Consumer behaviour - Chapter 10: Group influence and social media

How are the decisions we make "collaborative”

Other people join in on the problem solving process

Requester

The person who asks

e.g. What movie should we see?

Responder

The person who responds

e.g. Let’s see Terrifier 3

What sort of decision do groups make?

Riskier and different decisions than those made alone

Caveats of group decision making

The multitude of things that need to be considered can ultimately reduce attention and consumption of an activity

Decision polarization

When people become more extreme in their decision-making during or after group discussions

Deindividuation

When one’s identity becomes submerged in a group as the restraints on normal behaviour are lessened

Bandwagon effect

When group members “cave in” to conform to group pressures

Social loafing

When people don’t dedicate much effort to a task when they’re contributing to a group effort

The roles in group decisions

• Initiator

• Gatekeeper

• Influencer

• Buyer

• User

Initiator

The person who brings up/identifies a need

Gatekeeper

The one who goes about the information search and controls what info gets to the group

Influencer

The one who sways the decision’s outcome, varies on motivation

Buyer

The one who actually purchases the product, though they may not actually use it

User

The person(s) who actually use the product

Norms

Informal rules which govern behaviour in order for a society to function

Social norms

Indicators of acceptable standards of behaviour shared by members of a group

Normative influence

The process where a reference group aids in setting and enforcing fundamental standards of conduct

Descriptive norms

Info that conveys what’s common and/or what people usually do

e.g. An ad which shows that 85% of people recycle

Injunctive norms

Info that conveys what’s commonly approved/disapproved by others

e.g. An ad which shows people approve of recycling

Dynamic norms

Sheds light on how people’s behaviour(s) change over time

e.g. Expanding efforts to reduce electricity consumption by 60% of Canadians over 5 years

What can communicating that others are engaging in a particular activity/behaviour do?

Increase compliance with said activity/behaviour

Conformity

Changes in beliefs or actions as a result of real or imagined group pressures

Unspoken norms govern many aspects of consumption that we conform to daily

Personal hygiene, giving gifts on birthdays, showing up on time to work

Reactance

When one tries to overcome the negative emotional state of perceived loss of freedom

How may one solve the conflict of wanting to be unique with the pressure to conform?

They’ll pick a popular brand (e.g. Nike) and choose a unique trait, such as colour

Red sneakers effect

People who exhibit non-conforming behaviour, which leads to positive impressions which may disappear when others are unsure of why that person’s doing what they’re doing

What influences conformity?

• Cultural pressures

• Fear of deviance

• Commitment

• Group unanimity, size, and expertise

• Environmental cues

Word-of-mouth communication (WoM)

Consumption info that gets shared amongst individuals on an informal basis

Word-of-mouth communication (WoM) [con’t]

Can be more powerful than ads put out by firms as it influences 2/3 of sales of all consumer goods

How do we use Word-of-mouth?

We rely on it for the later stages of product adoption

Negative Word-of-Mouth

It can spread more quickly/easily, and is weighed more than positive WoM

Social media

Forms of electronic communication through which users create online communities to share information, ideas, personal messages, and other content; as about online community

Nodes

Members of a network who are connected to each other via relationships (i.e. common interests, friendships, etc.)

Nodes (con’t)

Nodes within a network go through interactions

e.g. Talking to each other, going to events with each other, forging new connections, etc

Flows

The exchanges of resources, information, or influence that occur between nodes

Flows (con’t)

They may be sent to entire communities, networks, several people independently

Media multiplexity

The many directions and platforms in which flows of communication may travel

How are flows important for marketers?

They’re actionable components of any social network system in terms of the sharing of information, delivery of promotional materials, and sources of influences (similar to Word-of-Mouth)

Social object theory

An object of common theory

Object sociality

The extent of objects which can be shared

Lukers

People apart of a community who absorb content as opposed to posting their own content more often than not

What makes for an effective and working online community?

• Standards of behaviour

• Member contributions

• Degree of connectedeness

• Network effects

Megaphone effect

How the web provides a mass audience to the ordinary consumer

Why may people post on social media?

• Communicate something about our identity

• Manage the impression we make on others

• Regulate emotions

• Share and acquire information

• Entertain others

• Inspire or persuade others

Why may people post on social media? (con’t)

e.g. Arousal from physical activities (e.g. Working out) or emotions (e.g. Memes)

Dispreffered markers

Couching negative product views in softer terms to avoid looking snobbish

What happens when we share an identity-relevant product on social media?

The future purchase intentions are reduced as we’ve already fulfilled the need to share the identity aspect

Opinion leaders

People who are knowledgeable about certain types of products and can influence other people’s behaviours as a result

What traits define an opinion leader?

• Technically competent

• Possess knowledge power

• Socially active, highly interconnected

• Possess referent power

• Are often the first to buy

The two-step flow model of influence

A small group of influencers that change the opinions of many people and are thus responsible for the distribution of information

Influence network

Interactions and communications between influencers and those who are easily influenced

Generalized opinion leader

Someone whose recommendations are sought out for all sorts of products

Monomorphic

Experts in limited fields

Polymorphic

Experts in multiple fields, though concentrate on one broad domain

e.g. Electronics, cars, etc

What phenomenon is the influencer marketing strategy akin to?

