Presentation on theme: "University of Wales (UK) Consumer Behaviour (KL003)"— Presentation transcript:
1 University of Wales (UK) Consumer Behaviour (KL003) Lesson 11Group Influence and Opinion Leadership
2 Reference GroupsAn actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviorReference groups influence consumers in three ways:InformationalUtilitarianValue-expressive
3 Reference Group Influences Reference group effects are more robust for purchases that are:Luxuries rather than necessitiesSocially conspicuous/visible to othersPRODUCTWeak Reference Group InfluenceStrong Reference Group InfluenceBRANDPUBLICNECESSITIESLUXURIESPRIVATEFigure 11.1
4 When Reference Groups Are Important Social power: capacity to alter the actions of othersReferent powerInformation powerLegitimate powerExpert powerReward powerCoercive power
5 Types of Reference Groups Any external influence that provides social cluesCultural figureParentsA large, formal organizationTend to be more product- or activity-specific: comparative influenceSmall and informal groupsExert a more powerful influence on individual consumersA part of our day-to-day lives: normative influence
6 Brand CommunitiesA group of consumers who share a set of social relationships based upon usage or interest in a productBrandfests enhance brand loyaltyConsumer tribe share emotions, moral beliefs, styles of life, and affiliated productTribal marketing: linking a product to the needs of a group as a whole
7 Membership vs. Aspirational Reference Groups People the consumer actually knows vs. people the consumer doesn’t know but admiresAdmirational strategies concentrate on highly visible, widely admired figures (athletes or performers)Membership strategies focus on “ordinary” people whose consumption provides informational social influencePropinquity, mere exposure, and group cohesiveness
8 Positive vsersus Negative Reference Groups Reference groups may exert either a positive or negative influence on consumption behaviorsAvoidance groups: motivation to distance oneself from other people/groupsMarketing: ads with undesirable people using competitor’s productDiscussion: Identify a set of avoidance groups for your peers. Can you identify any consumption decisions that are made with these groups in mind?
9 Consumers Do It in Groups De-individuationBinge drinking at college partiesSocial loafingWe tend to tip less when eating in groupsRisky shiftDiffusion of responsibilityValue hypothesisDecision polarization
10 Consumers Do It in Groups Home shopping partiesTupperware and Botox partiesInformational and normative social influenceDe-individuationRisky shiftDiscussion: Are home shopping parties that put pressure on friends and neighbors to buy merchandise ethical?
11 ConformityMost people tend to follow society’s expectations regarding how to look/actChange in beliefs/actions toward societal normsAppropriate clothing/personal items, gift-giving, sex roles, and personal hygiene
12 Factors Influencing Conformity Cultural pressuresFear of devianceSanctions against “different” behaviorCommitment to group membershipPrinciple of least interestGroup unanimity, size, expertiseSusceptibility to interpersonal influenceRole relaxed
13 Social Comparison “How am I doing?” We look to others’ behavior to inform us about realityOccurs as way to increase stability of one’s self-evaluation (sans physical evidence)Tastes in music and artWe tend to choose co-oriented peer when performing social comparison
14 Resisting Conformity Independence vs. anticonformity Reactance “Marching to own drummer” versus being aware of what is expected (and not doing it)ReactanceNegative emotional state when we are deprived of our freedom of choiceCensored books, TV shows, music lyrics
15 Word-of-Mouth Communication WOM: product information transmitted by individuals to individualsMore reliable/trustworthy form of marketingBacked up by social pressure to conformInfluences two-thirds of all sales of goodsWe rely upon WOM in later stages of evaluation and adoptionWOM is powerful when we are unfamiliar with product category
16 WOM Communication Product-related conversation factors: High involvement with product (pleasure)Knowledgeable about product (impressing others)Genuine concern for others (avoid wasting money)
17 Negative WOM and Power of Rumors We weigh negative WOM more heavily than we do positive comments!Negative WOM is easy to spread, especially onlineDetermined detractorsDiscussion: What is the best way for a company to deal with determined detractors?Information/rumor distortionAssimilation, leveling, and sharpening
18 Virtual CommunitiesA collection of people who share their love of a product in online interactionsMulti-user dungeons (MUD)Rooms (IRC), rings, and listsBoardsBlogs/blogosphereGreat potential for abuse via untrustworthy membersAmazon.com lawsuit (charging publishers to post positive reviews of Web site)
19 Types of Web Surfers Discussion: Which type of Web surfer are you? Figure 11.3Discussion: Which type of Web surfer are you?
20 Guerrilla MarketingPromotional strategies that use unconventional locations and intensive WOM to push productsRecruiting legions of real consumers for street theaterHip-hop “mix tapes”/street teamsP&G’s TremorKayem Foods’ Great Sausage FanoutBrand ambassadors
21 Viral MarketingGetting visitors to a Web site to forward information on the site to their friends (for product awareness)Creating online content that is entertaining or weirdSUBSERVIENTCHICKEN.COMLINCOLNFRY.COM
22 Social NetworkingWeb sites letting members post information about themselves and make contact with similar othersShare interests, opinions, business contactsMYSPACETHEFACEBOOK.COM
23 Opinion LeadershipWe don’t usually ask just anyone for advice about purchases!We most likely seek advice from someone who knows a lot about a productOpinion leaders frequently influence other’s attitudes/behaviorsE-fluential advice
24 Reasons to Seek Advice from Opinion Leaders ExpertiseUnbiased knowledge powerHighly interconnected in communities (social standing)Referent power/homophilyHands-on product experience (absorb risk)
25 Opinion LeadershipGeneralize opinion leader vs. monomorphic/polymorphic expertsAlthough opinion leaders exist for multiple product categories, expertise tends to overlap across similar categoriesIt is rare to find a generalized opinion leaderInnovative communicatorsOpinion seekersMore likely to talk about products with others and solicit others’ opinionsCasual interaction prompted by situation
26 The Market MavenActively involved in transmitting marketplace information of all typesJust into shopping and staying on top of what’s happening in the marketplaceSolid overall knowledge of how and where to procure products“I like introducing new brands/products to friends”“People ask me for information about products, places to shop, or sales”“My friends think of me as a good source of information when it comes to new products or sales”
27 The Surrogate Consumer A marketing intermediary who is hired to provide input into purchase decisionsInterior decorators, stockbrokers, professional shoppers, college consultantsConsumer relinquishes control over decision-making functionsMarketers should not overlook influence of surrogates!
28 Identifying Opinion Leaders Many ads intend to reach influentials rather than average consumerLocal opinion leaders are harder to findCompanies try to identify influentials in order to create WOM “ripple effect”Exploratory studies identify characteristics of opinion leaders for promotional strategies
29 The Self-Designating Method Most commonly used technique to identify opinion leaders…Simply ask individuals whether they consider themselves to be opinion leadersMethod is easy to apply to large group of potential opinion leadersView with skepticism…inflation or unawareness of own importance/influenceAlternative: key informants identify opinion leaders
30 Socio-metric Methods Trace communication patterns among group members Systematic map of group interactionsMost precise method of identifying product-information sources, but is very difficult/expensive to implementNetwork analysisReferral behavior/network, tie strengthBridging function, strength of weak ties