Social Influences POP ROCKS CANDY

“Human are social social animals. We all belong to groups groups and take cues about how to behave by observing those around us. In fact, our desire to fit in in is the primary motivation motivation for many of our purchases and activities.”

Definition Social Influences: Information by and pressures from individuals, groups, and the mass media that affect how a person behaves

Tie-Strength and Social Influence: Building network of communication.

How to classify sources of influence ? Reach Capacity for Two-Way Communication Credibility

Sources of Influence

Special Sources of Influence Opinion Leaders – Opinion Leaders and Gatekeepers – Knowledgeable About Products – Heavy Users of Mass Media – Buy New Products When Introduced – Perceived as Credible Market Mavens

What is a Group? Two or more people who interact to accomplish either individual or mutual goals A membership group is one to which a person either belongs or would qualify for membership A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior.

Major Consumer Reference Groups Reference Groups

Reference Groups Are Sources of Influence Reference Group Aspirational Reference Group Associative Reference Group Dissociative Reference Group

Indirect Reference Groups Individuals or groups with whom a person identifies but does not have direct face-to- face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

Reference Groups Are Sources of Influence Characteristics of Reference Groups – Degree of Contact – Formality – Homophily: The Similarity Among Group Members – Group Attractiveness – Density – Degree of Identification – Tie-Strength

Reference Groups Are Sources of Influence Reference Groups Affect Consumer Socialization – Consumer Socialization – People as Socializing Agents – The Media and the Marketplace as Socializing Agents

Sources of Influence and Types of Influence

Sources Can Exert Normative Influence Normative Influence Norms What Happens when Consumers Experience Normative Influence? – Brand-Choice Congruence – Conformity – Compliance Versus Reactance

Sources Can Exert Informational Influence What Makes Informational Influence Strong or Weak? – Product Characteristics – Consumer and Influencer Characteristics – Group Characteristics

How Can “Information” Be Described? Valence: Is Information Positive or Negative? Modality: Does Information Come from Verbal or Nonverbal Channels? The Pervasive and Persuasive Influence of Word of Mouth – Word of Mouth – Viral Marketing

The Good and Bad of Social Influence Positive outcomes – Personal knowledge – Greater certainty – Better choices – Charitable, philanthropic, humanitarian behaviors – Values consistent with higher social good Negative outcomes – Materialism – Anorexia/bulimia – Conspicuous consumption – Theft – Drugs – Smoking – Alcohol – Hazing deaths – Gangs – The media and violence

Word of Mouth Important?? M·A·C (Make-up Art Cosmetics). M·A·C (Make-up Art Cosmetics). now sold in over 38 countries worldwide. Supporting factors to WOM “80% of all business decisions are influenced by a direct recommendation of a third party intermediary.” recommendation of a third party intermediary.” Initiated in a spontaneous manner….usually (Henry Weinhard’s Private Reserve). Implication, ego, true…

Word of Mouth Efficiency Batman (Michael Keaton negative perception). Negative Aspects and rumors More emphasis on negative aspects.Assimilation or accentuation: distortion of information.Non familiar with product category, new or complex product.Rumors…more negative for brands..

Rumors and Marketing Procter and Gamble Mc Donald’s

The family as a unit of consumption Aggregated studies Interaction studies The family as symbols production Family Rituals The family as a socialization agent Social Learning Cognitive Development The Family: Consumption and Socialization Setting

A Specific Group: The Family Two or more persons related by blood, marriage, or adoption who reside together.

The Family Life Cycle Traditional Family Life Cycle – Stage I: Bachelorhood – Stage II: Honeymooners – Stage III: Parenthood – Stage IV: Postparenthood – Stage V: Dissolution Modifications - the Nontraditional FLC

An Extended Family life Cycle Middle-Aged Divorced without Children Middle-Aged Married without Children Young Divorced without Children Young Single* Young Married without Children* Young Married with Children* Middle- Aged Married with Children* Middle- Aged Married without Dependent Children* Older Married* Older Unmarried* Middle- Aged Divorced with Children Middle- Aged Divorced without Children Young Divorced with Children* * Traditional Family Flow Recycled Flow Usual Flow

Noteworthy Nontraditional FLC Stages Family Households Childless couplesIt is increasingly acceptable for married couples to elect not to have children. Contributing forces are more career-oriented married women and delayed marriages. Couples who marry later in life (in their late 30s or later) More career-oriented men and women and greater occurrence of couples living together. Likely to have fewer or even no children. Couples who have first child later in life (in their late 30s or later) Likely to have fewer children. Stress quality lifestyle: “Only the best is good enough” Alternative FLC StagesDefinition/Commentary

Family Households Single parents IIYoung man or woman who has one or more children out of wedlock. Single parents IIIA single person who adopts one or more children. Extended familyYoung single-adult children who return home to avoid the expenses of living alone while establishing their careers. Divorced daughter or son and grandchild(ren) return home to parents. Frail elderly parents who move in with children. Newlyweds living with in-laws. Alternative FLC StagesDefinition/Commentary Single parents IHigh divorce rates (about 50%) contribute to a portion of single-parent households

The Eight Roles in the Family Decision-Making Process ROLEDESCRIPTION InfluencersFamily member(s) who provide information to other members about a product or service GatekeepersFamily member(s) who control the flow of information about a product or service into the family DecidersFamily member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consumer, or dispose of a specific product or service BuyersFamily member(s) who make the actual purchase of a particular product or service PreparersFamily member(s) who transform the product into a form suitable for consumption by other family members UsersFamily member(s) who use or consume a particular product or service MaintainersFamily member(s) who service or repair the product so that it will provide continued satisfaction. DisposersFamily member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Dynamics of Husband-Wife Decision Making Husband-Dominated Wife-Dominated Joint

Husband-Wife Influence in Financial Tasks and Decisions

How to use the “New” family?

