Memory, Learning & Perception

Chapter 7

Memory, Learning, and Perception

Copyright Atomic Dog Publishing, 2002

Chapter Spotlights
 How consumers accept, retain, and
retrieve market information from
memory
 The relationship between learning
processes and marketplace behavior
 How perceptions affect consumers’
buying behavior


Memory
 Two sources of product information:
 External environment: packaging, labels, POS
displays, prices, other marketing information
 Memory: past experiences, word-of-mouth, family
preferences
 Associative network of nodes (concepts) and links
(connections)
 Scripts: information organized in memory around
different types of events or episodes (e.g., a restaurant
script)


How Information is Captured
and Stored in Memory
 Memory processing areas:
 New information is initially captured in sensory
memory.
 processing is shallow; capacity is limited
 Information is transmitted from sensory memory
to short-term (ST)memory.
 Analyzing and assigning meaning; limited capacity to a
finite number of chunks (units of memory); information
may be rehearsed to retain its meaning
 Information rehearsed in ST memory is
transmitted to long-term (LT) memory for storage
and retrieval as needed; LT memory capacity is
unlimited


Information Retention
 It refers to the amount of material
previously learned that is remembered
 Forgetting – the loss in retention of
material previously learned
 Retention affected by:
 Incoming information
 The person receiving the information


Retention: Characteristics of
Incoming Information and Processing
 Repetition or rehearsal
 Relevance
 Competing information (new information
competes with old; ad “clutter” issue)
 Completeness of information (Zeigarnik Effect
– if incomplete, info retained for later
completion)
 Time (lapsed time since exposure)
 Mood (positive mood impact)


How Retention is Influenced
by the Information Recipient
 Consumer familiarity or experience
 Being more familiar with a product category
increases the chances of remembering information
about new or existing brands
 Affects way information is organized in memory
 Consumer motivation
 Higher motivation to process info is positively
related to doing so at deeper levels of memory
and to retain info longer and more accurately.


How Information is Retrieved
from Memory
 Retrieval cues – “self-” or
“externally-” generated
(sensory images: sounds,
shapes, colors, smells,etc.)
 Interference from competing
cues (make cue to stand out)
 Consumer’s state of mind:
higher retrieval levels occur
when info processing and
retrieval mood and/or interest
levels match


Information Storage in
Memory – Processing Effects
Recall of numerically-coded information
is better than verbal information
“Surface-level processing” (“sensory”)
occurs when there is no analysis of
meaning. Consumer judgment error
rate higher.
“Meaning-level processing”
(“semantic”) implies analysis of
meaning. Consumer judgment error
rate lower.


Learning – Probability Theory
 Learning  formation of habits formed and
changed through experience with products or
services
 Strength of habit depends upon the amount
of reinforcement it receives
 Probability models are used to predict the
formation of habits:
 Brand loyalty
 Brand acceptance
 Brand switching
 New product forecasting


Learning – Behavior Analysis
 The relationship between marketers
and consumers often resembles a
negotiation
 Several behavior modification principles
(BMPs) are used by marketers to induce
consumers to buy their products and
services.


(continued)
 Classical conditioning –learning results from a
relationship between a stimulus and a response
 Pavlov and his salivating dogs: a conditioned stimulus (the
ringing bell before each feeding) results in a conditioned
response (salivation)
 Marketing applications
 Higher order conditioning and celebrity advertising
 Strength of the unconditioned stimulus
 Number of pairings
 Forward versus backward versus simultaneous conditioning
 New versus existing products


(continued)
 Operant conditioning – a process in
which the frequency of occurrence of a
bit of behavior is modified by the
consequences of the behavior
 Especially relevant in low involvement
purchases
 Rewards & punishments AND consumer
behavior


(continued)
 Generalization – the tendency to respond in
similar ways to similar stimuli.
 Discrimination – the process through which
consumers restrict their range of responses
and attach themselves to a particular brand.
 Modeling – the process through which an
individual learns a behavior by observing the
behavior of others and the consequences of
this behavior.


Learning – Cognitive Theory
 Emphasis is on thinking rather than the doing
aspects of learning.
 Four stages:
 Formulation of hypotheses (specific testable
assumptions) about products or brands
 Exposure to evidence (passive or active)
 Encoding of the evidence
 Integration of earlier hypotheses with new
information into beliefs
 Familiarity, ambiguity, motivation


Cognitive Theory and
Marketing
 Strategies for market leaders (topdogs)
 Reinforcement
 Blocking
 Explaining
 Strategies for market underdogs
 Disruption
 Facilitating trial


Perception
 Perception is the way in which an
individual gathers, processes, and
interprets information from the
environment.
 Two views of consumer perception
 Sensory perception
 Gestalt theory of perception


Sensory Perception
 It is governed by the
five senses: sight,
smell, sound, touch,
and taste
 It focuses on product
specific sense attributes
and how these are
understood and
evaluated by
consumers.


Factors Affecting Sensory
Perception
 Stimulus factors (examples)
 Visual cues: color, shape, and size
 Aural cues: tempo and pitch
 Olfactory cues (taste + smell): sweet, bitter, salty, and floral
 Tactile cues: soft, coarse, and silky
 Individual Response Factors
 Sensory acuity: the capacity to recognize and differentiate
among certain sensory cues; the “limin”
 Sensory preferences: sensory product features are perceived
and evaluated based on those liked or disliked
 Consumer expectation: affects how product features are
likely to be perceived/evaluated. When features match
expectations this yields more positive preference outcomes


Gestalt Theory of Perception
 Gestalt principle: the whole adds up to more
than the sum of its parts
 People perceive “form” above all else
 The form may remain constant even though
some specific features of it may change
(color, tempo, etc.) – “variations on the same
theme”
 Applications: size, actual/illusion of motion,
bordering for ads or displays while really the
same

What do you perceive?


Factors Influencing Gestalt
Perception
 Stimulus factors: color and contrast,
size, intensity, position, isolation, and
unity
 Individual response factors: interest,
involvement, needs, values, and
cognitive set


How consumers Interpret
Perceptions
 Categorization: the psychological
process through which a consumer
compares the perception of a product
with a mental representation of that
product in memory.
 Analytic versus non-analytic (meeting or
not meeting required attributes to “fit”)
 Marketing implications for new products or
innovations


Consumer Attributions
 It refers to the process through which
people connect events and behavior
with causes.
 Forms of attribution
 Product perception (a product problem)
 Self-perception (questioning oneself)
 Person perception (questioning others
motives)


Perceptions of Product/Service
Quality
 Perceived quality – a perceptual outcome
generated from processing product or service
features (benefits delivered) that leads the
consumer to make inferences about the
quality of that product or service
 Dimensions of perceived quality for durable
goods: ease of use, versatility, durability,
serviceability, performance, and prestige
 Perceived high quality  product satisfaction


Risk Perception/Risk
Reduction
 It refers to a perceptual process and behavior
outcomes generated from the perception of
risk in the purchase or a product or service
 Components of risk:
 Severity of consequences (how bad will it be)
 Uncertainty related to those consequences (what
are the chances the consequence will occur)
 Risk reduction strategies: behaviors to reduce
their perception of risk in purchase situations


Price Perception
 Consumers perceive a price as either
high or low on the basis of a
comparison with an internal price (or
referent price).
 Price perceptions and the social
judgment theory – “regions”
 “Assimilation” (acceptable)
and “contrast” (too high or low)


Perceived Value
 The trade-off between product benefits
and product costs.

Perceived value = perceived benefits / perceived costs


Memory, Learning & Perception

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