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Unit 6: Consumer Learning




          a habit. The habit formation will result only if there is  reinforcement of  the past  purchase  Notes
          behaviour.
          Theories of instrumental conditioning help us understand that when a learned behaviour is no
          longer reinforced, it diminishes to the point of extinction and the consumer ceases buying by
          habit. Extinction is the elimination of the link between stimulus and the expected favourable
          outcome and there is rapid decrease in the probability that the consumer will repurchase the
          same brand.

          There is a difference between extinction and forgetting. Forgetting results when the stimulus is
          no longer repeated or is not perceived by the consumer. By simply maintaining a competitive
          parity in advertising expenditures, a company can generally avoid serious level of forgetting on
          consumers’ part. Marketers can combat forgetting by repetition of advertising, preferably not
          the same ad again and again because this may prove to be boring or irritating, but conveying the
          same core message and changing only the execution style.

                 Example: Pepsi and Coca Cola commercials are shown everyday, only the settings
          change. Reduced advertising of Promise toothpaste has caused decline in its sales and loss of
          market share.
          If the exposures to repetitive advertising increase the probability of repurchase, reinforcement
          occurs. On the other hand, extinction will rapidly decrease that probability because there is no
          reward or favourable outcome even if the consumer is repeatedly exposed to the product ad.
          Forgetting occurs due to decrease in advertising frequency, resulting in a gradual and fairly
          long-term decline in repurchase likelihood. Another reason that may cause forgetting is the
          competitive advertising and advertising clutter, leading to consumer confusion which may
          result in weakening the link between stimulus and favourable outcome.
          Instrumental conditioning has important marketing applications in influencing the likelihood
          that consumers will repurchase of a product or service. Repurchase may result only when they
          are satisfied with usage or consumption experience.
          When an attempt is made to mould individuals by gradually guiding their learning, it is called
          shaping. It is the reinforcement of successive acts that lead to desired behaviour pattern. For
          example, a retail store may offer consumers some incentive to visit it for 3 or 4 weeks, encourage
          them to buy products by offering a discount or premium when they visit the store. Every time
          they visit the store their behaviour is reinforced. This strategy  increases the likelihood that
          consumers will adopt the behaviour of frequently shopping at the store even after the reinforcing
          incentives are not there.




              Task  Choose a deodorant and a mouth freshener, and create advertising copy stressing:
             Positive and Negative Reinforcement.

          6.3 Cognitive Learning Theory

          Where choices are made deliberately, such as consumers’ purchase of a product or service, the
          consequences could result in positive or negative reinforcement. Rewarding experiences will
          cause positive reinforcement of a particular behaviour (in this case, purchase of the product) and
          increase the likelihood of repurchase of the same product. Negative reinforcement would result
          from bad experiences with the product and the consumer would most likely avoid purchasing
          the same product. Premiums, discounts and showing satisfied customers are attempts to reinforce
          consumers’ purchase behaviour of particular products.




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