Ch 8 Notes Flashcards

1
Q

8-1 Reference Groups

Aspects of Group Life

A
  1. Members share common goals and interests
  2. Members communicate with and influence one another
  3. Members share a set of expecations, rules and roles
  4. Members view themselves as members of a common social unit
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2
Q

8-1 Reference Groups

From a social identity perspective, there are 2 groups:

A
  1. Ingroup
  2. Outgroup
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3
Q

8-1 Reference Groups

-Generally viewed as having cohesion and exhibiting similar attitudes, behaviors, interests, and values

-Value perceptions largely influenced

A

Ingroup

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4
Q

8-1 Reference Groups

-Have the most influence on members

-Social ties are very strong

A

Primary Group

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5
Q

8-1 Reference Groups

-Social ties are not as strong

-Brand community

A

Secondary Group

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6
Q

8-1 Reference Groups

Have a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to

A

Formal Group

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7
Q

8-1 Reference Groups

Often appeals to the consumers ideal self

A

Aspirational Group

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8
Q

8-1 Reference Groups

Generally considered a type of outgroup for a consumer

A

Dissociative Group

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9
Q

8-1 Reference Groups

-Often the strongest type of influence a consumer experiences in daily life

-Particularly persuasive among young consumers

-Marketeers can harnass the power of peer pressure in positive ways

A

Peer Pressure

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10
Q

8-1 Reference Groups

-Negative consumer behavior

-Adolescents are particularly susceptible to peer pressure and are often compelled to rebel against their families in favor of behaviors that win acceptance from peers

-Adults also feel and yield to peer pressure, and sometimes the pressure is directed toward negative behaviors

A

Negative Peer Pressure

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11
Q

8-2 Social Power

-Consumers believe that others hold a great deal of power over their own behavior

A

Social Power

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12
Q

8-2 Social Power

Social power can greatly influence

A

-Types of products consumers buy

-Attitudes they hold

-Activities in which they participate

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13
Q

8-2 Social Power

Types of Social Power

A
  1. Referent Power
  2. Legitimate Power
  3. Expert Power
  4. Reward Power
  5. Coercive Power
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14
Q

8-2 Social Power

-Consumers imitate the behaviors and attitudes of groups as a means of identifying with the group

-Belonging to such groups often allows consumers to feel as though they are fitting in

Ex: A student joins Enactus and emulates that groups behavior

A

Referent Power

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15
Q

8-2 Social Power

-In many situations, social arrangements dictate the differing levels of power that are dependent upon one’s position in a group; assoicated with authority

Ex: A neighborhood association has the power to annually increase membership fees

A

Legitimate Power

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16
Q

8-2 Social Power

-Refers to the ability of the group or individual to influence a consumer due to the group’s or individuals knowledge of, or experience with, a specific subject matter

-Consumers can alter their behaviors based on the percieved expertise of the source of information

Ex: Consumers seek out medical information from groups such as the American Dental Association

A

Expert Power

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17
Q

8-2 Social Power

Groups frequently have the power to reward members for compliance with expectations

Ex: Weight loss clubs give out prizes for weight loss goals

A

Reward Power

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17
Q

8-2 Social Power

-When consumers fail to give in to group expectations or rules, dissaproval can be harsh and may even result in loss of membership

-Social power depends on a member’s agreement to, or acceptance of, the fact that the power bases do indeed exist

Members:

*Be aware that the power base exists

*Desire to maintain or establish membership in the group in order for the power base to be effective

Ex: A member of a professional association is excused for breaking a code of conduct

A

Coercive Power

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18
Q

8-3 Reference Group Influence

-Can be present when the consumer is explicitly searching for product related information and also when they are not explicitally searching, but rather observing others’ behaviors

-Helps to explain why word-of-mouth communication is so persuasive

-Influence of a group is strong if the group is seen as being credible

A

Informational Influence

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19
Q

8-3 Reference Group Influence

-Compliance with group expectations often leads to valued rewards

-Utilitarian influence of groups is not limited to any age group or demographic profile

*Young consumers often think they need to buy the correct brand of shoes or clothing to fit in

*Adult consumers often perceive a great deal of utilitarian influence from reference groups

A

Utilitarian Influence

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20
Q

8-3 Reference Group Influence

-Influence is related to referent power

-Consumers may also use group membership as a way to project their own self image

A

Value Expressive Influence

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21
Q

8-3 Reference Group Influence

-Utilitarian value can be derived from belonging to a group and membership becomes a means to a valued end state

