Urgent summary questions
oalrizaiqi93
ch_11.docxChapter 11: Groups and Social Media
Chapter 11:
Groups and Social Media
CHAPTER OBJECTIVES
When students finish this chapter they should understand why:
1. Other people and groups, especially those that possess social power, influence our decisions.
2. Word-of-mouth communication is the most imporant driver of product choice.
3. Opinion leaders’ recommendations are more influential than others when we decide to buy.
4. Social media changes the way we learn about and select products.
Chapter SUMMARY
After reading this chapter, students should understand why:
Other people and groups, especially those that possess social power, influence our decisions.
Much of what we know about products we learn through word-of-mouth (WOM) communication rather than formal advertising. We tend to exchange product-related information in casual conversations. Guerrilla marketing strategies try to accelerate the WOM process when they enlist consumers to help spread the word. Although WOM often is helpful to make consumers aware of products, it can also hurt companies when damaging product rumors or negative WOM occur.
Word-of-mouth communication is the most important driver of product choice.
Social networking platforms significantly increase our access to others’ opinions about products and services. Virtual consumption communities unite those who share a common bond—usually enthusiasm about or knowledge of a specific product or service. Emerging marketing strategies try to leverage the potential of the Web to spread information from consumer to consumer extremely quickly. Viral marketing techniques enlist individuals to tout products, services, Web sites, and so on, to others on behalf of companies. Blogging allows consumers to easily post their thoughts about products for others to see.
Opinion leaders’ recommendations are more influential than others when we decide to buy.
Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence others’ choices. Specific opinion leaders are somewhat hard to identify, but marketers who know their general characteristics can try to target them in their media and promotional strategies. Other influencers include market mavens, who have a general interest in marketplace activities; and surrogate consumers, who are compensated for their advice about purchases.
Social media changes the way we learn about and select products.
As Web 2.0 continues to develop, companies and consumers increasingly interact directly. The wisdom-of-crowds perspective argues that under the right circumstances, groups are smarter than the smartest people in them. If this is true, it implies that large numbers of consumers can predict successful products. In a sense, a lot of social networking sites let their members dictate purchase decisions.
Chapter Outline
I. Groups
A. Social identity theory suggests that each of us has several “selves’ that relate to groups.
1. Social power describes the “capacity to alter the actions of others”
2. Referent power supports the idea that a person will copy behaviors of other prominent people, such as a celebrity.
3. Information power occurs when we know something others would like to know.
4. Legitimate power is the authority we have in the consumer context.
5. Expert power derives from the knowledge one has about a content area.
6. Reward power is the ability to provide positive reinforcement.
7. Coercive power is the ability to influence someone because of social or physical intimidation.
B. A reference group is an actual or imaginary individual or group that significantly influences our evaluation, aspirations, or behaviors.
1. A member reference group consists of people we actually know.
2. An aspirational reference group is a group of those we don’t know, but admire.
3. An avoidance group is a group that we dislike and avoid buying anything that might identify us with that group.
C. Conformity is a change in beliefs or actions, or the development of new norms, or informal rules, that govern behavior.
1. Cultural pressures are a result of the cultural encouragement to conform.
2. Fear of deviance is the belief that a group will apply sanctions to punish nonconforming behaviors.
3. Commitment is the dedications to a group or value that membership has in it.
4. Group unanimity, size, and expertise make it harder to resist the demands of a large number of people.
5. Susceptibility to interpersonal influence refers to an individuals need to have others think highly of him or her.
6. Environmental cues effects peoples level of conformity.
D. A brand communityis a group of consumers who share a set of social relationships based on the usage of or interest in a product.
I. Word-of-Mouth Communication
A. Word of Mouth
1. Word of mouth communication is product information that individuals transmit to other individuals.
2. It is more powerful than advertising.
3. Advertising is more effective at reinforcing existing beliefs than creating new ones.
Discussion Opportunity—Ask: When was the last time you gave someone advice about buying a product? Describe the situation, the information, and the outcome.
Discussion Opportunity—Ask: When was the last time you received WOM advice to purchase a product? Was there social conformity pressure? If so, describe the pressure and what eventually happened.
B. Buzz Building
Guerrilla marketing refers to using promotional strategies that use unconventional means and venues to push products. The term implies that the marketer ambushes the unsuspecting recipient.
