Chapter 7 Flashcards
What you wore to a party last weekend, and you based your decision in part on the anticipated responses of the other individuals : This represents…..
Group influences and expectations
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.
Reference Group
a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Guide for behavior.
Classification of Groups
1) Membership
2) strength of social tire
3) type of contact
4) attraction
Primary Groups
family and friends, involve strong ties and frequent interaction. They are also hold a considerable influence.
Secondary Groups
professional and neighborhood associations, involve weaker tires and less frequent interaction
the internet is an example of what type of reference group
indirect reference group
Desirability to be a member of a group is
Attraction
Groups with negative desirability are ….(state type and example)
Dissociative reference groups- can influence behavior just as those with positive desirability do. Ex: teenagers tend to avoid clothing styles associated with older customers.
nonmembership groups with a positive attraction are… (state type and an example)
Aspiration reference groups-exert a strong influence. Individuals usually purchase products thought to be used by a desired group in order to achieve actual or symbolic membership to that group
Consumption Subculture
a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity.
ex: hip hop, gardening, skydiving
Consumption Subculture Characteristics
1) identifiable, hierarchical social social structure
2) set of shared beliefs or values
3) unique jargon, rituals, and modes of symbolic expression
Members in consumption subcultures way in their …
commitment to and interpretation of the group’s values and norms
Consumption subcultures develop rituals and symbolic communication … an example of this is …
Golfers, the uniform they wear, hats, shoes.
Marketers need to identify consumption subculture trends too..
identify the key influencers and use this to influence in the mass market
Brands using slang to appeal to a certain market is an example of what?
consumption subculture appeal
Brand Community
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
Community
characterized by consciousness of kind, shared rituals and traditions, and a sense of moral responsibility.
Jeep - brand community -explain
the functional and symbolic benefits associated with owning a jeep. they gain confidence, belongingness in ht larger group in social interactions, a positive association with their jeep
Brand Communities
create value through sets of activities or practices that create brand engagement
Examples of Value Creation Activities
- Social Networking through empathizing
- Community engagement thought milestoning
- Brand use through grooming the brand
- Impression management through evangelizing
online community
is a community that interacts over time around a topic of interest on the internet. Ex: blogs, nonprofit websites
online social network site
is a web based service that allows individuals to 1)construct a public or semipublic profile within a bound 2) articulate a list of the users with whom they share a connection 3) view and traverse their list of connections and those mades by others within the system
ex: facebook, brand-toyota friend, events-nascar hookup
Why are online and social network communities attractive :
- Consumer use is high and rising
- Sites are used to share information
- High customer acquisition
- More likely to recall the brand after interacting via social media
General Guiding principles for social media
- transparent (state all brand connections)
- be part of the community (provide more than just sales pitches)
- take advantage of the unique capabilities of each venue (post ads and banners)
Reference group take place in three forms:
informational, normative, and identification
Informational influence
occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information. (based on similarity of group members to the individual or the expertise of the influencing group member, EX: when a biker uses a clif bar and you then buy it because “fit” people eat it )
Normative influence
sometimes referred to as utilitarian, occurs when an individual fulfills group expectations to gain direct reward or to avoid a sanction. The stronger the ties, the stronger the product involvement is. (EX: purchasing a particular brand of wine to win approval from a colleague)
Identification influence
value-expressive influence, occurs when individuals have internalized the group’s values and norms. This then guides the behaviors without any thought to rewards. (EX: Tim sees Ads that iPads are used by smart young people, He then buys an iPad)
Two Consumption Situation Characteristics
Visible- strong reference group influence on brand, Private-weak reference group influence on brand
When is group influence the strongest?
when the use of product or brand is visible to the group
When are people most likely to conform by group influences?
The more commitment an individual feels to a group, the more the individual will conform to the group norms, relevant the activity is, and the individuals confidence in the purchase situation.
Asch Phenomenon
When the naive subject almost always agrees with the incorrect judgement of others. (pressure to conform after hearing the stated opinions of other group members)
Word of Mouth Communications
individuals sharing information with other individuals in a verbal form, including face-to-face, on the phone , and over the internet. (EX: social media and internet are PERSONAL COMMS AND WOM)
Who do consumers trust more?
Consumers trust the opinions of people like friends, family, and acquaintances-more than marketing communications
What are two ways people learn about new products?
