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Retail Business Environment




                   Notes          Behavioural learning theories have been criticised for adopting a mechanistic view of consumers,
                                  putting too much emphasis on external stimuli and ignoring important internal psychological
                                  processes. Cognitive learning approach has dominated the field of consumer behaviour in
                                  recent years. Learning that takes place as a result of mental activity is termed as cognitive
                                  learning. Cognitive theorists do not endorse the view that learning is based on repetitive trials
                                  leading to the development of links between stimuli and responses because consumer behaviour
                                  typically involves choices and decision-making. According to their view, learning is an intellectual
                                  activity based on complex mental processes involving motivation, perception, formation of
                                  brand beliefs, attitude development and change, problem solving and insight. Even sudden
                                  learning may also result when someone is faced with a problem. Typically, though, we are most
                                  likely to look for reliable information, indulge in analysis, evaluate what we learn and try to
                                  make a balanced decision. As we acquire more experience and familiarity with different products
                                  and services, our cognitive ability and learning increases to compare various product attributes.
                                  Rom J. Markin, Jr. compares the cognitive and the behaviourist orientation:
                                  “The behaviourist is inclined to ask, “What has the subject learned to do?” The cognitivist, on the
                                  other hand, would be inclined to ask, “How has the subject learned to perceive the situation?”
                                  The cognitivist is interested in examining a learning situation in terms of such factors as
                                  motivation, the perceived goals, the overall nature of the situation and the beliefs, values and
                                  personality of the subject – in short, the range of the subject’s psychological field. The cognitivist
                                  opposed to the behaviourist, contends that consumers do not respond simply to the stimuli but
                                  instead act on beliefs, express attitudes and strive towards goals.”
                                  In case of cognitive learning theory, the concept of closure (the reader may refer to the topic
                                  ‘Perception’) is important and is considered as the reinforcing factor. When faced with a problem,
                                  most individuals do not give up and are motivated to solve it. The feeling of incompleteness
                                  causes tension and solving the problem leads to closure and the reduction of tension, which
                                  causes reinforcement. Reinforcement is an acknowledged component of cognitive learning as
                                  there must be awareness of goal accomplishment for learning to occur. In case of instrumental
                                  conditioning, the respondent becomes aware of the reward only after eliciting the behaviour.

                                  Behavioural learning theories suitably explain how consumers acquire tastes and motives
                                  Advertisers frequently use the concept of classical conditioning by presenting their product or
                                  service in exciting, pleasant, or emotionally rewarding surroundings. For example, the
                                  commercials of Pepsi and Coca Cola use playful and exciting settings, McDonald’s ads show
                                  pleasant surroundings where children can play and parents can relax. Based on classical
                                  conditioning concept, these ads repeatedly associate a brand with positive surroundings to
                                  encourage brand preference among consumers. Chris T. Allen and Thomas J. Madden suggest
                                  that more research is needed to fully investigate the usefulness of classical conditioning in
                                  advertising.

                                  One may conclude that the behaviourist approach might be more relevant when consumers’
                                  cognitive activity is minimal, as happens in low involvement purchase situations.
                                  For instance, a consumer may be inclined to buying the same product she/he purchased earlier,
                                  as long as the results were reasonably satisfactory.
                                  Cognitive learning theory is quite relevant in understanding the consumer decision process in
                                  situations of high-involvement purchases. In case of complex buying behaviour (extensive
                                  problem solving), the consumer becomes aware of a need, indulges in information search and
                                  evaluates available alternatives to satisfy the need (motivated or goal oriented purposive
                                  behaviour), buys a product or service that she/he believes will most likely result in satisfying
                                  the need (insight) and makes post-purchase evaluation to ascertain the degree of satisfaction
                                  (goal achievement).




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