Chapter 7
summarize the types of degree of reference group influence
-informational influence: occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information -normative influence: aka utilitarian influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction -identification influence: aka value-expressive influence, occurs when individuals have internalized the group's values and norms the degree of conformity to to group is a function of 1) visibility to the situation 2) the level of commitment the individual feels to the group 3) the relevance of the behavior to the functioning of the group 4) the individual's confidence in his or her own judgement in the area 5) the level of necessity reflected by the nature of the product
Adoption process
1) awareness - problem recognition 2) interest - information search 3) evaluation - alternative evaluation 4) trial - purchase 5) adoption - post-purchase evaluation
Two-step flow of communication
Marketing Activities ------> Relevant market segments
online community
a community that interacts over time around a topic of interest on the Internet
Discuss consumption subcultures, including brand and online communities and their importance for marketing
a consumption subculture is a group that self-selects on the basis of a shared commitment to a particular product or consumption activity these subcultures also have 1) an identifiable, hierarchical social structure 2) a set of shared beliefs or values 3) unique jargon, rituals, and modes of symbolic expression a brand community is a non-geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm brand communities can add value to the ownership of the product and build intense loyalty an online community is a community that interacts overtime around a topic of interest on the Internet. Online communities have evolved over time to include online social network sites online social network sites: web-based services that allow individuals to 1)construct a public or semipublic profile within a bounded system 2) articulate a list of other users with whom they share a connection 3) view and traverse their list of connections and those made by others within the system
reference group
a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior -a group that an individual uses as a guide
Explain reference groups and the criteria used to classify them
a reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Thus, a reference group is simply a group that an individual uses as a guide for behavior in a specific situation. Reference groups, as with groups in general, may be classified according to a number of variables including membership, strength of social tie, type of contact, and attraction
online social network site
a web-based service that allows individuals to 1) Construct a public or semipublic profile within a bounded system 2) Articulate a list of other users with whom they share a connection 3) View and traverse their list of connections and those made by others within the system
innovation
an idea, practice, or product perceived to be new by the relevant individual or group
community
characterized by consciousness of kind, shared rituals and traditions, and sense of moral responsibility
discuss within-group communications and the importance of word-of-mouth communications to marketers
communication within groups is a major source of information about certain products. information is communicated within groups either directly through word-of-mouth communication or indirectly through observation. WOM via personal sources such as family and friends is trusted more than marketer-based messages and . can therefore have a critical influence on consumer decisions and business success. 2/3 of all consumer product decisions are thought to be influenced by WOM. Negative experiences are a strong driver of negative WOM for all consumers
customer reviews
customers ranking and opinions on products customer reviews and review functionality on a website can be a critical marketing tool
consumption subculture
distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand or consumption activity these groups have 1) identifiable, hierarchical social structure 2) set of shared beliefs or values 3) unique jargon, rituals, and modes of symbolic expression
primary groups
ex. family and friends -Strong ties and frequent interaction -Considerable influence
secondary groups
ex. professional and neighborhood associations - Weaker ties - Less-frequent interaction
buzz
exponential expansion of word-of-mouth (WOM)
innovators
first to adopt an innovation (first 2.5%) -venturesome risk takers -capable of absorbing the financial and social costs of adopting an unsuccessful product -cosmopolitan in outlook and use other innovators rather than local peers as a reference group -tend to be younger, better educated, more socially mobile than peers -extensive use of commercial media, sales personnel, and professional sources in learning new products
enduring involvement
greater long-term involvement with the product category than the non-opinion leaders in the group -leads to enhanced knowledge about and experience with the product category and activities
discuss innovation diffusion and use an innovation analysis to develop marketing strategy
groups greatly affect the diffusion of innovations. Innovations vary in degree of behavioral change required and the rate at which they are diffused. 1) Innovators: first purchasers of an innovative product or service 2) early adopters 3) early majority 4) late majority 5) laggards each of these groups differs in personality, age, education, and reference group membership. these characteristics help marketers identify and appeal to different classes of adopters at different stages of an innovation's diffusion the time it takes for an innovation to spread from innovators to laggards is affected by several factors 1) nature of the group involved 2)type of innovation decision required 3) extent of marketing effort 4) strength of felt need 5) compatibility of the innovation with existing values 6) relative advantage 7) complexity of the innovation 8) ease in observing usage of the innovation 9) ease in trying the innovation 10) perceived risk in trying the innovation
Adopter Categories
groups that have been formed that divide adopters of any given innovation into five groups based on the relative time at which they adopt 1) innovators 2) early adopters 3) early majority 4) late majority 5) laggards
dissociative reference group
groups with negative desirability teenagers avoid clothing styles that are associated with older consumers
word of mouth communication (WOM)
individuals sharing information with other individuals in a verbal form, including face-to-face, on the phone, and over the internet
opinion leader
individuals who actively filter, interpret, or provide product and brand relevant information to their family, friends, and colleagues
market mavens
individuals who are general market influencers. they have information about many different kinds of products, places to shop, and other aspects of market. Internet Mavens describe their online counterparts
laggards
locally oriented and engage in limited social interaction -tend to be relatively dogmatic and oriented toward the past -adopt innovations only with reluctance
late majority
members are skeptical about innovations -adopt in response to social pressures or decreased availability of the previous product than because of a positive evaluation of the innovation -tend to be older, less social status and mobility than those who adopt earlier
micro-blogging tool, quickly growing, consumers can post complaints or information requests, companies can use promoted tweets
brand community
non-geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm
aspiration reference groups
nonmembership groups with positive attraction -individuals will buy products thought to be used by a desired group in order to achieve actual or symbolic membership in the group
normative influence
occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction utilitarian influence
informational influence
occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information
identification influence
occurs when individuals have internalized the group's values and norms
viral marketing
online "pass-it-along" strategy. it uses electronic communications to trigger brand messages throughout a widespread net-work of buyers
Understand opinion leaders (both online and offline) and their importance to marketers
opinion leaders: highly knowledgable about specific products or activities and are seen as the "go-to person" for specific types of information. These individuals actively filter, interpret, and provide product and brand relevant information to their family, friends, and colleagues a defining characteristic of opinion leaders is their enduring involvement with the product category, which leads to their expertise and the trust people have in their opinions a special type of opinion leader is market mavens. Market Mavens are individuals who are general market influencers. they have information about many different kinds of products, places to shop, and other aspects of markets. Internet Mavens describe their online counterparts marketers attempt to identify opinion leaders primarily through their media habits and social activities. Identified opinion leaders then can be used in marketing research, product sampling, retailing/personal selling, advertising, and creating buzz. Online strategies include viral marketing, blogs, and Twitter
blogs
personalized journals where people and organizations can keep a running dialogue
asch phenomenon
study where person was in a group and asked to say which lines were the same length. plants said the wrong answer, and the actual person being studied thought he was wrong and let the group change his mind
early majority
tend to be cautious about innovations -adopt sooner than most of their social group but after the innovation has proved successful -socially active but seldom leaders -tend to be somewhat older, less educated, less socially mobile than early adopters -relies heavily on interpersonal sources of information
early adopters
tend to be opinion leaders and in local reference groups -successful, well educated, younger than peers -willing to take calculated risks but concerned with failure -use commercial, professional, and interpersonal information sources -provide info to each other
diffusion process
the manner in which innovations spread throughout a market
group
two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent
