CONSUMER BEHAVIOR AND MARKETING STRATEGY
by
J. Paul Peter & Jerry C. Olson
Fifth Edition
Irwin McGrawhill Companies
Copyright 1999
United States
Lottery
Games
Lotteries are
legal in 34 states and the District of Columbia. In one year, lotteries sold
over 20 billion tickets that’s $109 worth for every man, woman and child in
lottery states. Consumers particularly flock to lotteries when the jackpot has
grown for a while. In New York, for example, when the Super Lotto drawing
reached $90 million, residents formed long lines in the bitter cold of January
to buy tickets. Retailers sold 61 million tickets in 10days more than 21,000
per minute toward the end. When the Florida Lotto price reached $106 million,
hysteria gripped the state. People who had never dreamed of buying Lotto
tickets stood in line with dedicated players and in the final days before the
drawing, retailers sold 44,000 tickets per minute. The biggest PowerBall payoff
to date was $111,240,463.
On the first day
Kentucky started lottery games, the governor flew to seven cities, each celebrating with brand, prizes and free tickets. The governor purchased tickets
at each stop as the TV cameras rolled. The take for day one of the state
lottery was $5 million. The state offered an online game, Lotto Kentucky, in
which players picked 6 numbers out of 42, and followed up with a second game.,
Kentucky Cash in which players picked 3 numbers out of 42. Other lottery games
with names like “Tic-Tac-Cash,” “Break Fort Knox,”and “Home for the Holidays”
were promoted by Lucky Duck wearing top hat and tails and his “ambassador team”
roaming around the state in the Lucky Limo. Additional games included the
instant-win type in which players scratch the covering off a card to show
wining numbers. These games and all of the hoopla are a long way from the first
state lotteries held bin New Hampshire, which were simple biannual drawings. The
Kentucky lottery games brought in more than $250 million in revenue the first
year.
Our problem for
lotteries is that players often need constant prodding. First year lottery
sales always boom but then can fall as much as 50 percent in the second year.
Instant ticket games have the shortesr life span; consumers quit playing in a
few months and new games must be constantly introduced to spur sales. At one
time, lottery officials in Illinois, Ohio and Pennsylvania were beaming because
sales were increasing 30 to 50 percent a year. However, a few years later, growth
had skidded to about 3 percent. Now many lotteries have turned to consumer
research, including surveys, penetration studies and focus groups to keep their
sales booming. Lottery officials have learned, for instance, that tickets are
often impulse items. So they cover convenience stores with banners place
lottery tickets and displays near the cigarettes and candy and use clever TV
ads to keep consumers buying.
So, what are the
chances of wining a lottery? The chances of wining a big jackpot are about 13
million to 1, which is far less than the chances of being killed by lightning
at about 400,000 to 1. An award winning lottery commercial in Michigan tools
advantage of this knowledge by showing a man in a convenience store saying he
would never play the lottery because he’d have a better chance of being struck
by lightning. Just then he’s hit by a bolt from the blue. Still sizzling he
says, “One ticket, please.”
Source: Calonius, “The Big Payoff from
Lotteries, “Fortune, March 25, 1991, pp.109-14;
What accounts for the success of state
lottery games? This chapter is concerned with two types of conditioning and one
type of learning. The two types of conditioning one type of learning. The two
types of conditioning are classical and operant and the learning discussion
focuses on vicarious learning. Traditionally, these topics have focused
primarily on influencing overt behavior. However they are also useful for
conditioning affect, and cognitive theories are useful for explaining why they
are effective. The chapter proceeds by first discussing classical conditioning
and then proceeds to operant conditioning and vicarious learning.
First, classical
conditioning can be accomplished not only with unconditioned stimuli, but also
with previously conditioned stimuli. For example, most of us are previouisly
conditioned to the sound of a doorbell ringing and will look up almost
automatically on hearing it. This previously conditioned stimulus has been used
in the beginning of Avon TV commercials to attract consumers attention to the
ad itself as well as to Avon services.
Classical Conditioning
Many of you have
likely heard of Pavlov’s experiments in which he conditioned a dog to salivate
at the sound of a bell. Pavlov did this by first pairing the sound of the bell
with sprays of meat powder a number of trials. Eventually he could eliminate
the meat powder and the dog would salivate to the sound of the bell alone.
Pavlov’s research provides the basis for classical conditioning.
In general
classical conditioning is a process by which a neutral stimulus becomes capable
of eliciting a response because it was repeatedly paired with a stimulus that
naturally causes the response. Stimuli that cause responses naturally are
called unconditioned stimuli, the meat powder in the Pavlov experiments; the
response that occurs naturally in its presence is called an unconditioned
respponse, salivation in the Pavlov experiments. When the neutral stimulus can
cause a similar response through repeated pairings, it becomes a conditioned
stimulus. When it does cause the response, the response is then called a
conditioned response. This process is shown in Exhibit 9.1 and four points
should be noted.
Exhibit 9.1
The Process Classical Conditioning
Unconditioned stimulus
|
Unconditioned
response
|
|
Unconditioned
stimulus
|
Neutral
stimulus
|
Unconditioned
response
|
Conditioned
stimulus
|
Conditioned
response
|
Second, classically
conditioned behaviors are controlled by stimuli that occur before the behavior.
For example, in Pavlov’s experiment, the meat powder and bell were presented
before salivation occurred.
Third, the behaviors
influenced by classical conditioning are assumed to be under the control of the
autonomic nervous system. This system controls the so called smooth muscles.
Thus, the behaviors are assumed to be involuntary and not under the conscious
control of the individual.
Last, and perhaps most
important for consumer behavior and marketing strategy, affective responses
often follow the principles of classical conditioning. For example, when a new
product for which people have neutral feelings repeatedly advertised during
exciting sports events (such as the Super Bowl), it is possible for the product
to eventually generate excitement on its own solely through the repeated
pairings with exciting events. Similarly, an unknown political candidate may
come to elicit patriotic feelings in voters simply by having patriotic music
constantly playing in the background of his or her political commercials. A
number of firms currently use stimuli in commercials and ads that are designed
to generate emotions.