- observing/participating
- receiving advice and information
Negative WOM compared to positive WOM
Negative WOM- told to twice as many people, that’s why companies focus so much on relaying “delighting” messages or positive responses
Opinion leader
“go to person” for specific types of information. They actively filter, interpret, or provide product and brand relevant information to their family, friends, and colleagues.
Two-step flow of communication
The process of one person receiving information form the mass media or other sources and passing it along to others. Aspects of communication within groups, but it is too simplistic to account for most communication flows.
Multistep flow of communication
involves opinion leaders for a particular product area who actively seek relevant information from the mass media as well as other sources (EX: social media - opinion leaders passing info to market segment, then back to opinion leaders)
The exchange of advice and information between group members can occur indirectly and directly-give examples
Directly-WOM, individual seeks information, individual volunteers information.
Indirectly- observation as a byproduct of normal group interaction
Example: Buying a product in a different product category(sound system, bike)- you would do what….
Seek out opinion leader for info, and this is a high involvement purchase
How do people provide observable behavior information
ex: a stylish individual wearing something on campus, and celebs in mass media
example of observation and WOM together
noticing someone using a Olympus camera, and then you start talking about it and where to find the best deals
enduring involvement
leads to enhanced knowledge about and experience with the product category or activity
offline opinion leaders
nike- targets and subscribes to the runners world - many of those subscribers are avid runners or joggers
online opinion leaders
social media- bloggers
market mavens
provide significant amount of information to others across a wide array of products-generalized market influencers
influentials
10% of population but they influence the attitudes and behaviors of 90% of the population
internet mavens/e-fluentials
influence family decisions that their parents make by operating as important gatekeepers to information on the web. 10% of adult online community but influence both online and offline ppl
Advertising - promotes stimulation - Ex: Dove- AD/WOM
Dove ran a campaign that stimulated a “pas-it on” movement that ran an ad that if you referred a friend you would get free soap
Product sampling
“seeding”- getting the product in the hands of a group of potential customers.- get it in the hands of WOM opinion leaders
ex: of personal selling/retailing opinion leaders
fashion advisory boards- referral reward programs
creating buzz
happens when word spreads like wildfire- with no or limited mass media
guerrilla marketing
a limited budget using nonconventional communications strategies
ex: blue cross blue shield - blue crew in areas- then linked to the campaign
issues with guerrilla marketing
consumer, ethical, and legal issues with stealth or covert marketing efforts
Viral marketing
online “pass it along” strategy - it uses electronic communications to trigger brand messages throughout a widespread network of buyers- often involves email
blogs
personalized journals where people and organizations can keep a running dialogue - can be used in several ways 1) place banner and package ads . 2) product sampling 3) use blogs to observe important blog sites
innovation
an idea, practice, or product perceived to be new by the relevant individual or group.how it is accepted or spreads though a market - determined by the perceptions of the potential market
continuous innovation
relatively minor changes in behavior or changes in behaviors that are unimportant to the consumer. Ex: crest vivid white night toothpaste
Dynamically continuous innovation
moderate change in a n important behavior or a major change in a behavior ex: using shout color catcher would require a major change in a n area of moderate importance for most individuals
discontinuous innovation
major changes in behavior of significant importance to the individual or group ex: becoming a vegetarian
adoption process
awareness, interest, evaluation, trial, adoption
extended decision making
problem recognition, information search, alternative evaluation, purchase, post purchase evaluation
continuous improvement ex
glad microwave steam bags- not a high involvement
diffusion process
manner in which innovations spread throughout a market-some degree of regularity
factors affecting the spread of innovations
type of group, type of decision, marketing effort, fulfillment of felt need, and compatibility, relative advantage, complexity, observability, trainability, perceived risk
adopter categories
innovators, early adopters, early majority, late majority, laggards
ex of innovators
commercial media and sales personnel sources in learning of new products
ex of early adopters
provide information to others, willing to take a risk on an innovation, but also are concerned with the risk of failure
ex of early majority
somewhat older, innovation has to be somewhat successful
ex of late majority
members are skeptical about innovations, less social status and mobility than those who adopt earlier
laggards
locally oriented and engage in limited social interaction, dogmatic and oriented toward the past
market segmentation
“moving target approach”- after selecting a target market, focus on individuals within the market that are innovators or early adopters
diffusion enhancement strategies
analyze the innovation from the target market’s perspective. this will indicate potential obstacles-diffusion inhibitors- to rapid market
