Week 4

Learning and Memory

Last week with Perception concept,

We focused on the way we mentally store

information we perceive and how it adds to our
existing knowledge about the world during the
learning process.
Learning Objectives
Through learning and Memory understand why:

1. It’s important for marketers to understand how

consumers learn about products and services.
2. Conditioning results in learning.
3. Learned associations can generalize to other
things and why this is important to marketers.
4. There is a difference between classical and
instrumental conditioning.
Learning Objectives (continued)
5. We learn by observing others’ behavior.
6. Our brains process information about brands to
remember them in memory.
7. The other products we associate with an
individual product influence how we will
remember it.
8. Products help us to retrieve memories from our
past.
9. Marketers measure our memories about
products.
How do we learn?
• It is important to understand how
consumers learn about products
and services
• Learning is a relatively permanent
change in behavior caused by
experience.
• The experience can be direct or it
can be observed. Learning is an
ongoing process.
Theories of Learning
There are several learning theories which range
from those that focus on connections between
actions and consequences to those that focus on
understanding complex relationships and problem
solving.

• Behavioral learning theories focus on stimulus-

response connections
• Cognitive theories focus on consumers as
problem solvers who learn when they observe
relationships
Behavioral Learning Theories
Behavioral Learning Theories
• Behavioral learning theories assume that all behaviour is learnt from
the external environment and is a result of a response to a
stimulus.
• Psychologists who subscribe to this viewpoint do not focus on
internal thought processes. Instead, they approach the mind as a
“black box”.
• There are two major approaches,
• (1) Classical conditioning
• (2) Instrumental conditioning.
Behavioral Learning Theory: Classical
Conditioning
Classical conditioning: a stimulus that elicits a response is paired
with another stimulus that initially does not elicit a response on its
own. Involuntary behaviours….
Factors That Affect the
Classical Conditioning Process

Stimulus Stimulus
Generalization Discrimination

Conditions may also weaken

over time especially when a
UCS does not follow a
stimulus similar to a CS. This
is called stimulus
discrimination.
Repetition
Conditioning effects are more likely to
occur after the conditioned (CS) and
unconditioned (UCS) stimuli have been
paired a number of times.
Classical Conditioning

• Conditioning Issues
• Repetition increases the strength of the
stimulus-responses associations.
• Stimulus generalization occurs when the
response to a conditioned stimulus can be
evoked from a similar stimulus (Till and Priluck
2000).
• Stimulus discrimination is when a brand uses
packaging design in order to COMPLETELY
differentiate itself from its competing brands
Marketing Applications of Repetition
• REPETITION increases learning
• Many classic advertising campaigns consist of
product slogans repeated often to enhance
RECALL.
• More EXPOSURE = increased brand awareness
• When exposure decreases, extinction occurs
• However, too MUCH exposure leads to
advertising wear out
Classical Conditioning - Repetition

https://youtu.be/0t0_dopdPp4

• Softness
• Friendliness
• Lab tested for Strength
Marketing Applications of
Stimulus Generalization
• The process of stimulus generalization is critical to branding and
packaging decisions that try to capitalize on consumer’s positive
associations with an existing brand or company name. Marketers
can base some strategies on stimulus generalization.
• Family branding - enables products to capitalize on the
reputation of a company name
• Product line extensions - by adding related products to an
established brand
• Licensing
• Look-alike packaging - Distinctive packaging designs create
strong associations with a particular brand
• Companies that make generic or private-level brands and want
to communicate a quality image often exploit this linkage when
they put their products in similar packages to those of popular
brands.
Classical Conditioning – Stimulus
Generalization
Global discount supermarket brand ALDI stresses how it stocks quality at
incredibly low prices.
More specifically, this perception of quality is further emphasized through the
similar packaging of its products to the more popular manufacturer brands
available in the market

Family branding ALDI - Switch and Save Hairspray

https://youtu.be/siM9lruGeP0

ALDI - Switch and Save Dog Food

https://youtu.be/-1r_i88A_Ng
Classical Conditioning – Stimulus
Generalization
Product line extensions
All of Schweppes products can be
identified due to the prominent logo
which is a ‘swish’, dividing the can into
two halves.
The top is always silver regardless of the
product.

Bentley luxury carmakers - Licensing its name in other product categories

& Product line extension
Classical Conditioning – Stimulus
Discrimination
Classical Conditioning – Stimulus
Discrimination

similar packages to those of popular brands.

Equal Haagen-Dazs
• The shape of the container • Flavor brings interest
• Blue color vs yellow • Red & Gold theme
• Equal is for coffee
Behavioral Learning Theory:
Instrumental Conditioning
Instrumental conditioning (also, operant conditioning): Instrumental or operant
conditioning occurs when an individual learns to perform behaviours based on
the rewards attained (positive reinforcement) or to avoid punishment (negative
reinforcement). Voluntary behaviours…. It means to condition behavior using
consequences.

