CONSUMER LEARNING,

HABIT, AND BRAND

LOYALTY

Dr. Yanti Mayasari Ginting, M.Sc

• A consumer’s prior satisfaction with a brand results in purchasing it on a
routinized basis.
• The consumer find little need to evaluate brand alternatives
• Recognizing a need leads directly to a purchase
• Habit is a way of ensuring satisfaction based on past experience and
simplifying decision making by reducing information search and brand
evaluation
• Marketer must understanding the principles of consumer learning, as learning
theory can explain whether consumers will develop consistent behavior over
time.
• Consistent behavior can be the result of brand loyalty or inertia
• Brand loyalty is repeat buying because of commitment to a brand
• Inertia is repeat buying without commitment; for unimportant purchases, if a
brand is reasonably satisfactory, a consumer may buy again because it is not
worth the time and trouble to go through a decision process

INTRODUCTION
 CONSUMER LEARNING
• Learning can be defined as a most in particular brands
change in behavior occuring as a • Consumer determine throught
result of past experience. wearing the brand repeatedly
• Learning as a process that can • Continued satisfaction reinforce
sometimes lead to repetitive past experience & increase
behavior. probability buying the same
• Consumer learn not only what brand the next time.
brands they like and do not like,
but also the features they like
 Types of learning theory
• Behaviorist school is concerned with of the degree to which purchase behavior
observing changes in an individual’s responses leads to satisfaction
as a result of exposure to stimuli. • Cognitive school views learning as problem
• Behaviorist psychologists have develop two solving and focuses on changes in the
types of learning theories: classical consumer’s psychological set (the consumer’s
conditioning and instrumental conditioning attitudes and desired benefits) as a result of
• Classical conditioning views behavior as learning (closely describes CDM)
the result of a close association (contiguity)
between a primary stimulus (social success)
and a secondary stimulus (a brand of
toothpaste, deodorant, or soap) Learning
• Instrumental conditioning views behavior Theory
as a function of the consumer’s assessment

Behaviorist Cognitive

Classical Instrumental
Conditioning conditioning
 Unconditional Unconditioned
stimulus response
CLASSICAL CONDITIONING 1
Conditioned
Conditional stimulus
responded

Emphasis: Association through repetition and cogtiguity

Increase or decrease
Behavior in probability of
response
2
INSTRUMENTAL CONDITIONING
Reward or
punishment

Emphasis: Reinforcement; dependence of outcome on learner’s actions

COGNITIVE LEARNING THEORY

Purposive Goal
Goal Insight achievement 3
behavior

Emphasis: Problem solving; understanding relationship

• What marketing situations one is more likely to be
relevant than another ?
• Behaviorist approach place little emphasis on thought
processes and consumer attitudes, it might be most relevant
when the consumer’s cognitive activity is minimal.
• Most likely to occur when the consumer is not involved
with the product
• Cognitive learning theory is more relevant for important
and involving products. (consumer’s problem solving takes
place through a process of information search and brand
evaluation)

Relevance of the Cognitive Versus

Behaviorist Perspective
• Habit can be defined as repetitive behavior; that is, a routinized
response resulting in a limitation or absence of (1) information seeking
and (2) evaluation of alternative choices.
• Brand loyalty as a likely result of habitual purchasing behavior.

Need arousal Intention to buy Purchase

Feedback

Postpurchase
evaluation

Reinforcement extinction

HABIT Revert to
complex
decision making
Habit Vs CDM
Strategic Implications of Habit Versus CDM
• Distribution • Advertising and in-store promotion
• Purchase by habit are likely to be • Products consumers purchase by
high-turnover, low-margin items, habit are more likely to use
they should be distributed advertising as a reminder. Repetitive
extensively. Widespread distribution advertising is more important.
is important because seeing the item • Products consumers purchase by
reminds them to buy complex decision making are more
• Manufacturers are more likely to likely to use advertising selectively to
distribute products purchased by convey information to specific
complex decision making selectively audiences.
or exclusively. • Pricing
• Product • Price deals (special sale) or free
• Purchase by CDM, primarily samples are effective in influencing
appliances and durables, tend to be consumers purchasing by routinize
technically more complex. Personal decision making
selling is more important for these • Price deals or free samples are less
products, and service is more likely effective in influencing consumers
to be required. purchasing by complex decision
• Purchase by habit are generally making
packaged goods involving few
service requirements and little direct
selling.
• Creat awareness of an alternative to the leading brand.
• Advertise a new feature in an existing brand.
• Try to change consumer priorities by introducing a
feature consumers had not previously considered.
• Encourage consumers to use the product as a substitute
for another category.
• Use free product samples, coupons, or price specials to
get consumers to switch from their favored brand.
• Introduce a line extension of an existing brand that offers
a new benefit.

Various marketing strategies can induce

consumers who buy by habit to consider other
brands:
• Two approaches to the study of brand loyalty
• The first, an instrumental conditioning approach, views
consistent purchasing of one brand over time as an
indication of brand loyalty. Consumers’ repeat purchasing
behavior is assumed to reflect reinforcement and a strong
stimulus – to – response link.
• The second approach to the study of brand loyalty is based
on cognitive theories. Some researchers believe that
behavior alone does not reflect brand loyalty. Loyalty
implies a commitment to a brand that may not be reflected
by just measuring continuous behavior.

