CH-3 Learning And Memory – Consumer Behaviour: Buying, Having, Being : Book Guide

Chapter 3 Learning And Memory CHAPTER OBJECTIVES When students finish this chapter they should: •Understand why it is important to know how consumers learn about products and services. •Understand that conditioning results in learning. •Understand that learned associations with brands generalize to other products, and know why this is important to marketers. •Understand that there is a difference between classical and instrumental conditioning, and that both processes help consumers to learn about products. •Understand that we can learn about products by observing others’ behaviour. •Understand how the memory process works. •Understand that marketers use various measures to assess our memories about brands, products and ads. CHAPTER SUMMARY •Learning is a change in behaviour that is caused by experience. Learning can occur through simple associations between a stimulus and a response or via a complex series of cognitive activities. •Behavioural learning theories assume that learning occurs as a result of responses to external events. Classical conditioning occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response. Over multiple pairings, the second stimulus (the conditioned stimulus) comes to elicit the response as well. •This response can also extend to other, similar stimuli in a process known as stimulus generalization. This process is the basis for such marketing strategies as licensing and family branding, in which a consumer’s positive associations with a product are transferred to other contexts. •Operant or instrumental conditioning occurs as the person learns to perform behaviours that produce positive outcomes and avoid those that result in negative outcomes. While classical conditioning involves the pairing of two stimuli, instrumental learning occurs when reinforcement is delivered following a response to a stimulus. Positive reinforcement occurs when a desired response is followed by the presentation of a positive stimulus, while negative reinforcement occurs when a desired response is followed by the removal of a negative stimulus. Punishment, on the other hand, occurs when a response is followed by an unpleasant stimulus. Extinction of the behaviour will occur if reinforcement is no longer received. •Cognitive learning occurs as the result of mental processes. For example, observational learning takes place when the consumer performs a behaviour as a result of seeing someone else performing it and being rewarded for it. •Memory refers to the storage of learned information. The way information is encoded when it is perceived determines how it will be stored in memory. The memory systems known as sensory memory, short-term memory, and long-term memory each play a role in retaining and processing information from the outside world. •Information is not stored in isolation; it is incorporated into knowledge structures where it is associated with other related data. The location of product information in associative networks and the level of abstraction at which it is coded help to determine when and how this information will be activated at a later time. Some factors that influence the likelihood of retrieval include the level of familiarity with an item, its salience (or prominence) in memory, and whether the information was presented in pictorial or written form. •Products also play a role as memory markers; they are used by consumers to retrieve memories about past experiences (autobiographical memories) and are often valued for their ability to do so. This function also contributes to the use of nostalgia in marketing strategies. •Memory of product information can be measured through either recognition or recall techniques. Consumers are more likely to recognize an advertisement if it is presented to them than to recall one without having any cues. However, neither recognition nor recall automatically or reliably translates into product purchases. LECTURE/DISCUSSION IDEAS IV. THE LEARNING PROCESS – Relatively permanent change in behaviour caused by experience; incidental learning (unintentional acquisition of knowledge); ongoing process II. BEHAVIOURAL LEARNING THEORIES – e.g., black box (stimulus and response) A. Classical Conditioning – e.g., Pavlov's dog (ring bell and get food) 1. Repetition – Repeated exposure to stimulus increases its strength to prevent extinction, e.g., advertising jingles ‘Coke is it!’  For a study that examines the specific effects of different conditioning procedures on subsequent attention to a stimulus see reference.i  A study showed that when the verbal information in an ad was presented on the right and pictorial aspects appeared on the left, the format was preferred to others, even though the actual information in the ad did not change. This study showed support for the position that classical conditioning can occur without awareness.ii 2. Stimulus Generalization – Similar stimuli evoke similar responses, e.g., to consumers ‘look alike products are really the same’ 3. Stimulus Discrimination – Similar stimuli do not evoke similar responses, e.g., ‘Don’t be fooled by imitations! Get ‘The Club’!’ Class Interaction Opportunity: Can you think of some products that have similar packaging? Similar shapes? Similar names? How does this similarity benefit the consumer and the marketer? When does similarity create negative effects in the marketplace? B. Marketing Application of Conditioning 1. Repetition – e.g., person must be exposed to an ad many times before it registers; however, ads do ‘wear out’ (people get tired of them). 2. Conditioning Product Associations – Music, humour, imagery, jingles affect the credibility of the message 3. Applications of Stimulus Generalization – Brand names and packaging that capitalize on people’s positive associations with an existing name (e.g., ‘The Unvarnished Truth’…an unfinished furniture store – also family branding, product line extensions, licensing, look-alike packaging, knock-offs) 4. Applications of Stimulus Discrimination – Emphasize a product’s distinctive attributes vis-a-vis its competitors Class Interaction Opportunity: What are some clever company or product names?  Other services employing stimulus generalization include (1) a hot dog stand called Mustard’s Last Stand, (2) a Chicago septic-tank cleaner known as The Wizard of Ooze, and (3) hair stylists such as The Last Hairhouse and Mane Attraction. The capitalization on well-known names can result in a lawsuit if the association is too close. For example, McDonald's field suit against McSleep Hotels (and many others using “Mc” in their company or product names) to prevent infringement of company name.iii  A debate is raging over such trademark rights. Similar disputes in the toy industry have included battles over the rights to names like Rollerblades and Frisbees (both companies won the right to retain their trademarks).iv  How many top-level domains (TDLs) do Internet users need? That’s the job of Paul Twomey, President and CEO of ICANN (the Internet Corporation for Assigned Names and Numbers). In the beginning, there were seven TDLs: .com, .org, .gov, .edu, .int, .mil and .net. In 2000, seven more were approved: .biz, .info, .name, .pro, .aero, .coop and .museum. Nine new names were proposed in 2004: .xxx (to identify porn), .mail (which might wipe out “spam” e-mails), .cat (to strengthen the cultural identity of Catalans), .tel (to also identify people on a range of devices, including mobile phones), .post (to marry Internet and postal addresses), .jobs, .travel, .asia (a regional identity) and .mobi (to ease access to mobile devices). Are these generic and code domains sufficient for users? Are there other generalizable domains not covered?v C. Instrumental Conditioning – (Also called operant conditioning) people learn to perform behaviours that produce positive outcomes and vice-versa; positive reinforcement; negative reinforcement; punishment, e.g., deodorant ad, ‘Raise your hand if you’re sure!’ Various reinforcement schedules. Class Interaction Opportunity: What are some products that promise "good things will happen" if you buy their products? Can you think of some products who tell you that you will be "punished" if you don't buy them? E. Four Types of Learning Schedules – The set of rules, ratio schedules and interval schedules F. Applications of Instrumental Conditioning Principles – Person is rewarded or punished for purchase decision, e.g., Crest “Look Ma, no cavities!; also, frequent flyer mileage 1. Reinforcement of consumption – Thank you letters, rebates, etc.  Europeans are going out less to drink which has breweries worried. The trend is not only due to a decrease in the number of blue-collar employees and an increase in the comforts of home (e.g., entertainment centres); it’s also due to a desire to avoid the unattractive aspects of a night out: taxi queues, violence and drunken strangers.vi 2. Frequency marketing – Frequent buyer programs and refined marketing mixes 3. Gamification – organizations are going to the next level in terms of consumer engagement by borrowing from basic principles of game mechanics to motivate consumers across a broad spectrum of behaviours III. COGNITIVE LEARNING THEORY – Stresses importance of internal mental process A. Is Learning Conscious or Not? – Do we develop conscious hypotheses and then act? Or do we process information in an automatic, passive way? B. Observational Learning – We notice reinforcements received from behaviour modeling: We imitate the behaviour of others. Class Interaction Opportunity: Who are some of the "models" chosen to sell products? Can you think of some "models" that companies probably won't hire again? C. Applications of Cognitive Learning Principles – We can observe others and see what happens to them when they use or don’t use a product, e.g., Arnold Palmer and his old tractor (Pennzoil) IV. THE ROLE OF MEMORY IN LEARNING – Acquiring and storing information to be used later A. Encoding of Information for Later Retrieval – Brand names and product attributes 1. Types of meaning – Sensory meanings (e.g., in colour or shape); semantic meanings (rich people drink champagne) 2. Personal relevance – Episodic memories (‘our song’ played at our wedding); flashbulb memories (OJ Simpson’s freeway ride in the white Bronco) B. Memory Systems – Three systems that are interrelated •Sensory Memory – received from the senses (smell of baking bread) •Short-term Memory – ‘chunking’ a way to remember phone numbers or cram for a test before performing a ‘brain flush’; the older you get the harder this seems to do Class Interaction Opportunity: What was one of the first statements I made when I started class today? •Long-term memory – ‘Elaborate rehearsal,’ studying for an exam in a subject you really want to know, the older you get the more ‘old tales’ you can tell, e.g., companies use musical jingles to help you remember: ‘Libbys, Libbys, Libbys on the label, label, label, you’ll like it, like it, like it, on the table, table, table.’ And ‘I wish I were an Oscar Meyer wiener…’ B. Storing Information in Memory – Now there is more emphasis on the interdependence between short-term and long-term memory 1. Associative Networks – Bits of related information are organized in categories •Knowledge structures – ‘storages units’ filled with bits of information o Network of diet food names (‘Healthy Choice,’ ‘Weight Watchers’) o Network of attributes (‘healthy, sexy, handsome, modern’) Class Interaction Opportunity: What words do you associate with the word "home"?  In a study of the relationship between associative networks and memory for information presented in print advertising, it was found that ads containing associations among three elements (copy, picture, and brand name) elicited greater unaided recall than did those ads where only two elements were related.vii 2. Spreading Activation – Consumers shift back and forth between levels of meaning, from brand to product to attributes to competition 3. Levels of Knowledge – From simple to complex; schemas  Consumers process incoming information to be consistent with existing knowledge structures, and as a result incorrect inferences about a product may be made. In one national survey that examined the miscomprehension of advertisements and editorials, on average more than 20 percent of the material was incorrectly understood, while an additional 15 percent was not learned at all.viii D. Analogical Learning – Learning through analogy (i.e., highlighting similarities) E. Retrieving Information for Purchase Decisions 1. Factors influencing retrieval •Familiarity and Recall – easier to build on what you already know •Salience and Recall – Novelty helps us remember: ‘Energizer Bunny’ •Pictorial vs. Verbal Cues – pictures and words aid memory  Some research claims that consistency between verbal and visual aspects of an ad enhances recall, while other work argues that different information presented on the visual and verbal channels is more effective because it forces the consumer to concentrate more on the dual messages, which in turn enhances later recall.ix Class Interaction Opportunity: Do you prefer learning from videos or from books? Which do you remember better? Do you prefer to read or watch television? 2. Factors Influencing Forgetting – Decay, interference, and interest E. Products as Memory Markers – Products tie us to the past Class Interaction Opportunity: Try the study described below with the class.  In a study, subjects were asked to remember the titles of one-season TV shows that had been aired from 1-15 years previously. They were given the titles of four former shows to choose from, three of which were fabricated. Participants recognized:
