CB Exam 3 - Contagious

group

two or more individuals who share a common purpose

the higher degree of contact and tie-strength with a group, the more likely they will influence your behavior and attitudes

Group influence

group members influence attitudes, opinions, and behaviors of others within a group

The bystander effect

occurs when the presence of others discourages an individual from intervening in an emergency situation, bully, or during a crime.

Reverse bystander effect

seeing others do good compels us to follow suit

reference groups

a group of individuals with whom consumers compare themselves for guidance on their own evaluations, aspirations, and behavior

three types of reference groups

associative, aspirational, dissociative

associative groups

those to which we belong

mktg strat: focus on ordinary people whose consumption provides informational social influence

aspirational groups

those we admire or emulate

mktg strat: concentrate on highly visible, widely admired figures

dissociative groups

those we do not want to be like

mktg strat: focus on undesirable people using competitor’s product

Three Benefits of Brand Communities

• Communities can inform fellow consumers about products and brands and can influence behavior.

• Brand communities may help to identify the needs and desires of particular individuals or groups of people

• Active participation in brand communities may favor higher levels of individuals loyalty to the brand around which the community is developed

public necessities

negative product influence, positive brand influence

public luxuries

positive product influence, positive brand influence

private necessities

negative product influence, negative brand influence

private luxuries

positive product influence, negative brand influence

WOM (word of mouth) 3 benefits

• more reliable/trustworthy form of marketing

• influences two-thirds of all sales of goods

• powerful when we are unfamiliar with the product category

why do people engage in WOM

• they have high-involvement with the product (pleasure in talking about it, football fans)

• knowledgeable about product (impressing others)

• Genuine concern for others (avoid wasting money or want to share the joy)

Informational social influence

conforming because we believe the group has the correct answer, especially when the situation is uncertain

normative influence

conforming to win social acceptance or avoid rejection

social comparison theory

people tend to evaluate their own abilities, achievements, values or opinions by comparing themselves to others

social comparisons can be positive or negative

upward: jealousy and motivation

downward: scorn and gratitude

social impact theory

a model suggesting that the pressure to conform increases based on how important the group is to you, how physically or emotionally close the group is, and how many people are in it

Social Identity Model of Deindividuation Effects (SIDE)

a theory explaining how anonymity and shared identity interact online. When individuals feel less personally identifiable through deindividuation, they often conform more strongly to group norms if clear identity cues signal group membership

culture of participation

• ability to freely interact with other people, companies, and organizations

• open access to venues that allow users to share content

• power to build on the content of others from your own unique point of view

why do we post?

self-esteem, social bonding, impression management, emotional regulation, to share and acquire info, to persuade others to change their opinions

influence fun fact

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

parasocial relationship

a psychological relationship that individuals develop with media personalities, even there is no face to face interaction

characterized by a sense of intimacy and familiarity

parasocial relationship impact on consumer behavior

• trust and credibility: consumers often perceive influencers as friends and this trust influences their purchasing decisions

• preferences and choices: consumers may be more inclined to adopt the lifestyle, products, or services endorsed by influencers they feel connected to

• brand affiliation: consumers associate influencers with certain brands or products

• informed decision making: influencers are seen as sources as info and thus influence consumers decision making

• increased engagement and interaction: encourages consumers to engage with influencers

• FOMO: these relationships can intensify FOMO because consumers want to be apart of the influencers experiences and lifestyle

echo chamber effect

a phenomenon where individuals are exposed only to information that aligns with their existing beliefs, reinforcing them and limiting exposure to opposing viewpoints

social epidemics

instances where products, ideas, and behaviors diffuse through a population

social transmission

the process of sharing information, behaviors, customs, cultural knowledge among individuals or generation within a group

social currency

to leverage game mechanics to give people ways to achieve and provide visible symbols of status they can show

triggers

stimuli that prompt people to think about related things

emotion

crafting messages and ideas that make people feel something

public

making products/services/ideas that advertise themselves and create behavioral residue that sticks around even after people have bought the product

practical value

highlighting the value of the offer and packaging in a way people can easily pass it on

stories

making our (the business) message so integral to the narrative that people can not tell the story without it

6 Principles of Contagious STEPPS

Social currency

Triggers

Emotion

Public

Practical Value

Stories

Social currency contagious

to trade or share something to achieve desired positive impressions among their families, friends or colleagues

3 types of social currency

inner remarkability

leverage game mechanics

make people feel like insiders

Two types of WOM

immediate and ongoing

immediate WOM

mentioning something relatively quickly after hearing/trying it

ongoing WOM

mentioning something in the weeks or months following the first interaction

High arousal vs low arousal and sharing

high arousal and positive - shared (awe, excitement)

high arousal and negative - shared (anger, anxiety)

low arousal and positive - not shared (contentment)

low arousal and negative - not shared (sadness)

behavioral residue

the physical traces or remnants that most actions leave behindv

virality

the rapid, exponential spreading of a product or message

self advertising

making a product, idea, or behavior that advertsises itself and shows people that other people are using the product or engaging in the behavior

The rule of 100

if a product is less than $100 then use a percentage for the discount, if it is more than $100 use number of dollars off

diminishing sensitivity

the idea that the same change has a smaller impact the farther it is from the reference point

deals, discounts, and sales

• should highlight incredible value

• exceed peoples expectations

• use limited availability through scarcity and exclusivity

• make it easy for people to see