1. Group and Interpersonal Influence
BABIN / HARRIS CB
PART 3
CHAPTER 10
Group and Interpersonal Influence
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. Learning Outcomes
Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions.
2. Describe the various types of social power that reference groups exert on members.
3. Comprehend the difference between informational, utilitarian, and value-expressive reference group influence.
4. Understand the importance of word-of-mouth communications in consumer behavior.
5. Comprehend the role of household influence in consumer behavior.
10-2
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Group Influence
Reference group—a group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.
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
10-3
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. 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
10-4
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. 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
10-5
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6. 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
10-6
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. 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
10-7
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. 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
For power to originate, members must:
Be aware that the power base exists.
Desire to maintain or establish membership into the group.
LO2
10-8
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9. Reference Group Influence
Generally falls into one of three categories:
Informational influence
Utilitarian influence
Value-expressive influence
LO3
10-9
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. 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 effect value perceptions and satisfaction.
LO3
10-10
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. 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
10-11
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Social Media and Group Influence
Social networks
Social networking websites

13. Individual Differences in Susceptibility to Group Influence
Susceptibility to interpersonal influence
Attention to social comparison information (ATSCI)
Separateness-Connectedness
Embarrassment
LO3
10-12
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. 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
10-13
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15. Buzz Marketing
Includes marketing efforts that focus on generating excitement (“buzz”) that is spread from consumer to consumer.
A form of guerrilla 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
10-14
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. 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
10-15
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. 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
10-16
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. 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
10-17
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

19. 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.
Emerging trends in family structure:
“Nontraditional” household arrangements
Blended families
Single parent households
LO5
10-18
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20. 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
10-19
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21. 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
10-20
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.