Social Social InfluencesInfluences

POP ROCKS CANDY

““Human are Human are socialsocial animals. We all animals. We all belong belong to groupsto groups and take cues about how to and take cues about how to

behave by observing those around us. In behave by observing those around us. In fact, our fact, our desire to fit indesire to fit in is the is the primary primary

motivationmotivation for many of our for many of our purchases and purchases and activitiesactivities.”.”

DefinitionDefinition

Social Influences: Information by and pressures from individuals, groups, and the mass media that affect how a person behaves

Tie-Strength and Social Influence: Building network of communication.

How to classify sources of How to classify sources of influence ?influence ?

Reach

Capacity for Two-Way Communication

Credibility

Sources of Influence

Special Sources of InfluenceSpecial Sources of Influence

Opinion Leaders– Opinion Leaders and Gatekeepers– Knowledgeable About Products– Heavy Users of Mass Media– Buy New Products When

Introduced– Perceived as Credible

Market Mavens

What is a Group?What is a Group?

Two or more people who interact to accomplish either individual or mutual goals

A membership group is one to which a person either belongs or would qualify for membership

A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

Reference Reference GroupGroup

A person or group that serves as a point of

comparison (or reference) for an individual in the

formation of either general or specific values, attitudes,

or behavior.

Major Consumer Reference

Groups

Reference Groups

Reference Groups Are Reference Groups Are Sources of InfluenceSources of Influence

Reference GroupAspirational Reference

GroupAssociative Reference

GroupDissociative Reference

Group

Indirect Indirect Reference Reference

GroupsGroups

Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

Reference Groups Are Reference Groups Are Sources of InfluenceSources of Influence

Characteristics of Reference Groups– Degree of Contact– Formality– Homophily: The Similarity Among Group Members– Group Attractiveness– Density– Degree of Identification– Tie-Strength

Reference Groups Are Reference Groups Are Sources of InfluenceSources of Influence

Reference Groups Affect Consumer Socialization– Consumer Socialization– People as Socializing Agents– The Media and the Marketplace as

Socializing Agents

Sources of Influence and Types of Influence

Sources Can Exert Normative Sources Can Exert Normative InfluenceInfluence

Normative InfluenceNorms What Happens when Consumers

Experience Normative Influence?– Brand-Choice Congruence – Conformity– Compliance Versus Reactance

Sources Can Exert Sources Can Exert Informational InfluenceInformational Influence

What Makes Informational Influence Strong or Weak?– Product Characteristics– Consumer and Influencer Characteristics– Group Characteristics

How Can “Information” How Can “Information” Be Described?Be Described?

Valence: Is Information Positive or Negative? Modality: Does Information Come from Verbal

or Nonverbal Channels? The Pervasive and Persuasive Influence of Word

of Mouth– Word of Mouth– Viral Marketing

The Good and Bad of Social InfluenceThe Good and Bad of Social Influence

Positive outcomes– Personal knowledge– Greater certainty– Better choices– Charitable, philanthropic,

humanitarian behaviors– Values consistent with

higher social good

Negative outcomes– Materialism – Anorexia/bulimia– Conspicuous consumption– Theft– Drugs– Smoking– Alcohol– Hazing deaths– Gangs– The media and violence

Word of MouthWord of Mouth

Important??

M·A·C (Make-up Art Cosmetics). now sold in over 38 countries worldwide.

Supporting factors to WOM

““80% of all business decisions are influenced by a direct80% of all business decisions are influenced by a direct

recommendation of a third party intermediary.”recommendation of a third party intermediary.”

Initiated in a spontaneous manner….usually (Henry Weinhard’s Private Reserve).

Implication, ego, true…

Word of MouthWord of Mouth

Efficiency

Batman (Michael Keaton negative perception).

Negative Aspects and rumors

More emphasis on negative aspects.

Assimilation or accentuation: distortion of information.

Non familiar with product category, new or complex product.

Rumors…more negative for brands..

