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10-1 12/12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter 10 Groups CONSUMER BEHAVIOR, 9e Michael R. Solomon.

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Presentation on theme: "10-1 12/12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter 10 Groups CONSUMER BEHAVIOR, 9e Michael R. Solomon."— Presentation transcript:

1 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter 10 Groups CONSUMER BEHAVIOR, 9e Michael R. Solomon

2 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter Objectives When you finish this chapter, you should understand why: Others, especially those who possess some kind of social power, often influence us. We seek out others who share our interests in products or services. We are motivated to buy or use products in order to be consistent with what other people do.

3 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter Objectives (continued) Certain people are particularly likely to influence others’ product choices. The things that other consumers tell us about products (good and bad) are often more influential than the advertising we see. Online technologies are accelerating the impact of word-of-mouth communication. Social networking is changing the way companies and consumers interact.

4 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Reference Groups Reference group: an actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior Influences consumers in three ways: Informational Utilitarian Value-expressive

5 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall When Reference Groups Are Important Social power: capacity to alter the actions of others Referent powerInformation power Legitimate powerExpert power Reward powerCoercive power

6 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Discussion High schools have all types of reference groups, with members representing all types of social power. Think back and try to identify people who had the following types of power. Referent power Information power Legitimate power Expert power Reward power Coercive power

7 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Types of Reference Groups Any external influence that provides social clues can be a reference group Cultural figure Parents Large, formal organization Small and informal groups Exert a more powerful influence on individual consumers A part of our day-to-day lives: normative influence

8 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Brand Communities and Consumer Tribes A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests celebrated by community

9 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Membership versus Aspirational Reference Groups Membership reference groups People the consumer actually knows Advertisers use “ordinary people” Aspirational reference groups People the consumer doesn’t know but admire Advertisers use celebrity spokespeople

10 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Factors Predicting Reference Group Membership Propinquity Mere exposure Group cohesiveness

11 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Positive versus Negative Reference Groups Avoidance groups: motivation to distance oneself from other people/groups Antibrand communities: coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it

12 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Consumers Do It in Groups Deindividuation: individual identities become submerged within a group Social loafing: people don’t devote as much to a task when their contribution is part of a larger group Risky shift: group members show a greater willingness to consider riskier alternatives following group discussion than if members made their own decisions

13 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Discussion Home shopping parties—such as Tupperware, Avon, Pampered Chef, Amway, or Botox—are designed to put pressure on friends and neighbors to buy merchandise. Have you attended these parties? Why or why not? Do you believe putting social pressure is ethical? Why or why not? Why are these parties more common among women?

14 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Factors Influencing Conformity Cultural pressures Fear of deviance Commitment Group characteristics unanimity size expertise Susceptibility to interpersonal influence

15 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Opinion Leadership Opinion leaders influence others’ attitudes and behaviors Experts Unbiased evaluation Socially active Similar to the consumer Among the first to buy

16 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Opinion Leaders Is there a generalized opinion leader whose recommendations we seek for all types of purchases? Experts may be monomorphic or polymorphic

17 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 10.1 Old and New Social Networks

18 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The Market Maven Market maven: actively involved in transmitting marketplace information of all types Just into shopping and aware of what’s happening in the marketplace Overall knowledge of how and where to get products

19 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The Surrogate Consumer Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions Interior decorators, stockbrokers, professional shoppers, college consultants Consumer relinquishes control over decision-making functions Marketers should not overlook influence of surrogates!

20 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall How Do We Find Opinion Leaders? The self-designating method Simply ask individuals whether they consider themselves to be opinion leaders Easy to apply to large group of potential opinion leaders Inflation or unawareness of own importance/influence Key informant method Key informants identify opinion leaders

21 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Sociometric Methods Sociometric methods: trace communication patterns among group members Systematic map of group interactions Most precise method of identifying product- information sources, but is very difficult/expensive to implement Network analysis Referral behavior/network, tie strength Bridging function, strength of weak ties

22 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Word-of-Mouth Communication WOM is product information transmitted by individuals to individuals More reliable form of marketing Social pressure to conform Influences two-thirds of all sales We rely upon WOM in later stages of product adoption Powerful when we are unfamiliar with product category

23 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall BzzAgent

24 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Negative WOM and Power of Rumors We weigh negative WOM more heavily than we do positive comments! Negative WOM is easy to spread, especially online Determined detractors Information/rumor distortion There are 3 themes to complaint Web sites Injustice Identity Agency

25 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 10.3 The Transmission of Misinformation

26 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Cutting-Edge WOM Influences Social Networking Crowd Power Guerilla Marketing Viral Marketing

27 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Virtual Worlds: The Next Digital Frontier

28 /12/2014 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Chapter Summary People with social power influence our behavior as consumers. We are motivated to buy things that are consistent with those in our reference groups. WOM communication about products, especially from opinion leaders, may be more influential than information from marketers. Web 2.0 accelerates the speed of delivery and the power of WOM communication.


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