(1) about three-fourths of the shows aired the year before the test, (2) about two-thirds of those that were canceled five years beforehand, and (3) over half of the shows that had not been on the air for 15 years.x 1. The Marketing Power of Nostalgia – ‘Good old days’ e.g., a company uses old trademarks, retro brands 2. Memory and Aesthetic Preferences – ‘golden oldies’ F. Measuring Memory for Marketing Stimuli – Very few viewers remember ads 1. Recognition vs. Recall •With recognition you show ad to see if they remember it •With recall you just ask ‘what ads do you remember’ without helping  The optimal location for a print ad is on a right-side page toward the front of the magazine.xi 2. Problems with Memory Measures •Response biases (people will say ‘yes’ to anything) •Memory lapses (people just forget) •Memory for facts vs. feelings (feelings take more than one-shot) Class Interaction Opportunity: Can you tell me about one of the old Hallmark ads (Coke ads, Pepsi ads, Lazy-Boy Chair ads, McDonald’s ads)? END-OF-CHAPTER SUPPORT MATERIAL Summary of Special Feature Boxes 1. Marketing Insight I: Ad Repetition A number of factors influence whether ad repetition on websites is effective, including the relationship between the ad and the website content, and the presence of competing ads on the site. 2. Marketing Insight II: Semantics in Branding Picking brand names is critically important, and semantic associations that evoke connections for consumers are a strategy often employed. This box provides examples of how marketers come up with semantic combinations and what different sounds mean to consumers, particularly drawing on ‘Blackberry’ as an example. 3. Marketing Insight III: Operant Conditioning Marketers are increasingly taking advantage of the principles of operant conditioning. This box looks at examples of apps that use punishment to encourage the consumer to reach a desired goal. 4. Marketing Insight IV: Brand Name Importance Brand names that use metaphors are effective at gaining positive consumer evaluations, and this strategy has been employed in the cell phone industry by brands like Samsung and LG. 5. CB As I See It Dr. Scott Hawkins, Rotman School of Management, University of Toronto, examines the vast amount of marketing information consumers are exposed to. In reality, much of this information won’t be personally relevant to them, therefore, consumers often process messages with minimal active involvement. His research explores how the level of involvement during different stages of exposure to marketing claims (whether the claims are familiar, repetitively viewed) influences what consumers learn and come to believe. Increasing repetitions increases belief in the message claim, but that the largest impact occurs with the initial exposure to the ad. This can be somewhat overcome by varying the claims slightly (see ‘Got Milk’). 6. Consumers in Focus I: Information Sticks Around In today’s world many of our actions are recorded online through photos and social media sites, and this box discusses that as a result it can make it hard to forget our actions (or those of others) which has implications for what we, or others, might think about us (e.g., potential employers). 7. Marketing Insight V: Liking and Recall This box examines factors that can influence recall and liking of an advertisement. Nielsen reports that viewers who enjoy a program are more likely to respond positively to an embedded commercial and to say they want to buy the advertised product. The impact of this factor varies across show format; it’s weaker in sitcoms but much stronger in “lifestyle programs.” 8. Marketing Insight VI: Application of Learning Theories This box provides an example of a company successfully applying learning theories (Fluevog Shoes, Vancouver). The store name, shoe styles, communications, and store decors suggest distinctiveness, making them interesting and yet easy to remember. Review Questions 11. What is the difference between an unconditioned stimulus and a conditioned stimulus? Answer: Ivan Pavlov, a Russian physiologist doing research on digestion in animals, first demonstrated this phenomenon in dogs. Pavlov induced classically conditioned learning by pairing a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs (he squirted dried meat powder into their mouths). The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. Over time, the bell became a conditioned stimulus (CS); it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. 12. How can marketers use repetition to increase the likelihood that consumers will learn about their brand? Answer: Many classic advertising campaigns consist of product slogans that have been repeated so many times that they are etched in consumers’ minds. Conditioning will not occur or will take longer if the CS is only occasionally paired with the UCS. One result of this lack of association may be extinction that occurs when the effects of prior conditioning are reduced and finally disappear. This can occur, for example, when a product is overexposed in the marketplace so that its original allure is lost. 13. Why is it not necessarily a good idea to advertise a product in a commercial where a really popular song is playing in the background? Answer: A popular song might also be heard in many situations in which the product is not present. Advertising a product with a popular song may overshadow the message, as the song can dominate attention and divert focus away from the product. Additionally, the high cost of licensing popular music might not guarantee better recall or effectiveness for the ad. 14. What is the difference between classical conditioning and instrumental conditioning? Answer: Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus. Instrumental conditioning, also known as operant conditioning, occurs as the individual learns to perform behaviours that produce positive outcomes and to avoid those that yield negative outcomes. 15. How do different types of reinforcement enhance learning? How does the strategy of frequency marketing relate to conditioning? Answer: When the environment provides positive reinforcement in the form of a reward, the response is strengthened and appropriate behaviour is learned. For example, a woman who gets compliments after wearing Obsession perfume will learn that using this product has the desired effect, and she will be more likely to keep buying the product. Negative reinforcement also strengthens responses so that appropriate behaviour is learned. A perfume company might run an ad showing a woman sitting home alone on a Saturday night because she did not use its fragrance. The message to be conveyed is that she could have avoided this negative outcome if only she had used the perfume. In contrast to situations in which we learn to do certain things in order to avoid unpleasantness, punishment occurs when a response is followed by unpleasant events (such as being ridiculed by friends for wearing an offensive-smelling perfume)—we learn the hard way not to repeat these behaviours. A popular technique known as frequency marketing reinforces regular purchasers by giving them prizes with values that increase along with the amount purchased. 16. What is the major difference between behavioural and cognitive theories of learning? Answer: In contrast to behavioural theories of learning, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. Supporters of this view also stress the role of creativity and insight during the learning process. 17. Name the three stages of information processing. Answer: Encoding, storage, and retrieval. 