The “cool kid” that everyone follows/imitates

What phenomenon is the influencer marketing strategy akin to? (con’t)

Said “cool kid” is now online and reachable by millions of people all over the world

What are consumers’ perception of influencers?

They perceive influencers as the third most trustworthy source of information after friends and family

Power leaders

What opinion leaders are referred to in online groups as they have a strong communications network that gives them the ability to directly and indirectly affect consumption decisions for a number of other consumers

Power leaders (con’t)

They’re active participants in their communities and are trusted as a result, being as seen as credible information sources. They also have a natural sense of intellectual curiosity which may lead them to new information sources.

Mass connectors

High influential members of social networks

Content marketing

A strategic marketing approach focused on creating & distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience in order to yield a consumer response

Market maven

A person who serves as an information source regarding market activity; they aren’t exactly interested in products nor be early buyers of products

Market maven (con’t)

They know of f how and where to get products and what’s generally going on in the marketplace

The surrogate consumer

One who provides input into consumer decisions and is usually paid for their work; consumers usually give up all control to them

Can be in the form of a interior decorators, stockbrokers, professional shoppers, or university consultants, etc

The surrogate consumer (con’t)

They can be very influential regardless if they’re acting on the consumer’s behalf or not

Product curators

A person(s), or sometimes celebrity, who assembles the product on a manufacturer’s behalf who include recommendations one how to use the items, and may share their stories about how they use them in their own lives

Crowd power

A major change in how new media companies think of marketing as a strategy of committee

How may influencers operate at a local level?

They may influence 5 to 10 people at a time rather than an entire market segment

The Self-designated method for identifying influencers

The act of simply asking people if they consider themselves to be opinion leaders, and is very easy to apply to a large group of potential opinion leaders

The sociometry method of identifying influencers

Tracing communication models in and among groups and systematically map out interactions that take place among group members

Tie strength

The strength of bonds of any given relationship between people

Tie strength (con’t)

It can range from strong primary (e.g. A romantic partner), to weak primary (e.g. An acquaintance seen once in a while in passing)

Reference group

A group (actual or imaginary), that has a profound effect on one’s evaluations, decisions, behaviour, etc

Reference group (con’t)

Is often used to describe any external influence that provides social cues

Reference group (III)

They can be large and formal with recognized structures, or small and informal (e.g. A friend group)

Large formal groups are easier to find, but smaller informal groups have greater influences on the individual consumer

How may reference groups impact consumers?

• Informational

• Utilitarian

• Value-expressive

Informational reference

A reliance on a reference group for info about consumption decisions

e.g. Brand related knowledge

Utilitarian

When makes a choice in order to satisfy a reference group’s expectations

Value-expressive

When one makes a choice in order to align with a value or trait of a group they’re part of or aspire to be a part of

Social identity theory

The idea that each of us has several “selves” that relate to groups

Aspirational reference groups

Comprises of idealized figures, such as successful businesspeople, athletes, or performers

e.g. Business students who aspired to the “executive” role found a strong relationship between products the students associated with their ideal selves

Membership reference groups

Involves other consumers who belong to the same groups as us (e.g. circle of friends, family, classmates, teammates, etc)

We want to conform to those groups ‘cause of what they’re doing

Strategies for aspirational reference groups

Concentrate on highly visible, widely admired figures (athletes or performers)

Strategies for member reference groups

Concentrate on ordinary people whose consumption provides informational social influence

• Propinquity

• Mere exposure

• Group cohesiveness

Dissociative reference groups

Groups a consumer wants to avoid; marketers may take advantage of this by showing undesirable people using competitor’s product

e.g. A Canucks Fan not wanting to be seen wearing a Calgary Flames jersey

The 2 dimensions that influence the degree to which reference groups are important

1. If the item’s to be used privately or publically

2. If the item’s a luxury or necessity

In what situations are reference groups more robust in?

1. The purchase of luxuries

2. Socially conspicuous items which could be visible to others (e.g. Purses or clothes

Public necessities

Has weak influences on products but a strong influence on brands

e.g. Suits, cars

Public luxuries

Has weak influences on products and on brands

e.g. Sailboats, golf clubs

Private necessities

Weak for both products and brands

e.g. Beds, floor tiles

Private luxuries

Has weak influences on brands but a strong influence on products

Social power

The ability to change the actions of others

Referent power

When one tries to imitate those qualities by copying the referent’s behaviours of a person(s) they admire

Information power

One possesses information power simply because they know something others would like to know and influence consumer opinion with their (assumed) access to knowledge that provides some kind of advantage

Information power (con’t)

fashion influencers with high expertise may possess power because of their ability to compile and spread information that can make or break individual designers or brands

Legitimate power

Granting power by means of social agreements; this is usually conveyed via uniforms

i.e. Respecting cops, city officials, teachers, etc

Expert power

Is gained from having knowledge or a certain skill revolving around a certain content area, thus people are usually influenced by experts who are assumed to be able to evaluate products or experiences in an objective, informed way

Coercive power

Is given off when someone’s influenced because of social or physical intimidation

It’s effective short term, but goes away as the exerting party goes back to usual behaviour when the threat is gone