Chapter 7

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summarize the types of degree of reference group influence

-informational influence: occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information -normative influence: aka utilitarian influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction -identification influence: aka value-expressive influence, occurs when individuals have internalized the group's values and norms the degree of conformity to to group is a function of 1) visibility to the situation 2) the level of commitment the individual feels to the group 3) the relevance of the behavior to the functioning of the group 4) the individual's confidence in his or her own judgement in the area 5) the level of necessity reflected by the nature of the product

Adoption process

1) awareness - problem recognition 2) interest - information search 3) evaluation - alternative evaluation 4) trial - purchase 5) adoption - post-purchase evaluation

Two-step flow of communication

Marketing Activities ------> Relevant market segments

online community

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

Discuss consumption subcultures, including brand and online communities and their importance for marketing

a consumption subculture is 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 3) unique jargon, rituals, and modes of symbolic expression a brand community is 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 brand communities can add value to the ownership of the product and build intense loyalty an online community is a community that interacts overtime around a topic of interest on the Internet. Online communities have evolved over time to include online social network sites online social network sites: 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 3) view and traverse their list of connections and those made by others within the system

reference group

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

Explain reference groups and the criteria used to classify them

a reference group is 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

online social network site

a 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 3) View and traverse their list of connections and those made by others within the system

innovation

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

community

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

discuss within-group communications and the importance of word-of-mouth communications to marketers

communication within groups is a major source of information about certain products. information is communicated within groups either directly through word-of-mouth communication or indirectly through observation. WOM via personal sources such as family and friends is trusted more than marketer-based messages and . can therefore have a critical influence on consumer decisions and business success. 2/3 of all consumer product decisions are thought to be influenced by WOM. Negative experiences are a strong driver of negative WOM for all consumers

customer reviews

customers ranking and opinions on products customer reviews and review functionality on a website can be a critical marketing tool

consumption subculture

distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand or consumption activity these groups have 1) identifiable, hierarchical social structure 2) set of shared beliefs or values 3) unique jargon, rituals, and modes of symbolic expression

primary groups

ex. family and friends -Strong ties and frequent interaction -Considerable influence

secondary groups

ex. professional and neighborhood associations - Weaker ties - Less-frequent interaction

buzz

exponential expansion of word-of-mouth (WOM)

innovators

first to adopt an innovation (first 2.5%) -venturesome risk takers -capable of absorbing the financial and social costs of adopting an unsuccessful product -cosmopolitan in outlook and use other innovators rather than local peers as a reference group -tend to be younger, better educated, more socially mobile than peers -extensive use of commercial media, sales personnel, and professional sources in learning new products

enduring involvement

greater long-term involvement with the product category than the non-opinion leaders in the group -leads to enhanced knowledge about and experience with the product category and activities

discuss innovation diffusion and use an innovation analysis to develop marketing strategy

groups greatly affect the diffusion of innovations. Innovations vary in degree of behavioral change required and the rate at which they are diffused. 1) Innovators: first purchasers of an innovative product or service 2) early adopters 3) early majority 4) late majority 5) laggards each of these groups differs in personality, age, education, and reference group membership. these characteristics help marketers identify and appeal to different classes of adopters at different stages of an innovation's diffusion the time it takes for an innovation to spread from innovators to laggards is affected by several factors 1) nature of the group involved 2)type of innovation decision required 3) extent of marketing effort 4) strength of felt need 5) compatibility of the innovation with existing values 6) relative advantage 7) complexity of the innovation 8) ease in observing usage of the innovation 9) ease in trying the innovation 10) perceived risk in trying the innovation

Adopter Categories

groups that have been formed that divide adopters of any given innovation into five groups based on the relative time at which they adopt 1) innovators 2) early adopters 3) early majority 4) late majority 5) laggards

dissociative reference group

groups with negative desirability teenagers avoid clothing styles that are associated with older consumers

word of mouth communication (WOM)

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

market mavens

individuals who are general market influencers. they have information about many different kinds of products, places to shop, and other aspects of market. Internet Mavens describe their online counterparts

laggards

locally oriented and engage in limited social interaction -tend to be relatively dogmatic and oriented toward the past -adopt innovations only with reluctance

late majority

members are skeptical about innovations -adopt in response to social pressures or 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

Twitter

micro-blogging tool, quickly growing, consumers can post complaints or information requests, companies can use promoted tweets

brand community

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

aspiration reference groups

nonmembership groups with positive attraction -individuals will buy products thought to be used by a desired group in order to achieve actual or symbolic membership in the group

normative influence

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

informational influence

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

identification influence

occurs when individuals have internalized the group's values and norms

viral marketing

online "pass-it-along" strategy. it uses electronic communications to trigger brand messages throughout a widespread net-work of buyers

Understand opinion leaders (both online and offline) and their importance to marketers

opinion leaders: highly knowledgable about specific products or activities and are seen as the "go-to person" for specific types of information. These individuals actively filter, interpret, and 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 a special type of opinion leader is market mavens. Market Mavens 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 marketers attempt to identify opinion leaders primarily through their media habits and social activities. Identified opinion leaders then can be used in marketing research, product sampling, retailing/personal selling, advertising, and creating buzz. Online strategies include viral marketing, blogs, and Twitter

blogs

personalized journals where people and organizations can keep a running dialogue

asch phenomenon

study where person was in a group and asked to say which lines were the same length. plants said the wrong answer, and the actual person being studied thought he was wrong and let the group change his mind

early majority

tend to be cautious about innovations -adopt sooner than most of their social group but after the innovation has proved successful -socially active but seldom leaders -tend to be somewhat older, less educated, less socially mobile than early adopters -relies heavily on interpersonal sources of information

early adopters

tend to be opinion leaders and in local reference groups -successful, well educated, younger than peers -willing to take calculated risks but concerned with failure -use commercial, professional, and interpersonal information sources -provide info to each other

diffusion process

the manner in which innovations spread throughout a market

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


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