This chapter discusses group influence and communication in marketing. It covers how groups function and are classified, the impact of reference groups on consumption, and how social roles influence consumption. It also discusses the importance of word-of-mouth communication and opinion leaders in shaping consumer behavior. The chapter examines the diffusion of innovations and the different adopter categories. It provides information on reference group influences, types of groups, and the role of communication and opinion leadership in the consumption process.

1. Chapter Fourteen:
Group influence and
communication
14-1

2. Chapter 14:
Group influence and
communication
• How groups function and classification of
groups
• Impact of reference groups on consumption
• How social roles influence consumption
• Importance of word-of-mouth and group
communication as marketing factors
• Role of opinion leaders in shaping consumer
behavior
• The diffusion of innovations and the different
adopter groups
14-2

3. Group influences
14-3

4. Reference Group Influence
A group 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.
A reference group is a group whose presumed
perspectives or values are being used by an individual as
the basis for his/her current behavior.
14-4

5. Reference Group Influence
Reference Groups Change as the Situation Changes
14-5

6. Reference Group Influence
Four criteria that are particularly useful in classifying groups:
1. Membership
2. Strength of Social Tie
3. Type of Contact
4. Attraction
14-6

7. Types of groups
• Membership
– Either yes or no
• Degree of contact
– Larger groups generally have less contact
– Primary groups generally have frequent
interpersonal contact
– Secondary groups generally have limited
interpersonal contact
• Attraction
– Desirability of being member
– Either positive or negative
14-7

8. Types of groups (cont.)
• Aspirational reference groups
– Non-membership groups
– Positive attraction
– Exert a strong influence on some
products
14-8

9. Types of groups (cont.)
14-9

10. Reference group influences on
the consumption process
• Conformity
– Makes groups influential
– Is the tendency to want to be like ‘relevant and
significant others’
– Generally makes life more pleasant
• Norms
– Are general expectations about behaviours that
are deemed appropriate for all persons in a social
context, regardless of the position they hold
– Are often communicated non-verbally
14-10

11. Reference Group Influences on the
Consumption Process
Types of Reference Group Influence
Reference group influence can take three forms:
1. Informational Influence
2. Normative Influence (a.k.a. utilitarian influence)
3. Identification Influence (a.k.a. value
expressive)
14-11

12. The nature of reference-group
influence
Conformity is not a uni-dimensional concept
• Information influence
– Behaviours and opinions of reference groups are
used as potentially useful pieces of information
• Normative influence (utilitarian influence)
– When an individual fulfils group expectations to
gain a direct reward or avoid a punishment
• Identification influence (value-expressive
influence)
– When an individual uses perceived-group norms
and values as a guide for their own attitudes or
values
14-12

13. Consumption situations and
reference-group influence
14-13

14. Consumption situations and
reference-group influence (cont.)
14-14

15. Consumption situations and
reference-group influence (cont.)
14-15

16. Reference Group Influences on the
Consumption Process
Consumption Situation Determinants of Reference Group Influence
14-16

17. Determinants of the degree of
reference-group influence
• R-Group influence is strongest when use of
the product or brand is visible and relevant
– E.g.. product category, product type and brand are
all visible
• R-group influence increases as necessity of
an item decreases
• The more commitment an individual feels to
a group, the higher the level of conformity to
group norms
• Individual’s confidence with purchase: low
confidence, then higher influence
14-17

18. Product characteristics and type of
reference-group influence
14-18

19. Influence of two consumption situation
characteristics on product/brand
choices
14-19

20. Consumption-situation determinants
of reference-group influence
14-20

21. Marketing strategies based on
reference-group influences
• Personal sales strategies
– Asch phenomenon
• Advertising strategies
– All three types of reference groups are used by
advertisers:
informational (use of information)
normative (to avoid/gain)
identification (aspire to join)
14-21

22. Consumption subcultures
• A consumption subculture is a distinctive
subgroup of society that self-selects on the
basis of a shared commitment to a particular
product class, brand or consumption activity
• Examples: Product: Harley-Davidson
Activities: Body building, golf
14-22

23. Consumption Subcultures
A Consumption subculture is a
subgroup that self-selects on the
basis of a shared commitment to
a particular product, brand, or
consumption activity.
These groups have:
•an identifiable, hierarchical
social structure.
•a set of shared beliefs or values.
•unique jargon, rituals, and
modes of symbolic expression.
14-23

24. Types of Groups
Marketing and Consumption Subcultures
Consumption subcultures based on
activities obviously are markets for
the requirements of the activity itself.
But these groups develop rituals and
modes of symbolic communication
that often involve other products or
services.
The larger market often appropriates
their symbols, at least for a time.
14-24

25. Types of Groups
Brand Communities
Consumption subcultures focus on the interactions of
individuals around an activity, product category, or
occasionally a brand.
A brand community is a non-geographically bound
community, based on
a structured set of social relationships among owners
of a brand and…
the psychological relationship they have with the
brand itself, the product in use, and the firm.
14-25

