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GROUP INFLUENCES ON CONSUMER BEHAVIOR

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					GROUP INFLUENCES ON
CONSUMER BEHAVIOR
              Group Processes
Group: 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.
Notes about groups and group processes:
  • Interdependence
  • Purpose
  • Influence on behavior
      – 2 ways: as individuals & group decisions
  • Dichotomous membership
                  Types of Groups
Reference group: an actual or imaginary
  individual/group conceived of having significant
  relevance upon an individual’s evaluations,
  aspirations, or behavior

Any external influence that provides social clues can
  be a reference group

   1. Aspiration groups
   2. Dissociative/avoidance groups
   3. Formal vs. Informal groups
    When Reference Groups Are Important
   Social power: capacity to alter the actions of
    others
   Types of social power:
        Referent power          Information power



        Legitimate power          Expert power



         Reward power            Coercive power
How Groups Influence Consumers
3 ways:
   Group Influence Processes
   Roles
   Conformity
How Groups Influence Consumers
How do you get information from groups? Through what
process?

1. Group Influence Processes:
      a) Informational
         * Acquire information from the group

      b) Normative (utilitarian)
         * Gain approval or avoid disapproval from group

      c) Identification (value expressive)
          * Identify with the group and incorporate group
             values and norms as part of your own self-
             concept and identity
 How Groups Influence Consumers
2. Roles
Defn: specific behaviors expected of a person in a
   given position

Role Related Products: group of products needed
   by a person to fulfill a role

What are Some Role Related Products for Students?
   Functionally necessary product for students?
   Symbolically necessary product for students?
             The Asch Experiment
Which of the 3 lines (A, B or C) are closest in length
   to the length of line X?
X

A
B
C
Why did these subjects make the wrong choice?
       Were the subjects convinced or did they just go
       along with the crowd?
    How Groups Influence Consumers
3. Conformity
Defn: Changing behavior or beliefs toward a group as a result
    of real or imagined group pressure.

Two types of conformity: compliance & private acceptance
   i) compliance – the consumer conforms to a group without
   really accepting the groups beliefs
   ii) private acceptance – the consumer actually changes his
   or her beliefs in the direction of the group

What would lead someone to conform to group pressure?
   How Groups Influence Consumers
What Factors lead to Conformity?
  Within the group
      Cohesiveness
      Expertise
      Size
   Within the individual
      Information available
      Self-esteem
      Attractiveness of the group and Need to be liked
   Type of decision
      Product salience
      Degree of conspicuousness
    Guerrilla Marketing
    Origination of term ