Consumer Behavior chapter 8

public necessity

(blue jeans, automobile) weak group influence for product selection; strong group influence for brand selection.

public luxury

(golf clubs, sailboat) strong group influence for product selection; strong group influence for brand selection

private luxury

(hot tub, pool table) strong group influence for product selection; weak group influence for brand selection.

private necessity

(refrigerator, blankets) weak group influence for product selection; weak group influence for brand selection

emerging trends in family structure and some marketing implications.

- "boomerang" kids - "non- traditional" household arrangements - blended families - single parent households - single person households

children influence a variety of purchases

- 93% influence what kind of jeans parents purchase for them - 89% influence what kind of cookies, desserts, soda, chips and cereal are purchased for the household - 61% helped parents decide kind of family car to buy

Affect Individual Behavior

- Deindividualism - social loafing - risky shift - decision polarization bandwagon effect

encourage spreading wom

- individual is highly involved with the product and it is relevant to their self-concept - individual is highly knowledgeable about the product - individual has a genuine concern for someone else - individual is very satisfied or dissatisfied with the product/service

when and how do reference groups exert influence?

- influence likelihood and speed with which information will be transmitted among members - influence the credibility given to information received from the group - weak ties often serve as connections or bridges that connect different groups

various household purchase roles played by various household members.

- influencer - gatekeeper - user - decision maker - purchaser

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. - rumors are the chief form of negative wom. rumors can and have resulted in boycotts of products, companies, or services.

factors influencing joint or individual family decisions

- sex-role orientation - spousal resources - socioeconomic status - experience

encourage seeking wom

- uncertainty about a recent purchase - lack of knowledge about the product category or specific brands

children influence

A. children's influence on purchase decisions increases as they age B. children have less influence in conservative "authoritarian" households C. working and single parents are more likely to "give in" to children due to time pressures D. children are more likely to have direct decision control in in "permissive" and "neglectful" families E. children are more likely to influence decisions in "democratic" and "permissive" households

dissociative (avoidance) groups

GROUPS TO WHICH AN INDIVIDUAL DOES NOT WANT TO BELONG OR BE ASSOCIATED WITH.

informal

GROUP THAT HAS NO MEMBERSHIP OR APPLICATION REQUIREMENTS AND IT MAY HAVE NO CODES OF CONDUCT.

Primary

GROUP THAT INCLUDES MEMBERS WHO HAVE FREQUENT, DIRECT CONTACT WITH ONE ANOTHER.

secondary

GROUP TO WHICH A CONSUMER BELONGS IN THIS CONTACT IS LESS FREQUENT THAN THAT FOUND IN A PRIMARY GROUP.

formal

GROUP TO WHICH A CONSUMER FORMALLY BECOMES A MEMBER AND WHICH GENERALLY HAS A SET OF STATED RULES, VALUES, AND CODES OF CONDUCT THAT MEMBERS ARE EXPECTED TO ADHERE TO.

associative (membership) groups

GROUPS COMPOSED OF PEOPLE WE KNOW AND WHICH WE ACTUALLY BELONG TO.

aspirational groups

GROUPS TO WHICH AN INDIVIDUAL DESIRES TO BECOME A MEMBER OR LOOKS UP TO AND ADMIRES ITS MEMBERS.

Reference group

INDIVIDUALS WHO HAVE SIGNIFICANT RELEVANCE FOR A CONSUMER, PROVIDE A BASIS FOR COMPARISON, AND HAVE AN IMPACT ON THE CONSUMER'S EVALUATIONS, ASPIRATIONS, AND BEHAVIOR.

Online Social Network

a computer mediated portal that allows consumers to post information about themselves, their hobbies, their interest, and the products they enjoy.

group influence

WAYS IN WHICH GROUP MEMBERS INFLUENCE ATTITUDES, BEHAVIORS, AND OPINIONS OF OTHERS WITHIN THE GROUP.

referent power

a customer admire the qualities of a group and emulates their behavior as a way to identify with the group. example: a new resident desires to join the local rotary club

reward power

a group has the power to reward members for various behaviors. example: sports teams give mvp honors to a team member.

coercive power

a group has the power to sanction member for failing to follow expectations or rules. example: a college football player is kicked off the team for using illegal substances.

stealth marketing

a guerrilla marketing tactic that is similar to buzz marketing, but consumers are completely unaware that they are being marketed to.

conformity

a result of group influence in which an individual yields to the attitudes and behaviors of others (the tendency for an individual to behave as the group behaves).

tie strength

a strong tie means that two (or more) people are connected by a close, intimate relationship

degree of contact

amount/frequency of contact

Size of group

as the group gains size and power, it becomes harder to resist at the individual level

bargaining

based on the idea of negotiation and fair exchange

Household life cycle

combines trends in income and family composition with the changes in demands placed upon this income. a family's stage is determined by (1) age of parents, (2) marital status, (3) presence and ages of children.

Utilitarian (normative) Influence

consumers conform to group expectations to receive a reward or avoid punishment. when group "norms" influence group member behaviors and attitudes.

Value-expressive Influence

consumers internalize a group's values or join groups to express their own values and beliefs.

Informational influence

consumers use the behaviors and attitudes of reference groups as information into making their own decisions.

group density

dense groups are those in which members all know one another.

syncratic decisions

decisions made jointly

homophily

degree of similarity among members

product involvement and utility

degree to which a product in question will be used by or satisfy a family member

reactance

doing the opposite of what an individual or group wants us to do.

compliance

doing what someone asks us to do.

Brand Communities

groups of consumers who develop relationships based on shared product interests or use.

task specialization

each spouse is responsible for certain decisions

autonomic decisions

equally likely to be made by either spouse

expert power

groups possess knowledge that members, or aspirant members, desire to gain. example: consumers seek out groups that have health related information such as the american dental association.

responsibility

for procurement, maintenance, payment, etc

Formality

formal groups provide an identifiable target for marketers' efforts.

Word - of - mouth

information about products and services is actually conveyed by individuals on an informal basis

autocratic decisions

made by one spouse or the other

conflict

occurs when there is not complete correspondence in family members' needs and preferences.

power

one family member's influence over the others in making decisions

consession

one party gives in on some points in other to get what he or she wants in other areas.

interpersonal needs

person's level of investment in the group

homophily, degree of contact, attractiveness, degree of identification, tie-strength, and density are important because

reference-group influence tends to be stronger among similar people who know, associate with and relate to each other and have strong feelings toward one another.

legitimate power

specific agreements are made regarding group membership and the punishment for nonconformity is understood. example: bosses have legitimate authority over their employees

social power

the ability of an individual or a group to alter the actions of others.

Expertise of group

the group possesses specialized and valued knowledge

degree of identity

the influence of a group is affected by the extent to which we identify with it.

guerrilla marketing

the marketing of a product using unconventional means.

consumer socialization

the process by which young consumers develop skills that help them function in the marketplace. - parents and media the most important socializing agents

concessions based on intensity

the spouse with the strongest feelings gets his/her way

viral marketing

uses online technologies to facilitate wom by having consumers spread marketing messages through their online conversations.

Brand-choice congruence

when members of a group tend to buy the same types of products.

buzz marketing

• includes marketing efforts that focus on generating excitement that is spread from consumer to consumer.