Chapter 11 Social Influences on Consumer Behavior

Marketing Implications for different types of reference groups

1. associate products with aspirational reference group -knowing their target consumers' aspirational reference group enables marketers to associate their product with that group and to use spokespeople who represent it. e.g., celebrities 2. accurately represent associative reference groups -identify and appropriately represent target consumers in ads by accurately reflecting the clothing, hairstyles, accessories, and general demeanor of their associative reference groups 3. help to develop brand communities -many brands now create the framework for communities on Facebook or on dedicated websites. 4. avoid using dissociative reference group -when appropriate, companies should not use dissociative reference groups in their marketing. e.g., A&F, offered to pay the stars of the controversial TV reality show

Market Implications on informational influence

1. create informational influence by using experts 2. create a context for informational influence 3. create informational and normative influence

Market Implications on normative influences

1. demonstrate rewards and sanctions for product use/non-use -marketers may be able to create normative influence by using advertising to demonstrate rewards or sanctions that can follow from product use or non-use e.g., beer or liquor ads often show friends approving of the purchase or consumption of the advertised brand 2. create norms of group behavior -marketing organizations may create groups with norms to guide consumers' behavior. 3. stimulate referrals through normative influence -companies can use normative influence to encourage referrals from current customers. e.g., "bring a friend" promotion 4. create conformity pressure -marketers may attempt to create conformity e.g., they may actively associate a product with a certain group so that their product becomes a badge of group membership. 4. use compliance techniques 5. ask consumers to predict their behavior -increases the likelihood that they will actually behave in that way 6. provide freedom of choice -marketers need to ensure that consumers believe that they have freedom of choice 7. use expert service providers who are similar to target consumers

Characteristics of opinion leaders

1. learn a lot about products 2. heavy users of mass media 3. tend to buy new products when they are first introduced 4. self-confident, gregarious, and willing to share product information 5. an intrinsic interest in and enjoyment of certain products 6. like the power of having information and sharing it with others

Factors affecting informational influences strength

1. product characteristics -consumers tend to be susceptible to informational influence when considering complex products such as electronic appliances that consumers cannot easily understand how to use. -thus, consumers may be affected by information that they receive about cosmetic surgery, given its formidable financial and safety risks 2. consumer and influencer characteristics -affect the extent of informational influence -such influence is likely to be greater when the source or group communicating the information is an expert, especially if the consumer either lacks expertise or has had ambiguous experiences with the product -affected by tie-strength. individuals with strong ties tend to interact frequently, a situation that provides greater opportunities for consumers to learn about products and others' reactions to them -affected by strangers online -affected by cultures 3. group characteristics -group cohesiveness. members of cohesive groups have both greater opportunity and perhaps greater motivation to share information

Market Implications on opinion leaders

1. target opinion leaders -obvious strategy is to identify and target opinion leaders directly e.g., LEGO, targets adult leaders of LEGO fan groups worldwide, influencing tens of thousands of fans who meet regularly to swap ideas and show off new LEGO creations 2. use opinion leaders in marketing communications -expertise and association of opinion leaders still support an offering 3. refer consumers to opinion leaders -marketers ask consumers to contact a knowledgeable opinion leader. e.g., pharmaceutical manufacturers do this by suggesting that consumers consult their doctors about how a particular advertised product can help them

Market Implications on reference groups characteristics

1. understanding information transmission -homophily, degree of contact, tie-strength, and network density can significantly influence whether, how much, and how quickly information is transmitted within a group 2. formal reference groups as potential targets -formal reference groups can provide marketers with clear targets for marketing efforts e.g., U.K. based charity Comic Relief targets formal groups like companies, school and etc 3. homophilous consumers as targets -marketers may use the concept of homophily to market their products e.g., if you log on to amazon.com and find a book you like, the recommendation system points you to more books you might like based on the purchases of consumers who bought the first books (purpose is to share reader taste) 4. targeting the network -target the network itself. e.g., Verizon Wireless, offers one large pool of monthly cell phone minutes to be shared among family members 5. understanding the strength of weak ties -although weak ties may seem to have little potential for marketers, the opposite is true. because weak ties often serve as "bridges" connecting groups, they ca play a powerful role in propagating information across networks -word-of-mouth spreads more effectively among people with weak ties. moreover, marketers can use weak ties to identify new networks for marketing efforts