Because it can
account for many of the responses that environmental stimuli elicit from
individuals, classical conditioning has important implications for marketing
and consumer behavior. Through it a particular stimulus can come to evoke
positive, negative or neutral feelings. Consequently, classical conditioning
can influence an individual to work to obtain, to avoid, or to be indifferent
to a wide variety of products and services.
Consider product
related stimuli. External stimuli that elicit positive emotions can be paired
with the product so that the product itself elicits positive affect. Behavior
may then be tiggered that brings the potential consumer into closer contact
with the product. “Closer contact” refers to a general relationship between a
person’s behavior and a given stimulus (e.g., a product). For example if a
product elicits positive affect, an individual exposed to it is more apt to
behave positively toward it than if negative emotions are elicited. Attending
behavior is also apt to be a function of classically conditioned affect.
Stimuli that elicit stronger emotional responses (either positive or negative)
are, at least over a considerable range, apt to receive more attention from an
individual than stimuli that are effectivelyneutral. To the degree that
attending behavior is necessary for product purchase or other product related
behavior, classical conditioning influences whether consumers come into contact
with products.
Similarly,
stimuli may produce certain general emotional responses, such as relaxation,
excitement, nostalgia or some other emotion likely to increase the probability
of a desired behavior (such as product purchase). Radio and TV ads often use
fameous broadcasters whose voices have been paired for years with exciting
sports events. These voices may elicit excitement as a result of this frequent
pairing. Repeated pairings of these voices with advertised products can result
in feelings of excitement associated with the products.
Music, sexy
voices and bodies and other stimuli are used in similar ways. For example,
magazines ads for Calvin Kleins Obsession perfume featured a naked woman being
kissed by three men. Such stimuli may influence behavior without conditioning
simply by drawing attention to the ad. Of course, the attention generating
properties of the stimulus itself are apt to have developed through previous
conditioning that occurs “naturally” in society.
The use of
telephones ringing or sirens in the background of radio and TV ads and the
presence of famous celebrities are common examples of how stimuli that are
irrelevant to the content of an ad or the function of the product are used to
increase attention paid to the ad itself. For example, Michael Jordan and Tiger
Woods have been featured in commercials for Nike and other products. In this
context, one of the major resources that organizations use to market their
products is made available through previous classical conditioning of
consumers.
Stimuli at or
near the point of purchase also serve the goals of marketers through the
stimuli’s ability to elicit behaviors. Christmas music in a toy department is a
good example. Although no data are available to support the point, we suspect
that carols are useful in eliciting the emotions labeled the “Christmas spirit.”
Once these feelings have been elicited, we suspect (and retailers seem to share
our suspicions) that people are more apt to purchase gifts to: loved ones. In
other words, Chrismas carols are useful in generating emotions that are
compatible with purchasing gifts.
Consumer Research on Classical Conditioning
A number of
studies have been done in consumer research investigating classical
conditioning. The authors of one program of reasearch state, “There are enough
demonstrations in our literature to accept the fact of classical conditioning
of consumers attitude toward consumption objects.” Others have argued that
classical conditioning may be most useful in marketing in low binvolvement
situations:
Consumer
involvement is low then the products have only minor quality differences form
one another…This is especially the case in saturated markets with nature
products. It is exactly in these markets that product differentiation by means
of emotional conditioning is the preferred strategy of influencing consumers.
Because most
products are mature and many markets are saturated, classical conditioning is
likely to be a useful strategy for low involvement purchase. However, classical
conditioning can also be useful for high involvement situations, such as the
purchase of athletic shoes by teenegers. Marketers of brands including Nike,
Adidas, and Fila seem well aware that the prsence of superstar athletes in
their commercials performing exciting slam dunks and fast breaks can condition
positive affect to their products and lead to increased sales. Automobile
companies seem well aware that the presence of attractive models, exciting
locations and popular background music can influence purchase through classical
conditioning.
Exhibit 9.2
Some Marketing Tactics Consistent with Classical
Conditioning Principles
Conditioning
Responses to New Stimuli
Unconditioned or Previously
Conditioned Stimulus
|
Conditioned
Stimulus
|
Examples
|
Exciting
event
|
A
product or theme song
|
New
product advertised during the Super Bowl
|
Patriotic
events or music
|
A
product or person
|
Patriotic
music as background in commercials
|
Use of Familiar
Stimuli to Elicit Responses
Conditioned
Stimulus
|
Conditioned
Response(s)
|
Examples
|
Popular
music
|
Relaxation,
excitement, “good will”
|
Christmas
music in retail stores
|
Family
voices
|
Excitement,
attention
|
Famous
sportcaster or movie star narrating a commercial
|
Sexy
voices, bodies
|
Excitement,
attention, arousal
|
Calvin
Klein commercials and many others
|
Familiar
cues
|
Excitement,
attention, anxiety
|
Sirens
sounding, telephones or doorballs ringing in commercials
|
Familiar
social cues
|
Feelings
of friendship and love
|
Television
ads depicting calls from family or close friends
|
Marketing Implications
There are
several implications concerning the use of classical conditioning as a
marketing tool. First, classical conditioning directs attention to the
prsentation of stimuli that, because of previous conditioning, elicit affect in
consumers. In some cases, these feelings are likely to increase the probability
of certain behaviors and/or decrease the probability of other behaviors.
Second, in many cases, marketers may find it useful to condition responses to
stimuli. By repeatedly pairing Tiger Woods, an exciting golfer and sports
personality, with Rolex watches and Nike golf clothes, these products may
generate greater excitement and increased purchases. Exhibit 9.2 summarizes a
number of marketing tactics consistent with classical conditioning principles.
Operant Conditioning
Operant
conditioning is the process of altering the probability of a behavior being
emitted by changing the consequences of the behavior. In differs from classical
conditioning in at least two important ways. First, whereas classical
conditioning is concerned with involuntary responses, operant conditioning
deals with behaviors that are usually assumed to be under the conscious control
of the individual. By “conscious control” behaviorists mean under the control
of the skeletal nervous system that governs the “stripped” muscles; they are
not stating that behaviors are under the control of cognitions. Second,
although classically conditioned behaviors are elicited by stimuli that occur
before the response, operant behaviors are emitted because of consequences that
occur after the behavior.
