Consumer Behavior

Learning, Memory & Product Positioning

 Learning

- Learning is “a process that leads to change, which occurs as a result of

experience and increases the potential for improved performance and future
learning” (Ambrose et al, 2010, p. 3). 
- Consuming requires learning. Consumer behavior is learnt. Learning shapes
attitudes, values, tastes, actions, preferences, symbolic meanings, and
feelings. Culture, family, friends, mass media, and advertising shape people's
lifestyles and product choices.
- Learning is any change in the content or organization of long-term memory or
behavior and is the result of information processing.
- Information processing is a series of activities by which stimuli are perceived,
transformed into information, and stored. The four activities in the series are
exposure, attention, interpretation, and memory.

- When consumers acquire knowledge through their own information-

processing, they learn and remember in their buying decisions. For example, if
we have tonsillitis and use an anti-biotic that helps resolve that, we have
learned through experience to purchase that product again, if required.
 Learning

Different IPSs
handle different
learning aspects.
The perceptual
system processes
information through
exposure and
attention and can be
conscious or
unconscious. STM
temporarily stores
information while
it's interpreted and
transferred to LTM.
LTM stores and
retrieves decision-
making information.
Learning & Purchase
 Memory

Three major types of memory:

• Immediate, or sensory,
memory lasts only milliseconds,
and we often aren’t aware of it

• Short-term memory lasts a
few minutes. You hold onto
information for as long as it is
helpful to the task you are
performing. STM is that
portion of total memory that is
currently activated or in use.

• Long-term memory is
unlimited. Long-term memory is
where we store facts, ideas, and
stories.
 Memory Process

The best way to tap into the power of memory is to give people memorable
first-hand experiences, and there's no better way to do that than with
experiential marketing. By offering customers a brand experience, they
engage with your brand on a more personal, memorable level.
 Memory’s Role in Learning

Sensory Memory

Sensory memories come from the five senses: hearing, vision, touch, smell,
and taste and are stored for a few seconds at most. They are stored only for as
long as the sense is being stimulated.
So, it is the perception of sight, hearing, smell, taste, and touch info entering
through the sensory cortices of the brain and relaying through the thalamus. It
lasts only milliseconds.
It is a potent tool that aims to appeal to at least one of the five senses in order
to prompt significant, positive and, in-turn, profitable responses from a
business' main target audience. 

Sight is the most stimulated of the 5 senses in sensory marketing. E.g.

consumers easily recognize household-name and logos. As marketers, we can
also incorporate sight with sounds, to create a lasting emotional experience.
 Sensory Memory

A brand that successfully uses scent marketing via smell is Rolls Royce.
Whenever its customers takes their car to an official garage, the car's interior is
perfumed with wood and leather scents to give it that “brand new car” smell.
 Memory’s Role in Learning

Short-Term Memory (STM)

Short-term memory stores information and sensations with limited capacity. It

is more like a computer file that is currently in use. Active files hold information
while it is being processed. After processing is complete, the reconfigured
information is stored in a more permanent storage such as the hard drive. An
Individual use short-term memory to hold information while he analyzes and
interprets it. He may then transfer it to another system (write or type it), place it
in long-term memory, or both. Thus, short-term memory is closely analogous to
what we normally call thinking. It is an active, dynamic process, not a static
structure.

 STM is Short Lived

 STM has Limited Capacity

 Elaborative Activities Occur in STM

 Short-Term Memory (STM)

STM is Short Lived

• Information in working memory decays quickly. The memory span for

prices, for example, is about 3.7 seconds.

• The short-lived nature of STM means that consumers must constantly

refresh information through maintenance rehearsal or it will be lost.
• Maintenance rehearsal is the continual repetition of a piece of information in
order to hold it in current memory for use in problem solving or transferal to
long-term memory.
• Repeating the same formula or definition several times before taking an
exam is an example.
• Marketers frequently simulate this by repeating the brand name or a key
benefit in a prominent manner several times in an ad.

