Discuss consumption subcultures, including brand and online communities and their significance for marketing
Discuss consumption subcultures, including brand and online communities and their significance for marketing
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CHAPTER
7
Group Influences on Consumer Behavior
1
7-2
PART II: EXTERNAL INFLUENCES
2
Explain reference groups and the criteria used to classify them
Discuss consumption subcultures, including brand and online communities and their importance for marketing
Summarize the types and degree of reference group influence
Discuss within-group communications and the importance of word-of-mouth communications to marketers
Understand opinion leaders (both online and offline) and their importance to markets
Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Learning Objectives
L06
L05
L01
L04
L03
L02
A 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 group is a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior.
7-4
Reference Group Influence
Alberto Pomares/ Getty Images
4
Four criteria that are particularly useful in classifying groups:
Membership
Strength of Social Tie
Type of Contact
Attraction
7-5
Reference Group Influence
5
Consumption Subcultures
Identifiable hierarchy
Set of shared beliefs and values
Unique jargon and rituals
7-6
Types of Groups
YouTube Spotlight
Sneakerheads – The Culture of Shoe Collectors
viewer discretion due to language content
6
Brand communities can add value to the ownership of the product and build intense loyalty.
When a consumer becomes part of a brand community, remaining generally requires continuing to own and use the brand.
This can create intense brand loyalty!
Brand Communities
7-7
Reference Group Influence
7
The following Video Clip demonstrates how MINI Cooper used marketing to create a brand community and generate buzz!
7-8
Video Application
8
7-9
9
Online Communities and Social Networks
Community interacts around a topic of interest on the Internet
Online Social Network Sites
Facebook and Twitter
YouTube and Flickr
7-10
Types of Groups
10
When Using Social Media in Marketing
Be transparent
Be part of the community
Take advantage of the unique capabilities of each venue
7-11
Types of Groups
YouTube Spotlight
Samsung Capitalizes on Social Networking
viewer discretion due to language content
11
Types of Reference Group Influence
Situational Determinants of Reference Group Influence
Brand vs. Product Class Influence
Marketing Strategy and Reference Groups
7-12
Reference Group Influence on the Consumption Process
12
Reference group influence can take three forms:
Informational Influence
Normative Influence (a.k.a. utilitarian influence)
Identification Influence (a.k.a. value expressive)
Types of Reference Group Influence
7-13
Reference Group Influence on the Consumption Process
13
Consumption Situations and Reference Group Influence
7-14
Reference Group Influence on the Consumption Process
14
7-15
Reference Group Influence on the Consumption Process
15
WOM
Opinion Leaders
Market Mavens, Influentials, and e-fluentials
Marketing and Online Strategies
7-16
Communications within Groups and Opinion Leadership
16
WOM Versus Advertising
(% who put people vs. advertising as best source)
7-17
Communications within Groups and Opinion Leadership
17
Opinion Leaders
An opinion leader is the “go to person” for specific types of information. This person filters, interprets, and passes along information.
Opinion leaders possess enduring involvement for specific product categories. This leads to greater knowledge and expertise.
Opinion leadership is category specific – an opinion leader in one product category is often an opinion seeker in others.
7-18
Communications within Groups and Opinion Leadership
18
Mass Communication Information Flows
7-19
Communications within Groups and Opinion Leadership
19
Individual seeks information from another, or
Individual volunteers information
Situations in Which WOM and Opinion Leadership Occur
The exchange of advice and information between group members can occur directly via WOM in the following situations:
Likelihood of Seeking an Opinion Leader
7-20
Communications within Groups and Opinion Leadership
20
Crowdsourcing
Goes well beyond consumer-generated ads .
Can involve setting up a forum in which customers help other customers.
Can include input into product and service design.
7-21
Communications within Groups and Opinion Leadership
21
Mavens, Influentials, and e-fluentials
A market maven is a generalized market influencer who provides significant amounts of information about various products, places to shop, and so on.
Roper Starch identifies a group similar to market mavens called influentials. Influentials are 10% of population but use broad social networks to influence the other 90%!
Roper Starch identifies a group similar to Internet market mavens called e-fluentials. They wield significant online and offline influence.
7-22
Communications within Groups and Opinion Leadership
22
Marketing Strategy, WOM, and Opinion Leadership
Strategies designed to generate WOM and encourage opinion leadership include:
Advertising
Product Sampling
Retailing/Personal Selling
Creating Buzz
7-23
Communications within Groups and Opinion Leadership
23
Marketing Strategy, WOM, and Opinion Leadership
Advertising can stimulate and simulate WOM and opinion leadership.
This ad would likely stimulate WOM via interest and excitement
7-24
Applications in Consumer Behavior
24
Online Strategies to Leverage Buzz and WOM
Viral marketing is an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages (often via email) throughout a widespread network of buyers.”
Blogs are personalized journals where people and organizations can keep a running dialogue.
Twitter is a micro-blogging tool that has evolved quickly into one of the largest social media outlets.
7-25
Communications within Groups and Opinion Leadership
25
An innovation is an idea, practice, or product perceived to be new by the relevant individual or group.
The manner by which a new product spreads through a market is basically a group phenomenon.
New products can be placed on a continuum from no change to radical change, depending on the market’s perception.
7-26
Diffusion Innovations
26
Categories of Innovation
Adoption Process
Diffusion Rate
Adopter Categories
Marketing Strategies and the Diffusion Process
7-27
Diffusion Innovations
27
Categories of Innovations
Continuous Innovation
Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer.
Dynamically Continuous Innovation
Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.
Discontinuous Innovation
Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group.
7-28
Diffusion Innovations
28
Adoption Process and Extended Decision Making
7-29
Diffusion Innovations
29
Diffusion Rates for Popular Consumer Electronics (Cumulative)
7-30
Diffusion Innovations
30
Factors Affecting the Spread of Innovations
7-31
Diffusion Innovations
31
Rate of Diffusion
Type of Group
Type of Decision
Marketing Effort
Fulfillment of
Felt Need
Compatibility
Relative Advantage
Complexity
Observability
Trialability
Perceived Risk
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
Adopter Categories
7-32
Diffusion Innovations
32
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