18. What is external memory and why is it important to marketers? Answer: During the consumer decision-making process, this internal memory is combined with external memory that includes all of the product details on packages and other marketing stimuli that permit brand alternatives to be identified and evaluated. 19. Give an example of an episodic memory. Answer: Episodic memories relate to events that are personally relevant. As a result, a person’s motivation to retain these memories will likely be strong. Couples often have “their song” that reminds them of their first date or wedding. 20. Why do phone numbers have seven digits? Answer: Initially, researchers believed that STM was capable of processing between five and nine chunks of information at a time, and for this reason they designed phone numbers to have seven digits. 21. List the three types of memory, and tell how they work together. Answer: Sensory memory permits storage of the information we receive from our senses. This storage is very temporary; it lasts a couple of seconds at most. Short- term memory (STM) also stores information for a limited period of time, and it has limited capacity. Similar to a computer, this system can be regarded as working memory; it holds the information we are currently processing. Long-term memory (LTM) is the system that allows us to retain information for a long period of time. Elaborative rehearsal is required in order for information to enter into long-term memory from short-term memory. This process involves thinking about the meaning of a stimulus and relating it to other information already in memory. 22. How is associative memory like a spider web? Answer: Knowledge structures can be thought of as complex spider webs filled with pieces of data. This information is placed into nodes that are connected by associative links within these structures. Pieces of information that are seen as similar in some way are chunked together under some more abstract category. New, incoming information is interpreted to be consistent with the structure already in place. 23. How does the likelihood that a person will be willing to use self-serve checkout at a grocery store relate to a schema? Answer: The desire to follow a script or schema helps to explain why such service innovations self-service gas stations, or “scan-your-own” grocery checkouts have met with resistance by some consumers, who have trouble adapting to a new sequence of events. 24. Why does a pioneering brand have a memory advantage over follower brands? Answer: Some evidence indicates that information about a pioneering brand (the first brand to enter a market) is more easily retrieved from memory than follower brands because the first product’s introduction is likely to be distinctive and, for the time being, no competitors divert the consumer’s attention. 25. If a consumer is familiar with a product, advertising for it can work both ways by either enhancing or diminishing recall. Why? Answer: As a general rule, prior familiarity with an item enhances its recall. Indeed, this is one of the basic goals of marketers who are trying to create and maintain awareness of their products. The more experience a consumer has with a product, the better use he or she is able to make of product information. However, there is a possible fly in the ointment: As noted earlier in the chapter, some evidence indicates that extreme familiarity can result in inferior learning and recall. When consumers are highly familiar with a brand or an advertisement, they may attend to fewer attributes because they do not believe that any additional effort will yield a gain in knowledge. 26. How does learning new information make it more likely we’ll forget things we’ve already learned? Answer: Forgetting may occur due to interference; as additional information is learned, it displaces the earlier information. Learning new information can lead to interference with previously learned material, as similar or competing information can disrupt memory recall. This cognitive overlap can cause forgetting of older information due to the new content. 27. Define nostalgia, and tell why it’s such a widely-used advertising strategy. Answer: We can describe nostalgia as a bittersweet emotion; the past is viewed with both sadness and longing. References to “the good old days” are increasingly common, as advertisers call up memories of youth—and hope these feelings will translate to what they’re selling today. 28. Name the two basic measures of memory and describe how they differ from one another. Answer: Two basic measures of impact are recognition and recall. In the typical recognition test, subjects are shown ads one at a time and asked if they have seen them before. In contrast, free recall tests ask consumers to independently think of what they have seen without being prompted for this information first—obviously this task requires greater effort on the part of respondents. 29. List three problems with measures of memory for advertising. Answer: Response biases, memory lapses, and memory for facts versus feelings. 1. Recall Bias: Consumers may struggle to accurately remember or articulate their exposure to ads, leading to unreliable data. 2. Short-Term Focus: Measures often emphasize immediate recall rather than long-term brand retention, missing lasting impact. 3. Context Effects: The context in which an ad is encountered can skew memory, affecting how accurately it is remembered or reported. CONSUMER BEHAVIOUR CHALLENGE Discussion Questions 1. In his 2005 book Blink: The Power of Thinking without Thinking, author Malcolm Gladwell argues that hallowed marketing research techniques like focus groups are ineffective. According to Gladwell, we usually react to product quickly and without much conscious thought so it’s better to just solicit consumers’ first impressions rather than getting them to think at length about why they buy. What’s your position on this issue? Answer: There are various concepts that students may apply to support both sides of this argument. Both classical conditioning and behavioral instrumental conditioning would support the idea that we make consumer decisions quickly and without much thought. However, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem-solvers who actively use information from the world around them to master their environment. Gladwell’s position highlights the value of quick, intuitive responses for understanding initial consumer reactions, but comprehensive research methods like focus groups provide deeper insights into motivations and long-term preferences. Balancing both approaches can offer a fuller understanding of consumer behavior. 