• Anniversary Discount, Seasonal Clearance Sale, Festival Discount etc. and

advertisements serve this purpose.
 Short-Term Memory (STM)

STM has limited Capacity

The limited capacity of STM means that consumers can hold only so much information
in current memory. The capacity of STM is thought to be in the range of 5 to 9 bits of
information.
A bit can be an individual item or a related set of items. Organizing individual items into
groups of related items that can be processed as a single unit is called chunking.
Chunking can greatly aid in the transfer (and recall) of information from memory. A
recent study of toll-free vanity numbers shows the power of chunking.
Memory for completely numeric numbers was 8 percent, memory for combinations of
numbers and words (800-555-HOME) was 44 percent, and memory for all words (800-
NEW-HOME) was 58 percent!
The number of bits goes down as the words become meaningful chunks replacing
meaningless numbers. Marketers can help consumers chunk product information by
organizing detailed attribute information in messages around the more general benefits
that they create.
Interestingly, consumers who are product experts are better able to chunk due to highly
organized memory structures. As a consequence, experts are better able to learn
information and avoid information overload.
 Short-Term Memory (STM)

Elaborative Activities Occur in STM

STM is often termed ‘working memory’ because that’s where elaborative activities take
place while info is analyzed, categorized, and interpreted. Elaborative Activities are
previously stored experiences, values, attitudes, beliefs, and feelings to interpret and
evaluate info in working memory as well as to add relevant previously stored info.
Elaborative activities serve to redefine or add new elements to memory. Ford, with
Microsoft, launched such a product. First, it used an image-rich name that conveys
much of the product’s function. SYNC is short for synchronize, which suggests how
the product helps orchestrate and coordinate in-car technology activities.

The visual in the ad clearly, if symbolically, suggests the easy flow and interplay of the
various technologies as they relate to the workday commute. The text expands on this
theme and helps relay key benefits.

Thus, this ad should help trigger elaborative activities that will allow consumers to
define this as a new and useful product for safely using a cell phone and MP3 player
while driving. The high-imagery name should help retention and recall of the key
benefits of the product.
 Short-Term Memory (STM)

Elaborative Activities Occur in STM

Elaborative activities can involve both concepts and imagery. Concepts are
abstractions of reality that capture the meaning of an item in terms of other concepts.
They are similar to a dictionary definition of a word.
Thus, a consumer might bring to mind concepts such as harmonize, coordinate, and
bring together, when first processing the new concept SYNC.
Imagery involves concrete sensory representations of ideas, feelings, and objects. It
permits a direct recovery of aspects of past experiences. Thus, imagery processing
involves the recall and mental manipulation of sensory images, including sight, smell,
taste, and tactile (touch) sensations.
Pictures can increase imagery, particularly when they are vivid, meaning they are
relatively concrete representations of reality rather than an abstraction.
In the SYNC ad, the visual depicts a car moving toward the city. In between are images
of actual musicians, office buildings, and electronic devices.
These concrete images may induce some consumers to think about their morning
commute to work, prior experiences trying to operate their radios and cell phones with
difficulty, and then imagine how pleasurable it would be to have hands-free
capabilities.
 Short-Term Memory (STM)

Successful new products and brands must enter into memory in a favorable manner,
and they must be recalled when required. In this case, the brand name, the visual in
the ad, and the ad text will enhance elaborative activities appropriate for the product.
Short-Term Memory (STM)
Short-Term Memory (STM)
 Memory’s Role in Learning

Long-Term Memory (LTM)

Long-Term Memory (LTM) : LTM is permanent, infinite storage. It stores concepts,

decision rules, procedures, and emotional states.
Marketers are interested in semantic memory, which is basic concept
understanding and feelings. It's someone's simplest understanding of an object
or event. Acura is a luxury brand at this level.
Marketers also value episodic memory. This is a participant's recall of events.
Fresher’s reception, graduation, and learning to drive can leave vivid
recollections. They evoke images and sensations.
Marketers try to elicit episodic memories because their brand was involved or to
correlate pleasant feelings with the brand.
Flashbulb memories are an episode type. Flashbulb memory (out of dramatic
event – Your Shaking hand with HPM) is acute recall of a shocking or novel event.
 Memory’s Role in Learning

 Schemas (schematic memory): A schema is a mental model stored in long-term

memory that the brain uses to organize information. Schemas are built from
memories and experiences and are unique to each individual. We have schemas for
every topic imaginable: objects, events, people, activities, relationships, and etc.
Concepts and occurrences gain meaning when associated with others. Schema or
schematic memory is a system of associations surrounding a particular notion.
Schematic memory is an intricate network. Figure in the next slide is a simplified
example of a schema that shows how to construct a Mountain Dew network of
meaning.

 Scripts: Scripts are schemas that remember activity sequences, such as buying and
drinking a soft drink to quench thirst. Effective shopping requires scripts. A basic
example of this is a script of acceptable behavior in a library. New types of commerce
must teach customers how to buy products in a new way. This is the difficulty for
online retailers. Their target markets must master Internet shopping scripts to
succeed. Green marketing includes teaching people recycling scripts.