Marketing Implications on marketing and non-marketing sources

1. use non-marketing sources to enhance credibility -marketers should try to have non-marketing sources feature their offerings. Testimonials and word-of-mouth referrals may have considerable impact, particularly if delivered through personal communications. 2. use personal sources to enhance two-way communication -marketing efforts may be more effective when personal information sources are used. -e.g., Best Buy, maintains a variety of blogs and Twitter accounts, through which executives and employees engage consumers in social media conversations about new products, tops about technical issues etc. 3. use a mix of course to enhance impact -the effect on consumers may be greatest when marketers use complementary sources of influence.

Market Implications on word of mouth

1. viral marketing 2. engineering favorable word of mouth -marketers can try to engineer favorable word of mouth by targeting opinion leaders and using networking opportunities at trade shows, conferences, and public events 3. preventing and responding to negative word of mouth -marketers must act to prevent negative word of mouth, whether offline or online, and work to rectify it once it occurs 4. handling rumors and scandals -do nothing. often companies prefer to do nothing because more consumers may actually learn about a rumor from marketers' attempts to correct it -do something locally. some companies react locally, putting the rumor to rest on a case-by-case basis. e.g., P&G, send a packet of information about its man-in-the-moon symbol, rumored to connote devil worship -do something discreetly. companies may want to respond discreetly to a rumor. e.g., when rumors circulated that oil companies were contriving oil shortages out of greed, the firms ran a public relations campaign highlighting their socially desirable activities -do something big. companies may respond with all the media resources at their disposal. they may use advertising to directly confront and refute the rumor or explain the scandal, create news and conduct media interviews to communicate their perspective, and hire credible outside opinion leaders to help present factual information 5. tracking word of mouth

The media and the marketplace as socializing agents

TV programs, movies and videos, music, video games, the Internet, and ads can also serve as socializing agents e.g., in ads, boys are sometimes depicted as more knowledgeable, aggressive, active, and instrumental to actions than girls are; these sex role stereotypes can affect children's conceptions of what it is like to be a boy rather than a girl

Reach

Mass media sources are important to marketers because they reach large consumer audiences. e.g., a 30 seconds TV commercial during the FIFA World Cup can reach tens of millions of viewers in the U.S., Europe, and around the world

Market maven (市场专家)

a consumer on whom others rely for information about the marketplace in general

Aspirational reference group (志同参照团体)

a group that we admire and desire to be like and wish to be like but are not currently a member of. e.g., a younger brother may want to be like his older brother and other older children. Li Na, a tennis champ, has been signed to endorse Nike, Rolex, and other brands marketed in China

Associative reference group

a group to which we currently belong, such as clique of friends, an extended family, a particular work group, a club, or a school group. however, when consumers misunderstand their relative position in a reference group, they tend to make poor acquisition or consumption decisions. e.g., if you believe you are one of the most skillful cyclists or skiers in your class - when in reality, you are just beyond beginners status - you may buy equipment or services unsuited to your capabilities

Dissociative reference group

a group we do not want to emulate groups whose attitudes, values, and behaviors we disapprove of and do not wish to emulate. e.g., U.S. citizens, for instance, serve as dissociative reference groups to religious groups in some Arab countries, and neo-Nazis serves as dissociative reference groups for many people in Germany and the U.S.

Brand community

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use e.g., a consumer who is a member of a brand community thinks about brand names, the product category, other customers who use the brand, and the marketer that makes and promotes the brand. members of a brand community not only buy the product repeatedly, but they are extremely committed to it, share their information and enthusiasm with other consumers, and influence other members to remain loyal.