C. Negative WOM: The Power of Rumors
1. Negative word-of-mouth (WOM) is weighted more heavily than positive WOM.
2. There are three basic themes that came to light in a study of complaint websites:
a. Injustice – consumers talked about the difficulty in contacting the company
b. Identity – posters characterize the company as evil, not just incompetent
c. Agency – individuals try to create a sense of collective identity
3. Serial reproduction is the examination of how content mutates.
a. Sometimes people change content to make them consistent with their preexisting schemas, a process called assimilation .
b. Sometimes people engage in leveling , where they omit details to simplify the structure.
c. Sometimes people engage in sharpening , where they exaggerate prominent details.
***** Use Figure 11.1 Here *****
Discussion Opportunity—Give an illustration of a guerrilla marketing effort you have seen. Analyze it.
II. Opinion Leadership
A. Opinion Leaders
1. Opinion leaders are people who are frequently able to influence others’ attitudes or behaviors.
· They are technically competent.
· They have prescreened, evaluated, and synthesized (in an unbiased way) product information.
· They are socially active and interconnected in their community.
· They are similar to the consumer in values and beliefs, a characteristic described by the term homophily. Then tend to be slightly higher in terms of status and educational attainment than those they influence do, but not so high as to be in a different social class.
· They are often among the first to buy new products. They often absorb risk because they purchase products first. They are more credible because of their hands-on experience.
Discussion Opportunity—Ask students to consider the following: Whom do you know that you would classify as an opinion leader? In what areas is he/she a leader? Are you an opinion leader? Under what circumstances and to whom do you perform this role?
B. How influential is an opinion leader?
1. When marketers and social scientists initially developed the concept of the opinion leader, it was assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. There is a question today as to whether there is such a thing as a generalized opinion leader .
2. Opinion leaders tend to be concentrated in their field of interest or expertise. Some opinion leaders overlap into other fields, but not into all fields.
a. Monomorphic —experts in a limited field.
b. Polymorphic —experts in several fields (but usually concentrated).
3. The original framework is the two-step flow model of influence.
a. A small group of influencers disseminates information because they can modify the opinions of a large number of other people.
b. The model was updated to recognize that the communication of information was dependent on people who are easily influenced. These people participate in two-way dialogue with the opinion leader as part of an influence network.
c. These conversations create information cascades, where the information triggers a series of interactions.
C. Types of Opinion Leaders
1. Opinion leaders may or may not be purchasers of products they recommend.
2. A consumer category called the market maven has been proposed to describe people who are actively involved in transmitting marketplace information of all types. Market mavens are closer to the conception of a general opinion leader.
Discussion Opportunity—Ask students to describe a market maven that they know. What information do you get from them? How do you think they got the information they transmit?
3. A surrogate consumer is a person who is hired to provide input into purchase decisions.
a. The surrogate consumer is usually compensated for this involvement.
b. Examples would include interior decorators, stockbrokers, professional shoppers, or college consultants.
D. How do we find Opinion Leaders?
1. In exploratory studies, researchers identify the profile of a representative opinion leader and generalize these insights to a larger market.
2. In the self-designating method , researchers ask individual consumers whether they consider themselves opinion leaders. It is not as reliable as other methods, but it can easily be applied to a large group of potential opinion leaders.
3. Key informants may be asked to identify opinion leaders.
4. Tracing communication patterns among group members is called the sociometric method. It examines networks through network analysis, which focuses on communication in social systems and considers relations among people in a referral network, including tie strength among them.
5. Tie strength refers to the nature of the bond between people.
a. It can range from strong primary (e.g. spouse) to weak secondary (acquaintance).
b. Although strong ties are important, weak ties are too because they perform a bridging function between subgroups.
III. The Social Media Revolution
A. Online Social Media and Brand Community
1. Social networks are a set of socially relevant nodes connected by one or more relations.
· Nodes are members in the network.
· Members are network units.
· Ties or relationships connect network units.
· Social networks are sometimes called social graphs, which also may refer to a diagram of interconnections of units in a network.
· Nodes in a network experience interactions (e.g. talking to each other, attending an event, working together).
· Flows (exchanges of resources, information or influence among members of the network) occur between nodes. Flows go in many directions on multiple platforms, including emails, text messages, virtual worlds, and face-to-face meetups - a condition termed media multiplexity.
C. Digital Word-of-mouth
1. 1. Viral marketing occurs when an organization motivates visitors to forward online content to others. Online communities exhibit the following basic characteristics:
· The Megaphone Effect allows consumers to share their views with a large audience every day.
Discussion Opportunity—Ask: Is there any category of consumer products in which you think you might be considered an opinion leader?