2. Some die-hard fans were not pleased when the Rolling Stones sold the tune “Start Me Up” for about $4 million to Microsoft who wanted the classic song to promote its Windows 95 launch. The Beach Boys sold “Good Vibrations” to Cadbury Schweppes for its Sunkist soft drink, Steppenwolf offered its “Born to be Wild” to plug the Mercury Cougar, and even Bob Dylan sold “The Times They Are A-Changin’” to Coopers & Lybrand (now called PriceWaterhouseCoopers). Other rock legends have refused to play the commercial game, including Bruce Springsteen, the Grateful Dead, Led Zeppelin, Fleetwood Mac, R.E.M., and U2. According to U2’s manager, “Rock ‘n’ roll is the last vestige of independence. It is undignified to put that creative effort and hard work to the disposal of a soft drink or beer or car.” What’s your take on this issue? How do you react when one of your favorite songs turns up in a commercial? Is this use of nostalgia an effective way to market a product? Why or why not? Answer: Student responses on this issue will range from support to opposition of artists selling songs for commercial application. Their reasons for either will also vary. Some will like hearing familiar songs in commercial jingles because it grabs their attention, is more relevant to them, or prompts them to recall fond memories. Some will express support simply because it is the artists’ prerogative to sell what is theirs. Others will oppose this practice for reasons similar to those expressed by the artists mentioned. It is likely that among business and marketing students, however, most will find nothing wrong with the commercial application of popular songs. Responses should reflect the concept that nostalgia in marketing can be effective because it can prompt positive emotions in consumers. The use of iconic songs in commercials can evoke strong emotions and nostalgia, effectively boosting product appeal. However, it can also alienate fans who view such associations as compromising artistic integrity. Personal reaction varies; some see it as a clever marketing tactic, while others feel it undermines the song's original value. Experiential Exercises 3. Devise a “product jingle memory test.” Compile a list of brands that are or have been associated with memorable jingles, such as Oscar Meyer, Sleep Country, or Alka-Seltzer. Read this list to friends and see how many jingles are remembered. You may be surprised at the level of recall. Answer: Students should be able to generate a large number of product jingles for the "memory test." Most of these will be highly advertised products that students have been exposed to somewhat recently (e.g., McDonald’s ‘I’m Loving it,’ Diet Pepsi with Ray Charles: "You've got the right one baby, uh- huh"; Zest soap: "Zestfully clean. You're not fully clean until you're Zestfully clean;" Energizer Bunny: "Keep on going and going and going.") It might be surprising to note that many of the advertised products are not targeted at the student/consumer, and yet students will have high levels of recall for the jingles. As the instructor you may want to develop your own list of older jingles (many of which the students will not remember) that students will find interesting and fun. (Possible Field Project) Create a “product jingle memory test” by listing brands like Oscar Meyer, Sleep Country, and Alka-Seltzer. Ask friends to recall and sing the associated jingles, then compare their responses to the original jingles. You might find notable differences in recall accuracy. 4. Identify some important characteristics for a product with a well-known brand name. Based on these attributes, generate a list of possible brand extension or licensing opportunities. Include some that would most likely not be accepted by consumers. Answer: The list of characteristics will, of course, depend on the product chosen. Generally it will include distinctive aspects of products. For example, BIC has been a successful brand extension each time a new product promoted. Also the existing brand name benefited from the characteristics consumers associate with the name BIC—namely, cheap, plastic, and disposable. However, their attempt in the perfume category was a disaster. Because brand extension is based on the transfer of some positive product characteristics(s), either physical or emotional, to the new product, the list students generate should lend itself to identification of that "something" that would enable an extension to be successful. Important characteristics for a well-known brand include high quality, strong customer loyalty, and distinctive identity. Possible brand extensions could include branded apparel or home goods, while less acceptable options might be unrelated products like cleaning supplies or financial services, which could dilute the brand’s core appeal. 5. A physician borrowed a page from product marketers when she asked for their advice to help persuade people in the developing world to wash their hands habitually with soap. Diseases and disorders caused by dirty hands—like diarrhea—kill a child somewhere in the world about every 15 seconds, and about half of those deaths could be prevented with the regular use of soap. The project adapted techniques that major marketers use to encourage habitual product usage of items such as skin moisturizers, disinfecting wipes, air fresheners, water purifiers, toothpaste, or vitamins. For example, beer commercials often depict a group of guys together because research shows that being with a group of friends tends to trigger habitual drinking. The researchers found that when people in Ghana experienced a feeling of disgust it was a cue to wash their hands. However, as in many developing countries, toilets are actually a symbol of cleanliness because they have replaced pit latrines. So an advertising campaign included messages that reminded people of the germs they could still pick up even in modern bathrooms—mothers and children walked out of restrooms with a glowing purple pigment on their hands that contaminated everything they touched. These images in turn triggered the habit of hand washing and the project resulted in a significant increase in the number of people who washed their hands with soap. How can other organizations that work to improve public health, the environment, or other social issues harness our knowledge about consumer learning and habitual behaviour to create or re-energize positive habits? Answer: Learning theories can be used by organizations to change behaviour. For example, using classical conditioning principles, positive associations can be developed between issues and messages through repetition. Instrumental conditioning can be used in advertising to show positive learning outcomes or consumers can be tangibly rewarded for positive behaviour. Observational learning can take place by showing a celebrity performing a task and being rewarded for it. Learning theories do offer social issues marketers a framework to encourage positive habits. 