CHAPTER 8 MKT 365 Flashcards

1
Q

Reference groups

A

A group of individuals who have significant relevance for a consumer & who have an impact on the consumer’s evaluations, aspirations, & behavior

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2
Q

Group Influence

A

Ways in which group members influence attitudes, opinions, & behaviors of others within the group

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3
Q

Group member characteristics

A

Share common goals & interests  ex. mothers against drunk driving

Communicate w/ & influence one another ex. alumni group

Share a set of expectations, rules, & roles ex. volleyball team

View themselves as members of a common social unit ex. military members

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4
Q

Primary Group

A

Includes members who have freq., direct contact w/ one another

Most influence on their members & social ties very strong

Ex. family unit

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5
Q

Secondary group

A

Interaction within the group is much less freq. than in a primary group

Ex. professional organizations & social clubs

Brand community: groups of consumers who develop relationships based on shared interests or product usage

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6
Q

Formal group

A

A group in which a consumer formally becomes a member

Set of stated rules, accepted values, & codes of conduct that members are expected to adhere to

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7
Q

Informal group

A

Group that has no membership or application requirements, & codes of conduct may be nonexistent

Impact consumer behavior (group influence not as strong as formal groups)

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8
Q

Aspirational group

A

Group in which a consumer desires to become a member

Appeals to consumer’s ideal self

Consumers freq. emulate the members of aspirational groups & perform behaviors that they believe will lead to formal acceptance into the group

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9
Q

Dissociative group

A

Group to which a consumer does not want to belong

Type of outgroup

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10
Q

Social power

A

The ability of an individual/group to alter the actions of others

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11
Q

Referent Power

A

A consumer admits the qualities of a group & emulates their behavior

Ex. a student joins Encantus & emulates that group’s behaviors

Imitate the behaviors & attitudes of groups as a means of identifying w/ the groupàfitting in

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12
Q

Legitimate Power

A

Specific agreements are made regarding membership, & the punishment for nonconformity is understood

Ex. neighborhood association has the power to annually increase membership fees

Authority

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13
Q

Expert Power

A

Groups possess knowledge that members, prospective members, or other consumers seek

Ex. consumers seek out medical info from groups such as the American Dental Association

CB motivation to understand the environment

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14
Q

Reward Power

A

Groups have the power to reward members for various behaviors

Ex. weight loss club give out prizes for weight loss

Reward for compliance w/ expectations

Reward must be valued

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15
Q

Coercive Power

A

Groups have the power to sanction group members for breaking rules or failing to follow expectations

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

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16
Q

Origins

A

Members must be aware that the power base exists

Desire to maintain/establish membership in the group in order for the power base to be effective (no value àdeviance)

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17
Q

Informational Influence

A

The ways in which consumers use the behaviors & attitudes of reference groups as information for making their own decisions

Product/issue related info considered when purchasing g/s

Consumer desire to make informed decisions àReference group perceived as effective source of info

Why word-of-mouth so persuasive

Credibility (expertise)

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18
Q

Utilitarian Influence

A

When consumers conform to group expectations to receive a reward or avoid punishment

Compliance often leads to valued rewards (acceptance)

Related to reward power

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19
Q

Value-Expressive Influence

A

The ways in which consumers internalize a group’s values or the extent to which consumers join groups to express their own closely held values & beliefs

Related to referent power

Use group membership as a way to project their own self-image

Self-image is influenced by the group & group membership helps the individual project their desired image

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20
Q

Reference Group Influence on Product Selection

A

Situation

“public products” easily seen by others (ex. watch)

“private products” (ex. socks)

Extent to which the product is considered to be a necessity or a luxury

Affects level of reference group influence

Whether a type of product or a particular brand is being selected

21
Q

Social media

A

media through which consumption occurs

22
Q

social networks

A

networks of consumers that are formed based on common interest, associations, or goals

23
Q

Individual Differences in Susceptibility To Group Influence

A

Individual differences play important role in extent to which consumers conform to the expectations of others

Susceptibility to Interpersonal Influence

assesses an individual’s need to enhance the image others hold of them by acquiring & using products, conforming to the expectations of others, & learning about products by observing others

consumers particularly susceptible to interpersonal influence = more likely to value conspicuous items (highly valued items like luxury automobiles or jewelry)

seek approval of others through product ownership

24
Q

Attention to Social Comparison Information

A

Assesses the extent to which consumers are concerned about how other ppl react to their behavior

Closely related to susceptibility to interpersonal influence

Modify purchasing behavior when shopping w/ others

More likely to conform to expectations of others

25
Separateness-Connectedness
separated self-schema: perceives themselves as distinct & separate from others connected self-schema: sees themselves as an integral part of a group respond more favorably to ads that promote group belonging & cohesion respond v favorably to salespeople w/ whom they share some degree of similarity marketing messages often based on “connected” or “separated” themes
26
Word-Of-Mouth
Info abt products, services, & experiences that is transmitted from consumer to consumer—consumers believe other consumers more than ads
27
Organic word of mouth
Occurs naturally when consumers truly enjoy a g/s & want to share their experiences w/ others
28
Amplified word of mouth
When marketers attempt to accelerate WOM in existing customer circles, or when they develop entirely new forums for WOM (blogs, web pages)
29
Positive word of mouth
More satisfied consumers Brand advocate or brand ambassador describe consumers who believe strongly in a brand & tell others abt it More likely to spread WOM when a product is particularly relevant to their own self-concept & when they are highly involved w/ the product category (musician’s WOM abt a musical product)
30
Negative word of mouth
more influential than positive consumers tend to tell more ppl abt unsatisfactory experiences than pleasing ones
31
Opinion leaders
consumers who have great influence on the behavior of others relating to product adoption & purchase Knowledgeable abt specific g/s & have high level of involvement w/ those products
32
Market Mavens
A consumer who spreads info abt all types of g/s that are available in the marketplace Influence is not category specific—spread info abt numerous g/s
33
Surrogate consumer
A consumer who is hired by another consumer to provide input into a purchase decision Ex. interior decorators, travel consultants, stockbrokers Can help consumers derive maximum amount of value by maximizing benefits associated w/ product purchase
34
Diffusion Process
The way in which new products are adopted & spread throughout a marketplace Different groups of consumers tend to adopt new products @ different rates
35
Product life cycle
description of the life of a product from the time it is introduced to the time it dies off
36
Innovators
Influential when discussing g/s w/ members of other groups—opinion leaders Risk takers & financially well-off
37
Early adopters
Young & well educated
38
Late majority
More cautious abt buying new g/s & wait significantly longer to buy the latest innovations (laggards too) Somewhat older (laggards) Lowest levels of education & spending power (laggards too)
39
Laggards
Each group learns abt new products frm talking w/ other consumers & observing their behavior
40
Household Life Cycle
Segmentation technique that acknowledges that changes in family consumption & income alter household demand for g/s
41
Influencer
Recognizes a need & provides info abt a potential purchase to others
42
Gatekeeper
Controls info flow into household
43
User
Actual user of the product under consideration
44
Decision Maker
Makes final decision regarding purchase or nonpurchase
45
Purchase
person who actually buys the product under consideration
46
Boomerang kids
Young adults (18-34) who graduate college & move back home w/ parents Debt Adultolescence
47
Sandwich generation
Take care of both their own children & their aging parents Income devoted to needs of others Lose time @ work, income & benefits
48
Sex role orientation
A family’s set of beliefs regarding the ways in which household decisions are reached “Traditional”—male head of household makes large decision “modern”—democratic approach
49
Kid Power
Even when economy unstable, parents still try to spend $ on their kids Teens grow in disposable income Significant influence on household decision making