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PART II: EXTERNAL INFLUENCESPART II: EXTERNAL INFLUENCES
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CHAPTERCHAPTER
77GROUPGROUP
INFLUENCESINFLUENCESON CONSUMERON CONSUMER
BEHAVIORBEHAVIOR
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Consumer Behavior In The NewsConsumer Behavior In The News
What are the top 5 brands in terms of Word of MouthWhat are the top 5 brands in terms of Word of Mouth
(WOM) in the U.S.?(WOM) in the U.S.?
How has the internet aided WOM?How has the internet aided WOM?
Source: M. Fielding, Talk of the Town, Marketing News, September 1, 2006, p. 4.7-3
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Consumer Behavior In The NewsConsumer Behavior In The News
What are the top 5 brands in terms of Word of MouthWhat are the top 5 brands in terms of Word of Mouth
(WOM) in the U.S.?(WOM) in the U.S.?
ToyotaToyota
Wal-MartWal-Mart
HondaHonda
iPodiPod
ChevroletChevrolet
How has the Internet aided WOM?How has the Internet aided WOM?
The Internet allows for easy WOM in the form of e-mail,The Internet allows for easy WOM in the form of e-mail,
blogs, etc., that can create buzz.blogs, etc., that can create buzz.
Source: M. Fielding, Talk of the Town, Marketing News, September 1, 2006, p. 4.7-4
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Reference Group InfluenceReference Group Influence
A groupgroup 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.
A reference groupreference group is a group whose presumed
perspectives or values are being used by an individual as
the basis for his/her current behavior.
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Reference Group InfluenceReference Group Influence
Four criteria that are particularly useful in classifying groupsgroups:
1.1. MembershipMembership
2.2. Strength of Social TieStrength of Social Tie
3.3. Type of ContactType of Contact
4.4. AttractionAttraction
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Types of GroupsTypes of Groups
Consumption SubculturesConsumption Subcultures
Identifiable hierarchyIdentifiable hierarchy
Set of shared beliefs and valuesSet of shared beliefs and values
Unique jargon and ritualsUnique jargon and rituals
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Types of Groups
Brand communitiesBrand communities can add
value to the ownership of the
product and build intense
loyalty.
When a consumer becomes
part of a brand community,
remaining generally requires
continuing to own and use thebrand.
This can create intense brand
loyalty!
Brand CommunitiesBrand Communities
Jeep has a longstanding loyal brand communityJeep has a longstanding loyal brand community
Click the online button to link to theClick the online button to link to the
Jeep Jamboree Web siteJeep Jamboree Web site
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Types of GroupsTypes of Groups
Online CommunityOnline Community
Community interacts around a topic of interest on theCommunity interacts around a topic of interest on the
InternetInternet
Online Social Network SitesOnline Social Network Sites
MySpaceMySpace
TwitterTwitter
YouTubeYouTube
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Types of GroupsTypes of Groups
Four Guiding PrinciplesFour Guiding Principles
Be transparentBe transparent
Be part of the communityBe part of the community
Adapt efforts to fit nature of siteAdapt efforts to fit nature of site
Take advantage of the unique capabilities of each venueTake advantage of the unique capabilities of each venue
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Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption Process
Types of Reference Group InfluenceTypes of Reference Group Influence
Situational determinants of Reference Group InfluenceSituational determinants of Reference Group Influence
Brand vs. Product Class InfluenceBrand vs. Product Class Influence
Marketing Strategy and Reference GroupsMarketing Strategy and Reference Groups
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Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption Process
Reference group influence can take three forms:
1.1. Informational InfluenceInformational Influence
2.2. Normative Influence (a.k.a. utilitarian influence)Normative Influence (a.k.a. utilitarian influence)
3.3. Identification Influence (a.k.a. value expressive)Identification Influence (a.k.a. value expressive)
Types of Reference Group Influence
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Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption ProcessConsumption Situation Determinants of Reference Group InfluenceConsumption Situation Determinants of Reference Group Influence
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Reference Group Influences on theReference Group Influences on the
Consumption ProcessConsumption ProcessDifferential Reference Group Influence onDifferential Reference Group Influence on
Product Versus Brand ChoiceProduct Versus Brand Choice
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WOMWOM
Opinion LeadersOpinion Leaders
Market Mavens, Influentials, and e-fluentialsMarket Mavens, Influentials, and e-fluentials
Marketing and Online StrategiesMarketing and Online Strategies
Communications within Groups and
Opinion Leadership
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Communications within Groups and
Opinion LeadershipWOM Versus Advertising
(% who put people vs. advertising as best source)
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Communications within Groups and
Opinion LeadershipOpinion Leaders
An opinion leaderopinion leader is the go to person for specific types
of information. This person filters, interprets, and
passes along information.
