Marketing 3150 Chapter 7 (Group Influences on Consumer Behavior)

Opinion Leader

"Go to" person for specific types of information. These individuals actively filter, interpret, or provide product an brand-relevant information to their family, friends, and colleagues.

Direct WOM

(1) One individual seeks information from another or (2) when on individual volunteers information.

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. The groups have (1) identifiable, hierarchical social structure (2) a set of shared beliefs or values (3) unique jargon, rituals, and modes of self-expression. Reference groups for their members as well as those who aspire to join/avoid them. Can be on local or national levels. ex: hip hop

Reference Group

A group whose presumed perspectives or values are being used by an individuals as the basis for his or her current behavior.

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.

High Involvement

A purchase situation in which the purchaser hs limited product knowledge about an important decision.

Innovation

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

Stimulation

Can create WOM and involve themes designed to encourage current owners to talk about the brand (tell a friend about) or prospective owners to ask current owners (ask someone who owns one) about their impressions. Ads can attempt to stimulate WOM by creating interest and excitement. Have to have a knowledge on opinion leaders to stimulate them.

Community

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

Primary groups

Examples of these groups are family and friends, involve strong ties and frequent interaction. Often wield considerable influence.

Secondary groups

Examples of these groups are professors and neighborhood associations, involve weaker ties and less frequent interaction.

Buzz

Exponential expansion of WOM. It happens when "word spreads like wildfire" with no or limited mas media advertising supporting it. example: Beanie Babes, Pokemon

Adoption process

Extensive decision making when a new product is involved.Stages of the adoption process are: (1) Awareness (2) Interest (3) Evaluation (4) Trial (5) Adoption Steps in extended decision making include: (1) Problem recognition (2) Information Search (3) Alternative Evaluation (4) Purchase (5) Post purchase

Dissociative reference groups

Groups with negative desirability. Can influence behavior just as do those with positive desirability. Example: Some teenagers tend to avoid clothing styles associated with older consumers.

Sampling aka Seeding

Involves getting a sample of a product into the hands of a group of potential consumers. Can be potent WOM tool for opinion leaders.

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. These opinion leaders process this information an transmit their interpretations of it to some members of the group. (More processes discussed on page 233).

Enduring Involvement

Leads to enhanced knowledge about and experience with the product category or activity. The most salient characteristic of opinion leaders is greater long-term involvement with the product category than the non-opinion leaders of the group. This makes opinion leaders possible.

Guerrilla Marketing

Marketing with a limited budget using nonconventional communications strategies. Its about making an "intense connection with individuals and speeding up the natural word of mouth process. Buzz is a key aspect of this marketing.

Aspiration reference groups

Nonmembership groups with a positive attraction. Also exert a strong influence. Individuals frequently purchase products though to be used by a desired group in order to achieve actual or symbolic membership in the group.

Normative influence aka Utilitarian Influence (nature of reference groups)

Occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction. Example: You may avoid wearing the latest fashion for fear of being teased by friends.

Informational Influence (nature of reference groups)

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

Identification Influence aka Value-Expressive Influence (nature of reference groups)

Occurs when individuals have internalized the group's values and norms.

Spread

Refers to purchase behavior in which the product is purchase with some degree of regularity.

Strength of Social Tie

Refers to the closeness and intimacy of the group linkages

Attraction

Refers to the desirability that membership in a given group has for the individual. This can range from negative to positive

E-Influencials

Similar to Influentials, represent about 10% of the adult online community, but their influence is extensive as they communicate news, information, and experiences to a vast array of people both online and offline through various venues.

Influenctials

Similar to market mavens. Represent about 10% of the population and have broad social networks that allow them to influence the attitudes and behaviors of the other 90% of the population.

Diffusion Process

The manner in which innovations spread thorughout the market.

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. Too simplistic to account for most forms of communication.

Indirect WOM

Through observation as a by-product of normal group interaction.

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.

Online social network site

Web-based service that allows individuals to (1) construct a public or semipublic profile within the 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. Ex: Facebook, YouTube Twitter, NASCAR (for events), Toyota Friend (for corporate or brand).

Asch Phenomenon

When naive subjects almost always agrees with the incorrect judgement of others. See more on page 229.

Word of mouth (WOM) communications

involves individuals sharing information with other individuals in a verbal form, including face-to-face, phone, and the internet. Two-thirds of all consumer product decision are influenced by WOM.