8 transperency of personal influence. chapter # 8

Dr Zain Yusufzai Personal Influence & Diffusion of Innovation Chapter # 8.
A. PERSONAL INFLUENCE
It is defined as the effect or change in a person's attitudes or behavior as result of
communication with others. It can occur in a number of ways. The following
distinctions can be made to indicate the multidimensional nature of this
communication phenomenon:
 Communication leading to influence may be source-initiated (by the
influencer) or recipient- initiated ( by influence)
 Communication may result in one- ay or two- way influence. That is the
individual may influence while being influenced.
 Communication resulting in influence may be verbal or visual.
Now the question arises that why is the word of mouth communication so strong? It
is strong because the three reasons
 Consumers view word of mouth as reliable and trustworthy information which
can help people to make better buying decisions
 Personal contacts can provide social support and give a stamp of approval to
purchase
 The information provided is often backed up by social group pressure to force
compliance with recommendation
COMMUNICATION AND INFLUENCE FLOW
FIGURE B.1
COMMUNICATION PROCESS
Personal influence is necessarily dependent upon the process of communication. Both
of these are found to be exclusively direct flow as had been originally supposed.
Consumer behavior (concepts and applications).
David L.Lodon, Albert J. Della Bitta.
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Instead influence can move from mass media directly to influential or
opinion leader. Communication process can be best understood by
following diagram.
1. Problems concerning with the above view
There are three main problems with the above view, which is discussed in the
influence flow. These problems are:
 It suggests that an absolute leader exits for each informal group, when
actually all groups members have same opinion leadership.
 Information is assumed to flow only from the mass media to opinion
leaders who disseminate it to the followers.
 It is not always influence that is transmitted interpersonally
2. Different directions of verbal flow
The following examples of different directions that verbal flow of
communication and personal influence may take between a source and receiver:
Source initiated, one way influence
This is a two step flow model “atif told me how good
his mobile set is, so I decided to buy a set"
Receiver Initiated, one way influence
Asked atif what kind of tire he recommends"
FIGURE B. 2
Two step flow of communication
Step 1 step 2
Source initiated, two way influence
“I showed Atif our new cooking range. He really wants to buy
One when his old cooking range gives out. His interest made me feel better about
our range higher price".
Receiver initiated, two way influences.
“I asked atif what he knew about electric ranges. We had
interesting discussion of the features of different brands
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FIGURE B.3
Multi step Flow
Step 1aStep 2
Step 3
Step 1b
OPINION LEADERS IN MARKETING
Opinion leaders are those people who are able, in a given situation, to exert personal
influence. They are the ones to whom others look for advice and information.
 Products, either positively or negatively.
 verbal and /or visual communication that flows between them and others
whom they influence
Simple example of opinion leadership at work include the following
 During lunch, a coworker mentions the desire to purchase a car, and colleague
recommends a particular brand.
 A person shows a friend photograph of the recent skiing vacation, and the
friend suggests that a different type of film might produce better pictures of
outdoor
1. Characteristics
Numerous studies have been conducted attempting to identify opinion leader
characteristics. These are
 Higher social status within the class
 Greater exposure to the mass media
 Greater knowledge and interest of the area
 Sociable and companionable
 More innovativeness
 Familiar with group standards and values
 High confidence level
There are two types of opinion leader, which are:
1. “General opinion leaders”
These are the leader for all product categories
2. Situational opinion leaders
These depends upon the situation or circumstances
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D. ENGAGING OF OPINION LEADER TO INFLUENCE OTHER
We can present four reasons that opinion leaders engage in word of
mouth communication about products or services. These reasons are
 Product involvement
 Self involvement
 Other involvement
 Message involvement
1. Product involvement
It means to use of a product or service may create a tension that may need to
be reduced by way of talk, recommendation, enthusiasm to provide relief.
2. Self involvement
In this case the emphasis is more on ways the influencer can gratify certain
emotional needs. Product talk can achieve such goals as the followings:
 Gaining attentions
People can have some thing to say in conversation by talking about products rather
than people or ideas
 Showing connoisseurship
Talk about certain products can show one is “in the know” and has good judgment.
 Feeling like a pioneer
The speakers like to identify with the newness and uniqueness of products
and there pioneering manufacturers.
 Having inside information
The speaker is able to shoe how much more he or she knows about the
product and its manufacturers than the listener does.
 Suggesting status
Talking about products with social status may elevate the speaker to the
level of its user.
 Spreading the gospel
The speaker may b able to convert the listener to using the product
 Seeking confirmation
The more followers accept his or her advice about the product, the more
assured the speaker feels about his pr her on decision.
 Asserting superiority
Recommending products to the listener can help the speaker gain leadership
and test the extent to which other will follow.
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3. Other involvement:
In this case, product talk fills the need to “give” something to the
listener, to share one’s happiness with the influence, or to express care, love, or
friendship.
