1. 11-1 Chapter 11 Group Influence and Opinion Leadership

2. 11-2 Asch’s Classic Conformity Study Test Line ABC Which line equals the test line?

3. 11-3 Drivers of Group Dynamics Conformity (Asch’s Conformity Study) Authority (Milgram’s Study About Pain)

4. 11-4 Reference Groups Reference Group A Reference Group is an Actual or Imaginary Individual or Group Conceived of Having Significant Relevance Upon an Individual’s Evaluations, Aspirations, or Behavior. Reference Groups Influence Consumers in Three Ways: InformationalInformational Value-ExpressiveValue-Expressive UtilitarianUtilitarian

5. 11-5 Influence and Types of Reference Groups Normative InfluenceNormative Influence –The social power of reward and punishment that produces behavioral compliance but may not produce any private acceptance of the position advocated. Comparative InfluenceComparative Influence –The group does not attempt to set, or enforce, rules for your behavior, but only serves as a standard you choose for comparison. Formal Versus Informal GroupsFormal Versus Informal Groups –Small, informal groups are more common and important to us because of their high Normative Influence. –Larger, formal groups tend to be higher in Comparative Influence.

6. 11-6 Membership Versus Aspirational Reference Groups Propinquity Mere Exposure Mere Exposure Group Cohesiveness Group Cohesiveness The Likelihood That People Will Become Part of a Consumer’s Identificational Reference Group is Affected By:

7. 11-7 When Reference Groups Are Important

8. 11-8 The Power of Reference Groups Social Power Social Power Referent Power Referent Power Legitimate Power Legitimate Power Information Power Information Power Expert Power Expert Power Coercive Power Coercive Power Reward Power Reward Power Types of Reference Group Power

9. 11-9 Informational Conformity That Occurs Because the Group’s Behavior is Taken as Evidence About Reality.Informational Conformity That Occurs Because the Group’s Behavior is Taken as Evidence About Reality. Conformity Conformity Conformity Refers to a Change in Beliefs or Actions as a Reaction to Real or Imagined Group Pressure. Norms Norms Refer to Informal Rules That Governs Behavior Types of Social Influence Normative Person Conforms to Meet the Expectations of a Person or Group.Normative Person Conforms to Meet the Expectations of a Person or Group.

10. 11-10 Factors Affecting the Likelihood of Conformity Cultural Pressures Fear of Deviance Commitment Group Dynamics Susceptibility to Interpersonal Influences Susceptibility to Interpersonal Influences

11. 11-11 Social Comparison Theory Three fundamental propositions: –people have a drive to evaluate their opinions and abilities –in the absence of “objective” bases for comparison, this need can be satisfied by “social” comparison with other people –such social comparisons will, when possible, be made with similar others.

12. 11-12 Social Comparison Social Comparison TheorySocial Comparison Theory asserts that we look to the behavior of others to provide a yardstick about reality as a way to increase the stability of one’s self-evaluation. Consumers are selective about whom they use for benchmarks. Co- Oriented PeerIn general, people tend to choose a Co- Oriented Peer, or a person of equivalent standing when performing social comparisons.

13. 11-13 Compliance and Obedience Foot-in-the-Door Low-Ball Technique Door-in-the-Face Make a Small Request First, Then Make a Larger One Later. Person is Asked for a Small Favor That Turns Out to Be Costly. Make an Extreme Request First, Then a Reasonable Request Later. The Way a Request for Compliance is Phrased or Structured Can Make a Difference in Acceptance.

14. 11-14 Selling, Buying, and Giving Automatic Responding Social behavior is learned according to principles of social learning theory. Much of what is learned involves informal rules of social exchange. We over-learn to such a degree that it becomes automatic. Marketers take advantage of this over-learning to produce immediate compliance, rather than thoughtful consideration of the requests that are being made.

15. 11-15 Six Weapons of Influence Reciprocation –“free sample” - we believe that exchanges are equitable if each person’s outcomes are proportional to his or her inputs. We restore equity by giving away enough of our own assets to make the situation “fair.” Ex: Hare Krishna Society. Authority –Milgram’s study on pain. Liking –we comply more readily with those who like us than with those who do not. Ex: salesperson saying the suit looks nice on you.

16. 11-16 Six Weapons of Influence Consistency –get you to make a public commitment to attitudes, it will be simpler to sell you a product consistent with that commitment Social Proof –large numbers of people cannot be wrong! Scarcity –your “last opportunity’ to buy before being discontinued.

17. 11-17 Group Effects on Individual Behavior Deindividu- alism Social Loafing Social Loafing Risky Shift Risky Shift Group Effects Group Effects Bandwagon Effect Bandwagon Effect Shopping Behavior Shopping Behavior Decision Polarization Decision Polarization

18. 11-18 Resistance to Influence Vs. Anticomformity Defiance of the Group is the Object of Behavior Independence Deep-Seated Need to Preserve Freedom of Choice Reactance People try to Overcome a Loss of Freedom

19. 11-19 Word-of-Mouth Communication Word-of-Mouth Communication (WOM) Much Information About Products and Services is Actually Conveyed by Individuals on an Informal Basis called Word-of-Mouth Communication (WOM). Factors That Encourage WOM Are: Person is Highly Involved With the Product Person is Highly Knowledgeable About the Product Person Has a Genuine Concern for Someone Else Person May be Uncertain About a Recent Purchase

20. 11-20 The Dominance of WOM Guerilla Marketing Viral Marketing

21. 11-21 Negative Word-of-Mouth Negative Word-of-Mouth:Negative Word-of-Mouth: –Is weighted more heavily by consumers than positive comments. –Has been shown to reduce the credibility of a firm’s advertising. –May influence consumers’ attitudes toward a product as well as their intention to buy it. RumorsRumors are the chief form of negative WOM. Boycotts –Rumors often result in Boycotts of products, companies, or services.

22. 11-22 Opinion Leaders Opinion Leader An Opinion Leader is Someone Who is Knowledgeable About Products and Whose Advice is Taken Seriously By Others. Have Prescreened, Evaluated, and Synthesized Product Information Have Prescreened, Evaluated, and Synthesized Product Information Are Similar to the Consumer in Values and Beliefs Have Prescreened, Evaluated, and Synthesized Product Information Are Socially Active in Their Community Are Technically Competent and Have Expert Power Are Often Among the First to Buy New Products Opinion Leaders Opinion Leaders

23. 11-23 Extent of An Opinion Leader’s Influence Generalized Opinion LeadersVery few people are Generalized Opinion Leaders, someone whose recommendations are sought for all types of purchases. More likely, opinion leaders are either: –Monomorphic –Monomorphic, or an expert in a limited field. –Polymorphic –Polymorphic, or an expert in several fields. PolymorphicEven opinion leaders who are Polymorphic, tend to concentrate on one broad domain, such as electronics or fashion.

24. 11-24 Characteristics of Opinion Leaders Innovative Communicators Innovative Communicators Are Opinion Seekers Are Opinion Seekers Market Maven Market Maven Innovators Key Characteristics of Opinion Leaders Key Characteristics of Opinion Leaders

25. 11-25 Opinion Leadership Scale

26. 11-26 Identifying Opinion Leaders Self-Designating Method

27. 11-27 Identifying Opinion Leaders Sociometric Method –Referral Behavior –Network Analysis –Referral Network –Tie Strength –Bridging Function