26. Types of Groups
Brand Communities (cont.)
The nature of communities (generally) and brand
communities (specifically) include:
•Consciousness of Kind
•Rituals and Traditions
•Moral Responsibility
14-26

27. Types of Groups
Marketing and Brand Communities
Brand communities can add
value to the ownership of the
product and build intense
loyalty.
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!
14-27

28. Types of Groups
Virtual Communities
A virtual community is a community that interacts over time
around a topic of interest on the Internet via Usenet, blogs,
professional sites, and sites for nonprofit groups.
Such groups may be viewed as not being “real” communities.
However virtual communities do exist for many and there can
be a sense of community online.
This sense of community moves beyond mere interaction
to include affective or emotional attachments to the online
group.
14-28

29. Types of Groups
Three types of virtual community members:
1. Leaders
A relatively small group who are highly influential and
take on the most responsibility for community
maintenance.
2. Participants
A larger group who are active members but not deemed
as leaders.
3. Lurkers
The largest group and only passively peruse the group
discussions without being active participants.
14-29

30. Types of Groups
Marketing and Virtual Communities
Marketing in virtual communities is both possible and potentially
beneficial.
The approach taken must be tailored to the type of virtual
community.
community
Many online groups are sensitive to
“commercial” interference and
companies have to be careful not to
overstep.
14-30

31. Roles
• A role is:
– A prescribed pattern of behaviour expected of a
person in a given situation by virtue of the
person’s position in that situation
• Role parameter:
– Range of behaviour acceptable within a given role
• Role overload:
– Occurs when an individual attempts to fill more
roles than the available time, energy or money
allows
• Role conflict:
– Incompatible role demands
14-31

32. Applying role theory to marketing
practice
• Role-related product cluster e.g. new mother
• Evolving roles e.g. career females
• Role conflict and role overload e.g. working mother,
working student
• Role acquisition and transition e.g. student to
employee
14-32

33. Role set possibilities for a student
14-33

34. Reference Group Influences on the
Consumption Process
WOM
Opinion Leaders
Market Mavens, Influentials, and e-
e-
fluentials
Marketing and Online Strategies
14-34

35. Communications within Groups and
Opinion Leadership
We learn about new products, services, brands, as well as retail
and information outlets from our friends and other reference
groups in two basic ways:
1. By observing or participating with
them as they use products and
services.
2. Through Word-of-mouth (WOM),
Word-of- (WOM)
which involves individuals sharing
information with other individuals
in a verbal form including face-to-
face, phone, and the Internet.
14-35

36. Communications within Groups and
Opinion Leadership
Word-Of-Mouth
Consumers generally trust the opinions of people
(family, friends, acquaintances) more than marketing
communications because…
Unlike marketing communications, these personal
sources have no reason not to express their true
opinions and feelings.
14-36

37. Communications within Groups and
Opinion Leadership
Word-Of-Mouth
The importance of WOM is generally high, and its
importance relative to advertising varies somewhat
across product types.
14-37

38. Communications within Groups and
Opinion Leadership
Opinion Leaders
An opinion leader is the “go to person” for specific types
of information. This person filters, interprets, and
passes 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.
14-38

39. Opinion leadership
• Opinion leaders filter, interpret or provide
information for individuals within groups
• Situations in which opinion leadership occurs:
– one individual exchanges information with
another
– one individual volunteers information
– as a by-product of normal group interaction
14-39

40. Mass communication information
flows
14-40

41. Characteristics of opinion leaders
1. Opinion leaders have enduring involvement with
product category
2. Function primarily through interpersonal
communications and observation
3. Similar demographic characteristics to the group
4. Public individuation – attention seeking
5. High level of exposure to media
6. The market maven – expert on all products!
7. Motivation of dissatisfied customers to tell others
of their negative message
14-41

42. Communications within Groups and
Opinion Leadership
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 Leader
1. Individual seeks
information from
another or
2. Individual volunteers
information
14-42

43. Communications within Groups and
Opinion Leadership
Marketing Strategy, WOM, and Opinion Leadership
Marketers are increasingly relying on WOM and
influential consumers as part of their marketing
strategies. Strategies designed to generate WOM and
encourage opinion leadership include:
1. Advertising
2. Product Sampling
3. Retailing/Personal Selling
4. Creating Buzz
14-43

44. Marketing strategy and opinion
leadership
1. Identifying opinion leaders
2. Targeting for marketing research
3. Product sampling
4. Retailing/personal selling
5. Advertising attempts to encourage
and simulate opinion leadership
14-44

45. Communications within Groups and
Opinion Leadership
Marketing Strategy, WOM, and Opinion Leadership
Product Sampling is
sometimes called “seeding”
and involves getting
product into the hands of
potential consumers.
Sampling can be a very
potent WOM tool when it
involves opinion leaders.
Wine tasting events can be
a great seeding technique.
14-45

