Final Exam Study Guide: Group and Interpersonal Influence
Final Exam Study Guide Chapter 8: Group and Interpersonal Influence
Reference Groups & Influence
Reference Group:
Definition: A reference group is any individual or group that serves as a point of comparison or source of influence for a person’s beliefs, values, attitudes, or behavior. These groups can include family, friends, social classes, coworkers, celebrities, or any group a person identifies with or aspires to join.
Influence: Reference groups impact an individual’s evaluations, aspirations, and behaviors. The influence is exerted through social norms, peer pressure, and the desire for acceptance or emulation.
Types of Groups:
Aspirational Group:
Definition: An aspirational group is one that a person admires and wishes to join, but does not currently belong to.
Example: A junior employee mimicking the dress code of upper management; a college student following the lifestyle of successful entrepreneurs or influencers.
Dissociative Group:
Definition: A dissociative group is one a person belongs to but actively rejects and seeks to avoid.
Reasons for avoiding products associated with this group:
To protect self-image and avoid seeming similar to disliked groups.
To signal identity by choosing not to use brands or styles associated with that group.
To avoid stigma or judgment from social circles; for example, a teenager avoiding a clothing brand worn by a group considered unfashionable.
Membership Group:
Definition: A membership group is a group to which an individual currently belongs and interacts with.
Example: Following the norms of a sports team, religious group, school club, or work department.
Word-of-Mouth (WOM):
Comparison with Advertising:
WOM: Information shared between consumers (friends, family, coworkers, strangers online). Has higher credibility since it is perceived as more genuine.
Advertising: Paid, controlled messages created by a company; typically seen as less credible.
Speed of WOM Spread:
Positive or negative WOM: Negative WOM tends to spread faster than positive WOM due to the negativity bias, which emphasizes adverse feedback over favorable comments.
Negativity Bias: The psychological phenomenon where negative events or perceptions have a greater impact on an individual’s psychological state than positive ones.
Opinion Leaders:
Key Characteristics of Opinion Leaders:
Social connection
Power (the ability to influence others)
Specific product knowledge (expertise in certain categories)
Social Power (French & Raven):
Power Bases:
Legitimate Power:
Definition: Power derived from a position of authority within a structure.
Example: A boss has legitimate authority over employees due to their position in the organization.
Referent Power:
Definition: Power based on admiration or a desire to be like someone.
Example: A consumer desires to join a local Rotary club because they admire its members.
Expert Power:
Definition: Power that comes from possessing knowledge that others seek.
Example: Individuals seek health-related information from the American Dental Association.
Reward Power:
Definition: Power derived from the ability to provide rewards.
Example: Sports teams rewarding a team member with MVP honors.
Coercive Power:
Definition: Power based on the ability to punish for non-compliance.
Example: A college football player being kicked off the team for using illegal substances.
Household Structure & Roles:
Boomerang Kids:
Definition: Grown children returning to live in their parents’ home.
Statistics: Approximately 15% of 25-35 year olds currently live with their parents.
Sandwich Generation:
Definition: Individuals caring for both their children and aging parents simultaneously.
Household Purchase Roles:
Influencer:
The person who seeks to sway a potential purchase within the household.
Gatekeeper:
The individual who controls the flow of information into the household.
User:
The individual who will ultimately use the product being considered.
Purchaser:
The person who completes the transaction of buying the product.
Note: The purchaser is not always the same person as the user, as someone may buy a product for others.
Role Conflict:
Definition: When a person faces contradictory expectations from two or more social roles they occupy (e.g., a heavy metal fan having parents who disapprove of that music).
Effects: Experiencing role conflict can lead to stress and anxiety.
Chapter 9: Consumer Culture
Culture Basics:
Ideology:
Definition: The mental characteristics of a society that shape its values, priorities, and perspectives on various aspects of life.
Myths:
Definition: Stories that express key values within a culture and contain symbolic elements.
Example: The Trojan Horse myth exemplifying cunning over brute force.
Norms vs. Sanctions:
Cultural Norms:
Definition: Rules that govern appropriate behavior in specific situations within a culture.
Example: The Western norm of shaking hands as a greeting, while bowing is customary in many Asian cultures.
