1. 1
CHAPTERCHAPTER 77
GROUPGROUP
INFLUENCESINFLUENCES
ON CONSUMERON CONSUMER
BEHAVIORBEHAVIOR
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Consumer Behavior In The News…Consumer Behavior In The News…
What are the top 5 brands in terms of Word of MouthWhat are the top 5 brands in terms of Word of Mouth
(WOM) in the U.S.?(WOM) in the U.S.?
How has the internet aided WOM?How has the internet aided WOM?
Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4.
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Consumer Behavior In The News…Consumer Behavior In The News…
What are the top 5 brands in terms of Word of MouthWhat are the top 5 brands in terms of Word of Mouth
(WOM) in the U.S.?(WOM) in the U.S.?
ToyotaToyota
WalWal--MartMart
HondaHonda
iPodiPod
ChevroletChevrolet
How has the Internet aided WOM?How has the Internet aided WOM?
The Internet allows for easy WOM in the form of eThe Internet allows for easy WOM in the form of e--
mail, blogs, etc., that can create buzz.mail, blogs, etc., that can create buzz.
Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4.
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2. 2
Reference Group InfluenceReference Group Influence
A groupgroup is defined as two or more individuals who share
a set of norms, values, or beliefs and have certain
implicitly or explicitly defined relationships to one another
such that their behaviors are interdependent.p
A reference groupreference group is a group whose presumed
perspectives or values are being used by an individual as
the basis for his/her current behavior.
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Reference Group InfluenceReference Group Influence
Four criteria that are particularly useful in classifying groupsgroups:
1.1. Membership:Membership: Member vs. nonMember vs. non--membermember
2.2. Strength of Social Tie:Strength of Social Tie:
PrimaryPrimary –– Strong ties, frequent interaction (e.g. familyStrong ties, frequent interaction (e.g. familyyy g , q ( g yg , q ( g y
and friend)and friend)
SecondarySecondary –– Weaker ties, less frequent interaction (e.g.Weaker ties, less frequent interaction (e.g.
neighbors, coworkers)neighbors, coworkers)
3.3. Type of Contact:Type of Contact: Direct vs. indirectDirect vs. indirect
4.4. Attraction:Attraction: negative vs. positivenegative vs. positive
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Attraction of Reference GroupsAttraction of Reference Groups
Dissociative reference group:Dissociative reference group:
Negative desirabilityNegative desirability
Influences behavior by defining products to avoid (e.g.Influences behavior by defining products to avoid (e.g.
teens and clothes associated with older people)teens and clothes associated with older people)
Aspirational reference group:Aspirational reference group:
Positive desirabilityPositive desirability
Group that oneGroup that one wantswants to become member ofto become member of
Emulate the behaviors of members of the groupEmulate the behaviors of members of the group
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3. 3
Types of GroupsTypes of Groups
Consumption Subcultures:Consumption Subcultures: Distinctive subgroup of societyDistinctive subgroup of society
that selfthat self--selects on shared commitment to a productselects on shared commitment to a product
class, brand or consumption activityclass, brand or consumption activity
Traits:Traits:
Identifiable hierarchyIdentifiable hierarchy
Set of shared beliefs and valuesSet of shared beliefs and values
Unique jargon and ritualsUnique jargon and rituals
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Types of Groups
Brand communitiesBrand communities can add
value to the ownership of the
product and build intense
loyalty.
Brand CommunitiesBrand Communities
y y
When a consumer becomes
part of a brand community,
remaining generally requires
continuing to own and use the
brand.
This can create intense brand
loyalty!
Jeep has a longstanding loyal brand communityJeep has a longstanding loyal brand community
Click the online button to link toClick the online button to link to
the Jeep Jamboree Web sitethe Jeep Jamboree Web site
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Video Application
The following Video Clip demonstratesThe following Video Clip demonstrates
how MINI Cooper used marketing tohow MINI Cooper used marketing to
create a brand community and generatecreate a brand community and generate
b !b !buzz!buzz!
