memory, learning & perception

Copyright Atomic Dog Publishing, 2002

Chapter 7

Memory, Learning, and Perception


Chapter Spotlights

How consumers accept, retain, and retrieve market information from memory

The relationship between learning processes and marketplace behavior

How perceptions affect consumers’ buying behavior


Memory Two sources of product information:

External environment: packaging, labels, POS displays, prices, other marketing information

Memory: past experiences, word-of-mouth, family preferences

Associative network of nodes (concepts) and links (connections)

Scripts: information organized in memory around different types of events or episodes (e.g., a restaurant script)


How Information is Captured and Stored in Memory Memory processing areas:

New information is initially captured in sensory memory.

processing is shallow; capacity is limited Information is transmitted from sensory

memory to short-term (ST)memory. Analyzing and assigning meaning; limited capacity

to a finite number of chunks (units of memory); information may be rehearsed to retain its meaning

Information rehearsed in ST memory is transmitted to long-term (LT) memory for storage and retrieval as needed; LT memory capacity is unlimited


Information Retention

It refers to the amount of material previously learned that is remembered

Forgetting – the loss in retention of material previously learned

Retention affected by: Incoming information The person receiving the information


Retention: Characteristics of Incoming Information and Processing

Repetition or rehearsal Relevance Competing information (new information

competes with old; ad “clutter” issue) Completeness of information (Zeigarnik

Effect – if incomplete, info retained for later completion)

Time (lapsed time since exposure) Mood (positive mood impact)


How Retention is Influenced by the Information Recipient Consumer familiarity or experience

Being more familiar with a product category increases the chances of remembering information about new or existing brands

Affects way information is organized in memory

Consumer motivation Higher motivation to process info is positively

related to doing so at deeper levels of memory and to retain info longer and more accurately.


How Information is Retrieved from Memory Retrieval cues – “self-” or

“externally-” generated (sensory images: sounds, shapes, colors, smells,etc.)

Interference from competing cues (make cue to stand out)

Consumer’s state of mind: higher retrieval levels occur when info processing and retrieval mood and/or interest levels match


Information Storage in Memory – Processing Effects

Recall of numerically-coded information is better than verbal information

“Surface-level processing” (“sensory”) occurs when there is no analysis of meaning. Consumer judgment error rate higher.

“Meaning-level processing” (“semantic”) implies analysis of meaning. Consumer judgment error rate lower.


Learning – Probability Theory Learning formation of habits formed

and changed through experience with products or services

Strength of habit depends upon the amount of reinforcement it receives

Probability models are used to predict the formation of habits: Brand loyalty Brand acceptance Brand switching New product forecasting


Learning – Behavior Analysis

The relationship between marketers and consumers often resembles a negotiation

Several behavior modification principles (BMPs) are used by marketers to induce consumers to buy their products and services.


Learning – Behavior Analysis (continued) Classical conditioning –learning results from a

relationship between a stimulus and a response

Pavlov and his salivating dogs: a conditioned stimulus (the ringing bell before each feeding) results in a conditioned response (salivation)

Marketing applications Higher order conditioning and celebrity advertising Strength of the unconditioned stimulus Number of pairings Forward versus backward versus simultaneous

conditioning New versus existing products


Learning – Behavior Analysis (continued)

Operant conditioning – a process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior Especially relevant in low involvement

purchases Rewards & punishments AND

consumer behavior


Learning – Behavior Analysis (continued) Generalization – the tendency to respond in

similar ways to similar stimuli. Discrimination – the process through which

consumers restrict their range of responses and attach themselves to a particular brand.

Modeling – the process through which an individual learns a behavior by observing the behavior of others and the consequences of this behavior.


Learning – Cognitive Theory Emphasis is on thinking rather than the

doing aspects of learning. Four stages:

Formulation of hypotheses (specific testable assumptions) about products or brands

Exposure to evidence (passive or active) Encoding of the evidence Integration of earlier hypotheses with new

information into beliefs Familiarity, ambiguity, motivation


Cognitive Theory and Marketing

Strategies for market leaders (topdogs) Reinforcement Blocking Explaining

Strategies for market underdogs Disruption Facilitating trial


Perception

Perception is the way in which an individual gathers, processes, and interprets information from the environment.

Two views of consumer perception Sensory perception Gestalt theory of perception


Sensory Perception It is governed by the

five senses: sight, smell, sound, touch, and taste

It focuses on product specific sense attributes and how these are understood and evaluated by consumers.


Factors Affecting Sensory Perception Stimulus factors (examples)

Visual cues: color, shape, and size Aural cues: tempo and pitch Olfactory cues (taste + smell): sweet, bitter, salty, and

floral Tactile cues: soft, coarse, and silky

Individual Response Factors Sensory acuity: the capacity to recognize and differentiate

among certain sensory cues; the “limin” Sensory preferences: sensory product features are

perceived and evaluated based on those liked or disliked Consumer expectation: affects how product features are

likely to be perceived/evaluated. When features match expectations this yields more positive preference outcomes


Gestalt Theory of Perception Gestalt principle: the whole adds up to

more than the sum of its parts People perceive “form” above all else The form may remain constant even

though some specific features of it may change (color, tempo, etc.) – “variations on the same theme”

Applications: size, actual/illusion of motion, bordering for ads or displays while really the same


What do you perceive?


Factors Influencing Gestalt Perception

Stimulus factors: color and contrast, size, intensity, position, isolation, and unity

Individual response factors:interest, involvement, needs, values, and cognitive set


How consumers Interpret Perceptions Categorization: the psychological

process through which a consumer compares the perception of a product with a mental representation of that product in memory. Analytic versus non-analytic (meeting or

not meeting required attributes to “fit”) Marketing implications for new products

or innovations


Consumer Attributions

It refers to the process through which people connect events and behavior with causes.

Forms of attribution Product perception (a product problem) Self-perception (questioning oneself) Person perception (questioning others

motives)


Perceptions of Product/Service Quality Perceived quality – a perceptual outcome

generated from processing product or service features (benefits delivered) that leads the consumer to make inferences about the quality of that product or service

Dimensions of perceived quality for durable goods: ease of use, versatility, durability, serviceability, performance, and prestige

Perceived high quality product satisfaction


Risk Perception/Risk Reduction It refers to a perceptual process and behavior

outcomes generated from the perception of risk in the purchase or a product or service

Components of risk: Severity of consequences (how bad will it be) Uncertainty related to those consequences (what are

the chances the consequence will occur) Risk reduction strategies: behaviors to reduce

their perception of risk in purchase situations


Price Perception Consumers perceive a price as

either high or low on the basis of a comparison with an internal price (or referent price).

Price perceptions and the social judgment theory – “regions” “Assimilation” (acceptable) and “contrast” (too high or low)


Perceived Value

The trade-off between product benefits and product costs.

Perceived value = perceived benefits / perceived costs

memory, learning & perception

Business

information retention

marketing information

meaning information

limited information

way information

memory memory processing

sources of product information

st memory