Cultural Sanction:
Definition: The penalties associated with violating cultural norms.
Impact: Can lead to social discomfort or be perceived as rude behavior, even if unintentional.
Glocalization:
Definition: A marketing strategy that acknowledges the need for local implementation of global marketing plans.
Example: McDonald's utilizing the same business model globally but varying its menu to match local tastes.
Global Marketing: Hofstede’s Dimensions of National Culture
Dimensions:
Power Distance:
High score: Acceptance of hierarchy and inequality.
Low score: A striving for equality.
Uncertainty Avoidance:
High score: Discomfort with ambiguity and uncertainty.
Low score: Comfort with risk-taking and lack of structure.
Masculinity vs. Femininity:
Masculine: Emphasis on achievement, competitiveness, and traditional gender roles.
Feminine: Focus on values like caring for others and quality of life; gender roles are more fluid.
Long-Term vs. Short-Term Orientation:
Long-term: Ability to delay gratification for future gains.
Short-term: Focus on immediate fulfillment.
Indulgence vs. Restraint:
Indulgence: Pursuit of enjoyment and gratification.
Restraint: Emphasis on duty and discipline.
Individualism vs. Collectivism:
Individualism: Valuing independence and individual rights.
Collectivism: Emphasizing interdependence and group well-being.
Learning Culture:
Enculturation vs. Acculturation:
Enculturation: The process of learning one's native culture.
Acculturation: The process of learning about and adapting to a different culture.
Level of Acculturation: Refers to the degree of assimilation to a new culture.
Acculturation Speed:
Definition: How quickly an individual or group adapts to a new culture, including adoption of norms, values, language, and behaviors.
Factors affecting speed:
Quick: Female, younger individuals, low ethnocentrism, low ethnic identification.
Slow: Male, older individuals, high ethnocentrism, high ethnic identification.
Cultural Distance:
Definition: Represents how different one nation is from another regarding values, beliefs, behaviors, and social norms.
Chapter 10: Subcultures & Demographics
Generational Cohorts
Baby Boomers (1946–1964):
Affluence: Very affluent, enjoy a life of luxury.
Economic Impact: Significant purchasers with a total buying power of $2.6 trillion.
Age Perception: Feels younger than their chronological age.
Generation X (1965–1980):
Affluence: Somewhat affluent but often financially stretched due to mortgages and caregiving.
Economic Influence: Quietly powerful with strong earning capability and decision-making ability.
Age Perception: Aware of aging, feeling their age.
Millennials / Gen Y (1981–1995):
Affluence: Generally not affluent, battle against high education debt.
Economic Impact: Major influencers reshaping work, technology, retail, and lifestyle segments.
Age Perception: Mixed feelings regarding age; emotionally younger yet financially older.
Generation Z (1995–2010):
Affluence: Not affluent yet; still early in their careers.
Economic Influence: A strong cultural force dictating trends and brand behaviors.
Age Perception: Feels older than their actual age.
Silent Generation (1928–1945):
Affluence: Wealth built on pensions and strong economic times.
Economic Impact: Important in healthcare spending and holding accumulated wealth.
Age Perception: Recognized as the oldest generation.
Age Concepts
Cognitive (Perceived) Age vs. Chronological Age:
Chronological Age: The numeric age of an individual.
Cognitive Age: The age an individual feels or experiences mentally (e.g., a 60-year-old feeling 45).
Age Cohort:
Definition: A group of individuals who have experienced significant events or changes that shape their core values and outlook.
Example: Shared memories from significant events like 9/11 or COVID-19 can bond a cohort through common experiences.
Ethnic Subcultures
Hispanic Americans:
Population: 18.7% of the U.S. population; projected to make up one-third by 2060.
Growth: Highest percentage in New Mexico (47%); California has the largest population (14 million).
Growth Rate: Increased by 23% from 2010 to 2020 census data.
African Americans:
Population: 12.4% of the U.S. population; significant buying power of $1.6 trillion (9% of total U.S.).
Growth Rate: Grew 5.6% since 2010 for those identifying as Black or African-American only; grew by 88.7% if considering combined races.
Asian Americans:
Population: About 6% of the U.S. population; concentrated in states like California, New York, and Texas.
