Consumer Behavior Assignments

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Group and Interpersonal Influence

Chapter 8

LEARNING OUTCOMES

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Learning Outcomes

Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions
Describe the various types of social power that reference groups exert on members
Comprehend the difference between informational, utilitarian, and value-expressive reference group influence

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LEARNING OUTCOMES (continued)

Understand social media’s role in consumer behavior
Understand the importance of word-of-mouth in influencing consumer behavior
Comprehend the role of household influence in consumer behavior

Learning Outcomes (continued)

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Reference Groups

LO 1

Individuals who:
- Have significant relevance for a consumer
- Impact the consumer’s evaluations, aspirations, and behavior
Group influence: Ways in which group members influence attitudes, behaviors, and opinions of others within the group
Consumers think in terms of ingroups and outgroups

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Primary and Secondary Groups

LO 1

Primary
- Group that includes members who have frequent, direct contact with one another
- Social ties are very strong

Secondary
- Group to which a consumer belongs, with less frequent contact and weaker influence than in a primary group
- Brand community: Consumers who develop relationships based on shared interests or product usage

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Formal and Informal Groups

LO 1

Formal
- Group in which a consumer formally becomes a member
- Has a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to

Informal
- Group that has no membership or application requirements
- Codes of conduct may be nonexistent

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Aspirational and Dissociative Groups

LO 1

Aspirational
- Group in which a consumer desires to become a member
- Group membership appeals to the consumer’s ideal self

Dissociative
- Group to which a consumer does not want to belong
- Considered a type of outgroup for a consumer

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Conformity and Authority

LO 1

Conformity: Individual yields to the attitudes and behaviors of others
- Peer pressure: Pressure to behave in accordance with group expectations
  - Consumers of all ages feel peer pressure
Authority: Ability of a person or a group to enforce the obedience of others

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Types of Social Power

LO 2

Type of power

Description

Referent

Consumer admires qualities of a group and emulates their behavior

Legitimate

Specific agreements are made regarding membership, and the punishment for nonconformity is understood

Expert

Groups possess knowledge that members, prospective members, or customers seek

Reward

Groups have the power to reward members for various behaviors

Coercive

Groups have the power to sanction group members for breaking rules or falling below expectations

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Categories in Reference Group Influence

LO 3

Consumer uses the behaviors and attitudes of reference groups as information for making his or her own decisions

Informational

Consumer conforms to group expectations in order to receive a reward or avoid punishment

Utilitarian

Consumer internalizes a group’s values, or the extent to which consumers join groups in order to express their own closely held values and beliefs

Value-expressive

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Exhibit

8.2 Reference Group Influence on Product Selection

LO 3

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Social Media and Social Networking

LO 4

Social media: Media through which communication occurs
Social networking
- Provides consumers with utilitarian and hedonic value and helps to fulfill the need to belong
  - Facilitated by social networking website
- Social networks: Consumers connecting with one another based on common interests, associations, or goals

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Individual Difference Variables in Group Influence

LO 4

Susceptibility to interpersonal influence
- Assesses a consumer’s need to enhance image by:
  - Acquiring and using products
  - Conforming to the expectations of others
  - Learning about products by observing others

Attention to social comparison information (ATSCI)
- Assesses the extent to which consumers are concerned about others' reaction to their behavior

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Separateness-Connectedness

LO 4

Separated self-schema

Self-conceptualization of the extent to which a consumer perceives himself or herself as distinct and separate from others

Connected self-schema

Self-conceptualization of the extent to which a consumer perceives himself or herself as being an integral part of a group

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Word-of-Mouth (WOM)

LO 5

Information about products, services, and experiences that is transmitted from consumer to consumer
Types
- Organic
- Amplified
Positive when consumers are satisfied

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Word-of-Mouth (WOM) (continued)

LO 5

Negative word-of-mouth is more influential than positive word-of-mouth
- Consumers tend to tell more people about unsatisfactory experiences than pleasing ones
Value
- Consumers tend to tell others about their experiences with products and services when they receive more value

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Guerrilla Marketing

LO 5

Marketing of a product using unconventional means
Buzz marketing: Focuses on generating excitement among consumers that spreads from consumer to consumer
Stealth marketing: Consumers do not realize that they are being targeted for a marketing message

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Opinion Leaders

LO 5

Consumers who have an influence on the behavior of others relating to the product adoption and purchase
Market maven
- Consumer who spreads information about all types of products and services that are available in the marketplace
Surrogate consumer
- Consumer who is hired by another to provide input into a purchase decision

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Diffusion Process

LO 5

Way in which new products are adopted and spread throughout a marketplace

The exhibit is an illustration of the adopter categories. The x-axis represents adopter categories. The y-axis represents number of new adopters. Four lines extend from the x-axis parallel to the y-axis. The gap between the lines parallel to the y-axis represent adopters. Starting from the left, the categories are labeled consumer innovators, early adopters, early majority, late majority, and laggards. The number of consumer innovators is 2.5 percent, early adopters is 13.5 percent, early majority is 34 percent, late majority is 34 percent, and laggards is 16 percent.

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Household Decision Making

LO 6

Process by which decisions are made in household units
Household life cycle (HLC)
- Segmentation technique that acknowledges changes in family composition and income
  - Changes alter household demand for products and services
Purchase roles - Influencer, gatekeeper, user, decision maker, and purchaser

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Household Decision Making (continued)

LO 6

Gender roles
- Sex role orientation (SRO): Family’s beliefs about the ways of reaching household decisions
Development of the child consumer
- Consumer socialization: Process through which young consumers develop attitudes and learn skills that help them function in the marketplace

KEY TERMS

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Key Terms (continued)

Reference group
Group influence
Ingroup
Outgroup
Primary group
Secondary group
Brand community
Formal group
Informal group
Aspirational group

Dissociative group
Conformity
Authority
Peer pressure
Social power
Informational influence
Utilitarian influence
Value-expressive influence
Social media

KEY TERMS

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Key Terms (continued 1)

Social networks
Social networking website
Apps
Social gaming
Social buying
Social couponing
Susceptibility to interpersonal influence

Attention to social comparison information (ATSCI)
Separated self-schema
Connected self-schema
Word-of-mouth(WOM)
Social media marketing
Buzz marketing

KEY TERMS

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Key Terms (continued 2)

Guerrilla marketing
Viral marketing
Stealth marketing
Opinion leaders
Market maven
Surrogate consumer
Diffusion process
Household decision making
Family households

Nuclear family
Extended family
Household life cycle (HLC)
Boomerang kids
Sandwich generation
Sex role orientation(SRO)
Consumer socialization

SUMMARY

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Summary

Reference group is a group of individuals having significant relevance for a consumer
Social power is classified into referent, legitimate, expert, reward, and coercive powers
Categories of influence are informational, utilitarian, and value-expressive
Social media and social networking play a key role in consumer behavior

SUMMARY

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Summary (continued)

Word-of-mouth is an important concept in the study of interpersonal influence
Family members have a great deal of influence over on another's attitudes, thoughts, and behaviors

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