Q3 Group Influences on Consumer Behavior Flashcards
Two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another
Group
A group whose presumed perspectives or values are being used by an individual as his basis for his/her current behavior.
Reference Group
____________________ family or friend with strong ties & frequent interaction.
Primary Group
________________________ professional or HOAs with weaker ties & less frequent interaction
Secondary Group
What are the four criteria that are particularly useful in classifying groups?
- Membership
- Strength of Social Tie
- Type of Contact
- Attraction
One can be a member or not a member of a group.
Leads to sense of belongingness, confidence or security to a group.
Membership
The closeness or intimacy of the group/linkages.
Strength of Social Tie
Whether the interaction is direct or indirect
Type of Contact
Desirability the membership have for the individual. Negative or positive.
Attraction
Three Types of Groups
- Consumption Subcultures
- Brand Community
- Online Communities and Social Networks
They have a set of shared beliefs or values as well as unique jargon, rituals, and modes of expression.
Consumption Subcultures
They adopt consumption patterns in large part to affirm their unique identity
Consumption Subcultures
They add value to the ownership of the product. They are characterized by intense loyalty.
Brand Community
They engage in activities facilitated by both the brand and brand owners to enhance brand value.
Brand Community
They are community that interacts around a topic of interest on the internet.
Online Communities and Social Networks
Three things to remember when Using Social Media in Marketing
1 Be transparent
2 Be part of the community
3 Take advantage of the unique capabilities of each venue
Give example of
Consumption Subcultures
Brand Community
Online Communities and Social Networks
Consumption Subcultures (Sneakerheads, Hypebeast)
Brand Community(Harley Davidson Owners Group, Jeep Enthusiast Community)
Online Communities and Social Networks (Sepora’s Beauty Insider)
Two Reference Group Influence on the Consumption Process
- The Nature of Reference Group Influence
- Degree of Reference Group Influence
These are the characteristics or features of reference groups
The Nature of Reference Group Influence
To which degree a reference group influence consumer behavior
Degree of Reference Group Influence
According to the Nature of Reference Group Influence, a reference group influence can take three forms:
Informational Influence
Normative Influence (Utilitarian Influence)
Identification Influence (Value-expressive influence)
A reference group influnce that persuade consumers through similarity or expertise.
Informational Influence
Conforming to group norms to fit in or gain approval. It’s about wanting to be liked or accepted by others.
Normative Influence (Utilitarian Influence)
Copying behaviors or beliefs of someone they admire to show their own values. Happens when people adopt a group’s values.
Identification Influence (Value-expressive influence)
According to the Degree of Reference Group Influence:
All of these:
Visible usage
High relevance of product to group
Low individual purchase confident
Strong individual connection to the group
Unnecessary item
Results to what?
High Degree of reference to group reference.
Marketing Strategies Based on Reference Group Influences:
Advertisers show their product attached with certain values, like Coca-Cola ads showing it as perfect for family gatherings, to appeal to consumers who share those values.
Identification influence
Give the four Communications within Groups and Opinion Leadership
- Word-of-mouth communications
- Opinion Leaders
- Market Mavens
- Marketing Strategies
In Communications within Groups, It is considered the most effective form of advertising
Word-of-mouth communications
In Communications within Groups, they are the “go to person” for specific types of information.
Opinion Leaders
These persons are considered specialists that filters, interprets, and passes along information within a group
Opinion Leaders
They are generalized market influencer.
Market Mavens
Give the Four Marketing Strategies
Advertising
Product Sampling
Retailing/Personal Selling
Creating Buzz
An online “pass-it-along” strategy where brand messages spread quickly through electronic communication, like email, among a large network of buyers.
Viral marketing
Marketing with a limited budget using nonconventional communication strategies.
Guerrilla marketing
Two Examples of Creating Buzz
Creating Buzz
Guerrilla marketing
Attempt to stimulate WOM by generating interest and excitement.
Advertising
Give out free sample products customers can try before buying.
Product Sampling
Selling directly to consumers through stores or direct persuasion
Retailing/Personal Selling
Generating excitement and interest around something to get people talking about it and increase awareness.
Creating Buzz
Is an idea, practice, or product perceived to be new by the relevant individual or group
Innovation
Give the Three Categories of Innovation
- Continuous Innovation
- Dynamically Continuous Innovation
- Discontinuous Innovation
Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer.
Continuous Innovation
Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.
Dynamically Continuous Innovation
Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group
Discontinuous Innovation
Give the Five Stages in Adoption Process
1 Awareness
2 Interest
3 Evaluation
4 Trial
5 Adoption
Give the Five Steps in Extended Decision Making
1 Problem Recognition
2 Information Search
3 Alternative Evaluation
4 Purchase
5 Post Purchase Evaluation
Factors Affecting the Spread of Innovation
Rate of Diffusion
Give the Five Adopter Categories
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