Negative Reinforcement Positive Reinforcement

Marketing Strategy Marketing Strategy

Describes the absence of a reward when an A reward is attained when an appropriate

appropriate behaviour is not performed. behaviour is performed.
Types of Reinforcement
Rewarding desired behavior to Removing reinforcement to
encourage repetition weaken behavior over time

Discouraging undesired behavior

by introducing negative
consequences Removing an unpleasant factor to
encourage behavior
 Types of Reinforcement
Marketing Example:
! Ending a Discount Program – A
grocery store stops its loyalty
program, leading to a decline in
repeat purchases.
Marketing Example: ! Removing Free Shipping – An
Loyalty Programs – online retailer removes free shipping
Starbucks Rewards for orders under $50, reducing
gives points for each impulse buying.
purchase, encouraging ! Discontinuing Personalized
repeat visits. Emails – A beauty brand stops
Discount Coupons – sending personalized skincare
A cosmetics brand offers recommendations, leading to a drop
a 20% discount on the in engagement.
next purchase to
returning customers.
Exclusive Perks –
Amazon Prime members
get free shipping and
early access to deals,
reinforcing subscription
renewals.

Marketing Example:
Free Trial with Auto-Renewal –
Netflix offers a one-month free trial,
removing the risk of wasted money,
making users more likely to continue
Marketing Example: paying.
Late Fees & Price Increases – Credit card companies charge late Pain-Free Returns – Zappos
fees to prevent delayed payments. offers free, hassle-free returns,
Limited-Time Offers Expiring – Airlines increase prices closer to eliminating purchase anxiety.
departure to discourage last-minute bookings. Subscription Models – Spotify
Membership Cancellation Fees – Gyms charge cancellation fees to removes ads for premium users,
discourage early contract terminations. encouraging them to upgrade.
Types of Reinforcement - Fashion & Apparel Industry

Positive Reinforcement (Encouraging Repeat Purchases)

•Loyalty Programs – H&M’s "H&M Member" program offers points for every purchase, leading to
discounts and exclusive offers.
•Limited-Edition Giveaways – Luxury brands like Chanel offer free beauty samples with a minimum
purchase to encourage future buys.

Negative Reinforcement (Eliminating Unpleasant Factors)

•Free & Fast Shipping – Brands like ASOS and Zara offer free express delivery for premium
members, removing long wait times.
•Flexible Return Policies – Nike allows 60-day hassle-free returns, making customers more
comfortable with purchases.

Punishment (Discouraging Unwanted Behavior)

•Restocking Fees – Brands like Louis Vuitton charge restocking fees for returned luxury items to
prevent excessive returns.

! Extinction (Weakening a Behavior)

•Ending Holiday Discounts – After Black Friday, brands remove steep discounts, reducing impulsive
shopping behavior.
Types of Reinforcement - FMCG Industry

Positive Reinforcement (Encouraging Repeat Purchases)

Buy One, Get One Free (BOGO) – Coca-Cola and Pepsi frequently run BOGO promotions to boost
purchases.
Loyalty Points on Groceries – Supermarkets like Carrefour offer reward points that can be redeemed
for discounts.

Negative Reinforcement (Eliminating Unpleasant Factors)

Sugar-Free & Healthier Options – Brands remove unhealthy ingredients (e.g., Pepsi launching Pepsi
Zero Sugar) to attract health-conscious consumers.

Punishment (Discouraging Unwanted Behavior)

Higher Prices for Single-Use Plastics – Brands like Starbucks charge extra for plastic cups,
encouraging reusable alternatives.

! Extinction (Weakening a Behavior)

Discontinuing Seasonal Flavors – Limited-edition flavors (Pumpkin Spice, Holiday Specials) disappear
after the season, reducing habitual consumption.
Gamification
The use of game design elements in non-game contexts.
(Deterding 2012)

• Gamification is a form of instrumental learning based on attainment of

rewards and achievement.
• Gamification applies game-like elements (such as points, rewards,
leaderboards, and challenges) to engage customers, drive
purchases, and build brand loyalty.

It allowed users to compare their achievements with local users and with the rest of the world.

The results enabled the brand to collect high amounts of data regarding the customer as well as
helping it boost customer engagement and loyalty
Nike Run Club & Nike Training Club

•Nike's Run Club app tracks workouts and awards badges for milestones (e.g.,
running 50km).
•Personalized challenges & leaderboards keep users engaged and loyal to Nike
products.

Effect: Users become attached to Nike’s ecosystem and purchase Nike shoes,
apparel, and accessories.

https://www.youtube.com/watch?v=HF-bV1Lar1k
Starbucks Rewards App
Customers earn "Stars" for every purchase, which can be redeemed for free
drinks or food.

Limited-time double-star days create urgency to buy more.

Personalized challenges (e.g., “Buy 3 lattes this week and earn 50 bonus stars”).

Effect: Increases repeat visits and average order value.

Cognitive Learning Theory
Observational Learning

We learn about products by observing others’ behavior.