4. Message involvement
Talking may also be stimulated by interest in the messages used
to present the product.
E. ACCEPTING OF PERSONAL INFLUENCE BY FOLLOWERS
. These characteristics are
 Product characteristic
When products are highly visible or conscious, they are
more susceptible to personal influence.
 Individual consumer characteristics
Individuals who are other directed look to other people for the behavioral
guidance, in contrast to those who are inner directed and rely on their own value
systems for direction.
F. THE MARKET MAVEN
The term “maven” is Yiddish and connotes a neighborhood expert who
has information ranging over several topics. “Market Maven” therefore, is defined as
individuals having information about many kinds of products, places to shop, and
other facets of markets, which initiate discussions with consumers and respond to their
requests for market information.
G. DIFFUSION OF INNOVATION
The diffusion of innovations depends upon two related processes;
 Diffusion process
It is a macro process concerned with spread of a new product from its source to
the consuming public.
 Adoption process
` It is micro process that focuses on the stages through which individual
consumer passes when deciding to accept or reject a new product
The Diffusion Process
The diffusion process is concerned with how innovation spread, how they are
assimilated within a market. More precisely, diffusion is a process by which the
acceptance of an innovation is spread by communication to the member of a social
system over a period. This definition includes the four basic elements of the diffusion
process
1 The innovation
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2 The channels of communication
3 The social system
4 Times
The Innovation
No universally accepted definition of the term product innovation or new
product exists. Instead various approaches have been taken to define a new product or
a new service; these can classify as:
 Firm Oriented
 Product Oriented
 Market Oriented
 Consumer Oriented
Firm Oriented Definition
A firm oriented approach treats the newness of a product from the
perspective of the company producing or marketing it.
Product Oriented Definitions
It focuses on the features inherent in the product itself and on the
effects these features are likely to have on consumers established usage patterns. It
defines the following three types of product innovations.
Continuous innovation
It involves the introduction of modified product, rather then a totally
new product. Example include Honda Accord
Dynamically continuous innovation
It may involve the creation of a new product or the modification of an
Existing product. Example include 8mm cam coders
Discontinuous innovation
It requires consumers to adopt new behavior patterns. Example
includes airplane, radio.
Market Oriented Definition
Two market oriented definitions of product innovation have been used
extensively in consumer studies
1. A product is considered new if it has been purchased by a relatively small
percentage of the potential market.
2. A product is considered new if it has been on the market for a relatively short
period of time.
Consumer Oriented Definition
A new product is any product that a potential consumer judges to be
new. In other words, newness is based on the consumer’s perception of the product,
rather than on physical features or market realities.
Product Characteristics that influence diffusion
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Acceptance, diffusion researchers have identified five product
characteristics that seem to influence consumer acceptance of new
products
Relative advantage
 Compatibility
 Complexity
 Trial ability
 Observables
Relative Advantage
The degree to which potential consumers perceive a new product as
superior to existing substitutes is its relative advantages.
Compatibility
The degree to which potential consumers feel a new product is
consistent with their present needs, values, and practices is a measure of its
compatibility.
Complexity
The degree to which a new product is difficult to understand or use,
affects product acceptance. The issue of complexity is especially important when
attempting to gain market acceptance for high tech consumer products.
Trial ability
It refers to the degree to which a new product is capable of being tried
on limited basis. The greater the opportunity to try a new product, the easier it is for
consumers to evaluate it and ultimately adopt it.
Observability
It is the ease with which a product’s benefits or attributes can be
observed, imagined, or described to potential consumers. Such as a new type of
deodorant
The Channels of Communication
How quickly an innovation spreads through a market depends to a great extent on
communications between the marketer and consumers as well as communication
among consumers (word of mouth).of central concern is the uncovering of the relative
influence of impersonal sources ( advertising and editorial matter) and interpersonal
sources (sales people and informal opinion leaders)
The Social System
The following characteristics typify a modern social system.
