Consumer Behavior and Reference Group Influence


Consumer Behavior in the Service Sector

4.1 Introduction and Learning Objectives

  • Importance of Group Influence:

    • Everyone associates with various groups influencing their behavior.

    • Most influential primary group: Family.

  • Chapter Objectives:

    • Understand reference group influence.

    • Learn about consumption subcultures and their marketing implications.

4.2 Reference Group Influence

  • Definition of a Group:

    • Two or more individuals sharing norms, values, or beliefs.

    • Interdependent behaviors among members.

  • Reference Group:

    • Presumed perspectives and values used by individuals for behavior.

4.2.1 Types of Groups

  • Consumption Subculture:

    • A subgroup based on commitment to a product, brand, or consumption activity.

    • Characteristics include:

    • Identifiable social structure.

    • Shared beliefs/values.

    • Unique jargon, rituals, and symbolic expression.

  • Examples of Consumption Subcultures:

    • Brand Communities: Groups dedicated to specific brands.

    • Virtual Communities: Online interactions around shared interests.

    • Notions of real vs. perceived communities, but shared sense of belonging exists.

    • Types of virtual community members:

      1. Leaders: Influential individuals responsible for community maintenance.

      2. Participants: Active members without leadership roles.

      3. Lurkers: Passive observers who do not actively participate.

4.3 Reference Group Influences on the Consumption Process

  • Influence on Consumer Behavior:

    • Reference groups affect various consumption behaviors.

  • Types of Reference Group Influence:

    1. Informational Influence:

    • Using group members' opinions as information.

    1. Normative Influence (Utilitarian Influence):

    • Fulfilling group expectations for rewards or to avoid penalties.

    1. Identification Influence (Value Expressive):

    • Internalizing group values and norms.

4.4 Communications within Groups and Opinion Leadership

  • Word-of-Mouth (WOM):

    • Personal recommendations trusted more than marketing communication.

    • WOM is crucial for consumer decisions; varies by product type.

  • Opinion Leaders:

    • Key individuals providing information and interpretations.

    • Possess knowledge and expertise in specific product categories.

    • Behavior varies: an opinion leader in one category can be an opinion seeker in another.

Mavens, Influentials, and E-fluentials

  • Market Maven:

    • Generalized influencers providing product information across categories.

  • Influentials:

    • 10% of the population who influence the remaining 90% through broader networks.

  • E-fluentials:

    • Internet market mavens influencing online and offline.

Online Strategies to Leverage Buzz and WOM

  • Viral Marketing:

    • Strategy to spread brand messages through electronic communication.

  • Online Guides:

    • Online opinion leaders offering consumer advice and information.

  • Blogs:

    • Personal journals for sharing ongoing discussions and insights.