Consumer Behavior - Group Influence

virtual community of consumption

a collection of people whose online interactions are based upon shared enthusiasm for and knowledge for a specific consumption activity ex. blogs, chat rooms

surrogate cosumer

a person who is hired to provide input in purchase decisions

reference group

an actual or imaginary individual or group conceived of having significant relevance upon an individual's evaluations, aspirations, or behavior

WOM communication -negativity bias

consumers weigh negative info from other consumers more heavily than they do positive comments

viral marketing

creating entertaining or informative messages that are designed to be passed along in an exponential fashion (electronically)

the market maven

describes people who are actively involved in transmitting marketplace information of all types

types of reference groups

formal group vs. informal group; membership group vs. aspirational group; associative group vs avoidance group

legitimate power

granted to people by virtue of social agreements ex. police officers and soldiers

types of group influence

informational, normative, identification/value-expressive influence

normative group influence

occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction

informational group influence

occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information

identification, value-expressive group influence

occurs when individuals have internalized the group's values and norms

opinion leaders

people who are knowledgable about products and whose advice is taken seriously by others

3 factors affecting likelihood a person will become part of certain reference group

physical nearness, frequency of contact, group cohesiveness

product seeding

placing the right product into the right hands at the right time, providing information or samples to influential individuals

expert power

power derived from possessing specific knowledge about a topic/area ex. doctors

Word-of-mouth communication

product information transmitted by individuals to individuals; free and very influential

membership reference group

reference group of ordinary people whose consumption activities provide informational social influence

informal reference group

reference group that is usually small and configured like a group of friends

formal reference group

reference group with a recognized structure, regular meeting times, and officers

aspirational reference group

reference groups that comprise idealized figures; what you want to be; relationship with ideal self

avoidance/negative reference group

reference groups that consumers purposely try to distance themselves from

normative group influence example

refraining from wearing a certain brand for fear of teasing by friends or wearing the brand to be accepted by them

information power

someone able to influence consumer opinion by virtue of their access to the truth

private luxuries

strong influence on product purchase, weak influence on brand selected ex. trash compactor, ice maker

public luxuries

strong reference group influence on product purchase, strong reference group influence on brand selected ex. golf clubs, sailboat

serial reproduction

technique to examine the phenomenon that information changes as it is transmitted among consumers

social power

the capacity to alter the actions of others

buzz marketing

using high-profile entertainment or news to get people to talk about your brand

coercive power

using power to influence a person by social or physical intimidation

private necessities

weak influence on product purchase, weak influence on brand selected ex. mattress, refrigerator

Public necessities

weak reference group influence on product purchase, strong reference group on brand selected ex. car, men's suit

reward power

when a person or group has the means to provide positive reinforcement ex. manager, judges

referent power

when consumers imitate qualities by copying behaviors of a prominent person they admire ex. influence choice of clothes, cars

informational group influence example

you see runners on the track team eating a certain nutrition bar, so you decide to try it