Consumer Behavior Flashcards
Social Power:
the capacity to alter the actions of others
Referent Power:
When consumers imitate qualities by copying behaviors of a prominent
person they admire, i.e., actor
Information Power:
• Able to influence consumer opinion by virtue of their (assumed) access to the
“truth”, i.e., reporter
Legitimate Power:
• Granted to people by virtue of social agreements, sometimes conferred by a
uniform, i.e., doctor
Expert Power:
• Derived from possessing specific knowledge about a content area
Reward Power:
• When a person or group has the means to provide positive reinforcement
Coercive Power:
• Influencing a person by social or physical intimidation, effective in short term
Reference Groups
An actual or imaginary individual or group conceived of having
significant relevance upon an individual’s evaluations, aspirations, or
behavior.
We don’t take others’ preferences into account when products are:
- Not complex
- Low in perceived risk
- Can be tried before buying
Aspirational Reference Groups
• Comprise idealized figures such as successful business people, athletes, or
performers (don’t know but admire).
• Advertisers use celebrity spokespeople
Membership Reference Group
• Ordinary people whose consumption activities provide informational social
influence (actually know).
• Advertisers use “ordinary people”
Avoidance Groups
Groups that consumers purposely try to distance themselves from:
• Nerds
• Druggies
• Preppies
• The motivation to distance oneself from a negative reference group can be as
powerful or more powerful than the desire to please a positive group
Conformity
• A change in beliefs or actions as a reaction to real or imagined group
pressure.
Norms
• Informal rules that govern what is right and wrong; helps society function;
i.e., changes in attitude to smoking
Red sneakers effect:
• Assumption that those who make unconventional choices are
more powerful or competent, so they can afford to take risks
WOM Communication
Product information transmitted by individuals to individuals:
• More reliable & trustworthy form of marketing
• Social pressure to conform
• Influences up to 50% of all sales!
• We rely upon WOM in later stages of evaluation & adoption
• …whereas advertising is:
• better to create brand awareness AND
• better to reinforce our existing product preferences than to create new ones
Negative WOM:
• Negative WOM: Consumers weigh negative info from other consumers more
heavily than they do positive comments
Opinion Leaders:
People who are knowledgeable about products and whose advice is
taken seriously by others.
Homophily:
The degree to which a pair of individuals is similar in terms of education,
social status, and beliefs, i.e., birds of a feather flock together
Generalized Opinion Leader:
Somebody whose recommendations are sought for all
types of purchases – rare!
Monomorphic:
An expert in a limited field.
Polymorphic:
An expert in many fields (but tend to concentrate on one broad
domain)
Characteristics of Opinion Leaders
• Experts • Unbiased evaluation • Socially active • Similar to the consumer • Among the first to buy & risk: both positive & negative information so more credible
Two-step flow model of influence:
• small group of influencers disseminates info
• they can modify opinions of many others
• BUT, influence is driven less by «influentials» and more by interactions
amongst «the influenced»
The Market Maven (generalized opinion leader):
actively involved in
transmitting marketplace information of all types.
• Into shopping and aware of what’s happening in the marketplace
• Overall knowledge of how and where to get products
The Surrogate Consumer:
•marketing intermediary hired to provide
input in purchase decisions.
- Interior decorators, stockbrokers, professional shoppers, college consultants
• Consumer relinquishes control over decision-making functions (information
search, evaluation of alternatives, actual purchase)
…therefore marketers should not overlook influence of surrogates!