6. Collect some pictures of “classic” products that have high nostalgia value. Show these pictures to consumers and allow them to free associate. Analyze the types of memories that are evoked, and think about how these associations might be employed in a product’s promotional strategy. Answer: Consumers’ responses to “classic” product pictures should prove interesting to students. They should be encouraged to evaluate the types of meaning associated with products and asked to determine the relative effectiveness of various messages for different target consumer groups. The real emphasis, however, should be placed on students’ recommendations for translating the special meaning of these products for consumers into effective promotional messages. Show pictures of classic products like vintage Coca-Cola bottles or old-fashioned radios to consumers and record their nostalgic associations, such as childhood memories or past trends. These emotional connections can be leveraged in promotional strategies to evoke positive feelings and enhance brand appeal through nostalgic storytelling. CASE STUDY TEACHING NOTES 1. Historically, why has nostalgia as a tactic been so successful for A&W? What benefit does nostalgia provide for the consumer? Answer: Advertisements often pair a product with a positive stimulus to create a desirable association. The tendency of a stimuli similar to a conditioned stimulus such as an existing brand or company name to evoke similar conditioned responses are central to branding decisions. For example, A&W’s “Cruisin’ the Dub” – which invited vintage 1950’s and 1960’s car owners to meet at A&W locations and showcase items from their collection – pairs positive stimulus such as vintage cars with conditioned stimulus such as the A&W brand. As a result, this stimulus generalization process leverages baby boomer’s positive associations with A&W’s brand identity as reliving “the simple pleasures of days gone by.” Further, products and ads themselves serve as powerful retrieval cues. Nostalgia has been described as a bittersweet emotion in which the past is viewed with both sadness and longing. Studies have found that valued possessions such as vintage cars can evoke thoughts about people and prior events on several dimensions. These autobiographical memories influence consumer behaviour. By having us think about our past, ads succeed in getting us to like these ads more – especially when the link between the nostalgia experience and the brand is strong. Whether the ads refer to “good old days” or “an era where life was more stable, simple or even utopian,” they conjure consumer preferences for retro brands such as A&W to resolve belongingness needs (The Marketing Power of Nostalgia). 2. What should A&W do now given the early evidence of success with respect to the new advertising initiative? How likely is the healthy ingredient trend going to continue? Why? Answer: A&W’s strategy balances both the need to attract younger customers while retaining its predominant customer base, the baby boomers. Importantly, despite early evidence of success of the new advertising initiative, A&W should be wary of removing the positive nostalgia themes that has served them well over the past decade. It seems Paul Hollands hopes to balance both of these thematic directions. Indeed, as A&W continues to attract younger customers, it is important to achieve an effective balance in merging new efforts with the nostalgic elements that have made the brand so successful. The healthy ingredient trend certainly has established itself as an important issue in the marketplace and all evidence thus far indicates it will continue to be an important consideration for consumers (and especially younger ones). 3. Where does nostalgia fit in the new initiative? What emphasis would you suggest the company gives to nostalgia in moving forward with their marketing? Answer: As noted in Question 2, nostalgia is a key part of A&W’s brand identity and should be given emphasis in the new initiative. Specifically at locations that primarily serve A&W’s baby-boomer customer base. A&W should take steps to use retain positive stimuli that evoke nostalgia. The notion of “retro cool” is a possibility here. In this instance A&W would work towards building a more sophisticated and updated feel that integrates classic elements from their past (based in nostalgia). For example, using fry baskets, china plates, and glass mugs provides both sophistication to fast food and locks in the heritage of the brand. Additionally, color schemes, type/font, and interior design can pay tribute to the past while still looking current. With respect to the new initiative – there is an opportunity to link the quality and healthy aspects of A&W food to the attention to health and quality that were central years ago. Indeed, there is nostalgia for comfort food from days gone by – food that was more natural and pure. These considerations should be paramount at locations that cater to A&W’s baby boomers – i.e., among populations that need a positive stimuli that reinforce A&W’s classical heritage brand. 4. What other elements of learning and memory might A&W incorporate into its future initiatives? Answer: As noted in Chapter 2, there are three distinct memory systems: sensory memory, short-term memory and long-term memory. Although each plays an important role, long-term memory is the system that allows us to retain information for a long period of time. For information to enter into long-term memory, the process involves thinking about the meaning of a stimulus and relating it to other information already in memory. Furthermore, according to the activation models of memory, the more effort it takes to process information, the more likely it is that information will be placed in long-term memory. To reinforce A&W’s brand identity as a “classic heritage brand,” A&W could not only encourage consumers to engage in the deep-processing of information related to the brand, but also encourage consumers to form relationships between bits of related information in an associative network. For example, as noted in the case, a husband and wife who associated A&W with their first date could also associate the A&W restaurant with other relationship or family milestones. The more detailed the knowledge structure, the easier it is to spread activation and allow consumers to shift back and forth between levels of meaning. FIELD PROJECT IDEAS Individual Assignments 1. Assign students visit a popular mall or supermarket. From observations, have the student cite specific examples of how retail stores made use of behavioural learning principles. Which behavioural learning principles did the student notice? Ask for an oral report. Answer: Behavioral Learning in Retail: Students visited a mall or supermarket and observed behavioral learning principles in action. Examples included promotional discounts (operant conditioning), product placement near checkout counters (reinforcement), and in-store music (environmental cues). In their oral report, students detailed how these strategies influence consumer behavior by creating associations and encouraging repeat purchases. 2. Send students to the supermarket to identify a package where the marketer's knowledge of stimulus generalization and/or discrimination was obvious in the packaging. If possible, have students bring the item to class and explain their observations. Answer: Stimulus Generalization/Discrimination: Students identified packaging that clearly used stimulus generalization, such as similar color schemes or logos across product lines to leverage brand recognition. For example, a new snack might use the same colors and fonts as an established brand to create familiarity. Students explained how these design choices help consumers quickly identify and differentiate products on the shelf. 