1. Social games are multiplayer, competitive, goal-oriented activities with defined rules of engagement and online connectivity among a community of players. We’ll see more transactional advertising in games. Social games typically include
· Leaderboards
· Achievement badges
· Buddy lists
2. Social games are built on several layers including platform, mode, milieu, and genre.
· A game platform refers to the hardware systems on which the game is played.
· Mode refers to the way players experience the game world.
· Milieu describes the visual nature of the game, such as science fiction, fantasy, horror, and retro.
· The genre of a game refers to the method of play. Popular genres include simulation, action, and role-playing.
D. Online Opinion Leaders
3. Online opinion leaders, sometimes called power users, are powerful because they can reach millions of people around the world and directly or indirectly influence their purchase decisions.
4. Brand specific mentions in social networks are influence impressions.
· The 6.2% of social media users that are responsible for 80% of brand mentions are Mass Connectors.
· Mass Connectors who spread influence impressions trigger a momentum effect, where friends share the mentions with friends, etc.
Discussion Opportunity—Ask: What product have you recently purchased that you would classify as an innovation? Where did you hear about it? What thought process did you go through before you made the purchase?
Discussion Opportunity—With input from students, make a list of products that fit the three forms of innovations. Discuss the significance of these innovations. How does the promotion for these products differ?
End-of-Chapter Support Material
SUMMARY OF SPECIAL FEATURE BOXES
1. Marketing Opportunity
Activities that were previously considered solitary activities, such as running, are not more likely to be group activities.
2. The Tangled Web
Antibrand communities are online groups that are united by their disdain for a product. These groups tend to attract social idealist who advocate nonmaterialistic lifestyles.
3. Marketing Opportunity
Consumers are spending a lot of money for the chance to hang out with and play with their idols. Baseball camps, music groups and others all promote the relationship between idols and fans.
4. The Tangled Web
When we make decisions as part of a group, we tend to have fewer restrains on our behavior.
5. Marketing Pitfall
Social loafing happens when we don’t devote as much time or effort to a task because it is part of a larger group effort.
6. Net Profit
Varsity Brands surveyed teenage girls to learn how they decide what to buy. Teen girls lead the pack when it comes to spreading ideas via social media.
7. CB As I See It: Eileen Fischer, York University
When consumers share their opinions about products, there are often unintended consequences. Fans of certain TV shows will reframe, remix, or reject new elements when they are introduced in to the show.
8. The Tangled Web
Herding behavior is common among consumers as the mimic what others in a group do.
9. Net Profit
Massive multiplayer online role-playing games have created a growth area in digital virtual consumption, where players spend real money to buy virtual goods.
10. CB As I See It: Jonah Berger, The Wharton School, University of Pennsylvania
Word of mouth opinion sharing is frequent and important, and can go viral. Marketers try to capitalize on this notion, but need to remember the psychology of viral content.
REVIEW QUESTIONS
11-1. What is word-of-mouth, and why is it more powerful than advertising?
Word-of-mouth (WOM) is product information transmitted by individuals to individuals. Because we get the word from people we know, WOM tends to be more reliable and trustworthy than recommendations we get through more formal marketing channels.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-2. Which is more powerful, positive or negative word of mouth?
Consumers weigh negative word of mouth more heavily than they do positive comments.
(5 minutes, Chapter Objective 1,)
11-3. Describe some ways in which marketers are using the Internet to encourage positive WOM.
A virtual community of consumption is a collection of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity. Like the brand communities we discussed earlier, these groups form around a shared love for a product, whether it is Barbie dolls or Blackberry PDAs. However, members remain anonymous because they only interact with each other in cyberspace.
(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-4. What is viral marketing? Give an example of this strategy.
Viral marketing refers to the strategy of getting visitors to a website to forward information on the site to their friends in order to make still more consumers aware of the product—usually by creating online content that is entertaining or just plain weird. Viral marketing for oil? Pretty slick. WD-40 quadrupled visitors to its fan club website by offering 1,000 AM/FM radios in the shape of oilcans to individuals who signed up 10 other members.
(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-5. What is an opinion leader? Give three reasons why they are powerful influences on consumers’
An opinion leader is a person who is frequently able to influence others’ attitudes or behaviors.
· They are technically competent and thus convincing because they possess expert power.
· They have prescreened, evaluated, and synthesized product information in an unbiased way, so they possess knowledge power. Unlike commercial endorsers, opinion leaders do not actually represent the interests of one company. Thus, they are more credible because they have no “axe to grind.”
