Presentation on consumer learning

VED PRAKASH PANDEY AND

SOURABH SRIVASTAVA

MBA -3rd SEM.

SECTION-B

UIM

What is consumer?

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

Consumer learningThe 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 feedback to the individual and provide the basis for future behavior in similar Situation.

Consumer ExamplesAdvertising:

pairing product with images of desired affect

Product: Evoke image of object associated with positive affect (e.g., Mustang; Coke Bottle)

Two Major Learning TheoriesBehavioral

Learning

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

Cognitive Learning

Learning based on mental information processing

Often in response to problem solving.

Elements of Learning TheoriesMotivation – Unfilled needs lead to

motivationCues – Stimuli that direct motivesResponse – Consumer reaction to a

drive or cueReinforcement – 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 loyaltyCovetous loyaltyInertia loyaltyPremium loyalty

PERCENTAGE OF USERS OF THESE PRODUCTS WHO ARE LOYAL TO ONE BRAND

CIGARETTES 71%MAYONNAISE 65%TOOTHPASTE 61%COFFEE 58%HEADACHE REMEDY 56%FILM 56%BATH SOAP 53%KETCHUP 51%LAUNDRY DETERGENT 48%BEER 48%AUTOMOBILE 47%PERFUME 46%PET FOOD 45%

SHAMPOO 44%SOFT DRINK 44%TUNA FISH

44%GASOLINE

39%UNDERWEAR

36%TELEVISION 35%TIRES 33%BLUE JEANS 33%BATTERIES 29%ATHLETIC SHOES 27%CANNED VEGETABLE 25%GARBAGE BAGS

23%

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

Brand Loyalty vs. HabitHabit: consumer

picks product without much thought; may be due to convenience

Loyalty: consumer actively seeks out product

Issues with CredibilityCredibility of Informal Sources: Word of mouth or

opinionleadership (not always credible), Buzz agents, viral

marketing…Credibility of Formal Sources: role, affiliations,

intentions, pastperformance, reputation, appearance, etc. Neutral

sources have thegreatest credibilityMedia Credibility: Perception of magazines, TV/radio

showsMessage Credibility: Topic, Appeals, Arguments, Style,

etc.Receiver variables: Involvement, motives, congruency,

mood,…Sleeper Effect: Consumer forgets the source over time

Feedback Determining Effectiveness

Exposure Effects (how many received the message)People meters

Persuasion Effects (was the message received and interpreted correctly?)Message Attention, Interpretation, and RecallPhysiological measuresAttitudinal measuresRecall 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

conclusionConsumer 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.

THANKYOU