Even-a-penny-will-help technique

a technique designed to induce compliance by asking individuals to do a very small favor - one that is so small that is almost does not qualify as a favor e.g., Pennies, U.K. charity, uses this technique by asking consumers to donate small change electronically when paying by credit card at Domino's pizza and other participating merchants

Door-in-the-face technique

a technique designed to induce compliance by first asking an individual to compl with very large and possibly outrageous request, followed by a smaller and more reasonable request . e.g., a salesperson might ask a consumer whether she wants to buy a $500 piece of jewelry. when the consumer says no, the salesperson might then ask if she wants to buy a set of earrings on sale for only $25. because the consumer perceives that the requester has given something up by moving from a large to a small request, he or she may feel obligated to reciprocate by responding to the smaller request

Foot-in-the-door technique

a technique designed to induce compliance by getting an individual to agree first to a small favor, then to a larger one, and then to an even larger one e.g., a salesperson may first ask a consumer his or her name and then ask what the person thinks of a given product. after complying with these requests, the consumer may be more inclined to comply with the salesperson's ultimate request to purchase the product

Informative influence

affected by characteristics of the product, the consumer, and the group

Product characteristics

affects normative influence strength reference groups can influence two types of decisions: 1. whether we buy a product within a given category 2. what brand we buy however, whether reference groups affect product and brand decisions also depends on whether the product is typically consumed in private or in public and whether it is a necessity or a luxury e.g., mattresses and hot-water heaters are considered privately consumed necessities, whereas jewelry and inline skates are considered publicly consumed luxuries first prediction: reference groups have little influence on necessity but more influence on luxury second prediction: products consumed in public - such as the cars we drive - give others the opportunity to observe which brand we have purchased

Opinion leader

an individual who acts as an information broker between the mass media and the opinions and behaviors of an individual or group opinion leaders have some position, expertise, or firsthand knowledge that makes them particularly important sources of relevant and credible information, usually in a specific domain or product category. e.g., German soccer star Mesut Özil is an opinion leader for sports shoes. opinion leaders are regarded as non-marketing sources of influence, a perception that adds to their credibility. -they are not necessary well-known people; they may be friends and acquaintances or professionals like doctors. opinion leaders have influence because they generally have no personal stake in whether their opinions are heeded, so their opinions are perceived as unbiased and credible

Normative influence

can affect brand choice congruence, conformity, compliance, or reactance social pressure designed to encourage conformity to the expectations of others. the term normative influence derives from norms, society's collective decisions about what behavior should be e.g., we have norms for which brands, stores, and styles are "in" as well as norms that discourage stealing and impulse buying morals also exert normative influence about what is right and wrong, and they can strongly influence attitudes normative influence implies that consumers will be sanctioned, punished, or ridiculed if they do not follow the norms, just as it also implies that they will be rewarded for performing the expected behaviors

Group characteristics

coercive power: the extent to which the group has the capacity to deliver rewards and sanctions e.g., your friends probably have more influence over your clothing choices than your neighbors do because friends have greater coercive power. group cohesiveness and group similarity also affect the degree of normative influence. cohesive groups and groups with similar members may communicate and interact on a regular basis. thus, they have greater opportunity to convey normative influences and deliver rewards and sanctions consumers from cultures where collectivism is strong - such as China - are more sensitive to how differences in pricing affect those in their group, compared with consumers from cultures where individualism is strong, such as the U.S.

Social-Relational Theory

consumers conduct their social interactions according to 1. the rights and responsibilities of their relationship with group members 2. a balance of reciprocal actions with group members 3. their relative status and authority 4. the value placed on different objects and activities

Density

dense groups are those in which group members all know one another. e.g., an extended family that gets together every Sunday operates as a dense social network. in contrast, the network of faculty at a large university is less dense because its members have fewer opportunities to interact, share information, or influence one another.

