C9

Question 1

Reference group

Answer 1

Actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour.

Importance of a RG: whether purchase is consumed publicly/privately, whether it is a luxury/necessity.

Question 2

Types of power bases

Answer 2

Referent power: consumers imitate qualities by copying referent’s behaviour.
Information power: able to influence consumer opinion by virtue of their access to the truth.
Legitimate power: granted to people by virtue of social agreements.
Expert power: power based on possessing specific knowledge about content area.
Reward power: person/group has means to provide positive reinforcement.
Coercive power: influence through social/physical intimidation.

Question 3

Reference group types

Answer 3

Normative influence: reference group helps to set and enforce fundamental standards of conduct. (Deciding to see a particular movie bc friends have liked it on FB)

Comparative influence: when decisions about specific brands or activities are affected. (Ordering a particular wine to fulfil group expectations).

Identification influence: occurs when an individual uses perceive group norms and values as a guide for their own.

Question 4

Brand community & consumer tribe

Answer 4

Bc: set of consumers who share a set of social relationships based upon usage or interest in a product.

Consumer tribe: group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or product.

Tribal marketing: to link ones product to the needs of a group as a whole.

Question 5

Membership and aspirational RG

Answer 5

M: ordinary people who’s consumption activities provide informational social influence.

A: comprise idealised figures such as successful business people, athletes or performers.

Question 6

Avoidance groups

Answer 6

Groups consumers purposely try to distance themselves from. E.g. druggies.

The motivation to distance oneself from a negative RG can be as or more powerful than the desire to please a positive group.

Question 7

Opinion leaders

Answer 7

people who are able to influence others attitudes or behaviours.

How influential are they? Generalised OP: somebody who’s recommendations are sought for all types of purchases.
Monomorphic OP: expert in a limited field.
Polymorphic OP: expert in many fields.

Question 8

Types of opinion leaders

Answer 8

Innovative communicators: opinion leaders who are also early purchasers.

Opinion seekers: more involved in a product category and actively search for info.

Market maven: describes people who are actively involved in transmitting marketplace information of all types.

Surrogate consumer: person who is hired to provide input in purchase decisions. Usually compensated for their advice.

Question 9

Buzz marketing

Answer 9

Guerrilla marketing: promotional strategies that use unconventional locations and intensive WOM campaigns to push products. (Flash mob)

Viral marketing: strategy of getting customers to sell a product in behalf of the company that creates it. (Dollar shave club)

Question 10

Types of virtual community members

Answer 10

Tourists: lack strong social ties to group but maintain a lazing interest in activities.

Minglers: maintain strong social ties but aren’t interested in central consumption activity.

Devotees: express strong interest in activity but have few social attachments to the group.

Insiders: exhibit both strong social ties and strong interest in the activity.

Question 11

Status crystallisation

Answer 11

The degree of consistency on status dimensions. Occupation, education, income, ownership.

SC is low in Australasia.

Question 12

Social class

Answer 12

Effects access to resources. Some social rankings involve prestige, some power and others wealth and property. Social class affects lifestyle practices. Used to describe the overall rank of people in society.

Question 13

Social stratification

Achieved and ascribed status

Answer 13

Social stratification: creation of artificial divisions in society.

Achieved status: status earned through hard work or diligent study.
Ascribed status: status one is born with.

Question 14

Targeting the poor and rich

Answer 14

Poor: about 100% of Australians live below the poverty line. Low income households tend to spend more on out of pocket healthcare costs, rent and food eaten at home. Marketers can thus emphasise the value of a smile life with less emphasis on materialism.

Rich: Consumers can be divided into 3 groups based on their attitude towards luxury: luxury is functional, reward, indulgence.

Question 15

Conspicuous consumption

Answer 15

Major role of product can be to inspire envy (invidious distinction).

Cc refers to a desire to provide prominent, visible evidence of the ability to afford luxury goods. Most evident among leisure class. Can include wives.

Some are deliberately avoiding status symbols in a form of cc - a parody display.

Question 16

Adopter types

Answer 16

Innovator 
Early adopter - most likely to be opinion leader. People respect them, open to new ideas, people check with the them before purchasing. 
Early majority
Late majority
Laggard