1. Class 19 Groups CA 2018 Consumer Insight A.Kwanta Sirivajjanangkul A.Panitta Kanchanavasita Albert Laurence School of Communication Arts Department of Advertising 2013

2. Consumers as Decision Makers Basic sequence of steps we undergo when we make decisions Decision Making How the particular situation in which we find ourselves affects these decisions and how we go about evaluating the results of our choices Buying and Disposing An overview of group processes and discusses the reasons we are motivated to conform to the expectations of others when we choose and display our purchases Group Influence and Opinion Leadership The purchase decisions in conjunction with others, especially coworkers or family members Organizational and Household Decision Making

3. Chapter outline 1.Reference Group Three forms of Reference Group Influence Classification of Powers Type of Reference Groups – Brand Communities and Consumer Tribes – Membership VS Aspirational Reference Groups – Positive VS Negative Reference Groups 2. Conformity – Common Factors 3.Opinion Leadership Common Characteristics of Opinion Leaders Type of Opinion Leaders

4. Reference Group 1

5. 1 Why do others, especially those who possess some kind of social power, often influence us?

6. Reference Group: is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior. 1

7. Reference Groups: influence in 3 ways 1 Informational Utilitarian Value- Expression brand will enhance images others have Brand possess characteristics that others have Advertisement gives a good feeling of using a brand Purchasing a brand are admired by others brand would help show others what he or she would like to be brand will enhance images others have Brand possess characteristics that others have Advertisement gives a good feeling of using a brand Purchasing a brand are admired by others brand would help show others what he or she would like to be Brand is influenced by preference of family members Purchasing a particular brand is influenced by their preferences Purchasing a particular brand is influenced by a person whom they have social interaction Brand is influenced by preference of family members Purchasing a particular brand is influenced by their preferences Purchasing a particular brand is influenced by a person whom they have social interaction Information seeking brand- related knowledge and experience Reliable information about brands Information from experts Information seeking brand- related knowledge and experience Reliable information about brands Information from experts

8. Social power “The capacity to alter the actions of others” 1

9. Power Classifications are as follows: 1. Referent power: if a person admires qualities of a person or group, he tries to copy the referent’s behaviors ex. choice of clothing, cars 2. Information power: a person can have power simply because she knows something others would like to know ex. Editor of trade publications such as Women’s Wear Daily 3. Legitimate power: sometimes we grant power by virtue of social agreements (legal) ex. Authority of police officers, soldiers 1

10. Power Classifications are as follows: 4. Expert power: to attract the casual internet user ex. Showing that you are expert in that topic 5. Reward power: a person or group with the means to provide positive reinforcement ex. Tangible – money, award ex. Intangible – comments or the approval from judges on American Idol/the Voice 6. Coercive power: we use coercive power when we influence someone because of social or physical intimidation (force) ex. Threat, hard sell 1

11. Types of Reference Groups 1

12. Brand Communities and Consumer Tribes Brand Communities: is a group of consumers who share a set of social relationships based on usage or interest in a product – unlike other kinds of communities, these members don’t live near each other, but only they will meet and join in events or brandfests – people who participate in these events feel more positive about products – Ex. Mini Cooper lovers, Apple Communities 1

13. Types of Reference Groups Brand Communities and Consumer Tribes Consumer Tribes: is a group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or a product – these people share emotions, moral beliefs, style of life and of course the products they jointly consume as part of their tribal affiliation – ex. Students who live in the same apartment – ex. ABAC students and teachers 1

14. Types of Reference Groups Membership VERSUS Aspirational Reference Groups Membership Reference Group: People or a group of people we admire. They consists of people we actually know each other 1

15. Types of Reference Groups Membership VERSUS Aspirational Reference Groups Aspirational Reference Group: People or a group of people we admire. We don’t know them but we admire them anyway – ex. Successful business people, athletes, performers, or whoever rocks the world 1

16. How can we predict which people you know will be part of your membership reference group? 1. Propinquity: Physical nearness as physical distance between people decrease and opportunities for interaction increase 2.Mere exposure: Mere exposure phenomenon We come to like persons or things if we see them more often greater frequency of contact, even if unintentional, may help to determine one’s set of local referents 3.Group cohesiveness: Refer to degree to which members of a group are attracted to each other And how much each values their membership in this group Smaller group tends to be more cohesive, larger group would lead to less contribution 1

17. Types of Reference Groups Positive VERSUS Negative Reference Groups – reference groups impact our buying decisions both positively and negatively – sometimes we do the opposite if we want to distance ourselves from avoidance groups – ex. Nerd, druggies motivation to distance from negative reference group more powerful than desire to please a positive group Deindividuation: a process where individual identities become submerged within a group Social loafing: a process where individual don’t devote as much to a task because contribution is part of a larger group effort 1

18. Conformity 2

19. * Why are we motivated to buy or use products in order to be consistent with what other people do? 2

20. Conformity Conformity: is a change in beliefs or actions as a reaction to real or imagined group pressure – in order for a society to function, its members develop norms, or informal rules that govern behavior – we conform in many small ways every day – even though we don’t realize it – Norms: ex. Gift-giving: We expect birthday presents from loved ones ex. Sex roles: men often pick up the check on a first date ex. Personal hygiene: our friends expect us to shower regularly 2

21. 2 Conformity Conformity Factors: 1.Cultural pressures different cultures encourage conformity to a greater or lesser degree 2.Fear of deviance the individual may have reason to believe that the group will apply sanctions to punish nonconforming behaviors 3.Commitment the more people are dedicated to a group and value their membership in it 4.Group unanimity, size, and expertise As groups gain in power, compliance (agreement) increases 5.Susceptibility to interpersonal influence Personal/sensitive issues  other issues

22. 3 Opinion Leadership

23. Why are certain people particularly likely to influence others’ product choices? Opinion Leader: is a person who is frequently able to influence others’ attitudes or behaviors 3

24. 3 – they are technically competent so they posses expert power – they prescreen, evaluate, and synthesize product information in an unbiased way, so they possess knowledge power – they are socially active and highly interconnected in their communities – they are likely to hold offices in community groups and club and to be active outside of the home, so they possess legitimate power – they tend to be similar to the consumer in terms of their values and beliefs, so they possess referent power – they are often among the first to buy new products, so they absorb much of the risk * Common Characteristics of Opinion Leaders

25. Type of Opinion Leaders The Market Maven – A person who likes to transmit marketplace information of all types – they are not necessarily interested in certain products – they may not necessarily be early purchasers – they are simply into staying on top of what is happening in the marketplace – they tend to have a solid overall knowledge of how and where to procure products 3

26. Type of Opinion Leaders The Surrogate Consumer – A person whom we retain to provide input into our purchase decisions – Unlike the opinion leader or market maven, we compensate the surrogate for his or her advice – Ex. Interior decorators, stockbrokers, professional shoppers, personal stylist, beauty advisor 3

27. Any Question?