-Group membership also involves hedonic value perceptions when value is derived from enjoying group meetings and activities

-Reference group influences affect value perceptions in other ways

*Consumers learn about products and services from referent others that directly affects consumer expectations about product benefits

*Expectations affect value perceptions and satisfaction

A

Value and Reference Groups

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22
Q

8-3 Reference Group Influence

-The situation in which the product is consumed must be considered

*Public products are easily seen by others

*Private products are not

-The extent to which the product is considered to be a necessity or a luxury affects the level of reference group influence

-Reference group influence differs depending on whether a type of product or a particular brand is being selected

A

Reference Group Influence on Product Selection

23
Q

8-3 Reference Group Influence

-Shoes, automobile

*Weak group influence for product selection; strong group influence for brand selection

A

Public Necessity

24
Q

8-3 Reference Group Influence

-Jewelry, Country club membership

*Strong group influence for product selection; strong group influence for brand selection

A

Public Luxury

25
Q

8-3 Reference Group Influence

-Microwave Oven, Socks

*Weak group influence for product selection; weak group influence for brand selection

A

Private Necessity

26
Q

8-3 Reference Group Influence

-Pinball Machine, Espresso Machine

*Strong group influence for product selection; weak group influence for brand selection

A

Private Luxury

27
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Consumers get both hedonic and utilitarian value from interacting through social networking

-Few groups ever meet physically, making most of them informal and secondary for group members

A
28
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Facebook and Twitter, in particular, highlight the role that social media plays in consumer behavior

-The motivation to join social networking groups goes beyond a simple need to communicate; for many consumers, it’s about connections

-Social networking helps to fulfill the need to belong

A

Popularity of social networking websites and apps

29
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Consumers derive both ultilitarian and hedonic value from social media

*Users are able to learn about special deals (a utilitarian benefit)

*Users can enjoy connections with other consumers ( a hedonic benefit)

A

Value and Social Media

30
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Individual difference variables play an important role in the extent to which consumers conform to the expectations of others

-Influence how one behaves in the presence of others

3 important variables:

  1. Susceptability to interpersonal influence
  2. Attention to social comparison information
  3. Separateness-connectedness
A

Individual Differences in Susceptability to Group Influence

31
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Studies reveal that consumers who are particularly susceptible to interpersonal influence are more likely to value conspicuous items

-Consumers who score high on the susceptability to interpersonal influence scale are also more likely to desire avoiding negative impressions in public settings

A

Susceptability to Interpersonal Influence

32
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-The trait is closely related to susceptibility to interpersonal influence.

-Consumers with a strong degree of ATSCI are more likely to conform to the expectations of others.

A

Attention to social comparison information (ATSCI)

33
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-Culture plays an important role in how separated or connected consumers feel.

-Advertising themes in a collectivist culture often promote connected themes, while advertisements in the United States tend to emphasize separate themes.

A

Separateness-Connectedness

34
Q

8-4 Social Media’s Role in Group and Interpersonal Influence

-The influence of other people on consumer behavior is strongest when consumers know they are being observed.

-The presence of others in a specific situation (referred to as social presence) can make one feel uncomfortable.

-Social presence can also have positive effects.

-Social presence intensifies feelings of satisfaction and dissatisfaction.

A

Social Presence and Embarrassment

35
Q

8-5 Word-of-Mouth and Consumer Behavior

Two types of WOM influences can be distinguished

A
  1. Organic WOM occurs naturally when consumers enjoy a product and want to share their experiences with others.
  2. Amplified WOM occurs when marketers attempt to accelerate WOM.
36
Q

8-5 Word-of-Mouth and Consumer Behavior

-The more satisfied consumers are with a company or product, the more likely they are to spread positive WOM.

-Brand advocates or brand ambassadors are consumers who believe strongly in a brand and tell others about it.

-Negative WOM can be especially influential and extremely damaging.
In general, negative WOM is more influential than positive WOM.

-Consumers tend to tell more people about unsatisfactory experiences than pleasing ones.

A

Positive and Negative WOM

37
Q

8-5 Word-of-Mouth and Consumer Behavior

-WOM is affected in large part by the perceived value that consumers get from products and services.

-The more value that consumers receive, the more likely they are to tell others about their experiences with products and services.

A

Value and Word of Mouth

38
Q

8-5 Word-of-Mouth and Consumer Behavior

-Many companies offer web traffic analytic and effectiveness services.