46. Ad using
celebrity
endorsement
acknowledging
an opinion
leader
14-46

47. Ad using
celebrity
endorsement
acknowledging
an opinion
leader
But look what has
happened to him!!!
14-47

48. Communications within Groups and
Opinion Leadership
Mavens, Influentials, and e-fluentials
e-
1. A market maven is a generalized market influencer who
provides significant amounts of information about various
products, places to shop, and so on.
2. Roper Starch identifies a group similar to market mavens
called influentials Influentials are 10% of population but
influentials.
use broad social networks to influence the other 90%!
3. Roper Starch identifies a group similar to internet market
mavens called e-fluentials. They wield significant online
and offline influence.
14-48

49. Communications within Groups and
Opinion Leadership
Marketing Strategy, WOM, and Opinion Leadership
Numerous opportunities
exist for retailers and sales
personnel to use opinion
leadership.
Retailers and sales
personnel can encourage
their current customers to
pass along information to
potential new customers.
14-49

50. Communications within Groups and
Opinion Leadership
Marketing Strategy, WOM, and Opinion Leadership
Buzz can be defined as the
exponential expansion of WOM.
It happens when “word spreads
like wildfire” with no or limited
mass media advertising
supporting it.
Buzz is generally not supported
by large advertising budgets.
Creating buzz is a key aspect of
guerrilla marketing.
14-50

51. Communications within Groups and
Opinion Leadership
Online Strategies to Leverage Buzz and WOM
Viral marketing is an online “pass-it-along” strategy,
utilizing electronic communication to trigger brand
messages (often via email) throughout a widespread
network of buyers.”
Online Guides are online opinion leaders, who are often
highly knowledgeable and passionate experts, providing
consumer information and advice.
Blogs are personalized journals where people and
organizations can keep a running dialogue.
14-51

52. Diffusion of Innovations
Categories of Innovation
Adoption Process
Diffusion Rate
Adopter Categories
Marketing Strategies and the Diffusion Process
14-52

53. Diffusion of Innovations
An innovation 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 a
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.
14-53

54. Diffusion of innovations
• Nature of the innovation
– ‘New’ as perceived by individuals or group
• Categories of innovations
– Continuous innovation: small changes needed
– Dynamically continuous innovation: modest
changes
– Discontinuous innovation: large changes
14-54

55. Diffusion of Innovations
Categories of Innovations
Continuous Innovation
Adoption of this type of innovation requires relatively minor
changes in behavior(s) that are unimportant to the consumer.
Dynamically 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 Innovation
Adoption of this type of innovation requires major changes in
behavior of significant importance to the individual or group.
14-55

56. Categories of innovations
14-56

57. Ad displays a product of continuous innovation,
involving minor changes in behaviour
14-57

58. The adoption process and extended decision making
14-58

59. Diffusion of Innovations
Diffusion Process
The diffusion process is the manner in which innovations
spread throughout a market.
Form most innovations, the diffusion process appears to
follow a similar pattern over time:
• a period of relatively slow growth
• followed by a period of rapid growth
• followed by a final period of slower growth
14-59

60. Diffusion of Innovations
Diffusion Rate of an Innovation Over Time (Cumulative)
14-60

61. Diffusion of Innovations
Adopter Categories
Innovators
Early Adopters
Early Adopters
Late Majority
Laggards
14-61

62. Adoptions of an innovation over time
14-62

63. Diffusion of Innovations
Marketing Strategies and the Diffusion Process
Market Segmentation
Earlier purchasers of an innovation differ from later
purchasers.
Firms should consider a “moving target market”
approach.
1. Focus on target market most likely to be innovators
and early adopters.
2. As product acceptance occurs, attention should shift
to the early and late majority.
14-63

64. Diffusion of Innovations
Adopter Categories
Innovators • Younger, educated, socially mobile, venturesome risk
takers
• Cosmopolitan view toward innovations
• Capacity to adopt an unsuccessful product
• Extensive use of commercial media, sales personnel
and professional sources
Early • Successful, well educated, and younger than peers
Adopters • Tend to be opinion leaders in local reference groups
• Will to take risk, but concerned with failure of
innovation
• Use commercial media, professional, and
interpersonal information sources
• Provides information to others
14-64

65. Diffusion of Innovations
Adopter Categories
Early • Somewhat older, less educated, less socially mobile
Majority • Cautious about innovations
• Adopts sooner than most of their social group, but after
innovation is proven successful
• Socially active but seldom leaders
• Relies heavily on interpersonal sources of information
Late • Older with less social status and less mobility
Majority • Skeptical about innovations
• Adopts out of social pressure, decreased previous
product availability, or positive
evaluation of innovation
Laggards • Dogmatic and oriented toward past
• Locally oriented and engage in limited social
interaction
• Adopts innovations with reluctance.
14-65

66. Factors affecting innovation uptake
• Type of group • Relative advantage
• Type of decision • Complexity
• Marketing effort • Observability
• Fulfillment of felt • Trialability
need • Perceived risk
• Compatibility
14-66

67. Diffusion of Innovations
Factors Affecting the Spread of Innovations
14-67

68. Marketing strategies and the
diffusion process
• Market segmentation
• Diffusion-enhancement strategies
14-68

69. Demographic characteristics of
owners of iPods and MP3 players
14-69

70. Diffusion of Innovations
Innovation Analysis and Diffusion Enhancement Strategies
14-70