Mktg 370 Ch 11 Group influences and word of mouth

internalization

Accepting group/individual norms and values as one's own

identification

Going along with a group/individual in order to create or maintain a rewarding self-defining relationship with that group/individual

compliance

Going along with group/individual norms to obtain approval or avoid disapproval.

coercive power

Influence due to a reference group/ individual's ability to administer punishment. • We influence someone b/c of social or physical intimidation • Threat is effective in the short term, b/c we revert to our original behavior as soon as bully leaves • Ex) prison guards

word of mouth

Product information individuals transmit to other individuals. o B/c we get the word from people we know, WOM tends to be more reliable and trustworthy than messages from more formal marketing channels. o Unlike advertising, WOM is far more powerful: it influences 2/3rds of all consumer-good sales.

traditional advertising weaknesses

hard to measure (hard to measure effect on sales) • initial dollar outlay is large (even though cost per person (exposure) is low • Less persuasive relative to WOM marketing  ***consumer behavior has shifted away from traditional media***

reward power

influence due to a reference group/individual's ability to dispense reward. Ex) employer w/ salary • a person or group w/ the means to provide positive reinforcement 

types of word or mouth

non-traditional marketing: guerilla marketing, viral marketing, social networking

how to measure word of mouth

o Semantic Text Analysis o Centrality  A count of how many people knows you (Facebook) o Amazon Star System o Netnography

referent power

Influence due to the influenced person's desire to identify with someone or to be like them. • When you want to be like somebody else • If a person admires the qualities of a person or a group, he tries to copy the referent's behaviors (e.g. choice of clothing, cars, leisure activities)  Expert/ information power: Influence due to the influenced person's tendency

legitimate power

Influence due to the influenced person's feelings of obligation. • Sometimes we grant power by virtue of social agreements, such as the authority we give to police officers, soldiers, etc. • Ex) ad that shows a model who wears a white doctor's coat adds an aura of legitimacy or authority to the presentation of the product (im not a doctor, but I play one on tv) • Ex) girl asking a guy to help move

expert/information power

Influence due to the influenced person's tendency to heed expert advice, or to listen to those who have information that one does not. • Ex) head expert advice/ gain knowledge; university teacher • A person possesses information power simply because she knows something others would like to know. • People with information power are able to influence consumer opinion by virtue of their (assumed) access to the "truth"

• Influence results:

compliance, identification, internalization

word of mouth weaknesses

control and misrepresentation • Cant control the message that is communicated • measuring ROI is difficult • hard to translate awareness into action

• 5 Types of Social Power (slides and book):

reward power, coercive power, referent power, expert / information power, legitmate power

word of mouth strengths

strengeths:• source credibility • efficiency (tremor P&G) • effectiveness (more memorable / impactful) • Especially effective for new / unfamiliar products

social power

the capacity to alter the actions of others to the degree to which you are able to make someone else do something, regardless of whether they do it willingly, you have power over that person.

traditional advertising strengths

• mass distribution / exposure • Reach masses at a lower cost per exposure • repeat message multiple times • enhance product appeals (esp. for utilitarian products)

reference group

 A group or individual (opinion leader) having significant relevance upon one's evaluations, aspirations, and/ or behavior

viral marketing

 Promotional campaign that tries to get a individual consumer to visit a website and then pass-along that site to friends and family

guerilla marketing

 Promotional campaign that uses unconventional locations and media w/ intense word of mouth to push a product

social networking

 Users can post information and share product information