Income: Higher household income (median is $93,759 compared to the U.S. average of $65,712).
Challenge: Diverse within cultural and linguistic backgrounds complicates targeting this demographic.
Social Class
Components of Social Class:
Based on three primary factors: Income, occupation prestige, and education level.
Privilege:
Overprivileged:
Definition: Families with incomes significantly above the median for their class, allowing indulgence after meeting essential needs.
Example: Working-class families who own boats, snowmobiles, etc.
Underprivileged:
Definition: Families with incomes below the median for their class, often struggling to afford peer-equivalent items and resorting to prioritizing expenditures on socially visible goods.
Income Trends:
Impact of Working Mothers & Higher Education:
Economic growth: Increased income levels and decreased unemployment rates.
Issues: Balancing work and child care leads to potential burnout challenges.
Chapter 11: Situational Influences
Types of Shopping & Purchases
Planned Purchase:
Definition: The item was intended for purchase before entering the store; a deliberate decision with prior contemplation.
Example: Shopping with a prepared list.
Impulse Purchase:
Definition: Purchases driven by sudden urges, characterized by emotional involvement and disregard for consequences.
Example: Buying candy or accessories on a whim.
Unplanned Purchase:
Definition: Occurs when need recognition arises within the store after seeing an item, prompted by a situational trigger or memory.
Example: Realizing you need a flashlight for a trip once you see it displayed in the aisle.
Shopping Value:
Types of Shopping Value:
Acquisitional Value: Shopping with a clear purpose for specific items (utilitarian).
Epistemic Value: Exploring products with the hope of gaining information (educational).
Experiential Value: Shopping undertaken purely for enjoyment or relaxation (hedonic).
Atmospherics & Environment
Atmospherics:
Definition: How store elements (lighting, music, scents) influence consumer behavior in terms of mood, shopping duration, and overall experience.
Crowding vs. Density:
Density: The mathematical count of people per square foot.
Crowding: The subjective negative feeling experienced when density is perceived as too high.
Relationship: The correlation between crowd levels and satisfaction is not linear; higher numbers do not necessarily equate to higher satisfaction.
Consumer Self-Regulation
Action-Oriented (High Self-Regulation):
Characteristics: Adheres strictly to shopping lists and is not swayed by in-store promotions or emotional triggers.
State-Oriented (Low Self-Regulation):
Characteristics: More vulnerable to environmental influences and emotional responses, leading to impulse purchases.
Fearful Consumer:
Impact of Fear on Purchase Behavior:
Fear may cause consumers to buy less due to narrowed focus and increased risk aversion.
Results in rapid decision-making, minimizing browsing and engaging less in pleasurable shopping experiences.
Chapter 1: What is Consumer Behavior & Why Should I Care?
Core Concepts
Difference Between Needs vs. Wants:
Need: A basic requirement for survival; essential for well-being.
Example: Hunger, safety, belonging, rest.
Want: A specific manifestation or preference—molded by culture and personal experiences—of satisfying a need.
Example: Chicken sandwich (want) versus the need for sustenance (need).
Role of Value in the Consumption Process
Value Equation:
Formula: ext{Perceived Value} = ext{Perceived Benefits} - ext{Perceived Costs}
Consumers seek the option that maximizes perceived value by balancing functional, emotional, and perceived costs (money, time, effort, risk).
Value assessment determines whether a purchase feels “worth it.”
Research Methods
Qualitative Research:
Focus: Understanding emotions, meanings, and consumer experiences.
Data: Words, stories, observational data.
Methods: Interviews, focus groups, ethnographic studies.
Characteristics: Subjective and reliant on the researcher's interpretation; seeks to understand the underlying reasons for consumer behavior.
Quantitative Research:
Focus: Numerical data measurement, predictions, and patterns.
Data: Surveys, experiments, statistical analyses.
Characteristics: Objective, hypothesis-driven, involving larger sample sizes.
Chapter 2: Value & the Consumer Behavior Framework
Value Types
Distinction:
Hedonic Value: Derived from emotional experiences, pleasures, and gratification.
Example: Purchasing stylish shoes for aesthetic appeal.
Utilitarian Value: Derives from functionality and practicality of products.
Example: Getting a coat purely for warmth