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4. 4
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Types of GroupsTypes of Groups
Online CommunityOnline Community
Community interacts around a topic of interest on theCommunity interacts around a topic of interest on the
InternetInternet
Online Social Network SitesOnline Social Network Sites
MySpaceMySpace
TwitterTwitter
YouTubeYouTube
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Types of GroupsTypes of Groups
Four Guiding Principles for companies marketing in onlineFour Guiding Principles for companies marketing in online
communities or social networks:communities or social networks:
Be transparentBe transparent
Be part of the communityBe part of the community
Adapt efforts to fit nature of siteAdapt efforts to fit nature of site
Take advantage of the unique capabilities of eachTake advantage of the unique capabilities of each
venuevenue
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5. 5
Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption Process
Reference group influence can take three forms:
1.1. Informational InfluenceInformational Influence
22 N ti I flN ti I fl ( k tilit i i fl )( k tilit i i fl )
Types of Reference Group Influence
2.2. Normative InfluenceNormative Influence (a.k.a. utilitarian influence)(a.k.a. utilitarian influence)
3.3. Identification InfluenceIdentification Influence (a.k.a. value expressive)(a.k.a. value expressive)
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Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption Process
Consumption Situation Determinants of Reference Group InfluenceConsumption Situation Determinants of Reference Group Influence
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Communications within Groups and
Opinion Leadership
WOM Versus Advertising
(% who put people vs. advertising as best source)
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6. 6
Communications within Groups and
Opinion Leadership
Opinion Leaders
An opinion leaderopinion leader is the “go to person” for specific
types of information. This person filters, interprets, and
passes along informationpasses along information.
Opinion leaders possess enduring involvement for
specific product categories. This leads to greater
knowledge and expertise.
Opinion leadership is category specific – an opinion
leader in one product category is often an opinion
seeker in others.
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Communications within Groups and
Opinion Leadership
Mass Communication Information FlowsMass Communication Information Flows
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Communications within Groups and
Opinion Leadership
1. Individual seeks
Situations in Which WOM and Opinion Leadership Occur
The exchange of advice and information between group members
can occur directly via WOM in the following situations:
Likelihood of Seeking an Opinion LeaderLikelihood of Seeking an Opinion Leader
1. Individual seeks
information from
another or
2. Individual volunteers
information
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8. 8
Communications within Groups and
Opinion Leadership
Online Strategies to Leverage Buzz and WOM
Viral marketingViral marketing is an online “pass-it-along” strategy,
utilizing electronic communication to trigger brand
messages (often via email) throughout a widespreadg ( ) g p
network of buyers.”
Consumer review sitesConsumer review sites provide consumer product and
service reviews in a host of different formats.
BlogsBlogs are personalized journals where people and
organizations can keep a running dialogue.
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Diffusion of InnovationsDiffusion of Innovations
An innovationinnovation is an idea, practice, or product perceived to be
new by the relevant individual or group.
The manner by which a new
product spreads through ap p g
market is basically a group
phenomenon.
New products can be placed
on a continuum from no
change to radical change,
depending on the market’s
perception.
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Diffusion of InnovationsDiffusion of Innovations
Categories of Innovations
Continuous InnovationContinuous Innovation
Adoption of this type of innovation requires relatively minor
changes in behavior(s) that are unimportant to the consumer.
Dynamically continuous InnovationDynamically continuous Innovation
Adoption of this type of innovation requires a moderate
change in an important behavior or a major change in a
behavior of low or moderate importance to the individual.
Discontinuous InnovationDiscontinuous Innovation
Adoption of this type of innovation requires major changes in
behavior of significant importance to the individual or group.
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9. 9
Diffusion of Innovations
Adoption Process and Extended Decision MakingAdoption Process and Extended Decision Making
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Diffusion of Innovations
Diffusion Rates for Popular Consumer Electronics (Cumulative)Diffusion Rates for Popular Consumer Electronics (Cumulative)
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Diffusion of Innovations
Factors Affecting the Spread of InnovationsFactors Affecting the Spread of Innovations
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10. 10
Diffusion of InnovationsDiffusion of Innovations
InnovatorsInnovators
Early AdoptersEarly Adopters
Adopter Categories
Early AdoptersEarly Adopters
Early MajorityEarly Majority
Late MajorityLate Majority
LaggardsLaggards
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