Social Class The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes

Variations in the Number and Types of Social-Class Categories TWO-CATEGORY SOCIAL CLASS SCHEMAS Blue-collar, white-collar Lower, upper Lower, middle THREE-CATEGORY SOCIAL CLASS SCHEMAS Blue-collar, gray-class, white-collar Lower, middle, upper FOUR-CATEGORY SOCIAL CLASS SCHEMAS Lower, lower-middle, upper-middle, upper FIVE-CATEGORY SOCIAL CLASS SCHEMAS Lower, working-class, lower-middle, upper-middle, upper Lower, lower-middle, middle, upper-middle, upper

SIX-CATEGORY SOCIAL CLASS SCHEMAS Lower-lower, upper-lower, lower-middle, upper-middle, lower-upper, upper-upper SEVEN-CATEGORY SOCIAL CLASS SCHEMAS Real lower-lower, a lower group of people but not the lowest, working class, middle class, upper-middle, lower-upper, upper-upper NINE-CATEGORY SOCIAL CLASS SCHEMAS Lower-lower, middle-lower, upper-lower, lower-middle, middle- middle, upper-middle, lower-upper, middle-upper, upper-upper

Percent Distribution of Five-Category Social-Class Measure SOCIAL CLASSESPERCENTAGE Upper 4.3 Upper-middle 13.8 Middle 32.8 Working 32.3 Lower 16.8 Total percentage100.0

The Measurement of Social Class Subjective Measures Reputational Measures Objective Measures

Subjective Measures In the subjective approach to measuring social class, individuals are asked to estimate their own social- class positions.

Reputational Measures The reputational approach requires selected community informants to make initial judgments concerning the social-class membership of others within the community.

Objective Measures of Social Class A method of measuring social class whereby individuals are asked specific socioeconomic questions concerning themselves or their families On the basis of their answers, people are placed within specific social-class groupings.

Objective Measures Single-variable indexes – Occupation – Education – Income – Other Variables Composite-variable indexes – Index of Status Characteristics – Socioeconomic Status Score

Index of Status Characteristics (ISC) A composite measure of social class that combines occupation, source of income (not amount), house type and dwelling area into a single weighted index of social class standing. Also known as Warner’s ISC.

Socioeconomic Status Score (SES) A multivariable social class measure used by the United States Bureau of the Census that combines occupational status, family income, and educational attainment into a single measure of social class standing.

How Social Class Changes Over Time Upward Mobility Downward Mobility – Status Panic Social Class Fragmentation

How Does Social Class Affect Consumption? Conspicuous Consumption – Conspicuous Waste

How Does Social Class Affect Consumption? Status Symbols and Judging Others – Status Symbols – Parody Display – Fraudulent Symbols

How Does Social Class Affect Consumption? Compensatory Consumption

Social-Class Profiles THE UPPER-UPPER CLASS--COUNTRY CLUB ESTABLISHMENT Small number of well-established families Belong to best country clubs and sponsor major charity events Serves as trustees for local colleges and hospitals Prominent physicians and lawyers May be heads of major financial institutions, owners of major long- established firms Accustomed to wealth, so do not spend money conspicuously THE LOWER-UPPER CLASS--NEW WEALTH Not quite accepted by the upper crust of society Represent “new money” Successful business executive Conspicuous users of their new wealth

THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS Have neither family status nor unusual wealth Career-oriented Young successful professionals, corporate managers, and business owners Most are college graduates, many with advanced degrees Active in professional, community, and social activities Have a keen interest in obtaining the “better things in life” Their homes swerve as symbols of their achievements Consumption is often conspicuous Very child-oriented

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS Primary nonmanagerial white-collar workers and highly paid blue- collar workers Want to achieve “respectability” and be accepted as good citizens Want their children to be well-behaved Tend to be churchgoers and are often involved in church-sponsored activities Prefer a neat and clean appearance and tend to avoid faddish or highly- styled clothing Constitute a major market for do-it-yourself products

THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY The largest social-class segment Solidly blue-collar Strive for security (sometimes gained from union membership) View work as a means to “buy” enjoyment Want children to behave properly High wage earners in this group may spend impulsively Interested in items that enhance their leisure time (e.g., TV sets) Husbands typically have a strong “macho” self-image Males are sports fans, heavy smokers, beer drinkers THE LOWER-LOWER CLASS--ROCK BOTTOM Poorly educated, unskilled laborers Often out of work Children are often poorly treated Tend to live a day-to-day existence