· They tend to be socially active and highly interconnected in their communities. They are likely to hold offices in community groups and clubs and to be active outside of the home. As a result, opinion leaders often have legitimate power by virtue of their social standing.
· They tend to be similar to the consumer in terms of their values and beliefs, so they possess referent power. Note that although opinion leaders are set apart by their interest or expertise in a product category, they are more convincing to the extent that they are homophilous rather than heterophilous. Homophily refers to the degree to which a pair of individuals is similar in terms of education, social status, and beliefs. Effective opinion leaders tend to be slightly higher in terms of status and educational attainment than those they influence, but not so high as to be in a different social class.
· Opinion leaders are often among the first to buy new products, so they absorb much of the risk. This experience reduces uncertainty for others who are not as courageous. Furthermore, whereas company-sponsored communications tend to focus exclusively on the positive aspects of a product, the hands-on experience of opinion leaders makes them more likely to impart both positive and negative information about product performance.
(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-6. Is there such a thing as a generalized opinion leader? Why or why not?
When marketers and social scientists initially developed the concept of the opinion leader, they assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. However, later work began to question the assumption that there is such a thing as a generalized opinion leader, somebody whose recommendations we seek for all types of purchases. Very few people are capable of being expert in a number of fields. Sociologists distinguish between those who are monomorphic, or expert in a limited field, and those who are polymorphic, or expert in several fields.
(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-7. What is the relationship between an opinion leader and an opinion seeker?
The fact that we transmit advice about products does not mean other people take that advice. For someone to be considered a bona fide opinion leader, opinion seekers must actually heed his advice. An alternative is to select certain group members (key informants) who we ask to identify opinion leaders. The success of this approach hinges on locating those who have accurate knowledge of the group and on minimizing their response biases (e.g., the tendency to inflate one’s own influence on the choices of others).
(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-8. What is the difference between a market maven and a surrogate consumer?
In addition to everyday consumers who are instrumental in influencing others’ purchase decisions, a class of marketing intermediary called the surrogate consumer is an active player in many categories. A consumer category called the market maven describes people who are actively involved in transmitting marketplace information of all types.
(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking,)
11-9. What are sociometric techniques? Under what conditions does it make sense to use them? Sociometric methods trace communication patterns among members of a group. These techniques allow researchers to systematically map out the interactions that take place among group members.
(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-10. List three types of social power, and give an example of each.
Responses will vary by students. Social power describes the capacity to alter the actions of others. It can be based on referent power (the power to promote a fashion brand by a celebrity), information power (identifying the next trend in gaming), legitimate power (doctors at a hospital teaching medical students), expert power (hiring an astronaut to design technology for the space station), reward power (earning loyalty rewards from your favorite retailer), or coercive power (a car salesman offering a special price if you buy today).
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-11. What is brand community, and why is it of interest to marketers?
A brand community is a group of consumers—like those zealous Halo players— who share a set of social relationships based on usage of or interest in a product. Researchers find that people who participate in these events feel more positive about the sponsor’s products as a result, and this enhances brand loyalty. They tend to forgive product failures or lapses in service quality, and they’re less likely to switch brands even if they learn that competing products are as good or better. Furthermore, these community members become emotionally involved in the company’s welfare, and they often serve as brand missionaries because they carry its marketing message to others. Researchers find that brand community members do more than help the product build buzz; their inputs actually create added value for themselves and other members as they develop better ways to use and customize products.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-12. Define conformity and give an example of it. Name three reasons why people conform.
Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure. For a society to function, its members develop norms or informal rules that govern behavior. Without these rules, we would have chaos. Imagine the confusion if a simple norm such as “always stop for a red traffic light” did not exist. There are several reasons why people conform, and student answer will vary, but should include a combination of cultural pressures, fear of deviance, commitment, group unanimity, size and expertise, susceptibility to interpersonal influence, and environmental cues.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-13. How does the Principle of Least Interest relate to your success in a romantic relationship?
The more people are dedicated to a group and value their membership in it, the greater their motivation to conform to the group’s wishes. Rock groupies and followers of TV evangelists may do anything their idols ask of them, and terrorists become martyrs for their cause. According to the Principle of Least Interest the person who is least committed to staying in a relationship has the most power because that party doesn’t care as much if the other person rejects him.
