1. Chapter 9 Group Influence
Babin/Harris
© 2009 South-Western, a division of Cengage Learning.

2. © 2009 South-Western, a division of Cengage Learning.
Learning Outcomes
Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions.
Describe the various types of social power that reference groups exert on members.
Comprehend the difference between informational, utilitarian, and value-expressive reference group influence.
Understand the importance of word-of-mouth communications in consumer behavior.
Comprehend the role of household influence in consumer behavior.
© 2009 South-Western, a division of Cengage Learning.

3. © 2009 South-Western, a division of Cengage Learning.
Reference Group
A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.
LO1
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Group Influence
Refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group.
Group members:
Share common goals and interests
Communicate with, and influence, one another
Share a set of expectations, rules, and roles
View themselves as members of a common social unit
LO1
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5. Primary/Secondary Groups
Primary group – includes members who have frequent, direct contact with one another.
Most influence
Strong social ties
Secondary group – less frequent interaction than in a primary group.
Brand community – groups of consumers who develop relationships based on shared interests or product usage.
LO1
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6. Formal/Informal Groups
Formal group – one in which a consumer formally becomes a member.
Set of stated rules
Accepted values
Codes of conduct
Informal group – one that has no membership or application requirements and codes of conduct may be non-existent.
LO1
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7. Aspirational/Dissociative Groups
Aspirational group – one in which a consumer desires to become a member.
Often appeals to the consumer’s ideal self.
Dissociative group – one to which a consumer does not want to belong.
LO1
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Conformity
Conformity - a result of group influence in which an individual yields to the attitudes and behaviors of others.
Peer Pressure – the extent to which group members feel pressure to behave in accordance with group expectations.
LO1
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9. © 2009 South-Western, a division of Cengage Learning.
Social Power
The ability of an individual or a group to alter the actions of others.
Types:
Referent power
Legitimate power
Expert power
Reward power
Coercive power
LO2
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10. How Does Power Originate?
Members must:
Be aware that the power base exists
Desire to maintain or establish membership into the group
LO2
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11. Reference Group Influence
Generally falls into one of three categories:
Informational influence
Utilitarian influence
Value-expressive influence
LO3
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12. Informational Influence
Refers to the ways in which consumers use the behaviors and attitudes of reference groups as information into making their own decisions.
Can be the result of explicit searching behavior.
Can also be the result of observation.
Word-of-mouth communication
LO3
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13. Utilitarian Influence
Refers to the ways in which consumers conform to group expectations to receive a reward or avoid punishment.
Sometimes referred to as “normative” influence.
LO3
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14. Value-Expressive Influence
Refers to the ways in which consumers internalize a group’s values or the extent to which consumers join groups to express their own closely-held values and beliefs.
LO3
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15. Value and Reference Groups
Utilitarian value – group membership becomes a means to a valued end state.
Hedonic value – value is an end in and of itself.
Information obtained directly impacts consumer expectations, which then affect value perceptions and satisfaction.
LO3
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16. Reference Group Influence on Product Selection
The influence of reference groups on product selection is affected by:
Situation in which the product is consumed
Extent to which the product is considered a necessity or a luxury
Whether selecting a type of product or a particular brand
LO3
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17. Individual Differences in Susceptibility to Group Influence
Susceptibility to interpersonal influence
Attention to social comparison information (ATSCI)
Separateness-Connectedness
Embarrassment
LO3
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18. © 2009 South-Western, a division of Cengage Learning.
Word-of-Mouth (WOM)
Information about products, services, and experiences that is transmitted from consumer to consumer.
Types:
Organic – occurs naturally.
Amplified – occurs when marketers attempt to launch or accelerate WOM in existing customer circles.
LO4
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Buzz Marketing
Includes marketing efforts that focus on generating excitement (“buzz”) that is spread from consumer to consumer.
A form of guerilla marketing – the marketing of a product using unconventional means.
Viral marketing – uses online technologies to facilitate WOM by having consumers spread marketing messages through their online conversations.
LO4
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Stealth Marketing
A guerilla marketing tactic that is similar to buzz marketing, but consumers are completely unaware that they are being marketed to.
Often considered unethical, along with practices called “shilling” and “infiltrating.”
LO4
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Opinion Leaders
Opinion leader - has great influence on the behavior of others relating to product adoption and purchase.
Influence is category specific.
Market maven – spreads information about all types of products and services that are available in the marketplace.
Influence is not category specific.
Surrogate consumer – hired by another to provide input into a purchase decision.
LO4
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Diffusion Process
The way in which new products are adopted and spread throughout a marketplace.
Adopter categories:
Innovators
Early adopters
Early majority
Late majority
Laggards
LO4
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23. Household Decision Making
The process by which decisions are made in household units.
Family household – at least two people related by blood or marriage occupying a housing unit.
Nuclear family – mother and father and a set of siblings.
Extended family – three or more generations of family members.
LO5
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24. Emerging Trends in Family Structure
“Non-traditional” household arrangements
Blended families
Single parent households
LO5
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25. Household Life Cycle (HLC)
Represents a segmentation technique that acknowledges that changes in family composition and income alters household demand for products and services.
Two evolving issues:
Boomerang kids – college graduates moving back home.
Sandwich generation – consumers taking care of both their own children and their aging parents.
LO5
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26. Household Purchase Roles
Influencer
Gatekeeper
User
Decision maker
Purchaser
A family’s sex role orientation (SRO) influences the ways in which household decisions are reached.
Children influence household purchases.
LO5
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