BRAND LOYALTY
• Some generalizations can be risk.
made about those who tend to • The brand-loyal consumer is
be brand loyal: more likely to be store loyal.
• The brand-loyal consumer tends • Minority group consumers tend
to be more self-confident in his to be more brand loyal. Loyalty
or her choice. may be the result of concern
• Brand-loyal consumers are more about financial risk in purchases
likely to perceive a higher level and a desire to “play it safe.”
of risk in the purchase and to
use repeat purchasing of a single
brand as a means of reducing

The Brand-Loyal
Consumer
• The cognitive definition of brand loyalty means that loyalty
represents commitment and, therefore, involvement with the
purchase.
• A study by J. Walter Thompson, a large advertising agency, found
that brand loyalty is highest when consumers are personally involved
with the brand and find the purchase risky. In these cases, the brand
is a source of self-identification (cosmetics, automobiles, cigarettes).
• Inertia  Habitual purchasing with a low level of involvement, the
consumer has no strong opinions or feelings about the brand. The
consumer bases purchasing on what is most familiar.
• It does not represent commitment; it merely represents acceptance.

Brand Loyalty and

Product Involvement
• Traditionally, marketers have • To buid consumer equity,
viewed brand loyalty in aggregate marketers need information on
terms. individual consumers – what web
• “One to many” marketing has sites consumers visit most often,
changed to “one to one” what their preferences are, what
approach, or micromarketing. products they purchase most
• Brand loyalty has changed frequently, and what brands they
become customer loyalty prefer.
• The primary objective of • As technology becomes more
micromarketing is to establish advanced and large corporations
consumer equity at individual embrance mass customization
level by delivering the best both in an informational and
product to meet the customer’s product context, there will be an
needs and by establishing a increasing shift in strategic focus
unique relationship with the from brand equity to customer
consumer after the purchase. equity.

CONSUMER LOYALTY, CONSUMER EQUITY, MICROMARKETING

• Store loyalty may be stronger than brand loyalty
• There is a link between self image and image of someone
of the store
• Store loyalty may also reflect inertia

STORE LOYALTY
• Reynolds, Darden, and Martin related shopping style” and that this shopping
lifestyle characteristics to store loyalty. style is more likely to exist among low-
They identified store loyalty by the income consumers because they are
willingness of a sample of women to constrained by their inability to shop
shop in the same stores and to avoid the much.
risk of shopping in the new stores. • The two studies just cited also found
They found that the store-loyal woman that store-loyal consumers see more
tends to be older and more downscale risk in shopping. The lower income and
(lower income, less educated) than one educational level of the store loyal
who is not loyal. consumer may heighten the sense of
• Goldman supported these findings in risk in shopping behavior. The careful
his study. He found that store-loyal and conservative nature of these
consumers engaged in less prepurchase customers suggests that store loyalty
search , knew about fewer stores, and may be a means of reducing the risk of
were less likely to shop even in other shopping in unknown stores. One
stores known to them. Goldman obvious strategy in reducing risk in
concluded that store loyal behavior store choice is to shop in one or a select
appears to be “part of a low search, low number of stores.
knowledge and low utilization level

Store-Loyal Consumers
• Store loyalty is likely to be pulled by two opposing
trends. Consumers’ greater value orientation is likely to
cause them to comparison-shop, eroding store loyalty.
• Demographic trends such as the increased numbers of
working women and single parent households are likely
to put a premium on time, encouraging store loyalty.

Level of store loyalty

• Web site loyalty has the potential to reinforce brand
loyalty if marketers are successful in establishing
relationships with customers who visit their site regularly.
• Loyalty to sites that compare prices and brands could also
have the potential for expanding the range of options
consumers are considering, thus diminishing the potential
for brand loyalty.

Web Sites Loyalty

• Consumer who are loyal to an offline retailer are more
likely to be loyal to its online representative.
• Consumers tend to face limits in the “time utility” of their
information search. Over time, they learn how to best
navigate certain sites and are likely to “settle into” these
sites rather than spend the time to learn the protocols for
other sites.
• There may be substantial switching costs in using another
site if the consumer had made an investment of time and
contributed information to a certain site.

Several factors encourage web

site loyalty :
• The preceding description of brand and store loyalty
suggest that it may not be the most efficient mode of
decision making for consumers.
• Brand and store loyalty save consumers time and effort in
evaluating alternatives.

SOCIAL IMPLICATION OF
BRAND AND STORE LOYALTY
• Name brands often trade on their least afford the higher prices of
national reputation and frequent national brands.
advertising to charge higher prices. • In this respect, the recent move to
Many consumers are swayed by the everyday low prices for national
name appeal alone and establish brands may be beneficial from a
strong brand loyalties based on image. societal standpoint.
• Blind taste tests have shown that • consumers are showing more
many consumers cannot tell the willingness to shop around for value.
difference between Pepsi and Coke or Shopping for value could mean trying
Miller and Budweiser. However, a lower priced brand.
when the name is revealed, the
consumers exhibit strong preferences. • This move to more effective modes of
brand choice is more characteristic of
• Loyalty is a function of brand name middle income consumers, not lower
and image rather than any functional income consumers. Because lower
brand attributes. income consumers are less likely to be
• the fact that brand and store loyalties aware of brand and price alternatives
tend to be stronger for minority
consumers and older, downscale
consumers is disturbing. These
consumers are often the ones who can

IMPLICATION FOR BRAND LOYALTY

• Any erosion of store loyalty may a low knowledge and low
be beneficial from a societal utilization style of shopping
viewpoint in encouraging applies most to downscale
consumers to shop for consumers. However, these are
alternatives with the lower- the consumers who can most
priced. benefit by increasing their range
• The problem is that older, of alternatives.
downscale consumers and • Government could have a role in
disadvantaged minorities increasing the mobility of lower
continue to be the most store income,disadvantage consumers
loyal. Low incomes consumers through improved modes,
often lack the mobility to engage disadvantaged consumers
in comparison shopping. through improved modes of
Goldman’s description of store transportation to facilitate
loyalty consumers as exhibiting comparison-shopping.

IMPLICATION FOR STORE LOYALTY

• TERIMA KASIH