 So, we, as marketers, should be clear about episodic, semantic and flashbulb memory.
What about schemas vs scripts?
 Memory’s Role in Learning

A Partial Schematic Memory for Mountain Dew

 Memory’s Role in Learning

Retrieval from LTM:

Accessibility is the ease and possibility of LTM recollection. When a memory node or
link is accessed, it's strengthened.
Rehearsal, repetition, and elaboration increase accessibility. Coca-Cola comes to mind
when you think about drinks since you've seen so many advertising for it. Top-of-mind
awareness is a brand's accessibility.
Accessibility also depends on incoming link strength and number. Linking concepts in
memory boosts their accessibility due to various retrieval routes. By generating a rich
association network, elaboration improves retrieval.
Stronger and more direct links to nodes are more accessible. Cool and crisp are easily
associated with Mountain Dew, but parties and refreshing are not.
Marketers desire direct links between their brand and product features.
 Learning to Generalize and Differentiate

- Stimulus Discrimination: Learning to react differently to similar stimuli. This is vital

for marketers that want consumers to see their brands as unique and important. In
consumer behavior, marketers use stimulus discrimination to help consumers
recognize their products as distinct from similar products. For example, the
packaging on a certain brand of snack cookies might help buyers discriminate
between multiple similar products. Similarly, Biryani in leaf-pot, Jaipur sweets in
bambo-made containers etc.

- Stimulus Generalization: When one stimulus elicits a reaction to a similar but

different stimulus. A consumer who likes Nabisco cookies and expects its new
Nabisco Chocolates will too has engaged in stimulus generalization. Stimulus
generalization is prevalent and provides brand equity and brand expansion
opportunities.  Simply saying, it is the tendency to respond to stimuli that are similar to the
original conditioned stimuli. Gillette can capitalize on consumers ability to generalize
favorable brand associations from one product to another since it has a easily recognizable
design. Fit Elegance suits, apex footwear all have such designs.
 Learning, Memory, and Retrieval

Marketers want consumers to learn and remember positive features, feelings, and
behaviors associated with their brands.
 Learning, Memory, and Retrieval

Strength of Learning:

One component is learning strength. The stronger the original learning (of nodes
and links between nodes), the more likely relevant information will be recovered
when needed. Learning is strengthened by six factors: importance, message
involvement, mood, reinforcement, repetition, and dual coding.

- Importance: Importance is how customers evaluate new information.

Importance may be driven by product or brand interest or the necessity to make
a decision soon. When a behavior or piece of knowledge is significant, a person
learns it more effectively and efficiently.

- Message involvement: When a customer isn't motivated to learn, involving

them in the message increases processing. Playing an instrumental rendition of
a popular song with product-related lyrics may cause individuals to "sing along,"
either out loud or mentally. This deeper participation with the message,
compared to simply listening to the lyrics, boosts processing and recall of the
message's features or theme.
 Learning, Memory, and Retrieval

- Mood: Learn, be happy? This is supported by research. A good attitude boosts

learning when presenting brand names. A happy mood during information
reception seems to increase its relational elaboration. This creates more
complete and stronger links between brands and concepts, which improves
retrieval (access to the information).

- Reinforcement: Reinforcement is something that raises the likelihood of a

future reaction. Reinforcement affects the speed and duration of learning, even
when it's not there. Positive reinforcement is a desirable result. A food-loving
couple sees an ad for a new kind of ‘Takeaway’ burger and decides to try it.
Food, service, and atmosphere have been great. They'll choose the same
burger/same brand next time. Negative reinforcement entails avoiding an
unpleasant consequence. If the couple that experienced ‘Take Away’ burger
had poor service or food, they wouldn't return.
 Learning, Memory, and Retrieval

- Repetition: Repetition improves learning and memory by increasing memory

access and associative links. The more people see or do something, the more
likely they are to learn and remember it. Emirates promotes through Cricket in
all major tournaments. Certain music "motivates" automatic self-repetition in
consumers, which strengthens learning and brand associations.

- Dual Coding: Information can be coded in several ways. Dual coding resulted
in more internal retrieval pathways (associative linkages). Learning and
memory can improve. Dual coding occurs when consumers learn information
in two separate settings, such as seeing two advertising for the same dandruff
shampoo, one with an office theme and one with a social theme. The diversified
theme (context) gives the brand multiple paths, which improves remember.
 Dual Coding

Dual coding uses different types of stimuli to help learners encode information in
their brains more effectively, enabling it to be more easily retrieved later on. 
 Learning, Memory, and Retrieval

- Memory Interference: Sometimes consumers can't recall a certain piece of

information because of other memories. Memory interference describes this
effect. Competitive advertising interferes with marketing. A good ad from
Bangla link may make us forget Robi offers. Consumers have a tough time
remembering ads due to competitive marketing. Sometime they remember an
ad's substance, but typically can't link it to a brand. Competitive advertising can
impair memory for brand claims in one ad.

