Exam #3 Flashcards
Deindividuation
Individual identities merge with a group.
For Example: We eat and drink as a group at a party.
Risky Shift
Group members are more willing to consider riskier alternatives during group activities.
Example: Drug usage increases in group settings.
Decision Polarization
After a group discusses an issue, opinions become more extreme.
Example: Escalation of commitment in group purchases.
Conformity
Individuals change their attitudes, beliefs, and behaviors.
Example: Influence of reference groups on purchases.
Informational conformity
Is when there is a change in opinions or behavior to conform to people whom we believe have accurate information
Normative conformity
Occurs when we express opinions or behave in ways that help us be accepted or keep us from being isolated or rejected by others
Reference Groups
Are a individual/group believed to have significant relevance upon an individual’s evaluations, aspirations, or behavior.
Reference Groups Influence is Strongest for what 3 product elements?
- Luxuries rather than necessities. Example: golfclubs.
- Socially conspicuous/visible to others.
- Public goods rather than private goods. Example: Watch, car vs. toothbrush, mattress
Social Power
Capacity to alter the actions of others.
2 Types of Reference Groups
Large, formal organization.
Small and informal groups: These groups usually exert a more powerful influence on individual consumers.
The 6 Types of Social Power
- Referent Power Oprah referring a book.
- Legitimate Power, the Police.
- Reward Power, Money.
- Coercive Power, Hitler.
- Expert Power, Doctor.
- Information Power, Professor or someone knowledgeable.
Milgram’s Obedience Experiment
Key Takeaway: People underestimate the power of social influence.
Participant shock other participants when they get the answer wrong, and were encouraged participants to keep on going by professor Milgram to shock the other participants even though they were in pain.
Brand Communities/ Consumer Tribes
A group of consumers who have social relationships based upon them using or being interested in a product.
Examples: Volkswagen beetle owners meet up with one another because they own the same car.
Brandfests
Events sponsored by a company that bring brand users together to enhance brand loyalty.
Membership Reference Groups
Advertisers use “ordinary people”
Aspirational reference groups
Marketers use people that consumers admire, so they use celebrity spokespeople.
Avoidance (negative) Groups
Motivation to distance oneself from other people/groups
Word-of-Mouth (WOM) Communication
Information transmitted by consumers.
Can be more reliable & creditable form of marketing.
Social pressure to conform.
Negative WOM & Power of Rumors
Extremely powerful, relates to Brand Sabotage
We love to spread bad news.
Wrong negative information – hard to correct
(Gilbert & Malone’s two-step process model)
Opinion Leaders
Influence others’ attitudes and behaviors.
Good information sources because they:
* May be experts
* Provide unbiased evaluation
* Are socially active
* Are similar to the consumer
* Are among the first to buy
Can be innovators/Early adopters on the Product life Cycle.
Market Maven
These people are actively involved in transmitting marketplace information of all types
Love to shop and highly aware what’s happening in the marketplace.
Have overall knowledge of how and where to get products, market information over a wide range of products and services.
Social Class
Is determined by income, family background, education, and occupation.
Social dominance theory (Sidanius & Pratto, 1999)
Some believe in a universal pecking order.
Social standing determines access to resources.
Examples: education, housing, consumer goods
Marketing strategies focus on the desire to “move up”.
Homogamy
When people tend to marry people in similar social classes.
2 Components of Social Class
- Occupational prestige
- Income
Occupational Prestige
Is stable over time and similar across cultures
Single best indicator of social class
Occupation à leisure time, allocation of family resources, political orientations, etc.
Income
Wealth not distributed evenly across classes (top fifth controls 75% of all assets).
Income alone is often not a good indicator of social class.
Predicting Capabilities between Income & Social Class
Social class is a better predictor of lower to moderately priced symbolic purchases (e.g., liquor, cigars, cosmetics).
Income is a better predictor of major nonstatus/nonsymbolic expenditures (e.g., major appliances).
Need both social class and income to predict expensive, symbolic products (e.g., cars, homes).
Power and Willingness to Buy Status Products
After feeling a loss of power, consumers are more willing to pay for high status products, especially consumers who consider power as personal success, status, and achievement.
