Consumer Behavior Chapter 7

Aspirational group

*one in which a consumer desires to become a member. *Often appeals to the consumer's ideal self. *How many professional/career choices have been made based on one's desire to be part of a group?

Primary group

- includes members who have frequent, direct contact with one another. *Most influence *Strong social ties

Secondary group

less frequent interaction than in a primary group.

Influences with reference group vary on at least two dimensions:

*Degree to which the product or brand is a necessity or a luxury. *Degree to which the object in question is conspicuous or know by other people. ****Public good ****Private good

The exchange of advice and information between group members can occur directly via WOM in the following situations:

1.Individual seeks information from another, or 2.Individual volunteers information

Reference Group

A group of individuals who has significant relevance for a consumer and who impacts the consumer's evaluations, aspirations, and behavior

Reference groups can have both positive and negative effects on consumers. Examples:

Associative reference groups Dissociative reference groups

Utilitarian Influence

Consumers conform to group expectations to receive a reward or avoid punishment (Clothes)

Value-expressive Influence

Consumers internalize a group's values or join groups to express their own values and beliefs (Politics, Religious Groups)

Informational Influence

Consumers use the behaviors and attitudes of reference groups as information into making their own decisions (WOM)

Formal/informal

Formal refernec groups have a clearly specified structure; informal groups do not

Type of Reference Group

Formal/informal Primary/secondary Membership Aspirational Dissociative

Aspirational

People aspire to join or emulate aspirational refence groups

Membership

People become formal members of membership refencence gropus

Dissocitive

People seek to avod or reject dissociative reference groups

Primary/secondary

Primary reference groups involve deirect, face-to-face interactions; secondary groups do not

Reference Group Effects on Products and Brands

Reference groups do not influence all product and brand purchases to the same degree.

Aspects of Group Life Group members:

Share common goals and interests Communicate with, and influence, one another Share a set of expectations, rules, and roles View themselves as members of a common social unit

Visible

Strong reference group influence on brand

Private

Weak reference group influence on brand

Consumption Necessity

Weak reference group influence on product

Brand community

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

Public Luxuries of visible

influence: strong product and brand Examples: Snow board Health club

Private luxuries

influence: strong product and weak brand Examples: Hot tub HOme theater system

Private necessities

influence: weak product and brand Clothes washer INsurance

Public necessities Visible

influence: weak product and strong brand Examples: Shoes Automobiles

Formal group

one in which a consumer formally becomes a member. *Set of stated rules *Accepted values *Codes of conduct

Informal group

one that has no membership or application requirements and codes of conduct may be non-existent.

Associative group

one that represents a consumer's equals

Dissociative group

one to which a consumer does not want to belong.

Friends and Family=

primary, informal groups

What do marketers do to analyze reference groups

try to determine the content of the shared meanings of various reference groups What strategies are needed to reach this group?