In any given situation,
at any time, there is a certain probability that an individual will emit a
particular behavior. If all of the possible behaviors are arranged in
descending order of probability of occurrence, the result is a response hierarchy.
Operant conditioning has occurred when the probability that an individual will
emit a behavior is altered by changing the events or consequences that follow
the behavior.
Some events or
consequences increase the frequency with which a given behavior is likely to be
repeated. For example, if a reward, such as casg rebate, is given at the time
of purchase, it may inctrease the probability that a shopper will purchase in
the same store in the future. In this case, because the reward increases the
probability of the behavior being repeated, it is called positive reinforcement.
Positive reinforcement is likely the most common type of consequence used by
marketers to influence consumer behavior. In general, the greater the amount of
the reward and the sooner it is received after the behavior, the more likely it
is that the behavior will be reinforced and consumers will perform similar
behaviors in the future. For example, a $1 coupon for Tropicana orange juice,
more than a 50 cent coupon, would likely increase the probability of purchase
of juice and lead to future purchases of
this product. Similarly, if the coupon is redeemable at the time of purchase,
it would likely to be mre affective than a mail in coupon for which the
consumer has to wait for the reward.
Operant
Conditioning Methods
Operation Performed after Behavior
|
Name
|
Effect
|
Present
positive consequences
|
Positive
reinforcement
|
Increases
the probability of behavior
|
Remove
aversive consequences
|
Negative
reinforcement
|
Increases
the probability of behavior
|
Neutral
consequences occur
|
Extinction
|
Decreases
the probability of behavior
|
Present
aversive consequences
|
Punishment
|
Decreases
the probability of behavior
|
The frequency of
consumer behavior can also be increased by removing aversive stimuli. This is called
negative reinforcement. For example, if a consumer through purchasing a
product, gets a salesperson to quit pressuring him or her, the consumer may be
negativelyreinforced. That is, by performing the behavior of purchasing, the
aversive stimuli (the actions of the pushy salesperson) are removed. In the
future, when confronted with pushy salespeople, operant conditioning would
predict that the consumer will be more likely to purchase again.
Sometimes operant
techniques are used to decrease the probability of a response. If the
environment is arranged so that a particular response results in neutral
consequences, over a period of time that response will diminish in frequency.
This process is referred to as extinction. For example, at one time, the
A&P grocery chain was the largest retailer in the world. However, one of
the mistakes it made was to overstock its own brands (which had higher profit margins) and understock
nationally branded merchandise. Consumers who were loyal to a number of
nationally branded merchandise. Consumer who were loyal to a number of
nationally branded products often could not obtain them at an A&P store.
Eventually, many consumers quit shopping at A&P, partially because they
could not obtain their favorite brands. Thus, A&P inadvertently used
extinction on its own customers.
If a response is
followed by noxious or aversive event, the frequency of the response is also
likely to decrease. The term punishment is usually used to describe this
process. For example, suppose you went to a clothing store and the salespeople
were rude to you. Wouldn’t this decrease the chances of your going back there?
Punishment is often confused with negative reinforcement, but they are
distinctly different concepts. Exhibit 9.3 presents a summary of the four
methods of operant conditioning.
There are a number of
other important ideas about operant conditioning. We discuss three
reinforcement schedules, shaping and discriminative stimuli that have major
implications for designing marketing strategies to influence consumers
behavior.
Reinforcement
Schedules
A number of different
reinforcement schedules can be employed. For example, it is possible to arrange
conditions so a positive reinforcer is administered after every desired
behavior. This is called a continous reinforcement schedule. Marketers usually
try to keep the quality of their products and services constant so that they
will be continously reinforcing every time they are purchased, but this is
difficult. For example, frequent product recalls for automobiles indicate a
failure to maintain example, frequent product recalls for automobiles indicate
a failure to maintain product quality. Services such as airlines may not be
able to control contingencies such as bad weather; overbooked, canceled and
late flights and unfriendly employees, which can make flights not reinforcing.
Sporting events, because they may be boring or the home team may get beaten,
may not be continously reinforcing for some consumers.
Conditions can also be
arranged so that every second, third or tenth time the behavior is performed,
it is reinforced. This is called a fixed ratio schedule. Similarly, it is
possible to have a reinforcer follow a desired behavior on an averange of say,
one half, one third, or one fourth the time the behavior occurs, but not necessarily
every second, third, or fourth time. This is called a variable ratio schedules.
The variable ratio
schedules are of particular interest because they produce high rates of
behavior that reasonably resistant to extinction. Gambling devices are good examples.
Slot machines are very effective in producing high rates of response, even
under conditions that often result in substantial financial losses. This
property of the ratio schedule is particularly important for marketers because
it suggests that a great deal of desired behavior can be developed and
maintained with relatively small, infrequent rewards. Deslauriers and Everett
found that by giving a free token for riding a bus on a variable ratio
schedule, the same amount of bus riding could be obtained as when rewards were
given on a continoud schedule. Thus for approximately one third the cost of the
continous schedule. Thus for approximately one third the cost of the continous
schedule, the same amount of behavior sustained.
Numerous other examples
of the use of variable ratio schedules can be found in marketing practices. In
addition to state lotteries, common examples include sweep-stakes, contest and
door prizes, in which individuals or must behave in a certain way to be
eligible for a prize. Highlight 9.1 discusses the use of variable ratio
schedules for selling Pepsi and Mountain Dew products.
Highlight
9.1
Using
Variable Ratio Schedules to Increase Pepsi Purchase
PepsiCo ran an “Unlock
the Great Taste and Win” sweepstakes. The Grand prizes in the contest were two
Lamborghini sport cars with an estimated retail value of $215,000 each. Other
prizes included Kawasaki jet skis, compact vending machines, vacations and
sterling silver key chains.
Although consumers
could receive two game chances without purchases by writing the company, most
game chances were distributed through purchase of Pepsi and Mountain Dew
products. Here’s how it worked. With purchases of multipacks, that is, 12-20 or
24 can packages, consumers had a chance of receiving a free, inexpensive key
chain. Behind the key chain package was notification of any major prize won.