(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
CONSUMER BEHAVIOR CHALLENGE
DISCUSS
11-14. A recent sociometric study on obesity (similar to the one we read about regarding clusters of smokers) provides a striking example of how our social networks influence what we do. The researchers analyzed a sample of more than 12,000 people who participated in the Framingham Heart Study, which closely documented their health from 1971 to 2003. They discovered that obesity can spread from person to person, much like a virus. The investigators knew who was friends with whom, as well as who was a spouse or sibling or neighbor, and they knew how much each person weighed at various times over three decades so they could reconstruct what happened over the years if study participants became obese. Guess what? When one person gains weight, close friends tend to gain weight, too. A person’s chances of becoming obese if a close friend put on the pounds increased by 57 percent! The friend’s influence remained even if he or she lived hundreds of miles away. The researchers speculated that the reason for this social contagion effect is that when our best buds get fat, this alters our perception of normal body weight so we aren’t as concerned when we put on a few pounds as well.
Sociometric methods trace communication patterns among members of a group.
These techniques allow researchers to systematically map out the interactions among group members. In many cases, one or a few people emerge as the “nodes” in a map—our opinion leaders. This method is the most precise, but it is difficult and expensive to implement because it involves close study of interaction patterns in small groups. For this reason, it’s best to apply a sociometric technique in a closed, self-contained social setting, such as in hospitals, in prisons, and on military bases, where members are largely isolated from other social networks. Sociometric techniques don’t just look at who talks (or texts) to whom; they also consider the type of relationships among members of a social network. Tie strength refers to the nature of the bond between people. It can range from strong primary (e.g., one’s spouse) to weak secondary (e.g., an acquaintance whom one rarely sees). Although strong ties are important, weak ties are as well because they perform a bridging function. This type of connection allows a consumer access between subgroups.
(15 minutes, Chapter Objective 3, AACSB: Analytical Thinking)
11-15. The average American teenager spends well over 8 hours a day in front of a screen, whether smartphone, PC, TV or tablet. One study reported increasing physical isolation among Internet users; it created a controversy and drew angry complaints from some users who insisted that time they spent online did not detract from their social relationships. However, the researchers said they had now gathered further evidence showing that Internet use has lowered the amount of time people spend socializing with friends and even sleeping. According to the study, an hour of time spent using the Internet reduces face-to-face contact with friends, co-workers and family by 23.5 minutes, lowers the amount of time spent watching television by 10 minutes and shortens sleep by 8.5 minutes. What’s your perspective on this issue—does increasing use of the Internet have positive or negative implications for interpersonal relationships in our society?
The answer to this question all depends on how “interpersonal” is defined. If the definition sticks to that of traditional face-to-face communication, then it will be hard to argue that increased time online does not detract from interpersonal communication. Time is a limited resource. And as is shown above in the question itself, there is research to back this up. However, if students lean toward defining interpersonal communication as any type of communication between people, then there will be strong argument for the fact that increased time online enhances such. Given that many people spend time emailing, IMing, chatting, interacting in forums, blogs, etc., then in many cases, the time
spent online is providing opporunities to interact with others that would otherwise not be there.
(15 minutes, Chapter Objective 4, AACSB: Analytical Thinking)
11-16. A consumer tribe is similar to a brand community; it is a group of people who share a lifestyle and can identify with each other because of a shared allegiance to an activity or a product. Although these tribes are often unstable and short lived, at least for a time members identify with others through shared emotions, moral beliefs, styles of life, and of course the products they jointly consume as part of their tribal affiliation. Some companies, especially those that are more youth-oriented, use a tribal marketing strategy that links their product to, say, a group of shredders. However, there also are plenty of tribes with older members, such as car enthusiasts who gather to celebrate cult products like the Citroën in Europe and the Ford Mustang in the United States, or “foodies” who share their passion for cooking with other Wolfgang Puck wannabes around the world. Identify and visit a tribal festival in your area (e.g. a comic book convention, a rock concert, a basketball tournament, a vegan food show, etc). What role do marketers play in this event? How and to what extent do attendees identify with other “tribal” members?
Responses will vary based on the tribal event students choose to participate in, but should discuss opinion leaders and influence networks.
(3 -4 hours, Chapter Objective 3, AACSB: Reflective Thinking)
11-17. The Word-of-Mouth Marketing Association recently announced a new set of rules and guidelines for word-of-mouth advertising. The trade group maintains that marketers must make sure that people talking up products or services disclose for whom they are working. They also must use real consumers, not actors, who discuss what they really believe about a product. The rules were prompted by several controversial incidents such as a campaign the U.S. arm of Sony Ericsson Mobile Communications created for a camera phone. The company hired 60 actors to hang out at tourist attractions and ask unsuspecting passersby to take their pictures with the Sony Ericsson devices. The actors were told to identify themselves only when asked directly. What do you think about “stealth” campaigns like this? Should marketers be required to disclose their true intentions when they try to initiate positive word of mouth?