Opinion leaders possess enduring involvement for
specific product categories. This leads to greater
knowledge and expertise.Opinion leadership is category specific an opinion
leader in one product category is often an opinion
seeker in others.
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Communications within Groups and
Opinion Leadership
Mass Communication Information FlowsMass Communication Information Flows
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Communications within Groups and
Opinion Leadership
1. Individual seeks
information from
another or
2. Individual volunteers
information
Situations in Which WOM and Opinion Leadership Occur
The exchange of advice and information between group members
can occur directly via WOM in the following situations:
Likelihood of Seeking an Opinion LeaderLikelihood of Seeking an Opinion Leader
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Communications within Groups and
Opinion Leadership
Mavens, Influentials, and e-fluentialsMavens, Influentials, and e-fluentials
1. A market mavenmarket maven is a generalized market influencer who
provides significant amounts of information about various
products, places to shop, and so on.
2. Roper Starch identifies a group similar to market mavens
called influentialsinfluentials. Influentials are 10% of population but
use broad social networks to influence the other 90%!
3. Roper Starch identifies a group similar to internet market
mavens called e-fluentials.e-fluentials. They wield significant online
and offline influence. 7-20
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Communications within Groups and
Opinion Leadership
Marketing Strategy, WOM, and Opinion Leadership
Marketers are increasingly relying on WOM and
influential consumers as part of their marketing
strategies. Strategies designed to generate WOM andencourage opinion leadership include:
1.1. AdvertisingAdvertising
2.2. Product SamplingProduct Sampling3.3. Retailing/Personal SellingRetailing/Personal Selling
4.4. Creating BuzzCreating Buzz
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Applications in Consumer Behavior
Marketing Strategy, WOM, and Opinion LeadershipMarketing Strategy, WOM, and Opinion Leadership
AdvertisingAdvertising can
stimulate and
simulate WOM and
opinion leadership.
This ad would likely stimulate WOM via interest and excitementThis ad would likely stimulate WOM via interest and excitement
Christopher Kerrigan
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Communications within Groups and
Opinion Leadership
Online Strategies to Leverage Buzz and WOM
Viral marketingViral marketing is an online pass-it-along strategy,
utilizing electronic communication to trigger brand
messages (often via email) throughout a widespreadnetwork of buyers.
Consumer review sitesConsumer review sites provide consumer product and
service reviews in a host of different formats.
BlogsBlogs are personalized journals where people and
organizations can keep a running dialogue.
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Applications in Consumer Behavior
Example of Online Viral Marketing CampaignExample of Online Viral Marketing Campaign
Courtesy of Hershey Corporation.
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Diffusion of InnovationsDiffusion of Innovations
An innovationinnovation is an idea, practice, or product perceived to be
new by the relevant individual or group.
The manner by which a new
product spreads through amarket is basically a group
phenomenon.
New products can be placed
on a continuum from nochange to radical change,
depending on the markets
perception.
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Diffusion of InnovationsDiffusion of Innovations
Categories of InnovationCategories of Innovation
Adoption ProcessAdoption Process
Diffusion RateDiffusion Rate
Adopter CategoriesAdopter Categories
Marketing Strategies and the Diffusion ProcessMarketing Strategies and the Diffusion Process
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Diffusion of InnovationsDiffusion of Innovations
Categories of Innovations
Continuous InnovationContinuous Innovation
Adoption of this type of innovation requires relatively minor
changes in behavior(s) that are unimportant to the consumer.Dynamically continuous InnovationDynamically continuous Innovation
Adoption of this type of innovation requires a moderate
change in an important behavior or a major change in a
behavior of low or moderate importance to the individual.Discontinuous InnovationDiscontinuous Innovation
Adoption of this type of innovation requires major changes in
behavior of significant importance to the individual or group.
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Diffusion of Innovations
Adoption Process and Extended Decision MakingAdoption Process and Extended Decision Making
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Diffusion of Innovations
Diffusion Rates for Popular Consumer Electronics (Cumulative)Diffusion Rates for Popular Consumer Electronics (Cumulative)
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Diffusion of Innovations
Factors Affecting the Spread of InnovationsFactors Affecting the Spread of Innovations
Perceived RiskPerceived Risk
TrialabilityTrialability
ObservabilityObservability
ComplexityComplexity
Relative AdvantageRelative Advantage
CompatibilityCompatibility
Fulfillment ofFulfillment of
Felt NeedFelt Need
Marketing EffortMarketing Effort
Type of DecisionType of Decision
Type of GroupType of Group
Rate of DiffusionRate of Diffusion
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Diffusion of InnovationsDiffusion of Innovations
InnovatorsInnovators
Early AdoptersEarly Adopters
Early MajorityEarly Majority
Late MajorityLate Majority
LaggardsLaggards
Adopter Categories
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