Ch 8 Notes Flashcards
8-1 Reference Groups
Aspects of Group Life
- Members share common goals and interests
- Members communicate with and influence one another
- Members share a set of expecations, rules and roles
- Members view themselves as members of a common social unit
8-1 Reference Groups
From a social identity perspective, there are 2 groups:
- Ingroup
- Outgroup
8-1 Reference Groups
-Generally viewed as having cohesion and exhibiting similar attitudes, behaviors, interests, and values
-Value perceptions largely influenced
Ingroup
8-1 Reference Groups
-Have the most influence on members
-Social ties are very strong
Primary Group
8-1 Reference Groups
-Social ties are not as strong
-Brand community
Secondary Group
8-1 Reference Groups
Have a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to
Formal Group
8-1 Reference Groups
Often appeals to the consumers ideal self
Aspirational Group
8-1 Reference Groups
Generally considered a type of outgroup for a consumer
Dissociative Group
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
Peer Pressure
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
Negative Peer Pressure
8-2 Social Power
-Consumers believe that others hold a great deal of power over their own behavior
Social Power
8-2 Social Power
Social power can greatly influence
-Types of products consumers buy
-Attitudes they hold
-Activities in which they participate
8-2 Social Power
Types of Social Power
- Referent Power
- Legitimate Power
- Expert Power
- Reward Power
- Coercive Power
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
Referent Power
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
Legitimate Power
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
Expert Power
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
Reward Power
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
Coercive Power
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
Informational Influence
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
Utilitarian Influence
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
Value Expressive Influence
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
Value and Reference Groups
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
Reference Group Influence on Product Selection
8-3 Reference Group Influence
-Shoes, automobile
*Weak group influence for product selection; strong group influence for brand selection
Public Necessity
8-3 Reference Group Influence
-Jewelry, Country club membership
*Strong group influence for product selection; strong group influence for brand selection
Public Luxury
8-3 Reference Group Influence
-Microwave Oven, Socks
*Weak group influence for product selection; weak group influence for brand selection
Private Necessity
8-3 Reference Group Influence
-Pinball Machine, Espresso Machine
*Strong group influence for product selection; weak group influence for brand selection
Private Luxury
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
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
Popularity of social networking websites and apps
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)
Value and Social Media
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:
- Susceptability to interpersonal influence
- Attention to social comparison information
- Separateness-connectedness
Individual Differences in Susceptability to Group Influence
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
Susceptability to Interpersonal Influence
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.
Attention to social comparison information (ATSCI)
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.
Separateness-Connectedness
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.
Social Presence and Embarrassment
8-5 Word-of-Mouth and Consumer Behavior
Two types of WOM influences can be distinguished
- Organic WOM occurs naturally when consumers enjoy a product and want to share their experiences with others.
- Amplified WOM occurs when marketers attempt to accelerate WOM.
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.
Positive and Negative WOM
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.
Value and Word of Mouth
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.
Measuring online WOM
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:
- Stealth marketing
- Shilling
- Infiltrating
Stealth Marketing
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.
Opinion Leaders
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.
Diffusions Process
Adopter Categories
Five Categories of Consumers
- Consumer Innovators: 2.5%
- Early Adopters: 13.5%
- Early Majority: 34%
- Late Majority: 34%
- Laggards: 16%
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.
Household decision making
8-6 Household Decision Making and Consumer Behavior
“Traditional” Family Structure
- Family Household
- Nuclear Family
- Extended Family
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.
“Traditional” Family Structure
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
Household Life Cycle (HLC)
8-6 Household Decision Making and Consumer Behavior
5 Household Purchase Roles
- Influencer
- Gatekeeper
- User
- Decision maker
- Purchaser
The final purchase of the product is largely influenced by beliefs regarding the role of each person in the household.
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.
Influencer
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).
Gatekeeper
8-6 Household Decision Making and Consumer Behavior
The actual user of the product under consideration
User
8-6 Household Decision Making and Consumer Behavior
The person who makes the final decision regarding product purchase or nonpurchase
Decision maker
8-6 Household Decision Making and Consumer Behavior
The person who actually buys the product under consideration
Purchaser
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
Gender Roles and Household Decision Making
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.
Sex Role Orientation (SRO)
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.
Kid Power
