Assignment - Buyer Behaviour

HK2011 Buyer Behaviour

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HK2011 Buyer Behaviour

Lecture 9:

Group Influence

&

Social Class

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Lecture Objectives

OBJECTIVES

 Group function and classification of groups

 Impact of reference groups on consumption

 Marketing strategies based on group influence

 Roles of group members & group communication

 Concept & measurement of social class

 Social class & the consumption process

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Group Influences

Significance and influence of groups

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Groups & Definitions

 What is a Group?  ‘Two or more individuals who share a set of norms, values,

or beliefs, and have certain implicitly or explicitly defined relationships which make their behaviour interdependent’

 What is a Reference group?  ‘A group whose presumed perspectives or values are being

used by an individual as the basis for his or her current behaviour’

 What is a Aspirational reference group?  Non-membership groups with positive attraction

 Exert a strong influence on some products

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Typology of Groups

 Membership: Either yes or no

 Degree of contact:

 Larger groups generally have less contact

 Primary groups have frequent interpersonal contact

 Secondary groups have limited interpersonal contact

 Attraction:

 Desirability of being member (belongingness)

 Either positive or negative (functions, common interest)

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Changes in Reference Groups: Situational Changes

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Reference Group Influences: Consumption Process

 Conformity:  Makes groups influential

 Wanting to be like ‘relevant and significant others’

 Generally makes life more pleasant

 Not a uni-dimensional concept

 Norms:  General expectations about behaviours deemed

appropriate for all persons in a social context,

regardless of the position held

 Often communicated non-verbally

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The Nature of Reference-Group Influence

 Information influence

 Behaviours and opinions of reference groups used as potentially useful pieces of information

 Normative influence (utilitarian influence)

 An individual fulfils group expectations to gain a direct reward or avoid a punishment

 Identification influence (value-expressive influence)

 An individual uses perceived-group norms and values as a guide for own attitudes or values

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Degree of Reference-Group Influence: Determinants

 Reference-Group influence strongest when use of product or brand visible and relevant

 e.g. product category, product type and brand are all visible

 Reference-Group influence increases as necessity of an item decreases

 The more commitment an individual feels to a group, the higher the level of conformity to group norms

 Individual’s confidence with purchase: low confidence, then higher influence

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Type of Reference-Group Influence: Product Characteristics

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Consumption Situation Characteristics: Influence on Product/Brand Choices

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Reference-Group Influence: Consumption-Situation Determinants

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Reference-Group Influences: Marketing Strategies

 Personal sales strategies

 Asch phenomenon

 Advertising strategies

 all three types of reference groups are used by

advertisers:

• Informational (use of information)

• Normative (to avoid/gain)

• Identification (aspire to join)

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Roles

WHAT IS A ROLE?

 Prescribed pattern of behaviour expected of a person in a given situation by virtue of the person’s position in that situation

 Role parameter: range of behaviour acceptable within a given role

 Role overload: An individual attempts to fill more roles than time, energy or money available allows

 Role conflict: Incompatible role demands

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Applying Role Theory to Practice

 Role-related product cluster e.g. new mother

 Evolving roles e.g. career females

 Role conflict and role overload e.g. working mother, working student

 Role acquisition and transition e.g. student to employee

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Possible Role Set for a Student

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Communication Within Groups

IN-GROUP COMMUNICATION

 Power of word-of-mouth communication

 People learn about new products from friends and reference groups by:

 Observing / participating as they use the product

 Seeking and receiving advice / information from them

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Opinion Leaders and Leadership

 Opinion leaders filter, interpret or provide information for individuals within groups

 Opinion leadership occurs when:

 One individual exchanges information with another

 One individual volunteers information

 As by-product of normal group interaction

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Characteristics of Opinion Leaders

OPINION LEADERS

 Have enduring involvement with product category

 Function primarily through interpersonal communications and observation

 Similar demographic characteristics to the group

 Public individuation – attention seeking

 High level of exposure to media

 The market maven – expert on all products!

 Motivation of dissatisfied customers to tell others of their negative message

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Likelihood of Seeking an Opinion Leader

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Social Class

SOCIAL CLASS AND CONSUMPTION

 Social class  cultural differences

 components of social class

 measurements of social class

 Social class and consumption differences  global similarities

 segmenting the affluent

 Status symbols

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Social Standing & Behaviour

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Not all Behaviours are Unique

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Behaviour & social Class

 Unique behaviours  Product: fine china

 Situation: entertainment

• e.g. Opera subscription

 Shared behaviours  Not all behaviour is unique to a particular social

class

 Situation: entertainment

• e.g. Football match

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Status Crystallisation

STATUS CRYSTALLISATION

 Degree of consistency on status dimensions  Occupation

 Education

 Income

 Ownership

 Status crystallisation is low in Australia  Country of the ‘fair go’

 High percentage of immigrants

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Social Class in Australia

Social class in the Australian context:

 Upper class  10% of population

 Middle class  60% of population

 Lower class  30% of population

*Source: ABS

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Positioning Within Social Class

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Upward-Pull Strategy Targeted at the Middle

Class

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Measurement of Social Class and its

Application to Marketing Strategy

SOCIAL CLASS MEASUREMENT

 Single-item indexes  e.g. Education

 Multiple-item indexes  e.g. Hollingshead Index of Social Position

 Uses  Differences in product consumption

• Instant coffee

• Snack foods

• Imported wine



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Consumption Differences Across the

Hollingshead Index of Social Position Strata

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Social Class and Marketing Strategy

SOCIAL CLASS – WHAT DOES IT MEAN TO MARKETING STRATEGY?

 Relate status variables to product consumption  Usage, motivation, symbolic meaning

 Target social status  Actual lifestyle, desired lifestyle, media, etc.

 Develop product position  Select desired position (based on actual/desired lifestyle)

 Marketing mix decisions  Develop mix

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Using Social Stratification to Develop Marketing

Strategy

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Lecture Summary

REMEMBER…

 Groups: Referential and Aspirational Groups

 Typology of Groups

 Influence of Reference Groups

 Role, role Parameter, Role Overload

 Opinion, Opinion Leaders

 Social Class, Behaviour and Marketing Strategy

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Next Lecture…

Culture & Cross-Cultural Variations in

Consumer Behaviour

When culture matters …