MKTG 375- Chapter 7

social networking community engagement brand use impression management

Brand communities can deliver value-creating activities by

False-- correct answer is value expressive influence

Identification influence is also called informational influence.

identification infleunce

Over time, Tim notices that successful executives dress conservatively-Tim believes that a conservative image is appropriate for executives and develops a conservative wardrobe time see an ad showing "smart young people on the way up" using an ipad- Tim begins to use an ipad Many of times friends regularly consume healthy foods- Tim decides that health foods are good for you and begins to consume them regularly

true

The adoption process is the series of steps or stages a consumer goes through when purchasing an innovation.

false

The constant flow of communication occurs when one person receives information from the mass media or other sources and passes it on to others.

normative

Which type of reference group influence occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction?

online community

a community that interacts over time around a topic of interest on the internet

consumption subculture

a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity

Community

characterized by consciousness of kind, shared rituals, and traditions, and a sense of moral responsibility

Primary groups are

characterized by frequent interpersonal contact.

attraction refers

desirability that membership in a given group has for the individual

membership

dichotomous: one is a member of a particular group or one is not a member of that group

online community

interactions can take place in various forms, including online message boards and discussion groups, blogs, as well as corporate and non profit websites

informational influence

occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information

Normative influence

sometimes referred to as utilitarian influence

innovators

venturesome , risk takers

Asch Phenomenon

you can consider this direct application in personal selling

** group influence is strongest when the use of product or brand is visible to the group. Products such as running shoes are highly visible vitamins- not highly visible Reference groups influences typically only those aspects( category or brand) that are visible to the group

*

** the more commitment an individual feels to a group the more the individual will conform to the group norms

*

** Reference group influence is higher the less of a necessity an item is. Reference groups have strong influence on the ownership of products such as snowboards and designer clothes but much less influence on necessities such as refrigerators.

**

** the final factor that affects the degree of a reference group influence is the individual confidence in the purchase situation This can happen even if the product is not visible or important to the group functioning as a result of the importance of the decision and a lack of personal decision confidence.

**

** the more relevant a particular activity is to the groups functioning the stronger the pressure to conform the groups norms concerning that activity. Ex: style of a dress is important to a social group that eats together frequently at nice restaurants but unimportant to a group that meet up to play basketball

**

influentials

10% of population but use broad social networks to influence the other 90%

consumption subculture

A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity is

brand community

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

an opinion leader

A person who consistently filters, interprets, and/or provides information to other group members is

secondary group

As a marketing major, Stan is a collegiate member of the American Marketing Association. This association holds a collegiate conference every year, and he did attend it one year. While this is a group he belongs to, his ties to other members are relatively weak, and his interaction is infrequent. Which type of group is this?

false- correct answer-Strength of social tie is the group classification variable that refers to the closeness and intimacy of the group linkages.

Attraction is a group classification variable that refers to the closeness and intimacy of the group linkages.

true

Buzz marketing is known as the exponential expansion of WOM

Family, friends, and acquaintances

Consumers generally trust the opinions of these people because these people have no reason not to express their true opinions and feelings

false- correct answer Consumers' highest preference is to get free products and coupons.

Consumers' highest preference in interaction with firms via social media is to be marketed to

true

Even though e-fluentials make up a relatively small portion of the adult online community, they wield a lot of influence because they communicate to a vast array of individuals both online and offline.

online social networks take many forms

Friendship-Facebook, Myspace Media sharing- Flickr, Youtube Events- Nascar Hookup Corporate or brand- Toyota friend Micro blogging-Twitter

consumption subculture

Harley-Davidson motorcycle owners who join a Harley group, Jeep owners who attend events sponsored by Jeep, and Star Trek "Trekkies" are all examples of

when the use of the product or brand is visible to the group

In which of the following consumption situations will a reference group's influence be strongest?

opinion leaders

Individuals who filter, interpret, or provide product and brand-relevant information to their family, friends, and colleagues are known as

Adopter Categories

Innovators (2.5%) the first to adopt to an innovation Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) Laggards (16%) the final

brand fest

Is a gathering of owners and others for the purposes of interacting with one another in the context of learning about and using the brand.

online community

Jill is a breast cancer survivor. She posts a blog, which is her online journal, on a site that is specifically for others to share their experiences and support one another. She and others discuss products that help them deal with the side effects of their treatments as well as products that can help them maintain their self-esteem (e.g., wigs). Jill is participating in a(n

**

Marketing strategies depend on the type of influence involved

utilitarian

Normative influence is sometimes referred to as _____ influence.

seeding

Product sampling is sometimes called

rituals and traditions

Samantha and Greg have owned an MG for several years and enjoy taking road trips through the Rockies with other MG owners every year. Which characteristic of brand communities does this illustrate?

Web 2.0

Social media is part of an online revolution online, sometimes referred to as

normative influence

Two neighbors joke about Tims car being dirty- Tim washes and waxes his car Tim notices that his friends buy premium beers, though he cant taste the difference- for parties, but not for home use, Tim buys premium beer An ad stressed that " Even your friends wont tell you" if you have bad breath- they will just ignore you- Tim buys the recommended mouthwash

spectators

Vicki likes to visit a social network site called Fanfiction.com and read the stories that others post on this site. She doesn't really visit very often, and she has never posted a story on this site. Vicki is which type of social media participant?

number of members

Which of the following is NOT a criterion used to classify groups? number of members attraction type of contact membership strength of social tie

secondary group

Which type of group includes organizations such as professional associations and neighborhood associations that involve relatively weak ties and less frequent interaction among its members?