However only one out of two multipacks contained the key chain and chance of wining. Thus, on
average, consumers would have to purchase two multipacks to get a chance at the
major prizes. PepsiCo used a variable ratio schedule to allocate prize used a
variable ratio schedule to allocate prize chances to increase the probability
that consumers would purchase several multipacks.
Some bottle caps on 2
liter, 3 liter and 16 ounce nonreturnable bottles also contained chances to win
but no key chain. Also the odds of wining were better when consumers bought the
more expensive multipacks. For example, the odds of wining the grand prizes
from a multipack purchase were in 113, 118, 597. In addition, only by
purchasing multipacks could consumers win the sterling silver key chains valued
at $50; the bottle purchases allowed winning only a brass key chain valued at
$10. All prizes were awarded on variable ratio schedules.
Overall, variable ratio
schedules were used to allocate the chances to win prizes as well as the prizes
themselves. By offering the chances to win and the inexpensive key chains on a
variable ratio schedule, PepsiCo increased the probability of consumers making
more than one purchase. Also the cost of the key chains was only half what it
would have been if every multipack contained one. Offering major prizes on a
variable ratio scheduleis likely the only way expensive products can be used as
reinforcers for purchase of inexpensive products and still be profitable. To
learn more about Pepsi, visit its Web site at http;//www.pepsi.com
Shaping
Another operant
conditioning concept that has important implications for marketing and consumer
behavior is shaping. Shaping is important because given consumers existing
response hierarchies the probability that they will make a particular desired
response may be very small. In general, shaping involves a process of arranging
conditions that change the probabilities of certain behaviors not as ends in
themselves, but to increase the probabilities of other behaviors. Ussually
shaping involves the positive reinforcement of successive approximations of the
desired behavior or of behaviors that must be performed before the desired
response can be emitted.
Many firms employ
marketing activities that are roughly analogous to shaping. For example, loss
leaders and other special deals are used to reward individuals for coming to a
store. Once customers are in the store, the probability that they will make
other desired responses (such as purchasing) is much greater than when they are
not in the store. Carnivals held in shopping center or auto dealer parking lots
may be viewed as attempts to shape behavior because consumers are more likely
to come in and purchase when they are already in the parking lot than when they
are at home. Similarly, free trial periods may be employed to make it more
likely the user will have contact with the product so that he or she can
experience the products reinforcing properties. Real estate companies that
offer free trips to look over resort property are employing a shaping tactic,
as are casinos that offer free trips to gamblers. In both cases, moving people
to the place of purchase or place of gambling increases the probability of
these behaviors being performed.
Shaping is not confined
to a one step process but can be used to influence several stages in a purchase
sequence. For example, suppose a car dealer wants to shape an automobile
purchase. Free coffee and doughnuts are offered to anyone who comes to the
dealership. Five dollar cash is offered to any licensed driver who will test
drive a car. A $500 rebate is offered to anyone who purchases a car. This
example demonstrates not only how operant principles can be used in a multistep
process but also how they can be used in a high involvement purchase situation.
Discriminative
Stimuli
It is important to
distinguish between the reinforcement and discriminative functins played by
stimuli in the operant model. So far in this section, the focus has been on the
reinforcing function. However, the mere presence or absence of certain stimuli
can serve to change the probabilities of behavior. These are called
discriminative stimuli.
Discriminative stimuli
are often said to “set the occasion” for behaviors. This means discriminative
stimuli can be presented before a behavior and can influence whether the
behavior occurs. In fact, discriminative stimuli allow operant conditioners to
account for the effects of antecedents to behavior on changing behavior. (As
you recall, reinforcers and other consequences always occur after the
behavior.) For example, suppose Pizza Hut runs an ad that offers a free quart
of Pepsi with every large pizza purchased. This offer may increase the
probability of purchasing a large pizza from Pizza Hut. However, the
offeritself is not a reinforcer since it is offered before the behavior.
Rather, the offer itself is not a reinforcer since it is offered before the
behavior. Rather, the offer is a discriminative stimulus.
Many marketing stimuli
are discriminative. Store signs (“50 percent off sale”) and store logos
(Wal-Marts sign, Kmart’s big red “K”) or distinctive brand marks (the Nike
swoosh, the Levi’s tag, the Polo insignia) are examples of discriminative
stimuli. Previous experiences have perhaps taught consumers that purchase
behavior will be rewarded when the distinctive symbol is present and will not
be rewarded when the symbol is absent. For example, many consumers purchase
Ralph Lauren shirts, jackets and shorts that have the embroidered polo player
symbol displayed on them and avoid ather Ralph Lauren apparel that does not
have this symbol. A number of competitors have tried to copy the polo player
symbol because of its power as a discriminative stimulus. Clearly, much of
marketing strategy involves developing discriminative stimuli that increase
certain behaviors.
Marketing
Implications
Many marketing
strategies and tactics are consistent with operant conditioning principles. If
these are carefully designed, they can be quite effective in influencing
consumer behavior. Many marketing tactics involve giving rewards after a
purchase to increase its probability in the future. These rewards include
rebates, contest tickets, bonuses, prizes, in package coupons and courteous
thanks from salespeople. Although most strategies involve keeping product and
service quality on a continuous reinforcement schedule, other types of rewards
can be offered on a partial reinforcement schedule. Shaping is used to develop earlier
behaviors in a purchase sequence in order to increase the chances of later
behaviors. Finally, many store and brand symbols and logos have become
discriminative stimuli for some consumers. Exhibit 9.4 summarizes a number of
these tactics.
Vicarious
Learning
Vicarious learning
refers to process by which people change their behaviors because they observed the
actions of other people and the consequences that occurred. In general, people
tend to imitate the behavior of others when they see that it leads to positive
consequences and they tend to avoid performing the behavior of others when they
see that it leads to negative consequences.
