Assignment on

The Concept of Consumer Learning

Submitted in Partial Fulfillment of the Requirement
Of
Masters of Business Administration

Submitted to: Submitted By:

Dr. Shahnawaaz Abdin Piyush Taneja
Designation Rejo
Assistant Professor Radhika
Prashni
Pratipal

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 INDEX

1- DEFINITION AND MEANING OF

CONSUMER LEARNING
2- SILENT FEATURES OF CONSUMER
LEARNING
3- CHARACTERISTICS OF CONSUMER
LEARNING
5- ELEMENTS OF CONSUMER LEARNING
6- LEARNING THEORIES
6.1- BEHAVIOURAL THEORIES OF
LEARNING
6.2- COGNITIVE LEARNING THEORY
7- PRACTICAL STUDY
8- BIBLIOGRAPHY

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 Summarize the Concept of Consumer Learning

DEFINITION AND MEANING OF CONSUMER LEARNING:

Learning is defined as a relatively permanent change in the behavior that occurs as a
result of experience of self or others. There occurs an enhancement of knowledge,
skills and expertise which are relatively permanent. Consumer learning is defined as a
process by which people gather and interpret information about products and services
and use this information/knowledge in buying patterns and consumption behavior. As
Schiffman has put it “consumer learning can be thought of as the process by which
individuals acquire the purchase and consumption knowledge and experience that
they apply to future related behavior”. Consumer learning may be intentional, where
learning is an outcome of a careful search for information; learning can also be
incidental, where learning occurs as a matter of chance, by accident or without much
effort.
Marketers must teach consumers:
● where to buy
● how to use
● how to maintain
● how to dispose of products

The following are the salient features of Learning:

● Consumer learning is a process, and thus it continuously changes and evolves as a

result of newly acquired knowledge
● This knowledge can be obtained from reading, discussing, observing, thinking,
etc. from actual experience.
● Both the newly acquired knowledge and personal experience serve as a feedback.
● This also serves as a future behavior in similar situations.
● Not all learning is deliberate. Learning can be: 
● Intentional: acquired as a result of careful search for information with effort.
● Incidental: acquired as a result of accident or by the way, without much effort.
● The term “Learning” generally covers all ranges of learning from simple reflexive
responses to abstract concepts or complex problem solving capability

Elements of Consumer Learning

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A)Motivation: is the driving force of all important things to be learnt. Motives allow
individuals to increase their readiness to respond to learning. It also helps in
activating the energy to do so. Thus the degree of involvement usually determines
the motivation to search information about a product.

For example, showing advertisements for summer products just before summer
season or for winter clothes before winters.

Motives encourage learning and cues stimulate the direction to these motives. 

B)Cues: are not strong as motives, but their influence in which the consumer
responds to these motives.

For example, in a market, the styling, packaging, the store display, prices all serve as
cues to help consumers to decide on a particular product, but this can happen only if
the consumer has the motive to buy. Thus, marketers need to be careful while
providing cues, especially to consumers who have expectations driven by motives.

C)Response: The behavior of a person constitutes the response; i.e. how a person
reacts to a drive or a stimulus, reflects a response. This response could take various
forms: - It may be overt and lead to an action; the consumer may decide to purchase
the product/brand. Or, - The response may just be learning for the future, i.e. the
purchase is postponed for future; he decides to buy at a later date. Or, - A favorable
image about the product and the brand may get created; the consumer develops an
intention to buy; as and when the consumer decides to make the purchase, he would
consider that brand.

D)Reinforcement: An action always has a reaction; based on the reaction, the

behavior gets reinforced. In other words, if the action (behavior) is followed by a
reaction that is positive or pleasant or rewarding, the action (behavior) gets positively
reinforced; the likelihood of repetition of that action (behavior) increases. The same
holds true vive versa. If the action (behavior) is followed by a reaction that is
negative or unpleasant or unrewarding, the action (behavior) gets negatively
reinforced; and the likelihood of repetition of that action (behavior) decreases. In
terms of consumer learning, if a person buys a particular product/brand, and the
purchase leads to satisfaction and delight, and lives up to expectations, the consumer
would feel that he has got value for money. Through a positive reinforcement,
learning would take place, and the consumer would prefer to buy the same

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product/brand in future. On the other hand, if he feels dissatisfied, again learning
would take place and he would learn not to buy the same product/brand in future. In
fact, positive reinforcement could develop brand loyalty.

● Positive Reinforcement: Positive outcomes that strengthen the likelihood of a

specific response. Example: Ad showing beautiful hair as reinforcement to buy
shampoo. When the environmental conditions reward a certain behavior it is said
to be a positive reinforcement.

● Negative Reinforcement: Unpleasant or negative outcomes that serve to

encourage a specific behavior. Example: Ad showing wrinkled skin as
reinforcement to buy skin cream. When a particular behavior results in
punishment or less satisfaction, the individual will try to avoid such behavior.
This is called negative reinforcement.