Joiners

Which type of participants in social media tends to be teens to late twenties?

informational infuence

a friend mentions that brooks brothers has a good selection of suits-- Tim visits a brook brother store because he needs a new suit at several friends home Maxwell House coffee is served- Tim decided to give Maxwell House a try the best skier in the group uses Karhu Skies- time buys him a set of karhu skies

reference group

a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior

Example of informational influence

a person may notice that runners on the track team use a specific brand of nutrition bar. He or she may decide to try that brand because the healthy and active runners use it

discontinous innovation

adopting this kind of innovation requires huge changes in behvaior of significant importance to a consumer

dynamically continuous innovation

adopting this kind of innovation requires moderate changes in important behavior or major changes in behaviors of moderate importance to a consumer

continuous innovation

adopting this kind of innovation requires small changes in behavior that are unimportant to a consumer

normative influence

ads that suggest group disapproval if a product is not used such as mouthwash or deodorant

innovation

an idea, practice, or product perceived to be new by the relevant individual or group

Normative influence occurs when

an individual fulfills group expectations to gain a direct reward or to avoid a sanction.

diffusion enhancement strategies

analyze innovation from the target markets prospective. will indicate potential obstacles- diffusion inhibitors- to rapid market acceptance . the managers task is to overcome these inhibitors

type of decision( Group)

choose media to reach all deciders provide conflict reduction themes

strength of social tie

closeness and intimacy of the group linkages

complexity( high)

distribute through high service outlets uses skilled sales forces use product demonstrations use extensive marketing efforts

enduring involvement

enhanced knowledge about and experience with the product category or activity

aspirational reference group

exert of strong influence

Primary groups

family and friends, involve strong ties and frequent interaction

consumption sub

focus on the interactions of individuals around an activity product category or occasionally a brand

opinion leader

functions primarily through interpersonal communications and observation

market mavens

generalized market influencers

Membership Strength of Social Tie Type of Contact Attraction

groups may be classified according to a number of variables

Consumption subculture characteristics

identifiable hierarchial social structure, a set of shared beliefs or values, unique jargon, rituals and modes of symbolic expression

word-of-mouth communication

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.. known as the go to person

Reference Group Influence can take 3 forms

informational, normative, and identification

guerilla marketing

intense connection with individuals and speeding uo the natural WOM process

multistep flow of communication

involves opinion leaders for a particular product area who actively seek relevant information from the mass media as well as other sources

stimulation

involves themes designed to encourage current owners to talk about the brand or prospective owners to ask current owners for their impressions

laggards

locally oriented and engage in limited social interaction dogmatic and oriented toward the past adopt innovations only with reluctance

relative advantage ( low)

lower price redesign product

online community

more experienced members serves as experts and leaders and newest member seek advice and information. These groups develop unique vocabulary, netiquette, and means for dealing with behavior deemed inappropriate

dissociative reference group

negative desirability, can influence behavior just as those with positive desirability

Buzz

not supported by large advertising budgets but it is often created by marketing activities. key aspect of guerilla marketing- marketing with a limited budget using nonconventional communication strategies

indirect word of the mouth

observation as a by product of normal group interaction

Normative influence

occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction

Direct word of the mouth

one person seeks information from another or when one individual volunteer information

viral marketing

online pass it along strategy. it uses electronic communications to trigger brand messages throughout a widespread net work of buyers. Comes in many forms but often in email

blogs

personalized journals where people and organizations can keep a running dialogue

secondary group

professional and neighborhood associations, involve weaker ties and less - frequent interaction

Market mavens are

provide significant amounts of information to others across a wide array of products including durables, non durables, services, and store types

spread

purchase behavior in which the product is purchased with some degree of regularity

type of contact

refers to whether the interaction is direct or indirect

nature of group- conservative

search for other markets target innovators within the group

late majority

skeptical about innovations adopt more in response to social pressure or a 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

Sampling

sometimes called seeding, involves getting a sample of a product into the hands of a group of potential consumers especially opinion leaders

compatibility( conflict)

stress attributed consistent with normative values

marketing effort( limited)

target innovators within group use regional rollout leverage buzz

early majority

tend to be cautious about innovations adopt sooner than most their social group but also after the innovation has proved successful with others socially active but seldom leaders. somewhat older, less educated and less socially mobile than early adopters

early adopters

tend to be opinion leaders in local reference groups. successful, well educated and younger than their peers

Buzz

the exponential expansion of WOM. "word spreads like wildfire." with no or limited mass media advertising support

diffusion process

the manner in which innovations spread throughout a market

Asch Phenomenon

the naive subject almost always agrees with the incorrect judgement of others

two-step flow of communication

the process of one person's receiving information from the mass media or other sources and passing it on to others

Group

two or more individuals who share a set of norms values or beliefs and have certain implicityly or explicitly defined relationships to one another such that their behavior is interdependent

a 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 behavior is interdependent.

factors affecting the spread of innovations

type of group, type of decision, marketing effort, fulfillment of felt need, compatibility, relative advantage, complexity, observability, trialability, perceived risk

observability( low)

use extensive advertising target visible events when appropriate

felt need( weak)

use extensive advertising showing importance of benefits

Trialability ( difficult)

use free samples to early adopter types provide special prices to rental agencies use high service outlets

Perceived risk( high)

uses success documentation obtain endorsement by credible sources provide guarantees

Identification influence

value-expressive influence, occurs when individuals have internalized the group's values and norms

High degree of reference group influence

visible usage high relevance of product to group low individual purchase confidence strong individual commitment to group nonnecessary item

online social network site

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, and (3) view and traverse their list of connections and those made by others within the system

example of normative influence

you may purchase a certin wine to win approval from a colleague or you may not wear the latest fashion for fear of being teased by friends or to fit in with or be accepted by them. Normative influence is STRONGEST when individuals have strong ties to the group and the product involved is socially conspicous