Exhibit
9.4
Some
Marketing Tactics Consistent with Operant Conditioning Principles
Continuous Reinforcement Schedules
|
||||
Desired Behavior
|
Reward Given Following
Behavior
|
|||
Product purchase
|
Manufacturer's
rebates; in package coupons;
|
|||
contest tickets
|
||||
Store visits
|
Discounts; door
prizes, store coupons
|
|||
Partial Reinforcement Schedules
|
|
Product purchase
|
Prizes for every
second, third, etc. purchase
|
Prizes to some
fraction of people who purchase
|
|
Store or restaurant patronage
|
Cash or free meal
after 10 purchases
|
Shaping
|
||
Behavior
|
Consequences
|
Final Response Desired
|
Obtaining a credit card
|
Prize; low initial interest rate
|
Expenditures using card
|
Trip to mall or store
|
Events or entertainment
|
Purchases in mall or store
|
Entry into store
|
Door prizes
|
Purchases in store
|
Product trial
|
Free samples; cash or other reward for trial
|
Purchase of product
|
Discriminative Stimuli
|
||
Desired
Behavior
|
Reward
Signal
|
Examples
|
Brand
purchase
|
Distinctive
brandmarks
|
Nautica
sailboat; Nike swoosh
|
Store
visit
|
Ads;
store window signs; store logos
|
“50
Percent Off Sale”; “Clearance Sale”; McDonald’s golden arches
|
Vicarious learning is
also called modeling. Overt modeling involves consumers actually observing the
model, such as seeing a salesperson demonstrating a Hoover vacuum cleaner in a
store (live modeling) or seeing a commercial that depicts this behavior
(symbolic modeling).
The vicarious learning
process is shown in Exhibit 9.5. Many advertisements and TV commercials show
models buying and using products and receiving positive consequences for doinbg
so. Advil commercials have shown people suffering fromk arthritis pain but
smiling and enjoying activities after they take the product. Toothpaste and
deodorant commercials frequently show people being accepted and admired after
using particular brands of these products.
Exhibit
9.5
The
Vicarious Learning Process
Model
performs behavior and experiences consequences
|
Observer
sees modeled behavior and consequences
|
Observer
performance of modeled behavior may increase or decrease, depending on
modeled consequences
|
Uses
of Vicarious Learning in Marketing Strategy
There are three major
uses vicarious learning or modeling in marketing strategy. First, modeling can
be used to help observers acquire one or more new response patterns that did
not previously exist in their behavioral reportoizes. Second, modeling can be
used to decrease or inhibit undesired behaviors. Third, there is response
facilitation, whereby the behavior of others “serves merely as discriminative
stimuli for the observer in facilitating the occurance of previously learned
responses.
Developing
New Responses
Modeling can be used to
develop new responses that were not previously in the consumer’s behavioral
reprtoire. Consider, for example, the vidiocassette machines used in a variety
of department and other stores to demonstrate use of a product. Sears has long
used this method to demonstrate the appropriate and safe use of its chain saws.
The appropriate uses of Berkeley fishing equipment and Olt duck calls are also
demonstrated in this way. New behaviors are also frequently modeled in TV
commercials. For example, insurance is traditionally purchased from an agent
either at the agent’s office or in the consumer home, not in retail stores. A
modeling strategy was used by Sears when it began in store sales of Allstate
insurance. Basically, the TV commercial shows a family coming to the Sears
store and dropping off its old insurance policy for comparisons with Allstate
rates.
After a pleasant
shopping trip, the family returns and is told thar Allstate can provide a
better deal, thus modeling the positive consequences of the new behavior.
Similarly, Arm & Hammer baking soda ads showed new uses of the product as a
carpet and refrigerator freshener and portrayed the models being complimented
on the freshness of their homes. WD-40 lubricant ads also model new uses of the
product.
Inhibiting
Undesired Responses
Modeling can also be
used to decrease the probability of undesired behaviors. Because of the ethical
and practical problems involved in using punishment to influence consumer
behavior, we have given little attention to ways of reducing the frequency of
undesired responses. Such problems are far less prevalent when aversive
consequences are administered to models rather than to actual consumers,
however. Thus, vicarious learning may be one of the few approaches that can be
used to reduce the frequency of unwanted elements in the behavioral repertoire
of a potential or present consumer.
It is well known from
the modeling literature that, under aproppriate conditions, observers who see a
model experience aversive outcomes following a particular act will reduce their
tendencies to exhibit that behavior. Similarly, vicarious learning can employ
extinction to reduce the frequency of behavior.
Consider the following
examples. Hefty bags have been advertised on TV using a modeling approach.
Various family members are shown taking out the trash in “bargain bags.” Of
course, the bargain bag breaks and garbage is spewed all over the drive way.
This is a very annoying experience! The frustrated family member is then told
about Hefty bags, uses them successfully and is socially reinforced for doing
so. Head and Shoulders shampoo commercoials have shown people initially being found
attractive by members of the opposite sex but then being rejected when the
models scratch their heads, indicating they may have dandruff. Following the
use of the advertised product, the model is shown being happily greeted by an
attractive member of the opposite sex.
A common use of this
type of modeling is in public service advertising. Many behaviors considered
socially undesirable can be modeled and shown to have aversive consequences.These
behaviors include littering, smoking, driving drunk, using drugs, overeating,
wasting energy and polluting. One commercial, for example, showed a drunken
driver being caught, taken to court and given a considerable fine and jail
sentence for his behavior.
Response
Facilitation
In addition to
developing new behaviors and inhibiting undesired ones, modeling can be used to
facilitate the occurances of desired behaviors that are currently in the
consumers reportaire. Modeling has been used extensively in advertising not
only to illustrate the uses of a product but also to show what types of people
use it and in what settings. Because many of these uses involve behaviors
consumers already perform, the models function is merely to facilitate these
responses by depicting positive consequences for using the product
appropriately. For example, Nyquil ads show adult cold sufferers using the
product before going to bed and then sleeping comfortably. This technique also
appears frequently in advertising for high status products. Such ads do not
demonstrates any new behaviors but show the positive consequences of using the
product. A series of Lowenbrau ads stressing the use of this beer for very special
occasions is a good example.