Rumors and MarketingRumors and Marketing

Procter and Gamble

Mc Donald’s

The family as a unit of consumptionAggregated studiesInteraction studies

The family as symbols productionFamily Rituals

The family as a socialization agentSocial LearningCognitive Development

The Family: Consumption and The Family: Consumption and Socialization SettingSocialization Setting

A Specific A Specific Group: Group:

The FamilyThe Family

Two or more persons related by blood, marriage, or adoption who reside

together.

The Family Life CycleThe Family Life Cycle

Traditional Family Life Cycle– Stage I: Bachelorhood– Stage II: Honeymooners– Stage III: Parenthood– Stage IV: Postparenthood– Stage V: Dissolution

Modifications - the Nontraditional FLC

An Extended Family life Cycle

Middle-AgedDivorced without

Children

Middle-AgedMarried without

Children

YoungDivorced without

Children

YoungSingle*

YoungMarried without

Children*

YoungMarried

with Children*

Middle-Aged

Married with

Children*

Middle-Aged

Married without

Dependent Children*

OlderMarried*

OlderUnmarried*

Middle-Aged

Divorced with

Children

Middle-Aged

Divorced without Children

YoungDivorced

with Children*

* Traditional Family FlowRecycled FlowUsual Flow

Noteworthy Nontraditional FLC Stages

Family Households

Childless couples It is increasingly acceptable for married couples to elect not to have children. Contributing forces are more career-oriented married women and delayed marriages.

Couples who marry later in life (in their late 30s or later)

More career-oriented men and women and greater occurrence of couples living together. Likely to have fewer or even no children.

Couples who have first child later in life (in their late 30s or later)

Likely to have fewer children. Stress quality lifestyle: “Only the best is good enough”

Alternative FLC Stages Definition/Commentary

Family Households

Single parents II Young man or woman who has one or more children out of wedlock.

Single parents III A single person who adopts one or more children.

Extended family Young single-adult children who return home to avoid the expenses of living alone while establishing their careers. Divorced daughter or son and grandchild(ren) return home to parents. Frail elderly parents who move in with children. Newlyweds living with in-laws.

Alternative FLC Stages Definition/Commentary

Single parents I High divorce rates (about 50%) contribute to a portion of single-parent households

The Eight Roles in the Family Decision-Making Process

ROLEROLE DESCRIPTIONDESCRIPTIONInfluencers Family member(s) who provide information to other members

about a product or service

Gatekeepers Family member(s) who control the flow of information about a product or service into the family

Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consumer, or dispose of a specific product or service

Buyers Family member(s) who make the actual purchase of a particular product or service

Preparers Family member(s) who transform the product into a form suitable for consumption by other family members

Users Family member(s) who use or consume a particular product or service

Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.

Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Dynamics of Husband-Wife Dynamics of Husband-Wife Decision MakingDecision Making

Husband-DominatedWife-DominatedJoint

Husband-Wife Influence in Financial Tasks and Decisions

0 10 20 30 40 50 60 70 80 90 100

Gifts to Charities

Monthly Expense Budget

Insurance for Wife

Financing of Large Purhcase

Allocation of Funds for Savings

Insurance for Husband

Down Payment on a Large Purchase

Choice of Institution for Cetificate of Deposit

Choice of Type of Investment

Husband-dominated Equal partnership Wife-dominated

How to use the “New” family?How to use the “New” family?

Social ClassSocial Class

The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status

than members of other classes

Variations in the Number and Types of Social-Class Categories

TWO-CATEGORY SOCIAL CLASS SCHEMAS•Blue-collar, white-collar•Lower, upper•Lower, middle

THREE-CATEGORY SOCIAL CLASS SCHEMAS•Blue-collar, gray-class, white-collar•Lower, middle, upper

FOUR-CATEGORY SOCIAL CLASS SCHEMAS•Lower, lower-middle, upper-middle, upper

FIVE-CATEGORY SOCIAL CLASS SCHEMAS•Lower, working-class, lower-middle, upper-middle, upper•Lower, lower-middle, middle, upper-middle, upper

SIX-CATEGORY SOCIAL CLASS SCHEMAS•Lower-lower, upper-lower, lower-middle, upper-middle, lower-upper, upper-upper

