Consumer Learning

What is Consumer Learning?

Consumer Learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour.

Most of the learning is incidental. Some of it is intentional. Basic elements that contribute to an understanding of learning are:

 

  1. Motivation
  2. Cues
  3. Response
  4. Reinforcement

 

There are 2 theories on how Individuals learn:

 

  1. Behavioural Theory
  2. Cognitive Theory

 

Both contribute to an understanding of consumer behaviour.

Behavioural Theorists view learning as observable responses to stimuli, whereas Cognitive Theorists believe that learning is a function of mental processing.

3 Major Behavioural Learning Theories are :

 

  1. Classical Conditioning : Includes Repetition, Stimulus generalization and Stimulus discrimination.                                          
  2. Instrumental Conditioning: Instrumental Learning theorists believe that learning occurs through a trial and error process in which the positive outcomes in the form of results or desired outcomes lead to repeat behaviour like Repeat Purchase or Repeat Positive Word of Mouth.                                        Both positive and negative reinforcement can be used to encourage the desired behaviour. The timing of repetitions influences how long the learned material is retained. Learning usually persists longer with distributed re-inforcement schedule, while mass repetitions produce more initial learnings.                                             
  3. Observational Conditioning or Vicarious Learning:

Cognitive learning theory holds that the kind of learning most characteristics of humans is PROBLEM SOLVING. Cognitive theorists are concerned with how information is processes by the human mind: how it is stored, retained, and retrieved.

Involvement theory proposes that people engage in limited information processing in situations of low relevance to them and people engage in extensive information processing in situations of high relevance.

TV is a low involvement medium for learning and print and interactive media encourage more cognitive information processing.

Measures of consumer learning include recall and recognition tests, cognitive responses to advertising, and attitudinal and behavioural measures of brand loyalty.

A basic issue among researchers is whether to define brand loyalty in terms of consumer’s behaviours or the consumer’s attitude towards the brand. Brand Equity refers to the inherent value a brand name has in the marketplace.

Brand Loyalty consists of both attitudes and actual behaviours toward a brand and both must be measured. For marketers, the major reasons for understanding how consumers learn are to teach them that their brand is best and to develop brand loyalty.

What does your brand mean to your customers? Are they really loyal to your brand? How do you increase their loyalty?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

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Consumer Perception

Perception is the process by which individuals select, organize and interpret stimuli into a meaningful and coherent picture of the world.

Perception has strategy implications for marketers because consumers make decisions based on what they perceive rather than on the basis of objective reality.

Consumers selections of stimuli from the environment are based on the interaction of their expectations and motives wit the stimulus itself. The principles of selective perception include the following concepts:

  1. Selective Exposure
  2. Selective Attention
  3. Perceptual Defense   and
  4. Perceptual Blocking.

People usually percieve things they need or want and block the perception of unnecessary, unfavourable or painful stimuli.

Consumers organize their perceptions into unified wholes according to the principles of Gestalt Psychology:figure and ground, grouping, and closure.

The interpretation of stimuli is highly subjective and is based on what the consumer expects to see in light of previous experience, on motves and interests at the time of perception, and on the clarity of stimulus itself.

Influences that tend to distort objective interpretation include Physical apprearances, stereotypes, halo effects, irrelevant cues, first impressions and the tendency to jump to conclusions.

Just as individuals have perceived images of themselvs, they also have perceived images of products and brands. The perceived image of a product or service is probably more important to its ultimate success than are its actual pysical characteristics.

Products and Services that are percieved distinctly and favourably have a much better chance of being purchased than products or services with unclear or unfavourable images.

Service Marketers face several unique problems in positioning and promoting their offerings because services are intangible,inherently variable, perishable and are simultaneously produced and consumed.

Regardless of how well the product or service appears to be positioned, the marketer may be forced to reposition it in response to market events, such as a new competitor, new strategies of existing competitors, changing market dynamics, changing consumer preferences.

The quality of a product or services is judged on the basis of a variety of informational clues; intrinsic or extrinsic. Intrinsic will be things like size, colour, flavour, aroma, packaging, look and feel. Extrinsic clues will include store image, price, brand image, service environment etc.,

In the absence of the first hand experience or other information, consumers often rely on price as an indicator of quality. How a consumer perceives a price – as high,low or fair has a strong influence on purchase intentions and satisfaction. Consumers rely on both internal and external reference prices when assessing the fairness of price.

Consumer imagery also includes perceived images of retail stores that influence the perceived quality of products they carry, as well as decisions as to where to shop.

Manufacturers or Retailers who generally enjoy a favourable image find that their new products are accepted more readily compared to those manufacturers or retailers who have less favourable or even neutral images.

Consumers often perceive risk in making product selections because of uncertainty as to the consequences of their purchase decisions.

The types of risk that the customers perceived are:

  1. Functional Risks
  2. Physical Risk
  3. Financial Risk
  4. Social Risk
  5. Psychological Risk and
  6. Time Risk.

Customers try for reducing the risk by increasing their information search, buying from reputable retailers, buying the expensive brands, and seeking reassurance in the form of money back guarantees, warranties, and pre purchase trial.

The concept of perceived risk is important implications for marketers, who can facilitate the acceptanc e of new products by incorporating risk-reduction strategies in their new product or service promotional campaigns.

How do your customers percieve you? How do your customers percieve your products? What are you doing to increase the perceptions in your favour.

Talk to us for further support:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812