It is also possible to
influence emotional behavior through a vicarious learning approach. Bandara
noted that many emotional behaviors through a vicarious learning approach.
Bandara noted that many emotional behaviors can be acquired through
observations of others as well as through direct classical conditioning.
Vicarious emotional
conditioning results from observing others experience positive or negative
emotional effects in conjunction with particular stimulus events. Both direct
and vicarious conditioning processes are governed by the same basic principles
of associative learning, but they differ in the force of the emotional arousal.
In the direct prototype, the learner himself is the recipient of pain or
pleasure producing stimulation, whereas in vicarious forms somebody else
experiences the reinforcing stimulation and his affective expressions, in turn
serve as the arousal stimuli for the observer.
To the degree that
positive emotions toward a product are desired, vicarious emotional
conditioning may also be useful for the design of effective advertisements.
Factors
Influencing Modeling Effectiveness
There is no question
that watching a model perform a behavior often increases the likelihood that
the observer will also perform the behavior. It is well established in the
psychological literature that in many situations, modeling is effective in
changing behavior as illustrated in Highlight 9.2. However, certain factors
have been found to increase the likelihood that vicarious learning will occur.
These factors can be divided into three groups: (1) model and modeled behavior
characteristics (2) observer characteristics and (3) characteristics of modeled
consequences.
Highlight
9.2
Do
Professional Models Make Women Feel Bad about Their Appearance?
Many cues in our
culture may communicate to women and young girls that being thin and fit is a
prerequisito to being considered attractive in our society Professional models,
such as Kate Moss, Naomi Campbell, Claudia Schitter and Cindy Crawford and many
TV and movie stars who appear in commercials and ads and grace the covers of
magazines usually appear to be tall, thin and fit. In fact, many medeling
agencies will not hire fashion models unless they are st least 5’7 tall.
Pictures of the model’s bodies are often computer generated and computer
enhanced to appear more thin and shapely. Even Barbie dolls may be a problem;
if Barbie were life size, she would be 5’9 tall and have measurements of
56-18-33.
Critics argue that
these images have bad effecys on many women and girls. Some suggest that eating
disorders and self esteem problems have resulted; 90 percent of the 8 million
Americans with severe eating disorders are women. One study of 803 women found
that, in 1985, 30 percent of them were dissatisfied. Increasingly, women
believe that there are two standards to serve: thinness and looking fit,
according to the study’s author. Overall, 46 percent were dissatisfied with
weight; 40 percent with muscle tone; 47 percent with hips, buttocks, thighs,
legs; 51 percent with their waists and stomachs; 25 percent with their chests,
shoulders and arms.
Do you think that
models used in ads and commercials have negative effects on women’s body
images? Do you think this causes problems like eating disorders and low
self-esteem? Do you think it is apprpriate to use computer enhanced models to
sell faahions, exercise clothing and equipment and cosmetic surgey?
Sources:
Ingeborg
Major O’Sickey, “Barbie Magazine and
the Aesthetic Commodification of Girls Bodies’ “In On Fashion, eds.,SheriBenstock and Suzzanne Ferris (Rutgers
University Press), pp.21-40; Nanci Hellmich, “Looking Thin and Fit Weighs on
More Women,” USA Today, September 25,
1995, p. 1D; Craig Thompson and Diana L. Haytko, “Speaking of Fashion:
Consumers’ Use of Fashion Discourses and the Appropriation of Countervailing
Cultural Meanings,”Journal of Consumer
Research, June 1997, pp. 15-42.
Model
and Modeled Behavior Characteristics
Several personal
characteristics of observed models influence the probability that an observer
will imitate the modeled behavior. Models who are found to be attractive may be
sought out, whereas less atractive models may be ignored. Models who are
perceived to be credible and successful exert greater influence than those who
are not. In addition, high status and competent models are more influential in
determining modeling success.
Observers are also
influenced by the manner in which the modeled behavior is performed. If the
sequence of the modeled behavior is detailed very carefully and vividly,
modeling effects tend to increase. Therate of learning also depends on the
salience and complexity of the modeled behaviors. Interstingly, models who
display a bit of apprehension and difficulty and yet complete the task are more
effective than models displaying no struggle or difficulty. A reason for this
was suggested by Manz and Sims: It appears that an observer can identify more
with a model who struggles and overcomes the difficulties of a threatening task
than a model who apparently has no problem. A model who is seen as possessing
substantially greater abilities may not be considered a reasonable refrence
point for the observer. However, experts who display little difficulty in
completing a task (e.g.,professional athletes) may serve as ideals to be
emulated in nonthreatening situations.
Another factor that
influences the effectiveness of models is the perceived similarity of the model
to the observer. This finding supports the common practices of using models similar
to people in the target market in commercials and attempting to increase
similarities between customers and salespeople when hiring and assigning sales
personnel. Many advertisers take advantage of these characteristics in
developing commercials. These characteristics may also influence whether
modeling aids in the diffusion of new products, an issue discussed in Highlight
9.3.
Highlight
9.3
Diffusion
or Innovations: A Modeling Process?
Modeling play a prime
role in spreading new ideas, products, and social practices within a society or
from one society to another. Successful diffusion of innovations follows a
common pattern: (1) New products and behaviors are introduced by prominent
examples; (2) the product/behavior is adopted at a rapidly accelerating rate;
and (3) adoption then either stabilizes or declines, depending on the
product/behavior’s functional role. The general pattern of diffusion is
similar, but the mode of transmission, the speed and extent of adoption, and
the life span of innovations vary for different products and forms of behavior.
Modeling affects
adoption of innovations in several different ways. It instructs people in new
styles of behavior through social, pictorial or verbal displays. Some observers
are initially reluctant to buy new products or embark on new undertakings that
involve risks until they see the davantages gained by earlier adopters. Modeled
benefits accelerate diffusion by weakening the restraints of more cautious,
later adopters. As acceptance spreads, the new gains further social support.
Models not only exemplify and legitimize innovations, they also serve as
advocates for products by encouraging others to adopt them.
Source:
“Adapted
from Albert Bandura, Social Learning Theory (Englewood Cliffs, NJ:
Prentice-Hall, 1977) pp.50-51.