SEVEN-CATEGORY SOCIAL CLASS SCHEMAS•Real lower-lower, a lower group of people but not the lowest, working class, middle class, upper-middle, lower-upper, upper-upper

NINE-CATEGORY SOCIAL CLASS SCHEMAS•Lower-lower, middle-lower, upper-lower, lower-middle, middle-middle, upper-middle, lower-upper, middle-upper, upper-upper

Percent Distribution of Five-Category Social-Class Measure

SOCIAL CLASSES PERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage 100.0

The Measurement of Social The Measurement of Social ClassClass

Subjective MeasuresReputational MeasuresObjective Measures

Subjective Subjective MeasuresMeasures

In the subjective approach to measuring social class, individuals are asked to

estimate their own social-class positions.

Reputational Reputational MeasuresMeasures

The reputational approach requires selected community

informants to make initial judgments concerning the

social-class membership of others within the

community.

Objective Objective Measures of Measures of Social ClassSocial Class

A method of measuring social class whereby individuals are asked

specific socioeconomic questions concerning

themselves or their families On the basis of their

answers, people are placed within specific social-class

groupings.

Objective MeasuresObjective Measures

Single-variable indexes– Occupation– Education– Income– Other Variables

Composite-variable indexes– Index of Status Characteristics– Socioeconomic Status Score

Index of Status Index of Status Characteristics Characteristics

(ISC)(ISC)

A composite measure of social class that combines

occupation, source of income (not amount), house type and dwelling area into a

single weighted index of social class standing. Also known as Warner’s ISC.

Socioeconomic Socioeconomic Status Score Status Score

(SES)(SES)

A multivariable social class measure used by the United States Bureau of the Census that combines occupational status, family income, and

educational attainment into a single measure of social

class standing.

How Social Class How Social Class Changes Over TimeChanges Over Time

Upward MobilityDownward Mobility

– Status Panic

Social Class Fragmentation

How Does Social Class Affect How Does Social Class Affect Consumption?Consumption?

Conspicuous Consumption– Conspicuous Waste

How Does Social Class Affect How Does Social Class Affect Consumption?Consumption?

Status Symbols and Judging Others– Status Symbols– Parody Display– Fraudulent Symbols

How Does Social Class Affect How Does Social Class Affect Consumption?Consumption?

Compensatory Consumption

Social-Class Profiles

THE UPPER-UPPER CLASS--COUNTRY CLUB ESTABLISHMENT•Small number of well-established families•Belong to best country clubs and sponsor major charity events•Serves as trustees for local colleges and hospitals•Prominent physicians and lawyers•May be heads of major financial institutions, owners of major long-established firms

•Accustomed to wealth, so do not spend money conspicuously

THE LOWER-UPPER CLASS--NEW WEALTH•Not quite accepted by the upper crust of society•Represent “new money”•Successful business executive•Conspicuous users of their new wealth

THE UPPER-MIDDLE CLASS--ACHIEVING PROFESSIONALS•Have neither family status nor unusual wealth•Career-oriented•Young successful professionals, corporate managers, and business owners

•Most are college graduates, many with advanced degrees•Active in professional, community, and social activities•Have a keen interest in obtaining the “better things in life”•Their homes swerve as symbols of their achievements•Consumption is often conspicuous•Very child-oriented

THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS•Primary nonmanagerial white-collar workers and highly paid blue-collar workers

•Want to achieve “respectability” and be accepted as good citizens•Want their children to be well-behaved•Tend to be churchgoers and are often involved in church-sponsored activities

•Prefer a neat and clean appearance and tend to avoid faddish or highly-styled clothing

•Constitute a major market for do-it-yourself products

THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY•The largest social-class segment•Solidly blue-collar•Strive for security (sometimes gained from union membership)•View work as a means to “buy” enjoyment•Want children to behave properly•High wage earners in this group may spend impulsively• Interested in items that enhance their leisure time (e.g., TV sets)•Husbands typically have a strong “macho” self-image•Males are sports fans, heavy smokers, beer drinkers

THE LOWER-LOWER CLASS--ROCK BOTTOM•Poorly educated, unskilled laborers•Often out of work•Children are often poorly treated•Tend to live a day-to-day existence