3. Encourage students to find three advertisements – one based on each of (1) cognitive learning, (2) classical conditioning, and (3) instrumental conditioning. Allow students to discuss with the class the nature of each advertisement and how it utilizes a specific type of learning. Answer: Advertisements and Learning Theories: • Cognitive Learning: An ad for a tech gadget that explains features and benefits to help consumers make informed decisions. •- Classical Conditioning: An ad featuring a beloved celebrity endorsing a product, creating positive emotional associations. • Instrumental Conditioning: An ad offering a discount for signing up for a service, using rewards to encourage desired behavior. 4. Have students ask two friends to look through the same magazine. After a few minutes, ask them to list the ads that they remember. Then ask them if any of these ads are for products they use. To what extent do they use the products advertised in the ads they didn't list? How would learning theory apply? Answer: Magazine Ad Recall: Students had two friends review a magazine and list memorable ads. They then assessed if those ads were for products the friends use and the extent of usage for ads not listed. This revealed how familiarity and relevance influence ad recall and product use, applying learning theory by showing the impact of repeated exposure and reinforcement on memory and behavior. Team Assignments 5. Ask a team of students to develop a number of environmental or ecological design suggestions for a department store manager to use to encourage people to shop at that store. Answer: Ask a team of students to develop environmental design suggestions for a department store to encourage eco-friendly shopping. Ideas might include incorporating green energy sources, using sustainable materials for store fixtures, offering recycling programs, and featuring eco-friendly product lines. 6. Recite for the class something you have memorized (poem, limerick, spoonerism, an old jingle, a song, O Canada, Boy or Girl Scout Oath, etc.) Encourage someone to recite something they have memorized. Then ask someone to repeat something you said at the beginning of this class and something you said last week. (Long-term and short term memory exercise.) Answer: Recite a memorized piece to the class, such as a poem or jingle. Then, encourage students to recite something they’ve memorized. Next, ask them to recall a detail from earlier in the class and from a previous session to demonstrate short-term and long-term memory. Individual or Team Assignments 7. Demonstrate the extent to which consumer learning is often unintentional by asking students to identify the corporate sponsors of five slogans. (For example, Diet Coke says, "Just for the taste of it.") You could ask a student to do this as an individual project. Answer: Have students identify the corporate sponsors of five popular slogans (e.g., "Just Do It" – Nike). This demonstrates how consumer learning often happens unintentionally through repeated exposure to these catchy phrases. 8. Have students search for pictures of products that have high nostalgia value for people in their age group. Tell them to show these pictures to their peers and ask them to reminisce. Then have the students analyze these memories and prepare a television ad that would incorporate what they learned in their research. For extra credit, have them make a video of their ad. Answer: Students find nostalgic product images from their age group, show them to peers for reminiscence, and analyze the responses to create a TV ad incorporating these memories. For extra credit, they can make a video ad based on their research. 9. Break the class into teams and have each team make a list of commercials that have used popular songs in the ad. Ask them why they think the advertiser chose these songs to be placed in the ad and have them describe the target markets. Answer: Teams list commercials using popular songs and analyze why these songs were chosen, focusing on how the music appeals to the target market and enhances the ad's effectiveness. 10. Break the class down into teams. Have each team review the Components of Observational Learning and then tell the class about products they have purchased based on this model. Answer: Teams review the components of observational learning and share examples of products they bought based on observing others using them, demonstrating how this model influences consumer behavior. 11. This can either be an in-class project or a student project. Select a product brand that is familiar to those participating (e.g., Honda Accord, Kraft Peanut Butter, Absolut Vodka). Use word-association (i.e., mention key words and have subject write down the first comes to mind) and sentence completion (i.e., give half of a sentence and have the respondent complete it) to discover the "semantic network" for the brand. Answer: Select a familiar product brand, and use word-association and sentence completion to explore the brand's semantic network, revealing how consumers perceive and relate to the brand. 12. Have a student or a team identify a convenience product, such as toothpaste or bath soap, and then suggest ideas on how this product might be promoted using both positive and negative reinforcement theories. Answer: Identify a convenience product and suggest promotional strategies using positive and negative reinforcement theories, showing how these approaches can influence consumer behavior. 13. Ask students to select one loyalty card programme and present an analysis of how the programme benefits the consumer and the marketer. What are the downsides of the programme? Answer: Analyze a loyalty card program, discussing its benefits for both consumers and marketers, and identify potential downsides, such as privacy concerns or program complexity eLAB Individual Assignments 1. Go to www.levis.com. Levis Strauss is a brand that is 150 years old. But the long dominant player in the jeans and apparel industry has struggled in recent years to regain market share that it has lost to more youthful brands. Visit their website and discuss what strategies the company appears to be using to attract Generation Y (30 million plus individuals born between 1979 and 1987). What forms of learning are the company attempting to use to reacquire a youthful audience? Be specific in your description and provide illustrations of your ideas from the Web site to support chapter concepts. Answer: Levi's website highlights strategies to attract Generation Y through modern, trendy collections and collaborations with popular brands and influencers, such as their "Levi's® x Paris Hilton" line. They utilize social media integration and interactive content to engage younger audiences, showcasing user-generated content and leveraging influencers. Their website features a visually engaging design and personalized shopping experiences, aligning with youthful preferences for authenticity and style. For example, the "Customizations" section allows customers to personalize their jeans, appealing to the desire for individuality. 