Learning Theories:

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There are two Theories to the study of learning, viz., the behavioral theories of
learning, and the cognitive theories of learning.

A) Behavioral theories of learning:

According to this approach, learning within an individual takes place in response to

events/happenings/stimlui in a person’s external environment. They explain learning
in terms of observable responses to external stimuli or as a relationship between
stimulus and response.

Three main features of behavioral learning theory:

● Learning as behavior
● Focuses on changes in behavior that occur as a result of experience
● Emphasizes stimuli and response behaviors

CLASSICAL CONDITIONING:

The three basic concepts include Repetition, Stimulus generalization and Stimulus
discrimination. A behavioral learning theory according to which a stimulus is paired
with another stimulus that elicits a known response that serves to produce the same
response when used alone. Classical conditioning is the learning of associations
among events that allows us to anticipate and represent our environment. From this
viewpoint, classical conditioning is not reflexive action, but rather the acquisition of
new knowledge.

Example: If you usually listen to the 9 o’ clock news while waiting for dinner to be
served you would tend to associate the 9 o, clock news with dinner, So that
eventually the sounds of the 9 o’ clock news alone might cause your mouth to water
even if dinner was not being prepared and even if you were not hungry.

Ivan Pavlov’s Dogs Experiment:

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– Unconditioned stimulus (UCS) – Naturally capable of causing a response.

– Conditioned stimulus (CS) – Does not initially cause a response

– Conditioned response (CR) – Response generated by repeated paired exposures to

UCS and CS. Eventually, through learned association and repetition, the CS will
cause the CR.

CONSUMER BEHAVIOR APPLICATION

Unconditioned Stimulus–Brand Name

Unconditioned Response–Previously acquired Consumer Perception

Conditioned Stimuli–Versions(producer service)of the same brand.

Conditioned Response–Consumer Trying the product.

Examples: Amul, Tata, Birla group, Microsoft

Instrumental Conditioning/ Operant 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 behavior like Repeat Purchase or Repeat Positive Word of Mouth. Both
positive and negative reinforcement can be used to encourage the desired behavior.
The timing of repetitions influences how long the learned material is retained.
Learning usually persists longer with distributed re-enforcement schedule, while mass
repetitions produce more initial leanings. A behavioral theory of learning based on a
trial-and-error process, with habits forced as the result of positive experiences
(reinforcement) resulting from certain responses or behaviors.

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Instrumental conditioning, like classical conditioning, also has an association between
stimulus and response but in instrumental conditioning, the stimulus that provides the
most rewarding response will be learned.

B.F Skinner’s Experiment

In order to illustrate the two approaches in terms of consumer behavior, let us take
An Example. A new detergent + starch combination gel is launched by Hindustan
Uniliver Ltd. It is specially developed for cotton clothes, and the USP of the product
is that it does not only clean them but also applies starch on them, making them clean
and crisp after application.
Classical Conditioning: A person who is loyal to HUL and buys many of their brands
as he finds them to be of quality, would also buy this new product (stimulus
generalization).
Operant Conditioning: HUL decides to give free samples in small 25 gm pouches,
with products like Lux, Peposodent etc. The person who buy a Lux or a Pepsodent,
would get a sachet of this new product free; he would try it and if he finds it
satisfying, he would desire buying a larger quantity pack to be used regularly (positive
reinforcement).

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B) Cognitive learning theory:
There is another type of theory of learning, which doesn’t involve repeated trials or
connection between a stimulus and response. This type of learning arises out of using
the mental faculty of the individual to discover things, perceive things, seeking
knowledge, search for information, sudden impulsive learning, solving problems, etc.
Learning based on the mental activity is known as “cognitive learning”. Human
beings are the most evolved animals who have the most prominent characteristics of
thinking, deliberation and problem solving. Unlike behavioral theories, the cognitive
theories involve a complex mental processing of information, and emphasize the role
of motivation and mental processes in producing the desired response.

For example, it can take the form of learning about the uses and benefits of new
products in the market, especially if they represent significant innovation. It can also
explain how consumers learn about existing products for which they have developed a
recent interest or need. This Holds that the kind of learning most characteristic of
human beings is problem solving, which enables individuals to gain some control
over their environment. Learning through problem solving, which enables individuals
to gain some control over their environment?

