Chapter 10 - Textbook

Shared consumption experience

When two or more people make consumption decisions together

Group decision-making

Choices made collectively that differ from what each person would decide alone

Diffusion of responsibility

When individuals feel less accountable in a group, leading to riskier or less effortful decisions

Decision polarization

After discussion, group opinions become more extreme in the direction they were already leaning

Deindividuation

Loss of personal identity in a group; normal restraints on behaviour are reduced

Social loafing

Putting in less effort when working or consuming in a group

Roles in group decisions

Initiator, gatekeeper, influencer, buyer, user

Initiator

Brings up the idea or identifies a need

Gatekeeper

Controls information flow and research

Influencer

Tries to sway the outcome of the decision

Buyer

Makes the purchase

User

Actually consumes or uses the product

Norms

Informal societal rules that guide acceptable behaviour

Descriptive norms

Show what most people do (e.g., “75% recycle”)

Injunctive norms

Show what behaviours are approved or disapproved of (e.g., “People approve of recycling”)

Dynamic norms

Show how behaviours are changing over time (e.g., “60% more people now reduce electricity use”)

Conformity

Changing beliefs or actions due to real or imagined group pressure

Reactance

Negative emotion from a threatened loss of freedom

Red sneakers effect

Nonconformity can increase perceived confidence or competence

Susceptibility to interpersonal influence

Tendency to be influenced by others’ opinions or approval

Principle of least interest

The person less committed to a group holds more power

You go to the movies with a friend and spend time debating what to watch. This reduced enjoyment happens because:

Shared consumption divides attention and increases decision stress

A group makes a riskier investment together than they would alone. What concept explains this?

Diffusion of responsibility

People behave more wildly at a costume party than usual. Which concept explains this?

Deindividuation

You start buying a product just because your friends do, not because you like it. What effect is this?

Bandwagon effect

Wait staff notice people in large groups tip less per person. What concept explains this?

Social loafing

In a family car purchase, who is the gatekeeper?

The person who gathers information and controls access to it.

A recycling ad says, “85% of your neighbours recycle.” What type of norm is this?

Descriptive norm

A hotel message says, “Most guests who stayed in this room reused their towels.” Why is it effective?

Links the descriptive norm to the immediate setting.

A person wears bright red shoes in a formal office and is seen as confident. What effect is this

Red sneakers effect

A person refuses to follow a trend because they want to protect their freedom of choice. What is this called?

Reactance

Reference group

Any person or group that significantly influences an individual’s evaluations, aspirations, or behaviour

Formal reference group

Large, structured group with clear organization and rules (e.g., professional association)

Informal reference group

Small, unstructured group like friends or peers that exerts strong day-to-day influence

Social identity theory

We define part of ourselves through group memberships (“we” instead of “I

Informational influence

Using a reference group for knowledge or expertise (e.g., asking friends for brand advice)

Utilitarian influence

Conforming to group expectations to gain approval or avoid disapproval

Value-expressive influence

Consuming to express values that align with a group you admire

Membership reference group

A group you belong to and interact with (e.g., family, teammates)

Aspirational reference group

A group you admire and wish to join or emulate (e.g., celebrities, athletes)

Dissociative reference group

A group you purposely avoid being associated with

Propinquity

Physical nearness increases chances of forming relationships.

Mere exposure effect

Repeated exposure increases liking

Group cohesiveness

The degree of attraction and commitment members feel toward a group.

Public vs. private consumption

Reference-group influence is stronger for public items than private ones

Luxury vs. necessity

Influence is stronger for luxuries than necessities.

Public necessity example

Car, wristwatch — weak for product, strong for brand

Public luxury example

Golf clubs, sailboat — strong for product and brand

Private necessity example

Mattress — weak for both product and brand

Private luxury example

TV — strong for product, weak for brand

Social power

Capacity to change others’ behaviour

Referent power

Influence through admiration or identification (e.g., celebrity endorsement)

Information power

Influence through access to useful knowledge

Legitimate power

Influence granted by social position or authority (e.g., uniform, title)

Expert power

Influence from skill or expertise in a specific area

Coercive power

Influence through intimidation or fear

Brand community

Group of consumers bonded by shared interest in a brand or product

Antibrand community

Group united by opposition or hatred toward a brand

Themes of antibrand communities

Injustice, identity, and agency

A person buys Nike because they admire pro athletes who wear it. Which type of influence is this?

Value-expressive influence

You buy a product because your friends will like you more if you do. What kind of influence is this?

Utilitarian influence

You ask a classmate which laptop is best for engineering and buy it based on their knowledge. What influence is this?

Informational influence

You’re drawn to your soccer team’s apparel because it feels like part of who you are. What theory explains this?

Social identity theory

You admire CEOs and buy products they use, even though you’ve never met them. What group is this?

Aspirational Reference group

You avoid wearing a rival hockey team’s jersey to prevent being linked with that fan base. What group is this?

Dissociative reference group

Which factor increases the likelihood that two people form a membership group?

Propinquity

A consumer sees an ad showing “everyday Canadians” using a product. What kind of reference-group appeal is this?

Membership appeal

A doctor in a white coat endorsing toothpaste is an example of:

Legitimate power

A YouTuber influencer gains followers by sharing inside info about upcoming tech products. This is:

Information Power

Harley-Davidson creates a riding event for owners to bond. What is this an example of?

Brand community

A group forms online to criticize Starbucks’ business practices. What is this called?

Antibrand community

Which product type will have the strongest reference-group influence on both product and brand choice?

Public luxury

Two-step flow model

Opinion leaders get info from media and pass it to others.

Information cascade

One person’s action triggers many others to copy (snowball effect)

Power user / mass connector

Highly active social-media user responsible for most brand mentions

Market maven

Broad marketplace expert; knows where and how to shop.

Surrogate consumer

Stockbroker, interior decorator, stylist, shopper.

Self-designating method

Identify opinion leaders by asking people if they see themselves as influential.

Sociometric method

Map who talks to whom to find real opinion leaders.

Tie strength

Closeness of social connection (strong = family, weak = acquaintances).

Strength of weak ties

Weak links connect groups and spread new info between them.

Word-of-mouth (WOM) communication

Informal product info shared between consumers, not from the brand.

Why WOM is powerful

Trusted, personal, and backed by social pressure to conform.

When WOM matters most

For new, unfamiliar, or complex products.

Role of WOM in adoption

Creates trust and encourages later purchase stages after awareness

Positive WOM

Encourages others to buy; boosted by genuine perks or good experiences.

Negative WOM

Damages credibility and reduces purchase intention; weighs heavier than positive WOM

Buzz marketing

Marketer-driven effort to stimulate WOM through hype and sharing

Why marketers incentivize WOM

Encourages peer promotion without direct advertising.