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Lecture 05

Perception, Learning and Memory

Internal influences

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 26

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Learning objectives

• Understand the nature of perception • Understand the different steps involved in information processing • Be aware of the implications of perception for retail, brand and communication strategies

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Learning objectives

• Understand the nature of learning • Be aware of the main characteristics of learning • Understand how consumers learn • Be aware of the importance of brand image and product positioning

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The nature of perception

• Exposure • Attention • Interpretation • Memory – Short-term – Long-term

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Information processing for consumer decision making

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 225

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Exposure

• Occurs when a stimulus comes within range of our sensory receptor nerves • Deliberate exposure to stimuli – Consumers seek information that will help achieve certain goals • immediate • long-range • Random exposure to stimuli

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Attention

• Stimulus factors • Individual factors • Situational factors • Non-focused attention

Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing

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Attention

• Stimulus’ factors – Size and intensity • Insertion frequency • Adaptation level theory – Compressed messages – Information quantity—information overload

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Attention (cont.)

• Individual factors – Interest / Need • Situational factors – Involvement • Non-focused attention – Hemispheric lateralisation/ Subliminal stimuli

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Interpretation

• Individual characteristics • Stimulus characteristics • Misinterpretation of marketing messages • How children process information

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Determinants of interpretation

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 235

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Interpretation (cont.)

• Individual characteristics – Learning/Expectations • Situational characteristics – E.g. hunger, moods, temperature etc, Proximity • Stimulus’ characteristics • Misinterpretation of marketing messages

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Perception and marketing strategy

• Retail strategy • Brand name and logo development • Media strategy • Advertisement and package design • Warning labels and package designs

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Perception and marketing strategy (cont.) • Perceptions of marketing messages and ethics – Ethics of the ads • e.g. Heart tick can’t be used by all ‘healthy’ foods – Advertising aimed at children • children can’t always distinguish between ads and programs • more research required

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Retail strategy

• Store layout – Cold and hot zones/Traffic and islands • Lighting and fitout • Placement of products on shelves – Eye levels (for adults and for children!) – Number of facings to maximise visual impact

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Brand name and logo development

• Important for consumer and industrial products • Creating a brand is a long and expensive process • Brand names and logos require constant management and rejuvenation • Take into account where the brand name/logo will be used – Is it easily transferable to a range of media?

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Media strategy

• Random approach – To reach where the target market may be • Selective approach – To reach where the target market is/Focused media • Advertisements: Utilise stimulus’ characteristics • Package design

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Advertising evaluation

• Exposure – Physically reach target market • Attention: Attended to by the consumer • Interpretation: Properly interpreted • Memory – Stored, so it is retrieved under the proper circumstances

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Learning and memory

• The nature of learning • Conditioning • Cognitive learning • General characteristics of learning • Memory • Brand image and product positioning

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Learning and memory

• The nature of learning – learning under conditions of high and low involvement

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Learning

• Learning refers to any change in the content or organisation of long-term memory • Result of information processing • Consumer behaviour is largely learned behaviour

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Learning as a key to consumer behaviour

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 264

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Learning results from information processing, causing memory changes

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 265

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Involvement and learning

• Learning under high-involvement conditions – Consumer has a high motivation to learn • Learning under low-involvement conditions – Most consumer learning is in a low- involvement context

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Learning theories in high and low involvement situations

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 266 1/29/2018 704003 - Perception, Learning and Memory 26

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Types of learning

• Conditioning – Classical conditioning – Operant conditioning • Cognitive learning – Iconic rote learning – Vicarious learning/modelling – Reasoning

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Learning and memory

• The nature of learning • Conditioning – Conditioning is based on the association of a stimulus (information) with a response (behaviour or feeling) – Classical conditioning – Operant conditioning

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Classical conditioning

• Most common in low-involvement situations • Learning is more often a feeling or emotion than information

Establishing a relationship between stimulus and response to bring about the learning of the same response to a different stimulus

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Consumer learning through classical conditioning

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 267

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How affective response leads to learning

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 267

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Operant conditioning

• Trial precedes liking – Reverse is often true for classical conditioning – Product sampling is an example of this type of learning

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 268 1/29/2018 704003 - Perception, Learning and Memory 32

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The process of shaping in purchase behaviour

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 270

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Cognitive learning

• Iconic rote learning – Association between two or more concepts in the absence of conditioning • a substantial amount of low-involvement learning involves iconic rote learning • achieved by repeated advertising messages

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Cognitive learning (cont.)

• Vicarious learning/modelling – Observe others' behaviour and adjust their own accordingly • Reasoning – Most complex form of cognitive learning • most high-involvement decisions generate some reasoning

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General characteristics of learning

• The strength of learning is influenced by: – Importance and relevance – Involvement/ Mood – Reinforcement (or punishment) – Stimulus repetitions (practice sessions) – Imagery

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General characteristics of learning (cont.)

• Extinction – Forgetting occurs when reinforcement for learning is withdrawn • Stimulus generalisation – Brand equity – Brand leverage

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Changes in buyer commitment to the product

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General characteristics of learning (cont.)

• Stimulus discrimination – Why your brand is different • Response environment – Strength of original learning – Similarity of original learning environment to the retrieval environment

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Memory

• Memory is the total accumulation of prior learning experiences – Short-term memory – Long-term memory

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Short-term memory

• Working memory • The role of images, sight, sound, smell, taste and tactile situations • Two kinds of information processing: – Elaborative activities: – Maintenance rehearsal:

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Long-term memory

• Unlimited permanent storage • Schematic memory – linking to ‘chunks’ of information

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Ad using episodic memories

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 267

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Product positioning strategy

• Brand image • Product positioning • Perceptual mapping • Product repositioning

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Topics covered in this lecture

• The nature of perception • Attention • Interpretation • Marketing applications of the perception process

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Topics covered in this lecture

• The nature of learning • Cognitive learning • General characteristics of learning • Memory • Brand image and product positioning

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Next Lecture

• Lecture 06: Motivation, Personality, Values and Emotion • Case study: – Consumer motivation for buying fake brands (p. 327)

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