Why They Buy Module #2 How Your Customers Learn to Love You | Michael Solomon | Skillshare

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Why They Buy Module #2 How Your Customers Learn to Love You

teacher avatar Michael Solomon, Expert on Consumer Behavior

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

10 Lessons (55m)
    • 1. Introduction to Learning

      1:30
    • 2. 2

      13:18
    • 3. 2

      3:50
    • 4. 2

      6:13
    • 5. 2

      5:52
    • 6. 2

      3:06
    • 7. 2

      10:30
    • 8. 2

      4:32
    • 9. 2

      4:15
    • 10. 2

      1:56
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About This Class

Our knowledge about the world constantly updates as we are exposed to new stimuli and as we receive ongoing feedback that allows us to modify our behavior when we find ourselves in similar situations at a later time. The concept of learning covers a lot of ground, ranging from a consumer’s simple association between a stimulus such as a product logo (e.g., Coca-Cola) and a response (e.g., “refreshing soft drink”) to a complex series of cognitive activities (e.g., choosing the design elements to furnish a room). In this module we'll review the basic components of learning and see how customers form connections to your product or service. 

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Meet Your Teacher

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Michael Solomon

Expert on Consumer Behavior

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Hello, I'm Michael.  Here's some background about me and what I do:

Michael “wrote the book” on understanding consumers. Literally. Hundreds of thousands of business students have learned about Marketing from his 30+ books including Consumer Behavior: Buying, Having, and Being -- the most widely used book on the subject in the world.

 Michael’s mantra: We don’t buy products because of what they do. We buy them because of what they mean. He advises global clients in leading industries such as apparel and footwear (Calvin Klein, Levi Strauss, Under Armour, Timberland), financial services and e-commerce (eBay, Progressive), CPG (Procter & Gamble, Campbell’s), retailing (H&M), sports (CrossFit, Philadelphia Eagles), manufacturing (DuPont... See full profile

