Chapter 8 - Groups, social processes, and communications

Membership - divided into member or non-member. Attractiveness - divided into positive or negative.

Types of reference group. Typically we describe reference groups across two dimensions - what are the two dimensions?

Contactual/associative groups: - are generally close groups with which we interact regularly and where there is a degree of proximity. Example: friends, family, collegues etc. Disclaimant group: - is one that we currently belong to, or perhaps belonged to in the past, but no longer want to associate ourselves with. Disclaimant groups may be traditional groups from our past whom we are trying to move on from, or typically are groups that we are a part of, but know are stigmatized in some way by society. Example: you belonged to a group in high school but you do not want to be associated with that group anymore. Aspirational group: - are composed of people that the consumer can identify with or admire (often from afar) and aspires to be like in some way. Example: idols. Dissociative/avoidance groups: - are groups we have negative feelings towards and whom we avoid being associated with, and whom we've never been a part of, and we associate negative feelings with them for their intrinsic qualities rather than because we or they have changed. Example: political parties, gangs,

Types of reference groups. What are the 4 types of reference groups? See page 273 for chart.

is a motivational state which acts as a counterforce to threats to a person's freedom and can be a powerful force if groups of people feel that their freedom is compromised.

Venkatesan (1966) developed some of the early ideas on conformity in the context of consumer decision-making and concluded that in a group situation, and where it's difficult to assess the quality of the product, individuals will accept the information provided by others in the groups. However, where group pressure appears to limit independent choice, people react to reassert their freedom to decide, a process known as reactance. What is reactance?

Nancarrow & Nancarrow (2007): an advanced form of knowledge about commodities and consumption practices. Are sometimes called urban pioneers, trendsetters and alpha consumers, and those who follow them, seeking coolness have been termed coolhunters.

What is 'cool'? And what are some other names for cool?

Watts (2007): the idea of getting a large number of ordinary people to reach out and influence other people is the best way to spread the message about a brand.

What is Accidental influential?

Howe (2006): the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. Ex: McDonalds campaign where people could suggest and create new burger combinations

What is Crowdsourcing?

WOM in electronic contexts. It's powerful because it is able to influence people on a global scale.

What is Electronic Word of Mouth (eWOM)?

When conversations happen among consumers as part of their natural communication and when they are just passing on information about their experiences with a product or brand. Henning-Thureau et al. (2004) defines it: any positive or negative statement made by potential, actual or former customers about a product or company, which is made available to a multitude of people and institutions via the internet.

What is Endogenous WOM?

Occurs as a direct result of the firm's marketing. "Tag three friends"

What is Exogenous WOM?

people who have real power to influence the marketplace.

What is Expert influential?

Rogers & Cartano (1962): individuals who exert an unequal amount of influence on the decision of others.

What is opinion leaders?

Max Weber: communities of people linked together on the basis of wealth, status and power. ex: people from Nordsjælland who all drive Fiat 500

What is status group?

The idea that a small group of influential people can accelerate or stop the adoption of a product has become central to our idea of what an opinion leader is, which Gladwell (2001) call The Law of the Few.

What is the Law of the Few?

are people who seeks opinions and information to help their purchase decision.

At the other end of the communication we see those people who receive information from opinion leaders: Opinion seeker - what are they?

is an informal communication, either positive or negative, about goods, services, and sellers. Usually involves product seeding, whereby consumers can try out or experience the product in some way. It might be assumed that it is always the most loyal consumers that create useful WOM, but research by Samson (2010) and Godes & Mayzlin (2009) shows that it may be more useful for firms to target less loyal customers with WOM campaigns. This would appear to be particularly the case for a product or brand with relatively low awareness where the marketing communications objective is to spread information about the product.

Early studies of diffusion and mass communication revealed that it is rare for people to respond only to mass media information without transmission through person ties as well (Katz & Lazarsfeld, 1955). What is Word of Mouth (WOM)?

Parental yielding: - which is when a parental decision-maker is influences by a child's request and 'surrenders'. Ex: when a child gets an icecream when screaming in the supermarket Reverse Socialization: - which is where parents acquire consumer skills from their children. Ex: learning to use a smartphone

Ekström et al. (1987) emphasized the importance of taking a reciprocal view of family decision-making and consumer socialization for a more realistic research perspective. In their paper they looked at the influence of parents on children and of children on parent in learning about consumption. They found parental yielding and reverse socialization. Describe the two?