Characteristics
of Observers
Any number of
individual difference variables in observers could be expected to mediate
successful modelling. For example, individual differences in cognitive
processing as well as in physical ability to perform a modeled behavior may
affect the process. Bandara suggests that in many cases obsevers who are
dependent, lack confidence and self esteem, and have been frequently rewarded
for imitative behavior are especially prone to adopt the behavior of successful
models. However, perceptive and confident people readily emulate idealized
models who demonstrate highly useful behaviors.
Perhaps most important
is the value the observer places on the consequence3s of the modeled behavior.
For example, if consumers value the social approval obtained by a model in the
Greecian Formula (hair coloring) commercial, they are more likely to purchse
and use the product.
Characteristics
of Modeled Consequences
Just as operant
conditioning places importance on the consequences of behavior, so does
vicarious learning. Of course, in vicarious learning, the observer does not
experience the consequences directly. Thus, a major advantage of vicarious
learning for consumers is that they can learn effective purchase and use
behavior while avoiding negative consequences.
Research has
demonstrated that positively reinforcing a model’s behavior is a key factor in
facilitating vicarious learning. In terms of consumer behavior, much fruitful
research could be done on identifying appropriate reinforces for various types
of products. Currently, however little is known about what types of positive
consequences would be most effective to model. Similarly, for modeling
applications that seek to decrease undesired behaviors, the most effective
types of negative consequences to model in commercialos are unknown. Although
it has been demonstrated that modeling is useful in deterring smoking, reducing
drinking, reducing uncooperative behavior of children, and reducing energy
consumption, many other areas of consumer behavior are unexplored.
Marketing
Implications
Vicarious learning or
modeling has many implications for marketing strategies designed to influence
consumer behavior. First, modeling can be helpful in developing information
contact behaviors. For example, TV commercials could show consumers how to
contact a company’s Web page to get more information about products. The
commercials could also show consumers how to order products from the Internet
or by phone. Second, modeling can be used to increase store contact and product
contact behaviors by demonstrating how consumers can get to a store or mall or
find products. Commercials could also show consumers enjoying the shopping
experience at the store and enjoying looking over products. Third, modeling can
be used to influence funds access and transactions, such as the commercials for
Master Debit Cards that showed a consumer using one to complete a transaction
in time to make a flight, while another consumer who was writing a check missed
the flight. Fourth, modeling can be used to influence consumption by demonstrating
how a product can be used safely and effectively. Infomercials for fishing
tackle like the Banjo Minnow show how to rig it and how it catches many species
of fish. Multitaak woodworking equipment infomercials show how to set the
machine up for different jobs and the excellent results that it obtains.
Modeling can also be used to affect disposition by showing consumers safe ways
of disposing of hazardeoous products, like motor oil or paint. Finally,
modeling is used to affect communication by showing ads in which consumers tell
others about how good a product is and encouraging them to buy it.
In sum, advertisements
and commercials commonly use modeling to influence consumer behavior. By
carefully analyzing the salient characteristics of the models and modeled
behaviors, the target consumers, and the consequences depicted in ads,
marketers can increase advertising effectiveness. Exhibit 9.6 summarizes some
uses of modeling to influence consumer behavior.
Exhibit
9.6
Some
Application of Modeling to Influence
Modeling Employed
|
Desired Response
|
Instructur,
export, salesperson using product (in ads or at point of purchase)
|
Use
product in correct, technically competent way
|
Models
in ads asking questions at point of purchase
|
Ask
questions at point of purchase that highlight product advantage
|
Models
in ads receiving positive reinforcement for product or use
|
Try
product; increases product purchase and use
|
Models
in ads receiving no reinforcement or receiving punishment for performing
undesired behaviors
|
Extinction
or decrease of undesired behaviors
|
Models
in ads (similar to target) using product in novel, enjoyable way
|
Use
product in new ways
|
Lottery
Games
As discussed in this
chapter, operant conditioning offers a number of insights into the success of
state lottery games. First, the fact that more consumers buy lottery tickets
when the jackpot is large is consistent with the idea that the greater the
reinforcement, the higher the probability of behavior. Second, although
lotteries started out as biannual events, lottery officials soon recognized
that more frequent games and instant-winning scratch cards could increase
overall lottery revenue. This is consistent with the idea that sooner the
reinforcement after the behavior, the more likely the behavior is to occur and
be repeated.
Third, the prizes in
the state lottery games are given on a variable ratio schedule, a powerful one
for influencing and maintaining behavior. Even though the odds of wining are
very small, some players continue to buy tickets for every game. Critics of lotteries
state that poorer people buy the most tickets, spend a larger fraction of their
incomes on the games than do others and may spend money needed for food for
their children on them.
Fourth, the fact that
lottery purchase behavior decreases after the first year of a lottery is
consistent with the concept of extinction. That is, the behavior of consumers
who repeatedly buy lottery tickets and consistently fail to win anything
decreases and may terminate in the absence of any reinforcement. Thus lottery games
that offer a number of prizes can reinforce more players. Even occasional,
relatively small amounts of cash won can keep consumers playing over a number
of years or a lifetime. Some critics argue that lottery games encourage
consumers to become compulsive gamblers.
In sum, operant
conditioning can account for the success of state lotteries. However,
cognitive, affective and environmental theories also do so, and they add
insight into the processes involved. For example, cognitive approaches might
explain why consumers quit playing instant cash games after a few weeks.
Perhaps consumers purchased some tickets and didn’t win and extinctor, occurred.
However, after a few weeks, consumers may have seen or heard of some winners
and may believe most of the big prizes have already been won. Thus they think
their chances of wining are not as good as when the game first started, so they
quit buying. Overall, the combinatian of cognitive, affective, behavior and environmental
theories offers the best account of the success of state lotteries and consumer
behavior in general.