Power = Status, Personal achievement in vertical individualistic cultures (e.g., US).
Impact of Class Consciousness
Impacts:
Attitude toward money.
How consumption choices reflect one’s social standing.
Measuring Social Class in the U.S.
Education and income is used to measure status for segmentation purposes.
Class” is very subjective; it relates to self-identity as well as economic well-being.
Class Structure in the United States
Upper Americans
Middle Americans
Lower Americans
Social Mobility
Is when individuals go from one social class to another.
Horizontal Mobility
Change jobs in same social class.
Downward Mobility
When people have dropped at least one occupational class below their parents.
Upward Mobility
When people go up in social class.
Other Countries Class Structure
China: rise of middle class (mass class!)
Japan: status- & brand-conscious society
U.K.: rigid class structure still exists, but the dominance of its aristocracy is fading
India: caste system is also fading
What Foreign Country is known for being status conscious.
Japan: status- & brand-conscious society
3 Attitudes Toward Luxury
- Luxury as functional: buy good quality products that will last and have enduring value.
- Luxury as rewarding: luxury goods to say, “I’ve made it, I deserve it”.
- Luxury as indulgence: extremely lavish and self-indulgent.
Low Class Behavior
Those in low (vs. middle) social class are less individualistic, independent, analytic.
Parody Display
Parody display: deliberately avoiding status symbols, Imitation of less fortunate living.
Example: Ripped jeans
Ethnic Subculture Societies
Relatively homogeneous societies – e.g., Japan
Very heterogeneous societies – e.g., U.S.A.
Marketing for Racial Subcultures
Marketers cannot ignore the diversity of cultures.
Ethnic minorities have special needs.
Racial Matching
Dembroski et al. (1978) – African American children were given persuasive messages about dental care. African American dentists were more persuasive than Caucasian dentists.
Racial Matching Mechanism
Similarity/familiarity enhances liking and reduces threat.
Liking of Source
Celebrities + Similarity
Magic Johnson and HIV
Meta-analysis results:
Knowledge of HIV increased
Attitudes towards people with HIV changed
Safer Behavior reported
HIV test visits at clinics increased
Ethnicity and Marketing Strategies
Subcultural memberships shape people’s needs/wants
Minorities find an advertising spokesperson from their own group more trustworthy.
Affects level/type of media exposure, food/apparel preferences, political behavior, leisure activities, willingness to try new products.
The “Big Three” American Subcultures
- African Americans
- Hispanic Americans
- Asian Americans
Seen as potential as a unique market segment.
Largest American Subculture
Hispanic Population
Fastest-growing Racial Subculture
Asian Americans are the fastest-growing racial group (due to immigration).
African Americans Subculture
African American are not as homogeneous as many seem to believe (outgroup homogeneity effect).
Household income & educational levels are rising for African Americans.
Spending patterns are roughly similar to the whites, but subtle differences in consumption behaviors still exist and are important.
Example: P&G “My black is beautiful”
Hispanic Americans “Sleeping giant market” Subculture
The word Hispanic = big umbrella term
Mexican (60%), Puerto Ricans, S. American, Cubans, Dominicans
Characteristics:
* Brand loyal
* Highly concentrated geographically (easy to reach)
* Large family size
* Young ones are bicultural and open to new experience
* Translation issues pose huge marketing problem
Which Subculture is classified as Horizontal Collectivists?
Hispanic Americans
They see themselves as part of a group instead of an induvial.
Asian Americans
Fastest-growing population group
Most affluent and best educated
Most likely to hold technology job and buy high-tech gadgets
Most brand-conscious but least brand loyal
Most concerned with keeping up appearances
Made up of culturally diverse subgroups that speak many different languages/dialects.
Which culture is classified as Vertical Collectivists?
Asian Americans
See themselves as more individuals rather than a group.
Ethnic and Racial Stereotypes
Assumptions about certain ethnic/racial traits, which can be either positive or negative.
Ethnicity Complexity in the U.S.
Defining/targeting an ethnic group is not always so easy (“melting pot” society in USA).
Many identify with two or more races
Marketing implications for bicultural consumers.
De-Ethnicization
Occurs when a product associated with a specific ethnic group detaches itself from its roots.
Example: bagels (origins?)