It gives an overview of the model, indicating the flows of influence we would expect to see for luxury and necessity products and brands consumed in public and privately.

Explain model on page 278

adoption of behavior resulting from real or perceived pressure to comply with a person or group.

For the concept of reference groups to be useful to marketers, there has to be some degree of conformity that results from group membership. What is conformity?

Connectors: - people who tend to know lots of people, often from different subcultures to their own, not necessarily very well but enough to pass on information to others. Mavens: - are collectors and brokers of information, but they use this information and want to start discussions with others or respond to request. Salesmen: - are the arch persuaders, people who will not accept "no" for an answer and are always looking for an opportunity to get their message across to someone else.

From previous question: He identifies those who are well connected, knowledgeable, or persuasive as:

Informational groups influence: - Is when a consumer uses the reference group to actively get information from opinion leaders or expert groups. Here you're influenced by the information. - Example: for buying especially expensive products we seek out for information to help our choice. Utilitarian reference group influence: - Is when a person is influenced in their choice of brand by the preferences of those with whom they socialize including family members and work colleagues. Here you're influenced by the relationship, because you want to belong to the group. - Example: you buy specific clothes etc. so you feel like you belong. Value-expressive influence: - Is when someone buys a particular brand to enhance their image and because they admire characteristics of people who use the brand. - Example: buying Chanel bags because a person we admire with specific characteristics has one.

Leight(1989) recognized that reference group influence can be direct from the reference group to individual members, or indirect through an individual observing the behavior of group members and altering his/her own behavior because of it. There are 3 main mechanism of reference group influence (Park and Lessig, 1977) - what are they?

Normative conformity: - Applies when a person wants to fit in with the group or is afraid of being rejected by them and will publicly accept the group's view even is privately they do not agree, simply because standing out from the crowd can be uncomfortable. (you change both your attitude and behavior to fit in with the group) Informational conformity: - Occurs when someone actively looks for guidance from the group where they lack knowledge or are in an ambiguous situation. Compliance: - Refers to publicly changing behavior to fit in with the group but privately disagreeing, i.e. a behavioral shift without an attitudinal one. (you just change your behavior but not your attitude to fit in with the group) Internalization: - Involves both attitudinal and behavioral change in favor of the group.

Mann (1969) identified 4 types of conformity. What are they?

Reward power: - May be present when a person responds to the influence of the group and is rewarded in some way. Coercive power: - Means that conformity to the group is brought about through the threat of punishment. Legitimate power: - Is where the referent is seen to have authority by virtue of their position in the particular context. In advertising, legitimate power is. Sometimes attempted through the use of actors wearing white coats in ads for products such as dental hygiene or cosmetics. Expert power: - Is when we are influenced to behave or purchase something by someone who we recognize has particular expertise, for example, a doctor or scientist. Referent power: - Similar, although the influence stems from our admiration of the qualities of a person, and how we try to imitate those qualities by copying their behavior. Informational power: - Is based on logical argument and knowledge which someone may have acquired from experience or through the nature of their job.

Raven (1993) developed the social power framework to provide a more elaborate understanding of how power influences people. What 6 different kinds of power are there? BONUS: Raven highlighted the importance of recognizing how these forms of power can be personal or impersonal in character. Explain the difference between personal and impersonal.

Are those groups that are used by a person as a basis for comparison and guidance when forming their beliefs, attitudes, and behaviours. Reference groups were first defined by Hyman (1942) as reference points which refered to individuals use of evaluation their situation. Park and Lessig (1972) developed the concept to include an actual or imaginary institution, individual or group conceived as having significant relevance upon an individual's evaluations, aspirations or behavior.

Reference groups

Formal groups: - one that is usually formed by some kind of outside structure and is likely to have a formalized constitution and set of rules of conduct for members. Informal groups: - is formed by individuals who have some sort of commodity but no formal connection to each other.

Reference groups are also classified as formal or informal. What's the difference?

Lazarsfeld et al. (1944) studies the US presidential election in the year of 1940, found that the media had little influence on the public, but rather influences flowed from the media to opinion leaders who then passed on information to a broader public. This became known as the two-step flow of communication and was also tested in consumer behavior by Katz and Lazarsfeld (1955).

What is the two-step flow of communications? See page 283 for model.