CB Chapter 8

Referent Power

A consumer admires the qualities of a group and emulates their behavior. A student joins Enactus and emulates that group's behaviors.

apps

mobile application software that runs on devices like smartphones, tablets, and other computer-based tools

Social couponing

type of buying where consumers receive a coupon, or deal, by joining a special social networking website

household purchase process- five roles

-Influencer. The person in the household who recognizes a need and provides information about a potential purchase to others -Gatekeeper. The person who controls information flow into the household (for example, a mother who blocks unwanted email solicitations from her child's email account) -User. The actual user of the product under consideration -Decision maker. The person who makes the final decision regarding product purchase or nonpurchase -Purchaser. The person who actually buys the product under consideration The final purchase of the product is largely influenced by beliefs regarding the role of each person in the household.

Stealth marketing-generally viewed negatively

-Stealth marketing Deceiving consumers about the involvement of marketers in a communication -Shilling. Compensating consumers to talk about or promote products without disclosing that they are working for the company -Infiltrating. Using fake identities in online discussions to promote a product

Reference Group Influence on Product Selection

A number of things affect how much influence reference groups have on product selection. 1) the situation in which the product is consumed must be considered. "Public" products (for example, a watch) are easily seen by others. "Private" products (for example, socks) usually are not. 2) the extent to which the product is considered to be a necessity or a luxury affects the level of reference group influence. 3)reference group influence differs depending on whether a type of product or a particular brand is being selected.

Reward Power

Groups have the power to reward members for various behaviors. Weight loss clubs give out prizes for weight loss goals.

Coercive Power

Groups have the power to sanction group members for breaking rules or failing to follow expectations. A member of a professional association is excused for breaking a code of conduct.

Expert Power

Groups possess knowledge that members, prospective members, or other consumers seek. Consumers seek out medical information from groups such as the American Dental Association.

Word-of-mouth (WOM)-negative

In general, negative word-of-mouth is more influential than positive word-of-mouth.

Legitimate Power

Specific agreements are made regarding membership, and the punishment for nonconformity is understood. A neighborhood association has the power to annually increase membership fees.

reference groups

The study of reference groups requires an understanding of group influence processes. Reference group influence generally falls into one of three categories: informational influence, utilitarian influence, and value-expressive influence. Reference group influences affect value perceptions in other ways. Because consumers learn about products and services from referent others, the information that is obtained from groups directly affects consumer expectations about product benefits such as quality and convenience. If you hear from your friends that a product is good, you'll probably believe it. These expectations, in turn, affect value perceptions and satisfaction.

aspirational group

a group in which a consumer desires to become a member Aspirational group membership often appeals to the consumer's ideal self. a business student may desire to become a member of a professional business association once he earns his degree.

formal group

a group in which a consumer formally becomes a member formal member of a church congregation. Formal groups generally have a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to.

ingroup

a group that a person identifies with as a member Members of an ingroup are generally viewed as having cohesion and exhibiting similar attitudes and behavior.

informal group

a group that has no membership or application requirements and that may have no code of conduct informal groups include groups that meet regularly to exercise, have coffee, or go to sporting events Although informal group influence may not be as strong as formal group influence, these groups can have an impact on consumer behavior.

dissociative group

a group to which a consumer does not want to belong a Republican might want to avoid being perceived as belonging to a Democratic group (and vice versa) Recent college graduates may want to disassociate themselves from groups from their past as they take the next step into adulthood.

outgroup

a group with which a person does not identify

nuclear family

a mother, a father, and a set of siblings In individualistic cultures like the United States, emphasis is placed on the nuclear family.

diffusion process

a way in which new products are adopted and spread throughout a marketplace Researchers have learned that different groups of consumers tend to adopt new products at different rates. five categories of consumers have been identified. They include innovators, early adopters, early majority, late majority, and laggards Innovators and early adopter consumers tend to be influential when discussing products and services with members of other groups. As such, they tend to be opinion leaders for specific product categories. Innovators are often risk-takers and financially well-off. Early adopter consumers are generally young and well-educated. Members of other groups, including late majority consumers and laggards, tend to be more cautious about buying new products and wait significantly longer to buy the latest innovations. These consumers also tend to be somewhat older, with lower levels of education and spending power.