Summary
This chapter provided
an overview of conditioning and vicarious learning. Both classical and operant
conditioning were discussed. Classical conditioning is a proses by which a
neutral stimulus becomes capable of eliciting a response when it is repeatedly
paired with a stimulus that naturally causes the response. Marketers use
classical conditioning to create favorable affect for products and stores and
increase the chances that consumers will perform desired behaviors. Operant
conditioning deals with influencing behavior with both antecedents and
consequences. The antecedents to behavior that influence it are called
discriminative stimuli. The consequences of behaviors are arranged to either
increase or decrease the behaviors in the future. The chapter also discussesd
vicarious learning or modeling which is a process by which behavior is changed
by watching others perform it and the consequences of it. Conditioning and
modeling processes are commonly used in developing marketing strategies to
influence consumer behavior.
Key
Terms and Concepts
Classical conditioning
202 Positive
Reinforcement 207
Continous reinforcement
schedule 209 Punishment 208
Discriminative stimuli
211 Reinforcement
schedules 209
Extinction 208 Response
hierarchy 207
Fixed ratio schedule
209 Shaping
210
Negative Reinforcement
208 Variable
ratio schedule 209
Operant Conditioning
206 Vicarious
learning 212
Review
and Discussion Questions
1.
Describe classical conditioning and
identify three responses in your own behaviors that are the result of classical
conditioning.
2.
Under what conditions would the use of
classical conditioning be likely to produce positive results as part of
marketing strategy?
3.
What are the major differences between
classical and operant conditioning?
4.
Describe operant conditioning and
identify three responses in your own behaviors that are the result of operant
conditioning.
5.
Review each of the four types of
manipulations of consequences that can be used to change the probabilities of a
behavior under operant conditioning. Give marketinf examples for each.
6.
Why are variable ratio reinforcement
schedules of greater interest to marketing managers than other types of
reinforcement schedules?
7.
Define shaping and explain why it is an
essential part of many marketing conditioning strategies.
8.
Examine the marketing strategies used to
sell fast food hamburgers and automobiles. Identify specific examples of
classical conditioning, operant conditioning, shaping and discriminative
stimuli for each product type.
9.
Describe the steps necessary for
behavior change in the modeling process.
10.
What are three major uses of modeling in
marketing strategy?
11.
Why might a maketing organization use
symbolic rather than live overt modeling? Give examples to illustrate your
points.
Marketing
Strategy in Action
Rollerblade
Inc.
Minneapolis based
Rollerblades Inc. introduced its first in line roller skate in 1990, its
founder, Scott Olson, was a hockey player with the Winnipeg Jets farm teams who
envisioned player with the Winnipeg Jets farm teams who envisioned a roller
skate with the action of an ice skate that hockey players and skiers could use
to train during the off season. At first, the plan was to use modern materials
to conbstruct a model based on an eighteenth century design. However, Olson
discovered a similar in line skate already on the market and purchased the patent from the Chicago Roller Skate
Company. Olson and his brother, Brennan, perfected the design using a plastic
molded ski type boot a top a blade of polyuretnane wheels. Their first sales
were to Olson’s teammates as well as a few to sporting goods stores. Thus began
the sport of blading.
Although they generally
cost twice as much as conventional roller skates, in line skates are purchased
for two reasons. First, they are faster and therefore more exciting to use than
conventional skates. Second, they provide skaters with a better aerobic
workout, requiring the use ofr more muscles. However, it is more difficut to
learn how to use in li8ne skaters because they require more balance and their
faster speeds may cause more severe injuries if a skatter falls.
By 1986, wholesale
sales of in line skates had risen to $3.5 million. Recognizing an opportunity
to get in on a grwing market, a number of companies began producing competitive
products. First Team Sports Inc., also based in Minneapolis, started
manufacturing its Ultra-Wheels brand skates, which included the first in line
skates for children. The Roller Derby Skate Corporation in Litchfield, lllionis,
a manufacturer of standard roller skates since 1936, produced an in line skate
with a toe stopper for those accustomed to conventional skales (Rollerblades had a rubber stopper
located on the heel). The ice skatemanufacturer Bauer entered the market with a
skate that had a leather boot rather than plastic.
Rollerblade Inc’s sales
increased when it expanded its target market. At first, the product was
targeted to hockey players who were 95 percent male and were 18 to 25 years
old. However by broadening the target include 18 to 35 year old males and
females, the company increased sales considerably.
By 1990 industry
wholesale sales of in line roller skate business. Rollerblade Inc. maintained a
66 percent market share; First Team Sports had 22 percent; Bauer had 5 percent;
Roller Derby had 3 percent; and other competitors combined had the remaining 4
percent. Pollerblade could have done even better, but it could not fill store
orders for several months because it ran out of inventory early in the year. By
1995, there were 2.5 million in line skaters, although growth in numbers of
skaters was slowing down.
The fierce competition
in the industry involved not only product features but also marketing elements.
Companies rushed to sign celebrities to promote their products. For example,
First Team Sports signed Wayne Gretzky,
the Los Angeles King hockey star, and his wife, Janet Jones Gretzky, to a
contact to promote its skates. Competitors also moved into new retail markets
including discount and department stores. Rollerblade expanded its market by
selling to Macy’s and Nordstorm.
Although the name
Rollerblades may become a generic term for this type of skate, the management
of the company will have to work hard to maintain its market lead. “We have
been pioneers and continue to maintain an edge, “a company spokesperson said. “You
only get one shot at pioneering a new sport and trhat’s exciting.”
Discussion
Questions
1.
What role do you think modeling could
have played in the diffusion of this innovations? (See Highlight 9.3)
2.
How could you use modeling to teach a
friend how to use Rollerblades?
3.
What factors make Wayne and Janet Jones
Gretzky good models for Rollerblade’s competitors?
4.
If you were designing a commercial for
Rollerblades to be used for an in store vidiotape demonstration, how would you
design the commercial to take advantage of your knowledge of modeling?
Source:
Based
on “Innovator Tries to Protect Its Lead,” The
New York Times, August 7, 1990, pp. C1, C6; Louis Therrian, “Rollerblade is
Skating in Heavier Traffic, “Business
Week June 24, 1991, pp. 115-116; and Linda Kanamine, “In-Line Skating
Revolutionizes Fitness Craze,” USA Today.
July 15, 1994, pp.1C-2C; http://www.rollerblades.com.