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Transcripts

1. Introduction to Learning: Hi, it's Michael Solomon, and I'm back to you with module number two in my course on why we buy and this module focuses on learning. So in module number one, we took a look at perception. We took a look at some of the factors that make it more or less likely that messages about your product or service are going to make it through my thick skull. And as we saw, there's lots of barriers to that. And in fact, most messages never do make it into Consumer's attention span. But those that do often have a very powerful impact in terms of guiding our future behavior . So in this module we're gonna look at some of the very basic mechanisms of learning, and we're going to see how, in some ways, actually, consumers aren't too much different from laboratory mice in terms of how those mice learned to go for the cheese and avoid the electric shocks. But in our case, of course, we're learning about products and services and brands, and you'll see that there are some very basic steps that you can take to make it more likely that consumers will associate good outcomes with your brand. And in the future, be more likely to come back to you and hopefully in time, become a loyal customer. So join me in module number two and we'll see how some of that stuff works. Thanks a lot. 2. 2: we're now into module number two in the course, which focuses on learning. Let's start with a quick definition. Learning is a relatively permanent change in behavior caused by experience. Now that experience concomitant from many, many different sources, both internal to the consumer and external. You, when I went about Shorty with so formula and he gets cheap much see between stains and film away while theory bite in case you underwear you went way with. So how is that for an oldie but goodie? If you're a certain age, you probably remember that little jingle for Pepcid and quite well, even though it's been over 50 years since we've heard it. So there is a great example of the power of learning and a nice transition to the first objective in this segment, which is that a lot of the knowledge that customers have about your products and services come from simple associations between stimuli and responses. So we're going to start by talking about behavioral learning theories, the's air, some of the simplest, most fundamental approaches to learning that have had a tremendous impact on the way we think about how people and animals learn from experience The basic premise of behavioral learning theories is that learning takes place as a result of responses to external events . And so sometimes these theories are referred to as black box theories. And that simply means that a tried and true behavioral learning theorist really doesn't care what goes on inside the individuals mind. They really just focus on the stimulus that that individual perceives and then the response to that stimulus. So here's a nice example of that. We often respond to brand names and sense and jingles like in that Pepcid in commercial and many other marketing stimuli because of the simple, learned connections that we have formed over time. So when we start with a stimulus like the famous Marlboro cowboy that becomes so familiar to us because we've seen it over and over again that over time we just immediately think of the Marbro package when we think of cowboys and Marbro has worked very hard for many, many years to create that simple but very strong connection. How strong is that connection? Well, today, in some instances, Marveaux doesn't even bother to put its brand name or package in an advertisement. All the company feels it needs to do is to show this familiar red and white shape, and people will know from experience that that means Marlboro. Another basic premise of behavioral learning theory is that people learn that the actions that they take result in rewards and punishments. So these external good things and bad things that happen to us as the result of things that we do create learning. And this feedback influences the way that we respond in similar situations in the future. So when we have this familiar situation of a mouse in a maze, and the mouse learns over time that if he is able to find his way to that piece of cheese, then he gets a nice snack. According to behavioral learning theorists, that's exactly the way humans learn many things as well. If we find that cheese, we're going to get to the snack. And on the other hand, if we don't find the cheese and we stumble upon something nasty, like saying electric shock the way that mice often tend to do in these experiments, we're going to learn as well, but not because we've been rewarded, rather because we've been punished and those connections are often hard to extinguish it as well. Why is that important to us in marketing? Well, just think about the bad experiences that people have with some service providers. It's very, very difficult to recover from an initial bad experience. So in one major component of behavioral learning theory called classical conditioning, a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time. This second stimulus causes a similar response because we associate it with the first stimulus. The classic work on classical conditioning was conducted by a Russian physiologist by the name of Yvonne Pavlov, and you have probably heard of the famous Pavlov's dogs. So let's take a moment to review what Pavlov did and what he observed and how that translates to what we know about the way people learn. Pavlov kept a bunch of dogs in a laboratory in cages, and, uh, the dogs would be fed every day by assistance, so the assistance would bring the food into the laboratory, and this was in the form of meat powder. That's what they gave the dog. So the meat powder is an unconditioned stimulus. In other words, it's something that naturally occurs in the environment that the dogs air really going to get excited about. So when the dogs smelled the meat powder, they start to salivate. And that's how we know that they are really hungry, and we better feed them soon. So that's salivation process is the unconditioned