Traditionally, most students will respond that there is nothing wrong or even ethically questionable about such stealth practices as those described above. Even when they are led toward thinking that such practices are unethical, most will say that this is just another promotional practice, and that companies are within their rights to do such; that no harm is done. Within inclusion of the information that the AMA has actually censured such practices, the responses by students might be different.
(15 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities)
11-18. Walmart contended with a widespread text-messaging hoax that warned women to stay away from its stores or risk death. The digital rumor apparently originated in an urban myth (an unsubstantiated “fact” that many people accept as true) that circulated via email several years ago. As a reflection of how widespread this myth became, at one point Walmart was number 5 on Twitter’s list of trending topics. If you were a Walmart communication executive, how might you deal with this kind of public relations nightmare?
Students are likely to have different opinions about the best way to handle the rumors. Draw their attention to the information about rumors and word-of-mouth so they understand the value of having consumers share the right information (vs. using less credible advertising).
(15 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities)
11-19. The strategy of viral marketing gets customers to sell a product to other customers on behalf of the company. That often means convincing your friends to climb on the bandwagon, and sometimes you get a cut if they buy something. Some might argue that that means you’re selling out your friends (or at least selling to your friends) in exchange for a piece of the action. Others might say you’re simply sharing the wealth with your buddies. Have you ever passed along names of your friends to a company or Web site? If so, what happened? How do you feel about this practice?
Responses will vary based on student experiences. When people share their opinions about products with their social networks, they may do so to satisfy one of several goals: To manage the impression they make on others, to regulate emotions by expressing affective reactions, to share and acquire information, to bond with others, and to persuade others to change their opinions. Unlike a spontaneous conversation in the physical world, when consumers write about products they have more time to think strategically about what they’re saying—and about how these judgments reflect on them.
(15 minutes, Chapter Objective 4, AACSB: Ethical Understanding and Reasoning)
APPLY
11-20. Identify fashion opinion leaders on your campus. Do they fit the profile the chapter describes?
The class might agree to focus on a particular group of fashion opinion leaders. After deciding on the group, they could go through an opinion leader profile and determine whether or not the group members actually are fashion experts. (Possible Field Project Idea)
(15 minutes, Chapter Objectives 2 and 7, AACSB: Reflective Thinking)
11-21. A study on antibranding documented hostility among consumers who object to the gas-guzzling Hummer vehicle. One driver posted this message: “The H2 is a death machine. You’d better hope that you don’t collide with an H2 in your economy car. You can kiss your ass goodbye thanks to the H2’s massive weight and raised bumpers. Too bad you couldn’t afford an urban assault vehicle of your own.” Identify an antibranding site for another product. What functions do the site seem to serve? How can people who participate there be considered part of a community?
Answers will vary, some students will discuss public service announcements like don’t drink and drive or don’t smoke ,etc.
(15 minutes, Chapter Objectives 2 and 7, AACSB: Reflective Thinking)
11-22. Conduct a sociometric analysis within your dormitory or neighborhood. For a product category such as music or cars, ask each individual to identify other individuals with whom they share information. Systematically trace all of these avenues of communication, and identify opinion leaders by locating individuals who are repeatedly named as providing helpful information.
Students should include a discussion of sociometry in their responses and recognize that sociometric methods allow researchers to systematically point out the interactions that take place among group members. Conducting a study of this type should highlight for students how difficult and expensive such activities can be. (Possible Field Project Idea)
(90 minutes, Chapter Objective 2, AACSB: Analytical Thinking)
11-23. Trace a referral pattern for a service provider such as a hairstylist; track how clients came to choose him or her. See if you can identify opinion leaders who are responsible for referring several clients to the businessperson. How might the service provider take advantage of this process to grow his or her business?
Students are likely to come up with all types of incentive programs that will motivate customers to refer friends. Once something like that is in place, the likelihood of a referral network emerging is greater.
(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
11-24. The power of unspoken social norms often becomes obvious only when we violate them. To witness the result firsthand, try one of the following: Stand facing the back wall in an elevator, serve dessert before the main course, offer to pay cash for dinner at a friend’s home, wear pajamas to class, or tell someone not to have a nice day.