People store these observations in memory as they
accumulate knowledge and then they use this
information at a later point to guide their own behavior.

Cognitive learning theories focus more on how individuals

are problem solvers, who actively gather and use
information from their environment during the learning
process (Solomon 2014).
The Observational Learning Process
Individuals store observations of other people in their memory and use this
information to guide their future behaviour (Solomon 2014).
Cognitive Learning Theory:
Observational Learning
Observational Learning occurs when people watch the actions of
others and note the reinforcements they receive from others.

Imitating the Behavior of Others is Called Modeling:

Consumer’s Attention Must Be Drawn to a Desirable Model

Consumer Must Remember What is Said and Done by Model

Consumer Must Convert This Information Into Actions

Consumer Must be Motivated to Perform These Actions

Marketing Applications of Cognitive
Learning Principles

https://www.youtube.com/w https://www.youtube.com/watch?v
atch?v=BdFxWVezwEY =s3HavPymiFQ
Memory

The process of acquiring new information,

storing it and retrieving it when needed
(Solomon 2014).
Memory systems and information
processing
• Our brains process information about
brands to retain them in memory.

Data are input, processed, and output for later use in revised form.
In the encoding stage, information enters in a way the system will recognize.
In the storage stage, we integrate this knowledge with what is already in memory
and “warehouse” it until it is needed.
During retrieval, we access the desired information.
Relation Among Memory Systems
According to the information-processing perspective,
there are three distinct memory systems. Each plays a
role in processing brand-related information.
Relation Among Memory Systems

SENSORY MEMORY stores the information we receive from our senses. This
storage is temporary. If the information is retained for further processing, it
passes through an attentional gate and transfers to short-term memory.

SHORT-TERM MEMORY also stores information for a limited period of time,

and it has limited capacity. This system is working memory. It holds information
we are currently processing. Our memories can store verbal input acoustically
or semantically. We store this information by combining small pieces into larger
ones in a process we call chunking. A chunk is a configuration that is familiar
and the person can think about it as a unit.

LONG-TERM MEMORY is the system that allows us to retain information for a

long period of time. A cognitive process we call elaborative rehearsal allows
information to move from short-term memory to long-term memory.
Measuring Memory for Marketing Stimuli
How do we know if our marketing messages are designed
to help consumer remember them?

We can measure RECOGNITION AND RECALl.

In a typical RECOGNITION TEST, researchers show ads to
subjects one at a time and ask if they have seen them
before.
In contrast, free RECALL TESTS ask consumers to
independently think of what they have seen without being
prompted first.
Recognition vs Recall

Recognition requires a cue in order Recall, on the other hand does not
to remember something. require any sensory cues in order to
remember a particular brand, service,
or product.

Which brand of ice- cream?

Energy drinks?

Cheeseburger?
The Role of Memory in Learning:
Associative Networks
Our long-term memory is stored in an associative network that
contains bits of related information that are connected through a series
of relationships. Solomon (2014). Nodes – bits of information. Pathways
– how they are related to each other…
The Role of Memory in Learning:
Associative Networks
The other products we associate with an individual product
influence how we will remember it.

Associative Networks for Perfumes

The Role of Memory in Learning:
Associative Networks
Associative Networks for New York
The Role of Memory in Learning:
Associative Networks
Associative Networks for Donald Trump
The Role of Memory in Learning:
Spreading Activation
Memory stored in terms of….
• Brand-specific - the claims the brand makes
• Ad-specific - content of the ad
• Brand identification - Brand name
• Product category – how the product works
• Evaluative reactions – positive or negative emotions

https://youtu.be/anISGkYwfdM
Nostalgia and Marketing
• Nostalgia can be described as ‘reminiscing about the good old
days’. It often gives rise to bittersweet emotions as one recalls
positive memories from the past (Solomon 2014).
• Nostalgia in marketing is used to trigger memories from the
past to evoke positive emotions such as warmth and comfort.
• Article: http://3doordigital.com/nostalgia-marketing/
The Marketing Power of Nostalgia
• Marketers may resurrect popular characters
to evoke fond memories of the past
• Nostalgia
• Retro brand
The Marketing Power of Nostalgia
• NOSTALGIA describes the emotions where we view the
past with longing. We reference the good old days.
• When marketers play on nostalgia, they want us to attach
our fond memories to new products.
• One way to do this is to introduce retro brands. A retro
brand is an updated version of a brand from a prior
historical period. The Mini Cooper, PT Cruiser, and
Volkswagon’s New Beetle are all retro brands.
 The Marketing Power of Nostalgia

Nostalgia

Retro brand

Portraying a more fun and accessible side

to their brand.
Chapter Summary
• Marketers need to know how consumers learn in order to develop
effective messages.

• Conditioning results in learning and learned associations can

generalize to other things.

• Learning can be accomplished through classical and instrumental

conditioning and through observing the behavior of others.

• We use memory systems to store and retrieve information.

• Nostalgia serves as an effective tool for marketers to reach its target
audience through evoking positive memories of the past