response. In other words, that's what happens naturally when the dogs pick up the scent of the meat. Now, at the same time as the assistance are coming into the laboratory and unlocking all the cages, they're using a bunch of jingling keys and the keys are making a loud noise. That's really important. So keep that in mind as we move to the next phase. Here, the keys are initially neutral stimulus. In other words, they have no meaning when it comes to the dogs. However, over time, Pavlov made a very interesting observation, which is that when the dogs heard the sound of the jangling keys, even before they could smell the meat powder, guess what? They started to salivate. So the keys became a conditioned stimulus. That is, the dogs had learned to associate the sound of the keys with the meals that were being delivered to their cages, and therefore they gave off a conditioned response. And this is classical conditioning. In a nutshell. Over time, if one thing is associated with something else that we like or dislike, we come to associate that second thing, which is now a condition stimulus with the reward or punishment and therefore it's so to speak, guilt by association. The initially neutral stimulus now becomes a condition stimulus, which elicits the conditioned response. And this explains why, for example, product logos that initially are neutral over time take on a positive or negative association for many customers, and classical conditioning could have similar effects from were complex reactions to even a credit card becomes a condition cue that triggers greater spending, especially because, as a stimulus, its present Onley in situations where we spend money. Now, we know that conditioning effects are more likely to occur after the conditioned and unconditioned stimuli have been paired together a number of time. It's very unusual for this kind of learning to occur if a neutral stimulus and a conditioned stimulus are only paired together once or twice, just doesn't work that way, so repetition becomes extremely important in classical conditioning. Repeated exposures increased the strength of stimulus response associations, and they prevent the decay of these associations in memory stimulus. Generalisation refers to the tendency of stimuli similar to a condition stimulus to evoke similar condition responses. So, for example, Pavlov noticed in subsequent studies that his dogs would sometimes salivate when they heard noises that Onley vaguely resembled the initial noises that had turned them on such as, for example, a bell or a different set of keys jangling. This is really important for us in marketing, because classical conditioning often creates a so called halo effect. This means that people react to other similar stimuli in much the same way they responded to the original stimulus. So why is that important for us? Well, here's a great example. Think about lookalike packaging. You'll notice that many generic brands in the supermarket, for example, bear an uncanny resemblance to national brands. And indeed, research supports the idea that stimulus generalisation is operative. For example, in one study, consumers rated lookalike shampoo brands as similar and quality and performance to the brands that they were trying to imitate. Now the downside is we could have too much of a good thing. When it comes to repetition, consumers can become so used to hearing or seeing a marketing stimulus that they no longer pay attention to it, so varying the way in which you present the basic message can alleviate this problem of advertising. Wear out what's the take away here? Very simply, don't rest on your laurels. What I mean is that just because you have created a positive connection between some stimulus, like an advertising message and a response like consumers positive feelings towards your brand don't assume that that's going to continue over time because more likely than not, you will become a victim of advertising wear out, so you need to change things up a bit. 3. 2: So let's talk a little bit about some of the marketing applications of conditioned product associations, and there are many of them. Advertisements often pair of product with a positive stimulus, such as music or imagery, to create a desirable association. Subjects who viewed a slide of pens that were paired with either pleasant or unpleasant music were more likely later on to select the pen that appeared with the pleasant music and classical conditioning is at work when famous people license their likeness or in some cases, their Children license their likeness and put it on various kinds of products. Essentially, they're trying to transfer the positive feeling that people have about the celebrity to some line of products that they're now connected with. So here we have, for example, a line of drinks that feature the likeness of Bob Marley. But we can even take that strategy a step further because Bob Marley's Children have continued to used the popularity of his name, even though he's been deceased for a number of years and extend the value of that name to other products as well. And that includes a line of swimsuits and even a line of medical marijuana. Another application of classical conditioning is a so called family branding strategy, where a corporation puts its name on a variety of products that it makes. General Electric is a great example of a corporation that relies heavily upon a family branding strategy so you'll see the G E name showing up on a very broad range of products ranging from financial services to aviation and, of course, product line extensions where we might come up with a new product that perhaps combines Theo Equity that is linked to existing products. So here we have a marriage between Starbucks coffee and Jim Beam liquor to make a coffee liquor. And here we have a new venture by Vogue magazine, where the magazine is starting toe open cafes around the country and around the world. Licensing is another application of classical conditioning. Companies often rent well known names, hoping that the learned associations they have forged will rub off onto other kinds of products. I'm not sure if this line of fragrances actually smells like lighter fluid, but I hope not 4. 