Answers will vary.
(15 minutes, Chapter Objectives 2 and 7, AACSB: Reflective Thinking)
11-25. Identify a set of avoidance groups for your peers. Can you identify any consumption decisions that you and your friends make with these groups in mind?
Responses will vary by student. Reference groups impact our buying decisions both positively and negatively. In most cases, we model our behavior to be in line with what we think the group expects us to do. Sometimes, however, we also deliberately do the opposite if we want to distance ourselves from avoidance groups. You may carefully study the dress or mannerisms of a group you dislike (e.g., “nerds,” “druggies,” or “preppies”) and scrupulously avoid buying anything that might identify you with that group. Rebellious adolescents do the opposite of what their parents desire to make a statement about their independence. In one study, college freshmen reported consuming less alcohol when they associated it with their avoidance groups.
(15 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
11-26. Several colleges have sponsored “social media detox” events. Students at Saint Mary’s College of California were challenged to “Disconnect, Power Off and Unplug” in order to rediscover “The Lost Art of Solitude;” no Internet for a month! The library at Wake Forest University created a “ZieSta Room” where technology is banned. Do a “detox” of your own for 48 hours. No cellphones. No Facebook. No social media of any kind. Keep
a diary of your experiences.
Student outcomes will vary.
(50 hours, Chapter Objective 4, AACSB: Information Technology)
CASE STUDY TEACHING NOTES
Chapter 11 Case Study: Never Stay Here! The Power of Negative Online Reviews.
Summary of Case
TripAdvisor offers a review system for major travel partners and other travel-related businesses. Its community of travelers influences opinions and behaviors around the world. This case discusses options for handling negative reviews. Most marketers agree that listening and responding is the best strategy.
Suggestions for Presentation
You may wish to encourage students to explore TripAdvisor before discussing this case. As an exercise, you could ask them to plan out a sample Spring Break trip using TripAdvisor reviews.
Suggested Answers for Discussion Questions
Boston-based Cone Communications’ research revealed that 89 percent of consumers say they find online channels to be trustworthy sources for product and service reviews. In addition, Cone’s research showed that four out of five consumers have changed their minds about a recommended purchase based solely on negative information they found online. Online reviews are important for business survival and revenue growth. One study revealed that a one-star increase in a Yelp rating can lead to as much as a nine percent increase in revenue. Another Cornell University study found that for every increased point in reputation rating (TripAdvisor’s 1-5 scale), hotels can increase prices by 11 percent and not lose business. In the competitive world of hotel marketing, it’s clear that social media marketing and visitor review sites will continue to influence travelers’ decisions and must be taken seriously. Students might identify other pros and cons and include them in the discussion.
(15 minutes, Chapter Objective 4, AACSB: Information Technology)
CS 11-2. What steps do you recommend a hotel take when dealing with a negative online review? Try to find one example of a hotel that has done a good job of responding to a negative review.
The case explains that hotels should listen and respond. Following service recovery literature, the hotel can try to fix the issue and/or recovery by offering some discount or refund as an apology.
(15 minutes, Chapter Objective 4, AACSB: Application of Knowledge)
Additional Support Material
STUDENT PROJECTS
Individual Projects
1. Ask each student to think about individual family members, friends, and acquaintances. On paper, have them identify the people who act as opinion leaders, product innovators, and market mavens. Describe what each person does. Have a few students share their observations with the class.
Look for evidence that students can differentiate between opinion leaders (knowledgeable consumers who are frequently able to influence others’ attitudes or behaviors), product innovators (consumers who actively seek out the latest and greatest in a product category and are willing to take risks), and market mavens (individuals with a general interest in the marketplace).
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
2. Have a student think about some goods and services that he/she has purchased recently. To what extent did word-of-mouth communication influence purchases?
Word-of-mouth tends to be more credible than advertising. Students are more likely to rely on word-of-mouth and external search, in general, in high involvement purchase categories. Social risk may increase reliance on word-of-mouth. Negative word-of-mouth tends to be a larger consideration in purchase decisions than positive word-of-mouth.
(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
3. Encourage a student to think of something he/she recently purchased in which advice was actively sought from others. For what reasons was advice sought? Why was the particular person selected to provide this advice?
Students are likely to note advice was sought for a high involvement product, which usually motivates more active external search. Advice is typically sought from individuals with knowledge/expertise in the product category.