Reactance

doing the opposite of what the individual or group wants us to do for example, if a salesperson pressures you too much, you may engage in reactance by refusing to buy whatever he or she is trying to sell, even if you wanted to buy it in the first place. reactance can occur in brand communities too. when a member feels too much pressure to perform certain rituals or assume certain roles, desire to participate in the community or buy the brand in the future may be lowered.

Compliance

doing what the group or social influencer asks you are complying if, when asked, you fill out a marketing research questionnaire or purchase the products sold at a home party. parents comply with children by purchasing foods or toys or allowing activities (such as parties) that kids request.

Secondary reference group

group with whom we do not have direct contact e.g., we may be members of groups like an Internet chat group or a musical fan club

Primary reference group

group with whom we have physical face-to-face interaction

Marketing source

influence delivered from a marketing agent, for example, advertising, personal selling deliver influence through the mass media, including advertising, sales promotions, publicity, special events, and social media posts. also deliver information personally. Salesperson, service representatives, and customer service agents are marketing sources of influence who deliver information personally in retail outlets, at consumer's homes or offices, over the phone, or via e-mail or online chat.

Non-marketing source

influence delivered from an entity outside a marketing organization, for example, friends, family, the media wield (行使) influence via mass media - delivered messages. certain media sources are particularly influential: many consumers, for instance, choose movies based on film critics' recommendations, make dining decisions based on restaurant reviews, make buying decisions based on Consumer Reports articles, and choose books based on readers' ratings on Amazon.com

Word of mouth

influence delivered verbally from one person to another person or group of people

Social influences

information by and implicit or explicit pressures from individuals, groups, and the mass media that affects how a person behaves

Embedded market

market in which the social relationships among buyers and sellers change the way the market operates

Credibility

marketing and non-marketing sources are differ in credibility consumer tends to perceive information delivered through marketing sources as being less credible, more biased, and manipulative. in contrast, non-marketing sources appear more credible because we do not believe that they have a personal stake in our purchase, consumption, or disposition decisions. because non-marketing sources are more credible, they tend to have more influence on consumer decisions than marketing sources do. we also tend to believe information that we hear from people with whom we have close relationships, in part because their similarity to us makes their opinions credible. certain people are more credible because they are experts. e.g., publicity delivered via blogs can generate higher brand attitudes and purchase intensions than publicity delivered via online magazines.

Consumer-generated ads

non-marketing sources encouraged or even rewarded by marketers can stimulate a range of social media conversations, from positive and negative comments, to debate over content and interest in knowing more about the ads and the brand. Reaction to marketing sources delivered via social media is likely to be positive when the content is entertaining, informative, or is valued in some other way by the consumer audience

the pervasive and persuasive influence of word of mouth

not only is word of mouth pervasive, it is also more persuasive than written information is.

Online word of mouth

online forums, review sites, websites, and e-mail magnify the effect of word of mouth because consumers can notify many people about their good/bad experiences with a few clicks of the mouse.

Gatekeeper

opinion leader = gatekeeper a source that controls the flow of information people who have special influence or power in deciding whether a product or information will be disseminated to a market

Capacity for two-way communication

personally delivered sources of influence are valuable because they allow for a two-way flow of information. for example, a car salesperson may have more influence than a car ad because the salesperson can tailor sales information to fit the buyer's information needs, rebut counterarguments, reiterate important and/or complex information, and answer the buyer's questions. personal conversations are often more casual and less purposeful than mass media - delivered information. information from a personal source may also seem more vivid than information from the mass media

Viral marketing

rapid spread of brand/product information among a population of people stimulated by brands

Formality

reference groups also vary in formality. Groups like fraternities, athletic teams, clubs, and classes are formally structured, with rules outlining the criteria for group membership and the expected behavior of members e.g., you must satisfy certain requirements - gaining admission, fulfilling class prerequisites - before you can enroll in particular college courses

