CHAPTER 8 MKT 365 Flashcards
Reference groups
A group of individuals who have significant relevance for a consumer & who have an impact on the consumer’s evaluations, aspirations, & behavior
Group Influence
Ways in which group members influence attitudes, opinions, & behaviors of others within the group
Group member characteristics
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
Primary Group
Includes members who have freq., direct contact w/ one another
Most influence on their members & social ties very strong
Ex. family unit
Secondary group
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
Formal group
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
Informal group
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)
Aspirational group
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
Dissociative group
Group to which a consumer does not want to belong
Type of outgroup
Social power
The ability of an individual/group to alter the actions of others
Referent Power
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
Legitimate Power
Specific agreements are made regarding membership, & the punishment for nonconformity is understood
Ex. neighborhood association has the power to annually increase membership fees
Authority
Expert Power
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
Reward Power
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
Coercive Power
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
Origins
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)
Informational Influence
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)
Utilitarian Influence
When consumers conform to group expectations to receive a reward or avoid punishment
Compliance often leads to valued rewards (acceptance)
Related to reward power
Value-Expressive Influence
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
Reference Group Influence on Product Selection
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
Social media
media through which consumption occurs
social networks
networks of consumers that are formed based on common interest, associations, or goals
Individual Differences in Susceptibility To Group Influence
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
Attention to Social Comparison Information
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
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
Word-Of-Mouth
Info abt products, services, & experiences that is transmitted from consumer to consumer—consumers believe other consumers more than ads
Organic word of mouth
Occurs naturally when consumers truly enjoy a g/s & want to share their experiences w/ others
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)
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)
Negative word of mouth
more influential than positive
consumers tend to tell more ppl abt unsatisfactory experiences than pleasing ones
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
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
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
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
Product life cycle
description of the life of a product from the time it is introduced to the time it dies off
Innovators
Influential when discussing g/s w/ members of other groups—opinion leaders
Risk takers & financially well-off
Early adopters
Young & well educated
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)
Laggards
Each group learns abt new products frm talking w/ other consumers & observing their behavior
Household Life Cycle
Segmentation technique that acknowledges that changes in family consumption & income alter household demand for g/s
Influencer
Recognizes a need & provides info abt a potential purchase to others
Gatekeeper
Controls info flow into household
User
Actual user of the product under consideration
Decision Maker
Makes final decision regarding purchase or nonpurchase
Purchase
person who actually buys the product under consideration
Boomerang kids
Young adults (18-34) who graduate college & move back home w/ parents
Debt
Adultolescence
Sandwich generation
Take care of both their own children & their aging parents
Income devoted to needs of others
Lose time @ work, income & benefits
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
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