(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
4. Have each student identify one case of guerrilla marketing. It should be the objective to find a case where the maximum amount of promotional benefit was achieved with the least amount of resources. They should attempt to find information that will allow for estimates of these figures. Upon sharing cases with the class, keep track to determine the most effective campaign, based on this ROI-type measure.
It is often challenging to find credible measures of the impact of guerrilla marketing efforts because of the nature of the interactions. Discuss the fact that some companies may inflate these numbers to make their services seem more attractive to marketers. Also, note the difference between exposure to an individual and exposure to an individual in the marketer’s target audience.
(20 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
Group Projects
1. Each student group will have the task of forming or joining a brand community. Have them decide upon a brand that none of them really uses. Then, have them research the brand extensively and begin their own pro-product dialogue among themselves. If they wish to establish an online chat room or message board, that would be all the better. After having done this for a set period, have group members discuss how they feel about the brand. Whether they have purchased or not, do they feel more “loyal”? Have they developed positive attitudes? Do they find themselves engaging in WOM outside the group?
Students should select a product they use, have an interest in, and are passionate about, if possible. Look for students to connect with the ideas in the figure (e.g. social networking, community engagement, impression management, and brand use).
(90 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
2. Have the students videotape interviews with three individuals regarding a product they recently purchased for the first time. Why did they purchase it? What was the role of “word of mouth” and personal influence (whether real or simulated)? The group should edit the tape to present a summary illustration of their findings.
As in the individual project, interviewees are likely to note advice was sought for a high involvement product, which usually motivates more active external search. Advice is typically sought from individuals with knowledge/expertise in the product category.
(60 minutes, Chapter Objective 1, AACSB: Reflective Thinking)
3. Describe how opinion leaders can be formed and found on the Internet. Describe the advantages and disadvantages of using opinion leaders on the Web. How would this form of opinion leadership be different from any other form of opinion leadership (if at all)?
Opinion leaders can be formed via the Internet because of the availability of product information to be synthesized and the ability to connect with a large number of individuals. Opinion leaders might be found in top organic search results, by having a high circle of trust/positive feedback from other users, or having many followers. They may be less likely to be similar to the consumer in terms of values and beliefs.
(30 minutes, Chapter Objective 2, AACSB: Analytical Thinking)
4. Have student groups do an analysis of a rumor that was started about a product or company (e.g., a human finger found in a can of Pepsi, the “Satanic” connection in Procter & Gamble’s moon-and-stars logo; Pop Rocks candy will make your stomach explode; McDonald’s puts worms in its hamburgers; there are spider eggs in Bubble Yum, etc.). What effect did these rumors have on sales? How did the company handle the situation?
Look for students to include research on the rumor/to include outside sources in their assignment. You can extend this assignment by asking the student to suggest an alternative response strategy for the company.
(60 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
5. Have a group prepare a sociometric analysis of online grocery shoppers. How is this group different and similar to in-store shoppers?
Sociometric analysis would show whether the individuals refer others or influence others’ purchase decision online. They could be compared to off-line shoppers.
(90 minutes, Chapter Objective 2, AACSB: Analytical Thinking)
eLAB
Individual Assignments
1. Go to www.gogorillamedia.com/gogorillamedia.html. This is an agency that specializes in guerrilla marketing tactics. Summarize five such tactics, identifying benefits and examples of using each.
The website reviews different strategies that have been employed by the agency in the past. Look for students to tie the tactic to the benefits of its use.
(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
2. Go to www.hairclub.com. One of the great problems facing men in our day and age is the prospect of going bald. How does the Hair Club for Men play to male fears? How do they use opinion leaders to persuade prospective customers to try their products? What do you think of the organization’s promotional campaigns? Explain.
The Hair Club shows successful clients receiving positive reinforcement for their new looks, including the Hair Club’s president. Encourage students to think about the ethics of indicating that bald = ugly and hair = happy, successful, and attractive.
(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking)
Group Assignments
1. Visit a few fraternity or sorority websites and evaluate how they try to influence their current and potential brothers and sisters. Talk to students who are members and those that are not associated with them. Determine if their group influences are effective or not based on your assessments of the two groups – members and non-members.
Students should have observations from the public communications on the web sites, from members, and from non-members. Look for students to support their conclusions about the effectiveness of the group influences from these three sets of observations.
(60 minutes, Chapter Objective 2, AACSB: Analytical Thinking)
Copyright © 2017 Pearson Education, Inc.
1
Copyright © 2017 Pearson Education, Inc.
2
Copyright © 2017 Pearson Education, Inc.
11-20