Edward Tolman’s and Wolfgang Kohler’s Experiment

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 Practical Problem

Executive Summary
Learning is a behavioral modification that occurs through experience or conditioning.
Researchers have carried out studies to understand consumer learning. According to
the behavioral learning theory, learning occurs from exposure to external stimuli such
as advertising and according to the cognitive learning theory, consumer learning takes
place by a process of internal knowledge transfer. Motivation, cues, response, and
reinforcement are the basic elements of learning. Conditioning can be defined as "a
learning process in which an organism's behavior becomes dependent on the
occurrence of a stimulus in its environment. The most important aspects of classical
conditioning are repetition, stimulus generalization, and stimulus discrimination.
Instrumental conditioning, like classical conditioning, also has an association between
stimulus and response but in instrumental conditioning, the stimulus that provides the
most rewarding response will be learned. According to cognitive learning theory, the
human mind processes the information it receives from the environment. There are
three stages in the memory of a human being, sensory memory, short-term memory,
and long-term memory.
Horlicks has been a part of Indian market for several decades. It is a milk additive that
is positioned on the health platform. There have been several variations in his
advertisement since the brand has been launched. By consumer learning process
Horlicks have made a strong place among the people of India, by targeting the
children that by consumption Horlicks children become ‘Taller, stronger and sharper”.
And now Horlicks is launching a women’s food supplement known as Women’s
Horlicks and Mother Horlicks.

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Introduction
To understand the buyer and to make a customer out of him is the main purpose of the
study of consumer behavior. The buyer has his own ideas and plans about realizing
these needs and desires. The first and foremost task of the marketer is to get close to
the buyer and understand his need-structure and priorities. Though this problem has
been analyzed from different viewpoints under different premises, it still remains a
complex one. On the other hand the buyer is a riddle. He is a highly complex entity.
His needs and desires are innumerable. Some are latent, some manifest and some
others are highly dominant. These have different priorities in the scheme of things.
Learning is a behavioral modification that occurs through experience or conditioning.
Researchers have carried out studies to understand consumer learning. Not all
psychologists agree on how learning takes place it is difficult to come up with a
generally accepted definition of learning. From a marketing perspective, learning is
defined.
Practical study

Horlicks is the name of a company and of a malted milk hot drink developed by the
founders James Horlicks, a pharmacist, joined his brother William Horlicks, in the US
in 1873. It is now manufactured by GlaxoSmithKline in the United Kingdom, South
Africa, New Zealand, Bangladesh, Pakistan, India, and Jamaica, and under license in
the Philippines and Malaysia.

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 Malaysia UK Phillipines

New Zealeand Pakistan Bangladesh

Jamaica India South Africa

Horlicks India
Horlicks came to India with the British Army; the end of World War I saw Indian
soldiers of British Indian Army bringing it back with them as a dietary supplement.
Punjab, Bengal and Madras Presidencies became early adopters of Horlicks and many
well-to-do Indians took to drinking Horlicks as a family drink in early 1940s and
1950s. It became a sort of status symbol in upper middle class Indians and rich
classes. The first flavor available in India, as in Britain, was malt.

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India, where it has traditionally been marketed as the Great Family Nourisher, is the
largest market for Horlicks. The Indian formulation for Horlicks is slightly different
than in most other countries, as there it is manufactured from buffalo milk rather than
cow’s milk due to cultural concerns. In 2003, the brand underwent a revamp which
led to the introduction of new flavors such as vanilla, toffee, chocolate, honey, and
elaichi (cardamom). The current line-up of flavors includes original (malt), chocolate
and elaichi. With the latest offering Horlicks Kesar Badaam added recently to the
portfolio, providing a more specialized taste offering to the consumers.

In 2010, Horlicks accounted for 85% of the 2306 crore (US$390 million) revenue of
GlaxoSmithKline in India. It is currently the most widely consumed packaged
beverage in India, after bottled water.

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The biggest branding event is Horlicks Wizkids. This event started its way in 2003
and till now has reached approximately 25 million kids in all India as well as in
SriLanka, Pakistan, Nepal and Bangladesh.

Horlicks Wizkids – It’s an interschool cultural and literary competition for children
from class 1 to 12. The competition attracts students from India, Pakistan, Sri Lanka,
Nepal and Bangladesh. With more than 30 events in the field of arts, literature,
painting and extra-curricular activities, Horlicks Wizkids is South Asia's largest
interschool fiesta giving children an opportunity to showcase their talent on a global
platform.
The 2013 Edition of Horlicks Wizkids South Asia was held in Bangalore. More than
100,000 students from over 1200 schools participated. Five students from Vizag,
Jaipur, Delhi, Hyderabad and Bhubaneshwar earned the title of the Horlicks WizTeam
2013. The winners got an opportunity to go for a learning program to Germany and a
cash award of Rs. 1 lakh each.

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 BIBLOGRAPHY
We have used these 4 Articles as Reference for our Assignment.

● https://consumerbehaviour4vtu.blogspot.com/2009/04/learning.html
● file:///C:/Users/user/Downloads/Module.6-18.pdf
● https://www.tutorialspoint.com/consumer_behavior/consumer_behavio
r_learning.htm
● https://mateenaltaf.blogspot.com/2017/01/consumer-learning-
consumer-behavior.html

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