Group InfluenceGroup Influence

Chapter 12

Group Influence

The meaning of groups

Two or more individuals who Share a set of norms, values or beliefs Have certain role relationships Experience interdependent behavior

A social system in which members Have regular contact Act cooperatively Share common goals

Importance of groups

Play an important role in consumer socialization

The process by which we acquire the skills, knowledge and attitudes necessary to function as consumers

As consumers we learn to think and behave according to society’s expectations as modeled by the groups we interact with

Types of social groups

Primary groups: small and intimate groups we come together with frequently and face-to-face

Secondary groups: less intimacy and personal interaction

Key difference is the extent of influence over one’s attitudes, beliefs, behavior, etc.

Formal groups: organized, hierarchical groups where structure is defined, roles delineated, etc.

Informal groups: often emerge from formal groups, but may also emerge between neighbors, friends, etc.

Roles

Patterns of behavior expected of individuals within a given social context

May develop in one of three ways1. Formal role definitions prescribed by the group

2. Informal rules of the group

3. History of prior experiences

Roles influence consumption behavior A role-related product cluster is a set of

goods necessary to play a given role

Status

The relative position of a person in a group’s social spectrum

Consumers often purchase goods and services appropriate to their status within a group

Reference groups

Any person or group that serves as a point of comparison (reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior

Reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions

Types of reference groups

Normative: groups that influence general or broadly defined values or behavior

Comparative: groups that benchmark specific or narrowly defined attitudes or behaviors

Indirect: individuals or groups with whom a person does not have direct contact, such as movie stars, sports heroes, celebrities, political leaders, etc.

Membership reference groups Aspirational reference groups Dissociative reference groups

Factors that affect reference group influence Degree of influence a reference group

exerts on a consumer’s actions depend on several factors:

1. Nature and extent of consumer’s information and experience

2. Credibility, attractiveness, and power of the group

3. Conspicuousness of the product

1. Consumer’s information and experience Greater the consumer’s access to information

about or experience with a product, the less likely it is that he or she will be influenced by the advice or examples of others

2. Credibility, power and attractiveness of the reference group Direct relationship between these factors and

the influence the group wields Consumers are more likely to be persuaded

by those whom they consider trustworthy and knowledgeable—i.e., high credibility

Consumers who are concerned with the power that a group can exert over them might choose products or services that conform to the norms of that person or group

Consumers who are concerned with the acceptance or approval of others they like or identify with are likely to adopt their product, brand, or other behavioral characteristics

3. Conspicuousness of the product A purchase that will stand out and be noticed

is more likely to be made with the reaction of a reference group in mind

Particularly true for luxury and status-revealing purchases

Implications for marketing Marketers who employ reference group influence

must understand that consumers have multiple reference groups

Different groups may influence consumer purchases in different areas

Marketers must first identify the types of groups that consumers are likely to refer to when making a purchase

Then they are in a position to select appropriate influencers to deliver the marketing message

Selected consumer-related reference groups There is a large and diverse range of

groups that have the potential to influence consumer behavior; we will look at four:

1. Friendship groups

2. Shopping groups

3. Work groups

4. Consumer action groups

1. Friendship groups

Generally considered informal groups Next to family, considered the most likely to

influence individual’s purchase decision Seeking and maintaining friendships is a basic drive

of most people Opinions and preferences of friends are an

important influence in determining the products and brands a consumer selects

Marketers recognize this and often depict friendship situations in their ads, especially for products such as clothing, snack foods and alcoholic beverages

2. Shopping groups

Two or more people who shop together A range of reasons

1. Social--to share time together

2. Risk reduction--to have a second opinion

3. Informational--others in the group may know more about certain products

3. Work groups

The workplace actually creates two different types of group: formal and informal

Formal work groups involve individuals who work together as a team and thus there is an opportunity for influencing each other’s consumption-related activities

Informal work groups are people who have become friends through their work, though they may not work as a team

4. Consumer action groups

Today there are many groups whose purpose is to provide information and assistance to consumers

Several different types Public vs. private Single-issue vs. broad-based Temporary vs. permanent

Reference group appeals

Four very common and effective reference group appeals used by advertisers include

1. Celebrity appeals

2. Expert appeals

3. Common-man appeals

4. Executive appeals

1. Celebrity appeals Celebrities represent an idealization of life that

most people imagine they would love to live Four ways in which celebrities are used to promote

products1. Testimonial: based on personal usage, a celebrity

attests to the quality of the product2. Endorsement: celebrity lends name and appears

on behalf of a product (may not be an expert)3. Actor: celebrity presents a product through his or

her character4. Spokesperson: celebrity represents the brand or

company over an extended period of time

Celebrity appeals work only if the person is perceived as credible

The more products a celebrity is associated with, the more credibility erodes

2. Expert appeals

A person who, because of his or her occupation, training or experience is in a unique position to help consumers evaluate a product or service

3. The common man appeal

Uses the experiences of satisfied customers Consumers can easily identify with them Especially effective in public health

announcements Commercials that show individuals or families

solving problems by using the advertised product are called slice-of-life commercials because they focus on real issues that consumers can identify with

4. The executive spokesperson Became popular in last 20 years as CEO’s

became better known to the public As with celebrities, success depends on

public perception of the spokesperson’s credibility