2: the second major form of behavioral learning is called instrumental conditioning. So what is the difference here? Well, whereas responses in classical conditioning are involuntary and fairly simple, we make those in instrumental conditioning deliberately to obtain a goal. So in instrumental conditioning, we may learn a desired behavior over a period of time as a shaping process. Rewards are intermediate actions. For example, the owner of a new store may award prizes to shoppers who simply drop in. She hopes that over time they will continue to drop in and eventually even by something. So, for example, if you're standing in front of a vending machine and you can choose from a variety of options, the option that you choose will either be rewarding where it won't. And if you choose the right option and you're happy with the result, then learning will occur. In these situations, learning occurs because we are reinforced for doing certain behaviors. In other words, instrumental conditioning occurs when a person receives rewards or perhaps punishments following a behavior. Now where things get interesting is when we look more specifically at how these rewards are delivered. That is what is the reinforcement schedule that is being used. Let's review some of the major forms of reinforcement schedules and talk about why it's important for marketers to understand how these schedules work. First, let's talk about fixed interval reinforcement. This means that after a specific time period has passed, the first response you make brings a reward. So under such conditions, people tend to respond slowly right after they get reinforced. But their responses get faster as the time for the next reinforcement approaches. For example, consumers may crowd into a store for the last day of its seasonal sale and not reappear in the store until the next sale. Variable interval reinforcement means that the time that must pass before you get reinforced varies based on some average, because you don't know exactly when to expect the reinforcement, you have to respond at a consistent rate. This is the logic behind retailers use of so called secret shoppers, people who periodically test for service quality when they pose as customers at unannounced times. Because store employees never know exactly when to expect a visit, they have to maintain high quality constantly, just in case. Another kind of schedule is a fixed ratio reinforcement in these situations. Reinforcement occurs on Lee after a fixed number of responses, this schedule motivates you to continue performing the same behavior over and over. For example, you might keep buying groceries at the same store in order to earn a prize when you collect 50 register receipts. And finally we have variable ratio reinforcement where you get reinforced after a certain number of responses. But you don't know how many responses air required. People into these situations tend to respond at very high and steady rates, and this type of behavior is very difficult to extinguish. This is exactly how slot machines work and how they keep so many people captivated for hours and hours at a time to show you one example of instrumental conditioning that you might find interesting. In one study, a life insurance company obtained a much higher rate of policy renewals among a group of new customers who received ah thank you letter after each payment compared to a control group that did not receive any communication. So the thank you letter is a fairly low cost way of reinforcing the behavior of your customers. Frequency marketing is a popular instrumental conditioning technique. It rewards regular purchasers with prizes that get better as they spend more. So the frequent flier programs that most airlines offer are a wonderful example of this kind of instrumental conditioning, especially when you consider the escalating reward scale that they're going to use. 5. 2: Another very interesting example of instrumental conditioning is Gamification, and this is really a new frontier. This is a very, very rapidly growing strategy. Basically, the strategy of Gamification turns routine actions into experiences as it adds gaming elements to tasks that might otherwise be boring or routine. So just what is Gamification? A simple definition. Is this the application of gaming elements to non game contexts? And you've probably encountered a lot of these in recent years. It's getting very popular to receive all kinds of badges, for example, as the result of doing certain activities. So we are starting to hear this term Gamification quite a bit. I actually even teach an entire course on it at my university. But a lot of people misunderstand just what Gamification is. Many people think it involves playing a game such as playing candy crush at your desk. I know that you would never do that, but there are people who do believe it or not. So is that an example of Gamification? No, it isn't sorry to say, because that really is just playing a game for the fun of playing the game. A Gamification strategy incorporates a number of important elements. One is that it includes multiple short and long term goals in order to keep people engaged . Typically, the players receive rapid and frequent feedback on how they're doing, especially relative to other people who are involved in the same situation. We usually find that there's some kind of reward for most or all of their efforts, often in the form of a badge or some kind of virtual product. So we're typically looking at some kind of friendly competition that occurs in a low risk environment. In other words, you may lose the game, but you won't lose your shirt. And there's a manageable degree of uncertainty to keep things interesting but not too frustrating. Here's a wonderful example of Gamification at work, and this was a very nice campaign that was sponsored by Volkswagen in Europe. What you see here is an attempt to game if I something that most people really don't want to do. And that is to get more exercise by taking the stairs instead of taking the lazy way out and taking an escalator. So Volkswagen created what