- Response Environment: Retrieval is affected by the similarity of the retrieval

(response) environment to the original learning environment and learning type.
The closer the retrieval scenario resembles learning signals, the more
successful retrieval is. One technique is to make the retrieval environment like
the learning environment. The "Got Milk?" and Life cereal examples show how
marketers try to relate in-store retrieval to learning by giving retrieval cues.
 Learning, Memory, and Retrieval

Avoid competing ads: One method is to prevent having our ad appear in the
same pod as a competitor's. Some corporations pay to be exclusive. Recency
planning entails scheduling ads as close to a purchase as possible. Reducing the
time to purchase minimizes the possibility that a competitor's ad will be viewed.
Strengthen initial learning: Strengthening initial learning reduces memory
interference. Such interference is less pronounced in high-involvement
scenarios and for familiar brands. High-involvement learning should lead to
stronger brand schema, and familiar brand schema is stronger than new ones.
Reduce similarity to competing ads: Commercials in the same product class
(e.g., cell phone ads) and comparable ads cause interference. Similarity can be in
ad claims, emotional valence, or ad execution aspects like music or graphics.
Similar ad execution aspects can cause memory interference even when the ads
are for different brands.
Provide external retrieval cues: Retrieval cues give access to memory-stored
info. Brand names are significant as retrieval cues. Seeing a brand name might
elicit memories of brand info and ads, including visuals and feelings.
 Product Positioning

Product positioning is a form of marketing that presents the benefits of your product to
a particular target audience. Through market research and focus groups, marketers can
determine which audience to target based on favorable responses to the product.
It helps you attract your ideal customers: Sure, some customers will always be impulse
buyers, and depending on your product, they might be the right customers. But when
your positioning is right, your product will often attract customers who know exactly
what they want in your product, why they want it, and how they want it. It is generally 4
types:

• Price-based positioning.
• Lifestyle-based positioning.
• Characteristics-based positioning.
• Quality- or prestige-based positioning.

A product can be positioned in a favorable way for a target audience through

advertising, the channels advertised through, the product packaging, and even the way
the product is priced. For example, market research may have revealed that the product
is popular among mothers.
 Product Positioning Strategy

• Product Position

– The perception consumers have about the product relative to

competing products
• Repositioning

– Reinforce existing positive perceptions

– Reduce any negative perceptions
– Create new positive associations

Product positioning strategy is a decision by a marketer to try to achieve a

defined brand image relative to competition within a market segment.
An important component of brand image is the appropriate usage situations
for the product or brand.
Perceptual mapping offers marketing managers a useful technique for
measuring and developing a product’s position.
 Brand Image and Product Positioning

Brand image refers to the schematic memory of a brand.

 Product Positioning

Quality

• Customer wants and

Brand
A needs

Price
• Company capabilities
D
E
G
• Competitive actions
To create a well-differentiated brand position
F C marketers must have a keen understanding of
B
customer wants and needs, company
capabilities, and competitive actions.
 Product Positioning

Current Perceptions

This hypothetical perceptual map for a

beverage category shows how consumer view
the brands (A, B, C, and D) on a taste profile
(light versus strong) and personality and
imagery (contemporary versus modern). The
ideal points for three market segments (1, 2,
and 3) are also shown. Ideal points represent
each segment’s most preferred (“ideal”)
combination of taste and imagery.

Brand A is viewed as balanced between taste

and imagery. However, this does not appeal to
any specific market segment.
 Product Positioning

(b) Possible Repositioning

In the picture outlines the strategic

options that Brand A may take. It could
alter it’s image to be more
contemporary, (move closer to
Segment 1) or it could change its taste
profile to make it lighter, thus
appealing more to Segment 2.
 Product Repositioning

Product repositioning refers to a deliberate decision to significantly alter the

way the market views a product. This can involve
 level of performance
 the feelings it evokes
 the situations in which it should be used, or
 who uses the product

When a company changes the status of a brand in the marketplace but

maintains its identity at the same time, it is called “brand repositioning”.
As part of this process, changes are typically made to the marketing
strategy such as product, price, place, or promotion.
Thank you all