Consumer Behavior chapter 8
public necessity
(blue jeans, automobile) weak group influence for product selection; strong group influence for brand selection.
public luxury
(golf clubs, sailboat) strong group influence for product selection; strong group influence for brand selection
private luxury
(hot tub, pool table) strong group influence for product selection; weak group influence for brand selection.
private necessity
(refrigerator, blankets) weak group influence for product selection; weak group influence for brand selection
emerging trends in family structure and some marketing implications.
- "boomerang" kids - "non- traditional" household arrangements - blended families - single parent households - single person households
children influence a variety of purchases
- 93% influence what kind of jeans parents purchase for them - 89% influence what kind of cookies, desserts, soda, chips and cereal are purchased for the household - 61% helped parents decide kind of family car to buy
Affect Individual Behavior
- Deindividualism - social loafing - risky shift - decision polarization bandwagon effect
encourage spreading wom
- individual is highly involved with the product and it is relevant to their self-concept - individual is highly knowledgeable about the product - individual has a genuine concern for someone else - individual is very satisfied or dissatisfied with the product/service
when and how do reference groups exert influence?
- influence likelihood and speed with which information will be transmitted among members - influence the credibility given to information received from the group - weak ties often serve as connections or bridges that connect different groups
various household purchase roles played by various household members.
- influencer - gatekeeper - user - decision maker - purchaser
Negative Word-of-mouth
- is weighted more heavily by consumers than positive comments. - has been shown to reduce the credibility of a firm's advertising. - may influence consumers' attitudes toward a product as well as their intention to buy it. - rumors are the chief form of negative wom. rumors can and have resulted in boycotts of products, companies, or services.
factors influencing joint or individual family decisions
- sex-role orientation - spousal resources - socioeconomic status - experience
encourage seeking wom
- uncertainty about a recent purchase - lack of knowledge about the product category or specific brands
children influence
A. children's influence on purchase decisions increases as they age B. children have less influence in conservative "authoritarian" households C. working and single parents are more likely to "give in" to children due to time pressures D. children are more likely to have direct decision control in in "permissive" and "neglectful" families E. children are more likely to influence decisions in "democratic" and "permissive" households
dissociative (avoidance) groups
GROUPS TO WHICH AN INDIVIDUAL DOES NOT WANT TO BELONG OR BE ASSOCIATED WITH.
informal
GROUP THAT HAS NO MEMBERSHIP OR APPLICATION REQUIREMENTS AND IT MAY HAVE NO CODES OF CONDUCT.
Primary
GROUP THAT INCLUDES MEMBERS WHO HAVE FREQUENT, DIRECT CONTACT WITH ONE ANOTHER.
secondary
GROUP TO WHICH A CONSUMER BELONGS IN THIS CONTACT IS LESS FREQUENT THAN THAT FOUND IN A PRIMARY GROUP.
formal
GROUP TO WHICH A CONSUMER FORMALLY BECOMES A MEMBER AND WHICH GENERALLY HAS A SET OF STATED RULES, VALUES, AND CODES OF CONDUCT THAT MEMBERS ARE EXPECTED TO ADHERE TO.
associative (membership) groups
GROUPS COMPOSED OF PEOPLE WE KNOW AND WHICH WE ACTUALLY BELONG TO.
aspirational groups
GROUPS TO WHICH AN INDIVIDUAL DESIRES TO BECOME A MEMBER OR LOOKS UP TO AND ADMIRES ITS MEMBERS.
Reference group
INDIVIDUALS WHO HAVE SIGNIFICANT RELEVANCE FOR A CONSUMER, PROVIDE A BASIS FOR COMPARISON, AND HAVE AN IMPACT ON THE CONSUMER'S EVALUATIONS, ASPIRATIONS, AND BEHAVIOR.
Online Social Network
a computer mediated portal that allows consumers to post information about themselves, their hobbies, their interest, and the products they enjoy.
group influence
WAYS IN WHICH GROUP MEMBERS INFLUENCE ATTITUDES, BEHAVIORS, AND OPINIONS OF OTHERS WITHIN THE GROUP.
referent power
a customer admire the qualities of a group and emulates their behavior as a way to identify with the group. example: a new resident desires to join the local rotary club
reward power
a group has the power to reward members for various behaviors. example: sports teams give mvp honors to a team member.
coercive power
a group has the power to sanction member for failing to follow expectations or rules. example: a college football player is kicked off the team for using illegal substances.
stealth marketing
a guerrilla marketing tactic that is similar to buzz marketing, but consumers are completely unaware that they are being marketed to.
conformity
a result of group influence in which an individual yields to the attitudes and behaviors of others (the tendency for an individual to behave as the group behaves).
tie strength
a strong tie means that two (or more) people are connected by a close, intimate relationship
degree of contact
amount/frequency of contact
Size of group
as the group gains size and power, it becomes harder to resist at the individual level
bargaining
based on the idea of negotiation and fair exchange
Household life cycle
combines trends in income and family composition with the changes in demands placed upon this income. a family's stage is determined by (1) age of parents, (2) marital status, (3) presence and ages of children.
Utilitarian (normative) Influence
consumers conform to group expectations to receive a reward or avoid punishment. when group "norms" influence group member behaviors and attitudes.
Value-expressive Influence
consumers internalize a group's values or join groups to express their own values and beliefs.
Informational influence
consumers use the behaviors and attitudes of reference groups as information into making their own decisions.
group density
dense groups are those in which members all know one another.
syncratic decisions
decisions made jointly
homophily
degree of similarity among members
product involvement and utility
degree to which a product in question will be used by or satisfy a family member
reactance
doing the opposite of what an individual or group wants us to do.
compliance
doing what someone asks us to do.
Brand Communities
groups of consumers who develop relationships based on shared product interests or use.
task specialization
each spouse is responsible for certain decisions
autonomic decisions
equally likely to be made by either spouse
expert power
groups possess knowledge that members, or aspirant members, desire to gain. example: consumers seek out groups that have health related information such as the american dental association.
responsibility
for procurement, maintenance, payment, etc
Formality
formal groups provide an identifiable target for marketers' efforts.
Word - of - mouth
information about products and services is actually conveyed by individuals on an informal basis
autocratic decisions
made by one spouse or the other
conflict
occurs when there is not complete correspondence in family members' needs and preferences.
power
one family member's influence over the others in making decisions
consession
one party gives in on some points in other to get what he or she wants in other areas.
interpersonal needs
person's level of investment in the group
homophily, degree of contact, attractiveness, degree of identification, tie-strength, and density are important because
reference-group influence tends to be stronger among similar people who know, associate with and relate to each other and have strong feelings toward one another.
legitimate power
specific agreements are made regarding group membership and the punishment for nonconformity is understood. example: bosses have legitimate authority over their employees
social power
the ability of an individual or a group to alter the actions of others.
Expertise of group
the group possesses specialized and valued knowledge
degree of identity
the influence of a group is affected by the extent to which we identify with it.
guerrilla marketing
the marketing of a product using unconventional means.
consumer socialization
the process by which young consumers develop skills that help them function in the marketplace. - parents and media the most important socializing agents
concessions based on intensity
the spouse with the strongest feelings gets his/her way
viral marketing
uses online technologies to facilitate wom by having consumers spread marketing messages through their online conversations.
Brand-choice congruence
when members of a group tend to buy the same types of products.
buzz marketing
• includes marketing efforts that focus on generating excitement that is spread from consumer to consumer.