it called the piano staircase, and this is a regular staircase, except that when you step on each of the steps. A different note is played just like playing a piano, and so people are able to run up and down the stairs and actually play music. What Volkswagen is doing here is taking a mundane activity that many people want to avoid and injecting an element of fun into it to promote healthy behavior. Incredibly successful campaign. I should point out a video that you should look at. I encourage you to Google this or to find it on. YouTube has been watched over 17 million times, and more importantly, 2/3 of the people who came upon this situation wound up taking the stairs instead of taking the escalator. Gamification strategies often include a leaderboard. The leaderboard lists the participants who are involved in the situation and not only provides them with feedback about how they're doing, but keeps things competitive by showing them how they're doing relative to the other people who are involved in this situation as well. We often see badges as I mentioned earlier, and these badges can reward people for virtually any kind of activity, whether it's mastering some kind of task at work to doing something just for fun. As I noted earlier, Gamification is really taking off in marketing campaigns. So look around you and you'll start to see a lot of this being implemented. You really should think about this for your own business. There are a lot of different ways to do it, but essentially what you're doing is taking boring activities and making them fun. So there are, of course, many marketing situations where your consumers aren't nearly as engaged as they should be, and you might want to think about this as a strategy to ramp up their level of engagement. 6. 2: We spent quite a bit of time talking about behavioral learning theories and emphasizing how often these very simple associations really make a difference in terms of how your customers think about your products, your package designs your logos and all the other things that you use to make your product stand out. But I certainly don't want to give you the impression that we learn about everything in such a simple way because obviously many the connections that we make many of the thoughts that we have about products are much more complicated than that. So in addition to simple learning processes, I want to emphasize that customers also learn about what you sell by observing how others react to your products. And that's why we need to also spend a few minutes talking about cognitive learning theory . Unlike behavioral theories of learning, cognitive learning theory approaches stressed the importance of internal mental processes, so, in other words, were going beyond that black box that we talked about in the earlier session. Instead, this perspective views people as problem solvers who actively used information from the world around them to master their environments. So one of the important components of cognitive learning is called observational learning. An observational learning occurs when we watch the actions of others and note the reinforcements that they receive for their behaviors. This is important because it means we don't have to directly experience reinforcements in order to learn from them. In contrast, a lot of times we engage in a process that psychologists call modeling. Now this kind of modelling has nothing to do with walking down a runway. It refers to the process of imitating the behavior of others. And so you can imagine that there are many, many situations in marketing contexts where modeling is extremely important. In some cases, it can be a simple is just observing someone else receive a compliment about something that they're using or wearing. We learn not because we directly receive a compliment, but because we observe what happens to other people when they publicly display a product. So the take away here is pretty simple. You don't necessarily have to directly reward or punish consumers when they purchase from you. In some cases, you can just show what happens to desirable models who use or don't use your products 7. 2: We've talked about how customers learn about products. Now let's move on and talk a bit about how we remember what we've learned. So in this section, we're going to review how our brains process information about brands to retain them in memory. Memory is a process of acquiring information and storing it over time so that it will be available when we need it. Obviously, this is pretty important to marketers because it doesn't make much sense to educate your consumers about your product. Onley toe. Have them totally forget about this information at a later point time. So information is only good when it's not only learned but retained in memory. Now contemporary approaches to the study of memory employ an information processing approach. We talked about this a bit earlier in the In the last section on Perception. These perspectives basically assume that the mind is, at least in some ways, like a computer. It's like a computer in that data are input they're processed and their output for later use in some revised form. According to this perspective, data processing occurs in three distinct stages. The first is called encoding, and in the encoding stage, information enters in a way that the system that is our brains will recognize in the storage stage. We integrate this knowledge with what we already have in memory, and then we warehouse it until it is needed at a later point in time. Finally, during retrieval, we access the desired information. Of course, sometimes our memories are not exactly perfect. And this certainly is a problem as you get a bit older, and so we often rely upon various kinds of memory AIDS toe help us in the process, especially of retrieving memories. So the grocery shopping list, the very simple shopping list is a good example of a powerful external memory aid. In fact, research shows that when shoppers use grocery lists, they buy approximately 80% of the items on the list. So obviously, if you're in the kind of business, whether it's groceries or something else that involves people