2. Go to www.gogorillamedia.com. Become familiar with the advertising product offerings from this company. What previously useless space is this company turning in to valuable advertising space? What advertisers might be most interested in the various types of ad space options? How would each affect learning and memory? What memory processes would be most critical to the success of the different ad options? Answer: Gogorilla Media transforms previously unused elevator doors and interior spaces into valuable advertising platforms. Advertisers like local businesses and brands targeting urban commuters might find these options appealing. The ads leverage spatial learning by associating messages with specific locations, enhancing recall through repeated exposure. Memory processes critical to success include semantic encoding, where ads are linked to recognizable places, and contextual memory, where the association of ads with specific environments helps reinforce brand recognition. eLAB Team Assignments 1. Go to YouTube.com as a group and review ads from recent Super Bowls. For the more well-known ads, create both recall and recognition tests. Give one type of the other to different students in class (this can be done after showing the ads, or not showing the ads if they are well-known enough). Compare the results. Answer: For Super Bowl ads, create recall tests by asking students to list all ads they remember from the game, and recognition tests by showing them images or clips of the ads and asking which ones they recognize. Compare the results to assess how recall and recognition differ in effectiveness. 2. Go to www.mitchellandness.com. Many companies have incorporated an element of nostalgia into their strategies to help boost sales. But this company’s product line relies entirely on nostalgia. Mitchell and Ness has achieved substantial success with a line of throwback sports apparel. As a group, create a profile for the market(s) you think this company is targeting. Explain how nostalgia is the cornerstone of this company’s success and how this principle works by applying learning and memory processes. Based on your analysis, design a print ad that emphasizes the “nostalgia” theme for this company’s products. Answer: Mitchell & Ness targets sports fans, particularly those nostalgic for past decades. Nostalgia drives their success by leveraging **episodic memory**, where customers remember past sports events fondly. Design a print ad featuring a vintage sports scene with iconic throwback jerseys and a tagline like "Relive the Glory Days," emphasizing emotional connections and past memories. PROFESSORS ON THE GO! Chapter Objectives
When students finish this chapter they should understand why: •It is important for marketers to understand how consumers learn about products and services Assign students to visit a popular mall or supermarket. From observations, have them cite specific examples of how retail stores made use of behavioural learning principles. Which behavioural learning principles did the student notice? Ask for an oral report. •Conditioning results in learning Many brands attempt to capitalize on positive associations that consumers have for competing brands by copying certain characteristics. Have students identify an example of this. Demonstrate the extent to which consumer learning is often unintentional by asking students to identify the corporate sponsors of five slogans. (For example, Diet Coke says, "Just for the taste of it.") You could ask students to do this as an individual project. •Learned associations can generalize to other things, which is important to marketers Have students identify brand or corporate names that are based on semantic associations. Then have students ask five people what comes to mind when they hear each brand name. In reporting their findings, have students discuss whether company attempts to invoke certain perceptions appear to be working. •There is a difference between classical and instrumental conditioning, and both processes help consumers learn about products Have student groups design an experiment that would demonstrate the occurrence of either classical conditioning or instrumental conditioning. Have them conduct their experiment on members of the class. •Observation of others’ behaviour can result in learning Ask students to observe their friends, roommates, and co-workers for an extended period of time to identify an incidence of modeling as it relates to a celebrity. Have them note how the four conditions of modeling are met. Is the celebrity a brand endorser? How might their behaviour be positive/negative for the marketers of the brands(s) that the celebrity endorses? •How the memory process works Ask students to complete the following assignment based on a popular national brand: Collect as many pieces of promotional material (ads, direct mail, etc.) as possible for the brand. Based on this promotional evidence, identify any bits of information that marketers intend to be associated with the brand. Create an associative network for the brand, integrating the documented nodes of information with other nodes. •Marketers measure memories about products and ads using varies techniques Go to YouTube As a group, review ads from recent Super Bowls. For the more well-known ads, create both recall and recognition tests. Give one type or the other to different students in class (this can be done after showing the ads or not showing the ads if they are well-known enough). Compare the results. ENDNOTES i Chris Janiszewski and Luk Warlop, "The Influence of Classical Conditioning Procedures on Subsequent Attention to the Conditioned Brand," Journal of Consumer Research 20 (September 1993): 171-189. ii Chris Janiszewski, “Preconscious Processing Effects: The Independence of Attitude Formation and Conscious Thought,” Journal of Consumer Research 15 (September 1988): 199 209. iii Diane Schneidman, “Use of ‘Mc’ in Front of Travel Firms’ Names Leads to Lawsuits,” Marketing News (November 20 1987): 17. iv Junda Woo, "Schoolyard Game Sets Off Trademark-Generic Battle," The Wall Street Journal (August 29, 1994): B5. v Chris Nutall, “Why internet needs to break down language barriers,” Financial Times, March 25, 2004: 7. vi Adam Jones, “Europe’s taste for beer comes home to roost,” Financial Times, March 23, 2004: 10. vii Bernd H. Schmitt, Nader T. Tavasolli, and Robert T. Millard, "Memory for Print Ads: Understanding Relations Among Brand Name, Copy, and Picture," Journal of Consumer Psychology 2 (1993) 1: 55-81. viii Jacob Jacoby and Wayne D. Hoyer, "The Comprehension Miscomprehension of Print Communication: Selected Findings,” Journal of Consumer Research 15 (March 1989): 434-44. ix Julie A. Edell and Richard Staelin, “The Information Processing of Pictures in Print Advertisements," Journal of Consumer Research 10 (June): 45 61; Michael Houston, Terry Childers, and Susan Heckler, "Picture-Word Consistency and the Elaborative Processing of Attributes," Journal of Marketing Research 24 (November 1987): 359-69. x Bruce Bower, "Fading Remembrances of Television Past," Science News 135 (March 18, 1989): 167. xi Adam Finn, "Print Ad Recognition Readership Scores: An Information Processing Perspective," Journal of Marketing Research 25 (May 1988): 168-77. Solution Manual for Consumer Behaviour: Buying, Having, Being Michael R. Solomon, Katherine White, Darren W. Dahl 9780133958096