 A positive attitude toward change
 An advanced technology and skilled labor force
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 A general respect for education and science
 An emphasis on rational and ordered social relationship
 An outreach perspective, in which members of system frequently interact with
outsiders
 A system in which members can readily see themselves in quite different roles
Time
It is the backbone of diffusion process. It pervades the study of diffusion in three
distinct but interrelated ways:
 The amount of purchase time
 The identification of adopters’ categories
 The rate of adoption
H. ADOPTER CATEGORIES
It involves a classification scheme that indicates where a consumer adopts a new
product. Five adopter categories are frequently cited in the diffusion literature:
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards
TABLE .K. 1 ADOPTER CATEGORIES
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ADOPTER DESCRIPTION % THAT ADOPTS
CATEGORIES
Innovators Venturesome- very eager to try new ideas
Acceptable if risk is daring 2.5 %
communicates with other innovators
Early Adopters Respect- more integrated into the local
social system; the persons to check 13.5%
with before adopting a new idea
Early MajorityDeliberate- adopt new ideas just prior
to the average time; seldom hold leadership 34.0%
position
Late Majority Skeptical- adopt new ideas just after the
average time: adopting may be both economic 34.0%
necessity and reaction to peer pressure
Laggards Traditional- the last people to adopt an
innovation: most “localite” in outlook; 16.0%
oriented to the past
100%
2.50% 2.50%
14%
34% 34%
16.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1st Qtr innovatores early adopters early majority late majority leggards
I. THE ADOPTION PROCESS
The second major process in the diffusion of innovation is adoption. The focus of this
process is the stages through which an individual consumer passes while arriving at a
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decision to try, not to try, to continue using, or to dis continue using a
new product
Stages in the Adoption Process
It is often assumed that he consumer moves through five stages in arriving at
the decision to purchase or reject a new product:
o Awareness
o Comprehension
o Attitude
o legitimation
o Trial
o Adoption
1. Awareness
At this stage the potential adopter find out about the existence of a product but has
very little information.
2. Comprehension
This stage represents the consumer’s having knowledge and understanding of what the
product is and can do.
3. Attitude
Here, the consumer develops favorable or unfavorable behavioral predisposition
toward the product. Termination of the adoption process is likely at this stage
4. Legitimation
Here, the consumer becomes convinced that the product should be adopted.
Trial
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If possible, the consumer tests or tries the product to determine its utility.
Trial may take place cognitively.
6. Adoption
At this stage, the consumer determines whether or not to use the product in a full scale
way.
J. MARKETING IMPLICATIONS OF PERSONAL INFLUENCE
Several questions when targeting prospects for a new product:
o The target market innovative and early adoption propensities
o Its heavy volume potential
o Its susceptibility to influence and
o The cost of reaching this group
1. Several Strategies, which should be adopted
There are several strategies, which might be adopted
o Identifying and using opinion leaders directly
o Creating opinion leaders
o Simulating opinion leaders
o Stimulating opinion leadership
o Stifling opinion leadership
Identifying and using opinion leaders directly
There are two major difficulties in pursuing this strategy. First of all, locating opinion
leader who influenced over a particular product is most completed.
Direct approach
If there is decided upon, however, the first step is to identify opinion leaders.
Socio-metric approach
Another approach to measuring opinion leadership involves the Socio-metric
technique, which consists of asking group member to whom they go for advice and
information about an idea.
Key informants approach
In a group may be asked to designate the opinion leaders.
Consumer identification program approach
The marketer of a new product might engage in a two-step consumer
identification program. First, heavy users of product within the same category as the
to-be-introduced Second, once the product in introduced, description of the earliest
triers should be obtained quickly so that the marketer may develop inducements for
consumers with similar backgrounds.
Enthusiast approach:
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One approach that may work well is obtaining mailing lists
containing names of people who have a high level of interest in a
particular product category.
Creating opinion leaders:
When opinion leader cannot be easily identified or used, it may be possible to
“create” them. Such an approach is frequently attempted by aluminum siding and
swimming pool manufactures. Companies will typically select homeowners
Simulating opinion leadership:
In this approach, personal influence is simulated by various means, especially
advertising. Engage in word-of-mouth communication.
There are several ways in which the marketer can simulate opinion leadership.
Promotional approach:
Promotion for many detergents, foods, laxatives, and other products, in which a
person (the simulated opinion leader) tells another person about the virtues of the
sponsored item.
Visual communication
Testimonial approaches:
User of the product conveys a favorable experience or opinion about the item. First,
the customer must believe that the speaker is talking to the interviewer spontaneously
and disinterestedly (that is the speaker is not simply being paid to speak about a
product). Second, the speaker needs a believable relationship to the product. Third, the
language, which is used, must sound authentic.
Company chief executive as spokesperson:
A final approach to simulating opinion leadership is to use a company’s chief
executive as the spokesperson for the product or service. It is claimed that
commercials featuring company spokespersons generate three times the response of
those using actors.
Simulating opinion leadership:
This strategy is designed to get people to talk about the product and thereby exert
personal influence.
A second advertising strategy is to develop such highly entertaining or emotional
campaign that consumers engage in dissuasions about the product and its advertising.
A final strategy is for the marketer to secure high visibility of the item. One
approach is to use in-store demonstrations and display at favorable locations.
Stifling opinion leadership:
There may be times when the marketer desires to stifle personal influence rather than
encourage it
Firms have a range of response strategies available for negative publicity situations
including:
1. Outright denial of all allegations.
2. No comment.
3. Redirecting audience attention by emphasizing tangential issues.
4. Voluntary admission of guilt and wrongdoing.
5. Implied admission of guilt and mandated compliance with governmental
regulatory agencies requests.
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6. Admission of guilt and voluntary corrective actions to make
restitution:
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