Social power

ability of an individual or a group to alter the actions of others Consumers often believe that others hold a great deal of power over their own behavior. As a result, social power can greatly influence the types of products that consumers buy, the attitudes they hold, and the activities in which they participate. Social power can be classified into five categories.* These categories include referent power, legitimate power, expert power, reward power, and coercive power. Social power depends upon a member's agreement to, or acceptance of, the fact that the power bases do indeed exist. That is, members must (a) be aware that the power base exists and (b) desire to maintain or establish membership in the group in order for the power base to be effective. For example, if you don't value your membership in a particular club or relationship, you won't be motivated to follow the stated rules. In sociological terms, this is where deviance might begin. If someone doesn't value the rules of society, they may begin to act out with defiance or deviance.

family household

at least two people who are related by blood or marriage who occupy a housing unit

Social buying

consumer buying behavior that takes place on social networking sites

Opinion leaders

consumer who has a great deal of influence on the behavior of others relating to product adoption and purchase Opinion leaders are knowledgeable about specific products or services and have a high level of involvement with those products. Characteristics of opinion leaders depend largely on the type of product under consideration, but in general, opinion leaders are socially active and self-confident.

surrogate consumer

consumer who is hired by another to provide input into a purchase decision Interior decorators, travel consultants, and stockbrokers can all be considered surrogate consumers

market maven

consumer who spreads information about all types of products and services that are available in the marketplace market maven is that the market maven's influence is not category specific

Social networks

consumers connecting with one another based on common interests, associations, or goals For many consumers, it's about connection. In this way, social networking helps to fulfill the need to belong.

sandwich generation

consumers who must take care of both their own children and their aging parents

sex role orientation (SRO)

family's set of beliefs regarding the ways in which household decisions are reached

brand community

group of consumers who develop relationships based on shared interests or product usage KISS Army

primary group

group that includes members who have frequent, direct contact with one another Primary reference groups generally have the most influence on their members, and social ties for these groups are very strong family unit

secondary group

group to which a consumer belongs, with less frequent contact and weaker influence than that found in a primary group Professional organizations and social clubs are examples of secondary groups. Usually, the influence of these groups on members is not as strong as the influence of primary groups on their members. Furthermore, social ties are not as strong in secondary groups as in primary groups.

Stealth marketing

guerrilla marketing tactic in which consumers do not realize that they are being targeted for a marketing message imagine a camera marketer who has employees pose as tourists. These "tourists" then ask others to take their pictures with a new camera. Of course, the picture takers don't realize that the tourists are employed by the company and that they are being targeted by a marketing message. movie titled The Joneses, starring Demi Moore, presents an entertaining, albeit exaggerated example of stealth marketing. Some consider product placements in television shows and movies to be a type of stealth marketing, because consumers generally don't realize that companies pay for these placements. Research suggests that female consumers have more positive attitudes toward product placements than do male consumers Marketers often use the terms brand content, advertainment, or infotainment when using these strategies.

susceptibility to interpersonal influence

individual difference variable that assesses a consumer's need to enhance the image others hold of him or her by acquiring and using products, conforming to the expectations of others, and learning about products by observing others Seeking approval of others through product ownership is very important to these consumers. Consumers who score high on the susceptibility to interpersonal influence scale are also more likely to desire avoiding negative impressions in public settings.

attention to social comparison information (ATSCI)

individual difference variable that assesses the extent to which consumers are concerned about how other people react to their behavior It's important to me to fit into the group I'm with. At parties I usually try to behave in a manner that makes me fit in. I tend to pay attention to what others are wearing. I actively avoid wearing clothes that are not in style. My behavior often depends on how I feel others wish me to behave. a consumer who has a strong degree of ATSCI might buy an imported beer when he is shopping with others but a less expensive beer when he is shopping alone.

reference group

individuals who have significant relevance for a consumer and who have an impact on the consumer's evaluations, aspirations, and behavior

Word-of-mouth (WOM)

information about products, services, and experiences that is transmitted from consumer to consumer WOM is influential because in general consumers tend to believe other consumers more than they believe advertisements and explicit marketing messages from companies.

social tie

is a measure of the strength of connection between group members.

buzz marketing

marketing efforts that focus on generating excitement among consumers and that are spread from consumer to consumer. this type of marketing utilizes some form of WOM, as is found with the BzzAgent website. automobile companies can give customers automobiles to simply ride around and be seen in. This was a tactic the Ford Motor Company utilized when it gave a handful of consumers Ford Fiesta automobiles to drive around while performing activities assigned by the company. By having consumers see the new automobile in use and receive WOM from others, Ford was able to take advantage of the power of buzz marketing.

Viral marketing

marketing method that uses online technologies to facilitate WOM by having consumers spread messages through their online conversations Columbia Records and Legacy Recordings developed a viral campaign to promote a Bob Dylan greatest hits collection. Consumers were able to superimpose personalized notes over the famous rock video for the song "Subterranean Homesick Blues" and then send the video to friends. Hundreds of thousands of consumers joined in on the fun, making the campaign a success.

guerrilla marketing

marketing of a product using unconventional means

Word-of-mouth (WOM)-Organic

occurs naturally when consumers truly enjoy a product or service and they want to share their experiences with others

Social gaming

online or app-based game played on a social media platform provide hedonic value for consumers who play the games.

