Reference Groups, Social Power, and Household Decision Making

Vocabulary flashcards covering reference groups, types of social power, reference group influence categories, word-of-mouth, household decision-making roles, and product influence quadrants from the consumer behavior lecture.

Reference Groups

Individuals who have significant relevance for a consumer and impact the consumer's evaluations, aspirations, and behavior.

Group Influence

Ways in which group members influence the attitudes, behaviors, and opinions of others within the group.

Conformity

A result of group influence in which an individual yields to the attitudes and behavior of others.

Peer Pressure

The extent to which group members feel pressure to behave in accordance with group expectations.

Primary Reference Group

A group that includes members who have frequent, direct contact with one another and exert the most influence on their members.

Secondary Reference Group

A group to which a consumer belongs whose contact is less frequent than that found in a primary group, such as professional organizations and social clubs.

Brand Community

A group of consumers who develop relationships based on shared interests or product usage.

Formal Reference Group

A group that a consumer formally joins, which includes a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to.

Informal Reference Group

A group that has no membership or application requirements, where codes of conduct may be nonexistent.

Aspirational Reference Group

A group in which a consumer desires to become a member because its members appeal to the consumer's ideal self.

Dissociative Reference Group

A group to which a consumer does not want to belong, considered a type of outgroup for the consumer.

Referent Power

Social power held by someone who is looked to as a reference for the ideal personality and what an individual wants to be like.

Legitimate Power

Social power where a specific role establishes authority and requires certain behaviors to take place through the ability to set rules.

Expert Power

Social power that is derived from specialized knowledge or expertise.

Reward Power

Social power based on the ability to reward behaviors that align with expectations.

Coercive Power

A form of social power rooted in the capacity to enforce sanctions or penalize nonconforming behavior.

Informational Influence

Ways in which a consumer uses the behaviors and attitudes of reference groups as information for making his or her own decisions.

Utilitarian Influence

Ways in which a consumer conforms to group expectations specifically to receive a reward or avoid punishment.

Value-Expressive Influence

Ways in which a consumer internalizes a group's values or joins groups to express their own closely held values and beliefs.

Attention to Social Comparison Information (ATSCI)

A measure that assesses the extent to which consumers are concerned about others' reactions to their behavior.

Separated Self-Schema

A self-conceptualization of the extent to which a consumer perceives himself or herself as distinct and separate from others.

Connected Self-Schema

A self-conceptualization of the extent to which a consumer perceives himself or herself as being an integral part of a group.

Word-Of-Mouth (WOM)

Information about products, services, and experiences that is transmitted from consumer to consumer.

Organic WOM

Word-of-mouth that occurs naturally when satisfied consumers share positive experiences with others.

Amplified WOM

Word-of-mouth that occurs when an organization has input behind it and actively encourages consumers to share.

Household Life Cycle (HLC)

A segmentation technique acknowledging that changes in family composition and income alter household demand for products and services.

Sex Role Orientation (SRO)

A family's beliefs about the ways of reaching household decisions.

"Traditional" Family Household

A housing unit occupied by at least two people who are related by blood or marriage.

POSSLQ

An acronym referring to households in which people of the opposite sex share living quarters (cohabitation).

Influencer (Household Purchase Role)

The household member who initiates the purchase process by stating a perceived need.

Gatekeeper (Household Purchase Role)

The household member who controls access to funds (such as holding the credit cards) and decides whether or not the purchase will occur.

User (Household Purchase Role)

The household individual for whom the purchase is made.

Decision Maker (Household Purchase Role)

The household individual who decides on the final product to be purchased.

Purchaser (Household Purchase Role)

The household individual who physically completes the exchange to buy the actual product.

Public Necessity

A product category characterized by weak group influence for product selection but strong group influence for brand selection (e.g., blue jeans, automobiles).

Public Luxury

A product category characterized by strong group influence for both product selection and brand selection (e.g., golf clubs, sailboats).

Private Necessity

A product category characterized by weak group influence for product selection and weak group influence for brand selection (e.g., refrigerators, blankets).

Private Luxury

A product category characterized by strong group influence for product selection but weak group influence for brand selection (e.g., hot tubs, pool tables).

Market Maven

A consumer who spreads information about all types of products and services.

Surrogate Consumer

An agent hired by a consumer to provide input into a purchase decision, such as a financial planner, personal shopper, or wedding planner.

Kid Power

The increasing influence children hold over household purchases as they grow older younger.