Chapter 7 Groups & Consumer Behavior

Market mavens 234

These 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.

Innovation 238

idea practice or product perceived new by an individual or group

Adoption process 241

is basically a term used to describe extended decision making when a new product is involved

Diffusion process 242

.the manner in which innovations spread throughout a market...

Early adopters 245

2nd to try a product

Early majority 245

3rd to try a product

Late majority 245

4th to try a product

Laggards 245

Last to try a product

Aspiration reference groups 217

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

Asch phenomenon 228

Seven of the subjects are working for the experimenter, and they announce incorrect matches. The order of announcement is arranged so that the naive subject responds last. The naive subject almost always agrees with the incorrect judgment of the others. This is known as the Asch phenomenon

Consumption subculture 217

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; and (3) unique jargon, rituals, and modes of symbolic expression.

Reference group 216

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.

Identification influence 225

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

Opinion leader 232

are highly knowledgeable about specific products or activities and are seen as the "go-to person" for specific types of information. These individuals actively filter, interpret, or 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.

Blogs 238

are personalized journals where people and organizations can keep a running dialogue. Blogs can be used in several ways by marketers.

Word-of-mouth (WOM) communications 229

individuals sharing information with other individuals in a verbal form, including face-to-face, on the phone, and over the Internet.

Adopter categories 244

innovators, early adopters, laggards, early majority and late majority

Multistep flow of communication 232

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 and transmit their interpretations of it to some members of their groups. These group members also receive information from the mass media as well as from group members who are not opinion leaders. Figure 7-4 also indicates that these non-opinion leaders often initiate requests for information and supply feedback to the opinion leaders. Likewise, opinion leaders receive information from their followers as well as from other opinion leaders.

Online community 222

is a community that interacts over time around a topic of interest on the Internet. Online communities have evolved over time to include online social network sites, which are 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, and (3) view and traverse their list of connections and those made by others within the system.

Twitter 238

is a micro-blogging tool. It limits posts to 140 characters. It has evolved quickly into one of the largest and fastest-growing social media outlets. For marketers there are a number of uses for Twitter. First, as we saw earlier, consumers can post complaints or information requests to a brand's Twitter account, to which companies can respond. Second, companies can utilize a Twitter feature called Promoted Tweets. The promotion indicator (like an advertisement) shows up on the Tweet and then the Tweet itself comes up on the search results, even of those who aren't the brand's followers on Twitter. Finally, companies like Sponsored Tweets and Ad.ly are connecting brands with influential tweeters. These tweeters, often celebrities like Charlie Sheen and Kim Kardashian who have millions of followers, get paid for tweeting about specific brands, often at the rate of $1000 or more per tweet. As with regular blogs, full disclosure is an important facet of this model.

Brand community 220

is a nongeographically 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.

Viral marketing 238

is an online "pass-it-along" strategy. It "uses electronic communications to trigger brand messages throughout a widespread network of buyers." Viral marketing comes in many forms but often involves e-mail.

Community 220

is characterized by consciousness of kind, moral responsibility and shared rituals/traditions

Group 216

is defined as 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.

Enduring involvement 234

long term involvement that leads to enhanced knowledge and experience with the product or product category

Informational influence 224

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

Dissociative reference groups 217

reference groups that have a negative aspiration

Customer reviews 239

review functionality on a website can be a critical marketing tool. Amazon and others allow consumers to easily post reviews of products on their site. Given the power of WOM, this online version of WOM is a powerful decision influencer.

Normative influence 225

sometimes referred to as utilitarian influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction.

Primary groups 217

such as family and friends, involve strong ties and frequent interaction. Primary groups often wield considerable influence

Secondary groups 217

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

Buzz 237

the exponential expansion of WOM. It happens when "word spreads like wildfire" with no or limited mass media advertising supporting it

Two-step flow of communication 232

the process of one person's sharing of information from mass media to another person

Innovators 244

vary in degree of behavioral change required and the rate at which they are diffused. The first purchasers of an innovative product or service are termed innovators