making a list, you want to do whatever you can to facilitate that process. One of the things that we see now that is very popular. Our grocery shopping APS that people use on their phones and these APS, many of which are free, are a great A great new addition to to the ordinary traditional shopping list. So this is a very powerful tool that at least some grocery chains are starting to realize can really be of great benefit to their business. So let's start by talking a bit about how our brains encode information in the first place . First of all, it's more likely that will retain incoming data when we associate it with other things that we already have in memory. For example, we tend to remember brand names that we link to physical characteristics of a product category, such as coffee mate creamer or Sani flush toilet bowl cleaner. Or that we can easily visualize, such as Tide detergent or Ford Mustang cars compared to Mawr abstract brand names. Sometimes we process a stimulus simply in terms of its sensory meaning, such as the literal color or shape of the package. So in the last section on perception, we talked about the importance of differentiating your product in terms of its design, and this is another great reason to really keep that in mind because we not only notice it more to begin with were also more likely to keep it in memory. But of course, in many cases we often engage in a process of more abstract encoding where we're remembering objects such as brand names, not because of their literal meanings, but because of something that's a bit more complicated. Semantic meaning refers to symbolic associations, such as the idea that rich people drink champagne. So I'm sure you can see that many advertising messages rely not so much upon literal meanings as semantic meanings. By presenting images to us that we have already learned to associate with various abstract categories, such as sophistication or fun, episodic memories relate to events that are personally relevant. A person's motivation to retain these memories will likely be very strong. For example, couples often have their song, which reminds them of their first date or wedding. In many cases, of course, these episodic memories are highly idiosyncratic, that is, you have your own special song, but marketers have no way of knowing that. But nonetheless, as a culture, we also have a variety of episodic memories. Unfortunately, some of these air quite negative. For example, remembering where you were 9 11 probably the most powerful form of memory takes the form of a narrative a narrative is a description of a product that is written as a story, and it's often a very effective way to convey product information. Our memories store a lot of the social information we acquire in story form, so it's often a good idea to construct ads in the form of a narrative so that they resonate with the audience. Narratives persuade people to construct mental representations of the information they see or hear, for example, pictures aid in this construction and allow us to develop more detailed mental representations. And over time, some of the most successful advertising campaigns have been those that created a very powerful narrative. One great example, you may recall, is the famous Taster's Choice couple. And here Taster's Choice invented an entire story around a fictional couple and created a whole series of advertisements that really got people very interested in the back story of this couple. In fact, a book was later published. A romance novel was later published that was actually based upon this Taster's Choice ad campaign. That's how powerful it waas. So when we look at a lot of the so called spokes characters that classic advertising campaigns have used. There's a reason why they have been around for so long and why they were so effective. Research supports the idea that we're more likely to positively evaluate and purchase brands when they connect with us in this way. That is in the form of a narrative or an ongoing story, whether it's the loneliest guy in town that is the Maytag washer repairman or the jolly green giant or even flow, who sells progressive insurance. Oh, it's time for another pop quiz. Let's make sure that you're awake at this point. See if you can answer this question. The elation you felt when you got your first driver's license is an example of a semantic memory. Be episodic memory. See classical conditioning or D. An unconditioned response, if you chose be episodic memory than you remembered what we talked about here. Good job. The take away, especially about narrative memory, is simple but really, really important. If you can link your brand to existing stories, if there's not an existing story that makes sense for you, make up a new one like Taster's Choice did. This is a very, very powerful way to embed your brand and your customers memories, as opposed to just touting how wonderful the product is 8. 2: as I mentioned earlier, when we remember a brand or we retain information about that brand in memory, we don't usually do it in isolation. We think about how that brand relates to things that we already have in our memory, perhaps from similar prior experiences. So according to so called activation models of memory, an incoming piece of information gets stored in an associative network that contains many bits of related information. We each have organized systems of concepts that relate to brands, manufacturers and stores that are stored in our memories. So think of these storage units or knowledge structures as complex spider webs filled with pieces of data. Incoming information gets put into nodes that connect to one another. And it's no coincidence that we have a term like the World Wide Web, because this is exactly the way knowledge gets organized online. So categorization is extremely important. In other words, just how do we associate an incoming piece of information about a brand with other things that we already have in memory? When we view separate pieces of information as similar for some reason, we chunk them together under some more abstract category. Then we interpret raw, incoming information to be consistent