cues (which trigger left-brain processing) generate cognitive
activity that encourages consumers to evaluate the advantages and disadvantages of the product. Some individuals
are integrated processors (they readily engage both hemispheres during information processing).
INVOLVEMENT THEORY AND CONSUMER RELEVANCE:
ð  From the conceptualization of high and low involvement media, involvement theory next focused on the consumer’s
involvement theory with products and purchases. It was briefly hypothesized that there are high and low
involvement consumers; then, that there are high and low involvement purchases. These two approaches led to the
notion that a consumer’s level of involvement depends on the degree of personal relevance that the product holds for
that consumer. Under this definition, high-involvement purchases are those that are very important to the consumer
(e.g., in terms of perceived risk) and thus provoke extensive problem solving (information processing). Highly
involved consumers find fewer brands acceptable (they are called narrow categorizers); uninvolved consumers find
fewer brands be receptive to a greater number of advertising messages regarding the purchase and will consider
more brands (they are broad categorize).

Central and Peripheral Routes to Persuasion:

ð  “It is a theory that proposes that highly involved consumers are best reached through ads that focus on the specific
attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral
advertising cues such as the model or the setting (the peripheral route)”.
ð  For low-involvement purchases, the peripheral route to persuasion is likely to be more effective. In this instance,
because the consumer is less motivated to exert cognitive effort, learning is more likely to occur through repetition,
the passive processing of visual cues, and holistic perceptions.

The Elaboration Likelihood Model (ELM):

ð  “It is a theory that suggests that a person’s level of involvement during message processing is a critical factor in
determining which route to persuasion is likely to be effective”.
ð  The elaboration likelihood model suggests that a person’s level of involvement during message processing is a critical
factor in determining which route to persuasion is likely to be effective. For example, as the message becomes more
personally relevant (i.e., as involvement increases), people are more willing to expand the cognitive effort required
to process the message arguments.

MEASURES OF INVOLVEMENT:
ð  Involvement theory evolved from the notion of high and low involvement media, to high and low involvement
consumers, to high and low involvement products and purchases to appropriate methods of persuasion in situations
of high and low product relevance. There is a great variation in the conceptualization and measurement of
involvement itself. Involvement can be defined and conceptualize in a variety of ways, including ego involvement,
 commitment, communication involvement, purchase importance, extent of information search, persons, products,
situations, and purchase decisions. It makes more sense to develop an environmental profile rather than to measure a
single involvement level.

Marketing Applications of Involvement:

ð  People process information extensively when the purchase is of high personal relevance and engage in limited
information processing when the purchase is of low personal relevance. Uninvolved consumers appear to be
susceptible to different kinds of persuasions than highly involved consumers.

MEASURES OF CONSUMER LEARNING:

ð  Many marketers, the dual goals of consumer learning are increased market share and brand-loyal consumers. These
goals are interdependent: Brand-loyal customers provide the basis for a stable and growing market share, and brands
with larger market shares have proportionately larger groups of loyal buyers. Following are some measures of
consumer learning:
·   Recognition and Recall Measures:
ð  Recognition and recall tests are conducted to determine whether consumers remember seeing an ad, the extent to
which they have read it or seen it and can recall their purchase intentions. Recognitions tests are based on aided
recall, whereas recall tests use unaided recall. In recognition tests, the consumer is shown an ad and asked whether
he or she remembers seeing it and can remember any of its salient points.

·   Starch Readership Service:

ð  Each analyzed ad is assigned an index number for each category (noted, associated, read some, and read most).  An
index number of 100 means that the ad scored the same as the average of all ads in the magazine issue.   Index
numbers higher than 100 indicate the ad scored better than average and numbers lower than 100 indicate that the ad
scored below average.  Some critics question the Starch method, saying that it relies entirely on consumer memory,
and memories are often inaccurate.    

·   Starch Readership Service Sample:

ð  This company measures reader awareness of magazine ads.  A reader eligible for the survey is one that has glanced
through the magazine prior to the interview and who meets the demographic requirements set by the
client.  Interviewers turn the pages of the magazine inquiring about the ads.  Do you remember seeing or reading any
part of this ad?  If “yes,” then further questions follow. 
•    Noted – is the % of people who remember having seen the ad in the magazine issue. 
•    Associated – is the % of people who noted the ad and also read the brand or advertiser.
•    Read Some – is the % people who read any part of the ad’s copy. 
•    Read Most – is the % of people who read half or more of the written material in the ad. 

·   Cognitive Response to Advertising:

ð  It is the degree to which consumers accurately comprehend the intended advertising message. To ensure a high level of
comprehension, many marketers conduct copy testing either before the advertising is actually run in media  (called
protesting) or either it appears or after it appears (post testing).

·   Attitudinal and Behavioral Measures of Brand Loyalty:

ð  Brand loyalty is the ultimate desired outcome of consumer learning. However, there is no single definition of this
concept. Marketers agree that brand loyalty consists of both attitudes and actual behaviors toward a brand and that
both must be measured. Attitudinal measures are concerned with customers’ overall feelings (i.e., evaluation)
about the product and the brand and their purchase intentions. Behavioral measures are based on observable
responses to promotional stimuli-repeat purchase behavior rather than attitude toward the product or brand.
ð  Behavioral scientists who favor the theory of instrumental conditioning believe that brand loyalty results from an
initial product trial that is reinforced through satisfaction, leading to repeat purchase. Cognitive researchers, on the
other hand, emphasize the role of mental processes in building brand loyalty. They believe that consumers engage in
extensive problem-solving behavior involving brand and behavior.
Phases of Brand Loyalty:
 •    Cognitive, Affective, Conative and Action.

·   Brand Equity:
ð  The term brand equity refers to the value inherent in a well-known brand name. This value stems from the consumer’s
perception of the brand’s superiority and the social esteem that using it provides and the customer’s trust and
identification with the brand. The most valuable assets are brand names. Well-known brand names are often referred
as mega brands. 

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