Buyer BehaviourGroup Influence and Social Media

Chp. 11 with Duane Weaver

Where Reality meets the Road!Where Reality meets the Road!Perception in Action!Perception in Action!

Learning Objectives

• Understand how reference groups influence consumer behaviour

• Discuss the role of conformity as a social influence

• Discuss the importance of word-of-mouth communication

• Understand the nature of opinion leadership

• Understand the impact of Groups and Social Networks

Outline

• Reference Group Influences

• Types of Reference Groups

• Power of Reference Groups

• Conformity

• Resistance to Influence

• W.O.M. Communications

• Social Networks

Reference Group Influences

• Reference group− An actual or imaginary individual or group

that has a significant effect upon an individual’s evaluations, aspirations or behaviour

Reference Group Influences

1.Informational

2.Utilitarian

3.Value Expressive

Types of Reference Groups

1. Formal vs. Informal

2. Brand Community

3. Membership vs. Aspirational

4. Positive vs. Negative

5. Antibrand Community

Get together in a groups of three and come up with ideas as to how we might use each of these to our advantage as Marketers.

Pick two types and create one example for each of the two.

SOCIAL POWER:“the capacity to alter the actions of others”

Solomon, White, and Dahl, 2014, p. 324

Power of Reference Groups

Power of Reference Groups• Referent Power

− Based on admiration of an individual or group

− Patterns of consumption are copied

• Legitimate Power− Power granted by virtue of social agreements

• Reward Power− Power based on the ability to provide positive reinforcement

• Information Power − Based on access to information that others seek

• Expert Power− The individual possesses a special knowledge or skill

• Coercive Power− Effective in the short term, requires surveillance to ensure compliance

Conformity

GenderDifferences

Fearof

Deviance

Susceptibility to

Influence

CulturalPressures

Likelihood of

Conforming

Group unanimity,

size, expertise

Commitment

Conformity: A change in beliefs or actions as a reaction to real or imagined group pressures

Resistance to Influence• Anti-Conformity

− Defiance is the root of this behaviour• Paradox: being intentionally different

requires a concerted effort

• Independence− The individual is oblivious to expected

social patterns

• Reactance− Consumer resistance to stimuli

• “boomerang effect”

WOM CommunicationsThe Dominance of WOM:

Negative WOM:

Encouraging Factors

Encouraging Factors

Viral Marketing

Viral Marketing

Guerilla Marketing

Guerilla Marketing

Rumours Distortion

http://www.youtube.com/watch?v=ad4fagTyaM4

LegitimatePower

LegitimatePower

SimilarValues

“referent power”

SimilarValues

“referent power”

ReduceRisk

ReduceRisk

Knowledge Power

Knowledge Power

TechnicallyCompetent

TechnicallyCompetent

Opinion Leadership

Key Characteristics

of Opinion Leaders

“first to buy”

Social NetworksCOMPONENTS

•Social networks (set of socially relevant nodes) = social graphs

•Nodes = members in a network

•Ties = relationships among nodes

•Nodes (members of the network)

− Have interactions (behaviour based ties)− Have flows (exchange information, influence, etc.)

ELEMENTS

•Media multiplexity – flows are in many directions

•Social object theory – object of common interest(more powerful if there is a way to activate relationship between people and objects)

•Object sociality – extent objects can be shared

Virtual Communities• Virtual community of consumption

− Common love of a product− Remain anonymous – through cyberspace only− Operation is similar to any community− Social media provides the connection

• Virtual World Communities:− Presence− Collective interest− Democracy− Standards of behaviour - flaming

• Levels of participation – − Tourists: Lack strong social ties to group, and maintain only a passing interest in the

activity.− Minglers: Maintain strong social ties, but are not very interested in the central consumption activity.− Devotees: Express strong interest in the activity, but have few social attachments to the group.

− Insiders: Exhibit both strong social ties and strong interest in the activity

Thank You

• PERCEPTION IS REALITY