CH 10 Group Influence

GROUP INFLUENCE

1. REFERENCE GROUPS

  • Definition: A reference group is a group whose perspectives or values an individual uses as a basis for behavior.

  • Influences: Consumers are influenced in three ways:

    • Informational: Useful information is obtained through observing behaviors and listening to opinions of group members.

    • Normative (Utilitarian): Individuals fulfill group expectations to gain rewards or avoid sanctions.

    • Identification (Value-expressive): Individuals internalize the group’s values and norms.

2. INFORMATIONAL, UTILITARIAN, & VALUE EXPRESIVE

  • Examples:

    • Informational: A friend mentions West 49 for t-shirts ➜ Tim buys t-shirts there.

    • Friends drink Pepsi ➜ Tim tries Pepsi.

    • Best snowboarder uses Burton ➜ Tim buys a Burton board.

    • Friends criticize not recycling ➜ Tim starts recycling.


    • Normative: Ad stresses bad breath affects friendships ➜ Tim buys mouthwash.

    • Sees friends buy expensive beer for parties ➜ Tim buys expensive beer for gatherings but cheap for himself.

    • Friends eat healthy ➜ Tim eats healthier.


    • Value Expressive: French wine ads -> sophistication ➜ Tim buys French wine to reflect sophistication.

    • Sees successful execs in conservative clothing ➜ Tim buys conservative outfits.

3. DEGREE OF REFERENCE GROUP INFLUENCE

  • Strength: Influences are strongest when product or brand usage is visible to the group.

  • Reference group influence is higher for leisure items (e.g., skis) than utilitarian ones (e.g., stoves).

  • Higher commitment to a group leads to greater conformity to norms.

  • Lack of confidence in purchase increases reliance on reference groups.

4. CATEGORIZATION OF REFERENCE GROUPS

  • Primary: Frequent interaction, significant influence.

  • Secondary: Less frequent, often virtual.

  • Aspirational: Groups individuals hope to join.

  • Dissociative (Avoidance): Groups individuals wish to avoid.

5. CONSUMPTION SUBCULTURES

  • Definition: Groups self-select based on commitment to specific products, brands, or consumption activities.

  • Types:

    • Style Groups: Examples include Converse Queen, Preppy style.

    • Activity Groups: Snowboarders, mountain climbers, university clubs.

    • Product Groups: Car enthusiasts, sneakerheads.

6. TRAITS OF CONSUMPTION CULTURE GROUPS

  • Identifiable set of shared beliefs and values.

  • Unique jargon.

  • Hierarchies within the group.

  • Specific rituals.

7. FACTORS INFLUENCING GROUP CONFORMITY

  • Cultural pressures: Individualistic vs. collectivistic norms.

  • Fear of deviance and punishment for non-conformity.

  • Group pressure influences conformity.

  • Commitment to the group affects conformity levels.

  • Group size and expertise play roles in conformity dynamics.

  • Need for acceptance and image enhancement influences behavior.

8. RESEARCH ON CONFORMITY

  • Asch Phenomenon: Study with students judging line lengths; shows group conformity can lead to incorrect answers.

  • Brand choice conformity: Some studies indicate brand choices are influenced by group opinions due to trust in group decision-making.

9. OPINION LEADERS

  • Definition: Individuals who filter, interpret, and share information in specific domains.

  • Characteristics:

    • Enduring involvement in product categories leads to greater expertise.

    • Opinion leadership is category-specific; an opinion leader in one area may seek opinions in another.

10. SOCIAL MEDIA AND CONSUMER BEHAVIOR

  • Marketers use "social listening" to gauge consumer sentiment.

  • Statistics: 100 million blogs, billions of Facebook users, specific recommendations for posting frequency on TikTok.

  • Companies leverage social media platforms for brand promotion and consumer engagement.

11. MEASURING SUCCESS OF VIRTUAL MARKETING

  • Metrics for success include:

    • Number of followers, web traffic, lead generation, and sales value through social media.

    • Influencing consumers to visit company websites for more information and product purchasing.

12. VIRTUAL GROUPS

  • Role: Trusted communities that enhance collective impact.

  • Examples:

    • Arab Spring connections, Heathrow Airport flash mob.

13. DIFFUSION OF INNOVATIONS

  • Innovation: Products perceived as new or involving new manufacturing techniques and delivery methods.

  • Diffusion: Successful innovations spread through society over time.

    • Case Study: 40% adoption of cable TV after 10 years.

14. TYPES OF INNOVATORS

  • Categories of adopters:

    • Innovators (2.5%), Early adopters (13.5%), Early majority (34%), Late majority (34%), Laggards (16%).

15. INNOVATION CATEGORIES

  • Types:

    • Continuous Innovation: Evolutionary improvements (e.g., new coffee flavors).

    • Dynamically Continuous Innovation: Notable changes in existing products (e.g., smart watches).

    • Discontinuous Innovation: Major lifestyle changes (e.g., AI, 3D printing).

16. ADOPTION OF INNOVATIONS

  • Continuous innovations often fail due to lack of relative advantage.

  • Dynamically continuous innovations succeed at a moderate rate due to notable benefits but higher adoption risk.

  • Discontinuous innovations adopt slowly due to complexity and lack of trialability.