-Some web traffic services allow users to focus on specific topics or trends.

-Search engine trends are also monitored.

-These services can be quite valuable for understanding popular online topics, trends, and WOM.

A

Measuring online WOM

39
Q

8-5 Word-of-Mouth and Consumer Behavior

-Marketers often use the terms brand content, advertainment, or infotainment for product placements in television shows and movies.

-Certain marketing techniques are considered questionable or unethical by many marketing professional organizations such as WOMMA, including:

  1. Stealth marketing
  2. Shilling
  3. Infiltrating
A

Stealth Marketing

40
Q

8-5 Word-of-Mouth and Consumer Behavior

-They are knowledgeable about specific products or services and have a high level of involvement with those products.

-They are socially active and self-confident.

-With online social networking and media sites, it’s easy to find a few key influential posters that other users tend to listen to.

A

Opinion Leaders

41
Q

8-5 Word-of-Mouth and Consumer Behavior

-Different groups of consumers tend to adopt new products at different rates.

-Five categories of consumers have been identified

-Each group learns about new products from seeing marketing messages and from talking with other consumers and observing their behavior.

A

Diffusions Process

42
Q

Adopter Categories

Five Categories of Consumers

A
  1. Consumer Innovators: 2.5%
  2. Early Adopters: 13.5%
  3. Early Majority: 34%
  4. Late Majority: 34%
  5. Laggards: 16%
43
Q

8-6 Household Decision Making and Consumer Behavior

-Research reveals that mothers often mimic their daughters’ identities through clothing and fashion choice; known as the consumer doppelganger effect.

-Parents can be influenced by their children just as easily as children can be influenced by their parents.

A

Household decision making

44
Q

8-6 Household Decision Making and Consumer Behavior

“Traditional” Family Structure

A
  1. Family Household
  2. Nuclear Family
  3. Extended Family
45
Q

8-6 Household Decision Making and Consumer Behavior

-In individualistic cultures, emphasis is placed on the nuclear family.

-In collectivist cultures, more focus is placed on the extended family, and it is not uncommon to see households made up of extended family members living together.

A

“Traditional” Family Structure

46
Q

8-6 Household Decision Making and Consumer Behavior

-Traditional HLC segments families into a number of groups based on the number of adults present and the age of the head of household.

-Product expenditures vary greatly by HLC stage, and at each stage, consumers often try to obtain the most value that they can from their purchases

A

Household Life Cycle (HLC)

47
Q

8-6 Household Decision Making and Consumer Behavior

5 Household Purchase Roles

A
  1. Influencer
  2. Gatekeeper
  3. User
  4. Decision maker
  5. Purchaser

The final purchase of the product is largely influenced by beliefs regarding the role of each person in the household.

48
Q

8-6 Household Decision Making and Consumer Behavior

The person in the household who recognizes a need and provides information about a potential purchase to others.

A

Influencer

49
Q

8-6 Household Decision Making and Consumer Behavior

The person who controls information flow into the household (for example, a parent who blocks unwanted email solicitations from their child’s email account).

A

Gatekeeper

50
Q

8-6 Household Decision Making and Consumer Behavior

The actual user of the product under consideration

A

User

51
Q

8-6 Household Decision Making and Consumer Behavior

The person who makes the final decision regarding product purchase or nonpurchase

A

Decision maker

52
Q

8-6 Household Decision Making and Consumer Behavior

The person who actually buys the product under consideration

A

Purchaser

53
Q

8-6 Household Decision Making and Consumer Behavior

-Societal views on gender roles and family decision making have evolved over time.

-Changes in the education of women and the acceleration in the number of double-income families have challenged traditional conceptualizations

A

Gender Roles and Household Decision Making

54
Q

8-6 Household Decision Making and Consumer Behavior

-Families that have a “traditional” SRO believe that it is the responsibility of the male head of household to make large purchase decisions; families with a “modern” SRO believe in a more democratic approach.

-The growing number of same-sex marriages and perspectives on women’s roles have changed the way that SROs are viewed.

A

Sex Role Orientation (SRO)

55
Q

8-6 Household Decision Making and Consumer Behavior

-The role of children in household decision making is evolving.

-Marketers are realizing that children are playing a large role in influencing many household purchases.

-The teen segment frequently sees its disposable income grow at a rate that is unlike that found in any other segment.

A

Kid Power