Consumer Behavior Chapter 11 (Groups and Social Media)

Social Loafing

Tendency for people in a group to exert less effort when pooling their efforts toward attaining a common goal than when individually accountable

Viral Marketing

The Strategy of getting visitors to a Web Site to forward information on the site to their friends in order to make more consumers aware of the product (online communities participation, crowd power, network effect etc.)

Social Power (type)

The capacity to control, alter, or influence the behavior of another person.(make someone else do something regardless if they want to or not)

Group Cohesiveness

The degree to which members of a group are attracted to each other and how much each values his membership in this group

folksonomy

The result of personal free tagging of information and objects. The tagging is done in a social environment.

Informational Influence (reference groups)

These individuals seek info about various brands, observing a seal of approval, what experts do, who work with a product.

Tribal Marketing Strategy

companies who are more youth-oriented, link their products to other groups.

Market maven

consumer who spreads information about all types of products and services that are available in the marketplace (aware of marketplace)

Name-letter effect

feel more positive to things that are similar to your name

Consumer Tribe

group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or product

two step flow model of influence

proposes that a small group of influencers disseminate information since they can modify the opinions of a large number of other people.

Avoidance Group

reference groups that exert a negative influence on individuals because that are motivated to distance themselves from group members

Risky shift effect

refers to the observation that group members tend to consider riskier alternatives after the group discusses an issue than they would if each member made their own decision without talking about it with others.

Mere exposure

the likelihood of developing positive evaluations of stimuli increases with repeated exposures (like people if we see them more often)

Negative Word-of-mouth

the passing on of negative experiences involved with products or services by consumers to other potential customers to influence others' choices

Comparative Influence

the process whereby a reference group influences decisions about specific brands or activities

Collective Value Creation

the process whereby brand community members work together to develop better ways to use and customize products

Decision Polarization

the process whereby individuals' choices tend to become more extreme, in either a conservative or risky direction, following group discussion of alternatives

Sociometric methods

trace communication patterns among members of a group (most precise method)

3 Themes for Negative WOM

1)Injustice - ruthless talk about contacting company 2)Identity - characterize the violator as evil but just incompetent 3)Agency - website creators try and create a website to change the status quo

Reward Power (type)

A form of organizational power resulting from a manager's authority to provide rewards for staff members.

Referent Power (type)

A form of power that derives from attraction to the leader (admires qualities of a person or group such as cars, clothing)

Expert Power (type)

A form of power that stems from having expertise in a particular area

Reference Group

A group in society that influences an individual's purchasing behavior

surrogate consumer

A person whom we retain to provide input into our purchase decisions. (stockbrokers, professional shoppers) guides what we buy

Normative Influence

A phenomenon that occurs when another person's behavior provides information about what is appropriate

Coercive Power (type)

A power base that is dependent on fear of the negative results from failing to comply (influenced by someone because of social or physical intimidation

Brand Community

A specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use

Deindividuation

A state in which an individual in a group experiences a weakened sense of personal identity and diminished self-awareness.

Information Power (type)

A type of marketing channel power that occurs if the channel member exerting the power has information that the other channel member wants or needs and can therefore get them to do what they want.(person has power because other want to know something)

Conformity

Change in beliefs or actions as a reaction to real or imagined group pressure (affecting-cultural pressures, fear of deviance, commitment, group characteristics(size, expertise), susceptibility to interpersonal influence)

Membership Reference Group

Consist of people we actually know in group of society that influences a consumer's behavior

Value-expressive influence

Individual feels that the product they have will enhance their image and those who purchase it will possess characteristics that they would like. (person is admired and show what they would like to be)

Utilitarian Influence (ref groups)

Individual satisfies expectations of others, and is influenced by other with who they socialize with. (This includes family members)

Norms

Informal rules that govern behavior

Legitimate Power (type)

Is derived from a position of authority inside the organization and is sometimes referred to as "formal authority" (grant power by virtue such as police officer, soldiers)

Propinquity

Nearness in place or time; kinship (opportunities for interaction increase)

Opinion Leader

Person who is frequently able to influence others' attitudes or behaviors (experts, unbiased evaluation, socially active, similar to consumer, among first to buy)

Word-of-Mouth (WOM)

Product information transmitted by individuals to individuals. (reliable form of marketing) social pressure to conform. 2/3 of all sales and is powerful when unfamiliar with product

Social Object Theory (characteristics of online communities)

Suggests that social networks will be more powerful communities if there is away to activate relationships among people and objects.

Home Shopping Party

a company representative makes a sales presentation to a group of people who gather at the home of a friend or acquaintance.

Aspirational Reference Group

a group that someone would like to join (but we dont know)

Influence Impressions

brand-specific mentions on social media posts

Brandfests

organized events that community-oriented companies (Jeep, Harley) sponsor (ex: Saturn fan reunion)