Chapter 10: Group influence and social media Flashcards
Individual decision making
- individuals frequently make consumption decisions for or with other people
- fast and clear in accountability
Group decision making
- groups make different and riskier decisions than individual alone
–> diffusion of responsibility: as more people are involved in a decision, each individual is less accountable for the outcome)
–> pay it forward
–> decision polarization (or opposite) (individuals choices tend to become more extreme, in either a conservative or risky direction)
–> more impulsive (or opposite) - Difference between B2C and B2B (Look at the chart)
Normative influence
- people change their behaviour, thoughts, or values to be liked and accepted by others
- following effect
Norms
informal rules that govern behaviour
social norms
- expected behaviours in a situation by a group or individual
conformity
- a change in beliefs or actions as a reaction to real or imagined group pressure
–> pressure to conform vs. the desire to be unique
what influences conformity
–> cultural pressures
–> fear of deviance
–> commitment
–> group unanimity, size, and expertise
–> susceptibility to interpersonal influence
–> environmental cues
reference group
Actual or imaginary
individual/group conceived of having significant
relevance to an individual’s evaluations, aspirations,
or behavior
aspirational group
a consumer desires to become a member (consumer’s ideal self)
dissociative group
a consumer does not want to
belong (out group for a consumer)
Relative reference group influence on purchase decisions
Public necessities
influence: weak for product and strong for brand (ex. wristwatch, automobile, suit (+,-)
Public luxuries
influence: strong for product and for brand (ex. golf clubs, designer watch) (+,+)
private necessities
influence: weak for product and weak for brand (ex. mattress, floor lamp, refrigerator) (-,-)
Private luxuries
influence: strong for product and weak for brand (ex. Tv, wine) (+,-)
- first sign says that there is a weak or strong influence on brand selection
- second sign says that their is a weak or strong influence on product purchase
social power
- capacity to alter the actions of others
types of social power
- referent power
- legitimate power
- expert power
- reward power
- coercive power
referent power
- a consumer admires the qualities of a group and emulates their behaviour
- influences because they want to be like that person or associated with them
- ex. A friend style you want to copy, influencer you look up to
legitimate power
- specific agreements are made regarding membership, and the punishment for nonconformity is understood
- ex. A teacher assigning homework, boss telling you what to do
expert power
- groups possess knowledge that members, prospective members, or other consumers seek
- ex. A financial advisor giving investment tips, a doctor recommending a treatment
reward power
- groups have the power to reward members for various behaviours
- ex. Boss who can give you a bonus, raise, teacher who gives out gold stars
coercive power
- groups have the power to sanction group members for breaking rules or falling to follow expectations
- ex. A boss threatening to demote or fire an employee, teacher threatening to fail student because they didn’t to the work
brand communities
- a group of consumers who share a set of social relationships based upon usage or interest in a product
- ex. Harley Davidson, tight nit group bond over love for their bikes
opinion leaders
- influence others attitudes and behaviours
market maven
- actively involved in transmitting marketplace information of all types
surrogate consumers
- hired to provide input into purchase decisions
social network analysis
- node: things that relate somehow to one another
- tie: relations between nodes
- density: how well connected a network is, other words, how closely the structure is
- calculation: the number of actual ties over the total number of possible ties between all pairs of nodes, which is n(n-1)/2 for the undirected network and n(n-1) for directed network
- density centrality: the node degree of connectedness (number of links in or out of a node
issues: quality of links, indirect links - look at example
word of mouth communication
WOM: product information transmitted by individuals to individuals
- thought to be more reliable
buzz marketing
-activities undertaken by marketers to encourage consumers to spread WOM about the
brand.
- coke with names on it
- Negative WOM > positive WOM