People as socializing agents

reference groups like family and friends play an important role as socializing agents. e.g., parents, instill values of thriftiness by directly teaching their children the importance of saving money, letting the children observe them being thrifty, or rewarding children for being thrifty. intergenerational influence - information, beliefs, and resources being transmitted from one generation (parents) to the next (children) - affects consumers' acquisition and use of certain product categories and preferred brands the effect of reference groups as socializing agents can change overtime. Parents have substantial influence on young children, but their influence wanes as children grow older and interact more with their peers

Degree of contact

reference groups vary in their degree of contact. We may have direct and extensive contact with some reference groups like our immediate circle of friends or family but may have less contact with others like gangsta rappers

Social media word of mouth

social media such as Twitter, YouTube, and Facebook are truly social, disseminating word of mouth through public messages and through messages visible only to friends.

Degree of identification

some characteristics of an individual within a group contribute to the ways in which groups vary. just because people are members of a group does not mean that they use it as a reference group. even though people may be Hispanic or senior citizens, they need not necessarily regard similar individuals as part of their reference group

Group attractiveness

the attractiveness of a particular peer group can affect how much consumers conform to the group e.g., when members perceive a group as being very attractive, they have stronger intentions to conform to what the group does - even its illicit consumption behavior.

Tie-strength

the extent to which a close, intimate relationship connects people a strong tie means that two people are connected by a close, intimate relationship often characterized by frequent interpersonal contract a weak tie means that the people have a more distant relationship with limited interpersonal contact

Informational influence

the extent to which sources influence consumers simply by providing information affect how much time and effort consumers devote to information search and decision making. e.g., if you can get information easily from a friend, you may be reluctant to conduct an extensive, time-consuming information search when making a decision. thus, if you want a new tablet computer, and a trusted friend says that the one he just bought is the best he has ever had, you might simply buy the same one

Homophily

the overall similarity among members in the social system when groups are homophious, reference-group influence is likely to be strong because similar people tend to see things in the same way, interact frequently, and develop strong social ties.

Consumer characteristics

the personalities of some consumers make them readily susceptible to influence by others the trait of competitiveness, for instance, can influence conspicuous consumption behavior a personal characteristic called "attention to social comparison information" (ATSCI) is related to normative influence *Measuring susceptibility to interpersonal influence and attention to social comparison information -individuals differ in whether they are susceptible to influence from others and whether they pay attention to what others do. people who are high on this personality trait pay close attention to what others do and use this information to guide their own behavior e.g., research shows that people feel lower self-esteem when they are exposed to idealized ad images of financial success or physical attractiveness tie-strength also affects the degree of normative influence. when ties are strong, individuals presumably want to maintain their relationships with others, so they are therefore motivated to conform to the group's norms and wishes

Consumer socialization (消费者社会化)

the process by which we learn to become consumers one way that reference groups influence consumer behavior is through socialization, the process by which individuals acquire the skills, knowledge, values, and attitudes that are relevant for functioning in a given domain through socialization, consumers learn consumption values as well as gain the knowledge and skills for consumption

Brand-choice congruence (一致)

the purchase of the same brand as members of a group the likelihood that consumers will buy what others in their group buy the presence of others can influence the enjoyment of shared stimuli (such as going to a movie together) and affect congruence as well.

Conformity

the tendency to behave in an expected way normative influence can also affect conformity. e.g., you might conform by buying the same brands as others in your group do, although brand-choice congruence is not the only way for you to conform. you may also conform by performing activities that the group wants you to perform, such as participating in initiation rites or acting in the way that the group acts e.g., your actions at a party might depend on whether you are there with our parents or your friends.

Valence

whether information about something is good (positive valence) or bad (negative valence) more than half of dissatisfied consumers engage in negative word of mouth. dissatisfied consumers talk to three times more people about their bad experiences than satisfied consumers do about their good experiences negative information may be diagnostic - that is, it has more significance because it seems to tell us how offerings differ from one another negative information may also prompt consumers to attribute problems to the offering itself, not to the consumer who uses it.