with the structure we have created. And if you remember all the way back to Module one. When we talked about perception, I mentioned the idea of a schema and a schema actually is exactly what I'm talking about here, that is. It's a mental category that we used to organize. Incoming information categories like Mini Van and SUV and sedan are widely used both by manufacturers and by consumers. So once you decide that a certain automobile is an SUV, you are naturally going to compare that particular model with other SUVs that you know about. You're not going to compare it with sedans. You're not going to compare it with minivans now. Some of the best marketing opportunities come when enterprising companies make up a new category, often by fusing together to existing categories. A great example is the relatively new category in apparel that manufacturers have come to call ath leisure. So after leisure is a combination of two prior categories. Athletic wear and leisure wear by putting them together. Suddenly, consumers have an entirely new category to play with, and we can see just how successful that has been. Four clothing manufacturers. So the take away here is that the challenge for a new entrant that wants to position itself as a category member has to provide the cues that will help consumers place it in the appropriate category. Whether that category is ath leisure or high end jewelry or snack food. This is really if you think about it at a major component of positioning strategy, where a manufacturer has to help consumers figure out just where in the universe of brands its brand belongs and who it's direct competitors are, So it's a very important strategic consideration. 9. 2: I'd like to take the last section of this module on learning and memory to focus on one particular aspect of memory that's quite interesting and and really quite powerful from a marketing perspective, and that is the power of nostalgia. So in this section, we're going to focus on the idea that products help us to retrieve memories from our past, and this convey a very potent way to market what you sell. This focus on the past is a strategy that is often called not too surprisingly, nostalgia marketing. And essentially, as the name implies, it focuses on our tendency to look at the past that is, past errors of our lives to rose colored glasses. We tend to remember certain errors very fondly, and so the feelings that get elicited when we think about these past times often are very positive it. And that's why marketers often find it helpful to attach their brands to these prior memories in order to bathe themselves in the warm glow of nostalgia. So we see many nostalgia based campaigns. By one estimate, about 10% of all marketing campaigns reflect some aspect of nostalgia. For example, Pepsi recently launched its throwback campaign. It sells Pepsi Throwback, Mountain Dew Throwback and Doritos taco flavored chips, Inauthentic packages from the past. Hostess brought back its 19 seventies characters Twinkie, the Kid, Captain Cupcake, King, Ding Dong and Happy Ho to adorn its snack packages. A slightly different twist that is, other than just bringing back a product that literally was sold in the past is to come out with what marketers call a retro brand, and this means an updated version of a brand from a prior historical period. Retro brands inspire consumers to think back to an error when, at least in our memories, life was more stable, simple or even utopian. Simple. Take away here. Does your brand have any retro appeal? If you've been around for a while, there probably are warm memories. Associate ID with your products from an earlier era. So if you're lucky enough to actually have that retro appeal, use it. In one study, people who were asked to think about the past were willing to pay more for products than those who were asked to think about new or future memories. Another study created what the researchers called a nostalgia index, and this measures the critical ages, during which our preferences are likely to form and endure over time. So the researchers found that for different product categories, there are very specific ages where memories tend to imprint on us very, very strong. So, for example, a good predictor of whether a person will like a specific song is how old she was when that song was popular. And you might be interested to know that on average were most likely to favour songs that were popular when we were exactly 23 a half years old. The researchers reported similar findings for movie stars, and in this case they reported that we tend to like movie stars, the most who were popular when we were 26 years old. 10. 2: we've come to the end of module to on learning and memory. So let's take a quick minute to review some of the major topics that we discussed, and I certainly hope you'll remember these first. A lot of the knowledge customers have about your products and services comes from simple associations between stimuli and responses. We talked about classical conditioning as a very potent way to reinforce these connections that can last for many, many years. In addition to simple learning processes, however, consumers also learn about what you sell by observing how others react to your products. So we talked about the process of modeling where people tend to imitate the behavior of others, especially when they observe them being reinforced in a very positive way for doing those behaviors. We looked at how our brains process information about brands to retain them in memory, and we focused in particular about the types of associations people make across brands. That is, the basic categories or scheme is that they form in their brains, and how they use those scheme is to decide what category a brand belongs to and therefore who its competitors are. And finally we saw that products help us to retrieve memories from our past. And this is a potent way to market what you sell. So we talked about the power of nostalgia, marketing and linking your brands to prior errors of consumers Life. I hope you enjoy this module. The next one. The third module is on motivation and emotion. So please join me there. Thanks.