Household decision making

process by which decisions are made in household units One interesting finding relates to what has been termed the consumer doppelganger effect.* Research reveals that mothers often mimic their daughters' identities through clothing and fashion choice. Some might realize that this is similar to mothers living vicariously through their children, but it more strongly emphasizes the fact that parents can be influenced by their children just as easily as children can be influenced by their parents.

Conformity

result of group influence in which an individual yields to the attitudes and behaviors of others With conformity, behavioral choices are generally more strongly based on internal desires to belong, even when the threat of sanction is not present.

Social media marketing

the practice of using social media to generate consumer interest in a product, service, or idea

household life cycle (HLC)

segmentation technique that acknowledges that changes in family composition and income alter household demand for products and services The traditional HLC segments families into a number of groups based on the number of adults present and the age of the head of household. Product expenditures vary greatly by stage in the HLC, and at each stage consumers often try to obtain the most value that they can from their purchases. The categories and assumptions in the HLC are representative of general patterns of spending behavior.

connected self-schema

self-conceptualization of the extent to which a consumer perceives himself or herself as being an integral part of a group One study found that consumers who feel connected respond more favorably to advertisements that promote group belonging and cohesion. Another study found that consumers with a high need for connection respond quite favorably to salespeople with whom they share some degree of similarity. consumers in Eastern cultures tend to feel more connected to others

separated self-schema

self-conceptualization of the extent to which a consumer perceives himself or herself as distinct and separate from others consumers in Western cultures tend to feel more separate and distinct

Authority

the ability of a person or group to enforce the obedience of others

Peer pressure

the extent to which group members feel pressure to behave in accordance with group expectations In fact, peer pressure is often the strongest type of influence a consumer experiences in daily life. With peer pressure, there is usually some type of sanction that is threatened if the consumer does not go along with the group.

Consumer socialization

the process through which young consumers develop attitudes and learn skills that help them function in the marketplace One study found that 36% of parents with children between the ages of 6 and 11 reported that kids significantly influence their purchases. Even in times of economic instability, parents still try to spend on their kids, even if it means cutting back on other things. it has been estimated that kids command more than $1 trillion annually in personal spending and family influence

extended family

three or more generations of family members including grandparents, parents, children, and grandchildren. in collectivist cultures, more focus is placed on the extended family, and it is not uncommon to see households made up of extended family members living together.

Social media

to media through which communication occurs

utilitarian influence

ways in which a consumer conforms to group expectations in order to receive a reward or avoid punishment Compliance with group expectations often leads to valued rewards. When the group is perceived as being able to give rewards and punishment based on compliance, then this influence is quite strong. Utilitarian influence of groups is not limited to any age group or demographic profile. Adult consumers often perceive a great deal of utilitarian influence from reference groups. Driving the right car, living in the right neighborhood, and belonging to the right clubs can make adults feel accepted.

value-expressive influence

ways in which a consumer internalizes a group's values or the extent to which consumers join groups in order to express their own closely held values and beliefs Consumers often desire to seek membership in groups that hold values that are similar to their own. They also choose to adopt the values that are held by the desirable group. Consumers may also use group membership as a way to project their own self-image. a consumer may choose to join Mothers Against Drunk Driving because she feels strongly about the drunk driving issue. Once she has joined, she can project the values of the group as well. This is also similar to the value-expressive function of attitudes.

informational influence

ways in which a consumer uses the behaviors and attitudes of reference groups as information for making his or her own decisions reference groups are often perceived as being effective sources of information when a consumer is seeking a doctor, friends may influence the choice by saying, "This doctor is very good- word of Mouth Informational influence is also present even when the consumer is not explicitly searching for product-related information, but rather observing others' behaviors. For example, a consumer may simply see another person drinking a new soft drink and decide to try one. The informational influence of a group is particularly strong if the group is seen as being credible. Credibility is often associated with expertise

Group influence

ways in which group members influence attitudes, behaviors, and opinions of others within the group -Group members share common goals and interests. For example, members of Mother's Against Drunk Drivers have the goal of stopping the dangerous and illegal act of drinking and driving. -Group members communicate with and influence one another. For example, members of a school's alumni group meet regularly and influence one another. -Group members share a set of expectations, rules, and roles. For example, a volleyball team has specific rules for its team members. -Group members view themselves as members of a common social unit.* For example, current and ex-military members proudly display their affiliation with their branch of service.

Social networking websites

website that facilitates online social networking

Word-of-mouth (WOM)-amplified

when marketers attempt to accelerate WOM in existing customer circles, or when they develop entirely new forums for WOM, like blogs or web pages.

Boomerang kids

young adults between the ages of 18 and 34 who move back home with their parents after they graduate from college