Marketing 334Consumer Behavior

Chapter 7Group Influences

Based on Consumer Behavior, 10th edition by Hawkins, Mothersbaugh and Best

7-2

Consumer Behavior In The News…Consumer Behavior In The News… Goodyear is beginning to offer “collegiate tires” which have the Goodyear is beginning to offer “collegiate tires” which have the

college name in white letters on the tire’s sidewalls.college name in white letters on the tire’s sidewalls.

Goodyear claims these tires are only for “the ultimate fan.”Goodyear claims these tires are only for “the ultimate fan.”

Source: J. Halliday, “Tire maker eyes college sports fans,” Advertising Age, November 8, 2004, p. 8.

Consumer Behavior In The News…Consumer Behavior In The News…

What would “drive” a fan to put his/her team’s name on What would “drive” a fan to put his/her team’s name on their tires?their tires?

How big do you think this market is?How big do you think this market is?

Source: J. Halliday, “Tire maker eyes college sports fans,” Advertising Age, November 8, 2004, p. 8.

Reference Group InfluenceReference Group Influence

A group group is defined as two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent.

A reference groupreference group is a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior.

Reference Group InfluenceReference Group Influence

Four criteria that are particularly useful in classifying groupsgroups:

1.1. MembershipMembership

2.2. Strength of Social TieStrength of Social Tie

3.3. Type of ContactType of Contact

4.4. AttractionAttraction

Types of GroupsTypes of Groups

Consumption SubculturesConsumption Subcultures

Brand CommunitiesBrand Communities

Virtual CommunitiesVirtual Communities

LeadersLeaders ParticipantsParticipants LurkersLurkers

Types of Groups

Brand communities Brand communities can add value to the ownership of the product and build intense loyalty.

Marketing and Brand CommunitiesMarketing and Brand Communities

Jeep has a longstanding loyal brand communityJeep has a longstanding loyal brand community

Types of Groups

Marketing in virtual communitiesvirtual communities is both possible and potentially beneficial.

The approach taken must be tailored to the type of virtual communityvirtual community.

Virtual CommunitiesVirtual Communities

Many online groups are sensitive to “commercial” interference and companies have to be careful not to overstep.

Reference Group Influences on the Reference Group Influences on the Consumption ProcessConsumption Process

Types of Reference Group InfluenceTypes of Reference Group Influence

Situational determinants of Reference Group Situational determinants of Reference Group InfluenceInfluence

Brand vs. Product Class InfluenceBrand vs. Product Class Influence

Marketing Strategy and Reference GroupsMarketing Strategy and Reference Groups

Reference Group Influences on the Reference Group Influences on the Consumption ProcessConsumption Process

Reference group influence can take three forms:

1.1. Informational InfluenceInformational Influence

2.2. Normative Influence (a.k.a. utilitarian influence)Normative Influence (a.k.a. utilitarian influence)

3.3. Identification Influence (a.k.a. value expressive)Identification Influence (a.k.a. value expressive)

Types of Reference Group Influence

WOMWOM

Opinion LeadersOpinion Leaders

Market Mavens, Influentials, and e-fluentialsMarket Mavens, Influentials, and e-fluentials

Marketing and Online StrategiesMarketing and Online Strategies

Communications within Groups and Opinion Leadership

Communications within Groups and Opinion Leadership

Mass Communication Information FlowsMass Communication Information Flows

Communications within Groups and Opinion Leadership

1. Individual seeks information from another or

2. Individual volunteers information

Situations in Which WOM and Opinion Leadership Occur

Likelihood of Seeking an Opinion Likelihood of Seeking an Opinion LeaderLeader

Communications within Groups and Opinion LeadershipMarketing Strategy, WOM, and Opinion Leadership

Strategies designed to generate WOM and encourage opinion leadership include:

1.1. AdvertisingAdvertising

2.2. Product SamplingProduct Sampling

3.3. Retailing/Personal SellingRetailing/Personal Selling

4.4. Creating BuzzCreating Buzz

Communications within Groups and Opinion LeadershipOnline Strategies to Leverage Buzz and WOM

Viral marketingViral marketing

Online GuidesOnline Guides

BlogsBlogs

Applications in Consumer Behavior

Example of Online Viral Marketing CampaignExample of Online Viral Marketing Campaign

Courtesy of Hershey Corporation.

Diffusion of InnovationsDiffusion of Innovations

Categories of InnovationCategories of Innovation

Adoption ProcessAdoption Process

Diffusion RateDiffusion Rate

Adopter CategoriesAdopter Categories

Marketing Strategies and the Diffusion ProcessMarketing Strategies and the Diffusion Process

Diffusion of InnovationsDiffusion of InnovationsCategories of Innovations

Continuous InnovationContinuous Innovation

Dynamically continuous InnovationDynamically continuous Innovation

Discontinuous InnovationDiscontinuous Innovation

7-19

Diffusion of Innovations

Diffusion Rates for Popular Consumer Electronics (Cumulative)Diffusion Rates for Popular Consumer Electronics (Cumulative)

7-20

Diffusion of Innovations

Factors Affecting the Spread of InnovationsFactors Affecting the Spread of Innovations

Perceived RiskPerceived Risk

TrialabilityTrialability

ObservabilityObservability

ComplexityComplexity

Relative AdvantageRelative Advantage

CompatibilityCompatibility

Fulfillment of Fulfillment of Felt NeedFelt Need

Marketing EffortMarketing Effort

Type of DecisionType of Decision

Type of GroupType of Group

Rate of DiffusionRate of Diffusion

Diffusion of InnovationsDiffusion of Innovations

InnovatorsInnovators

Early AdoptersEarly Adopters

Early MajorityEarly Majority

Late MajorityLate Majority

LaggardsLaggards

Adopter Categories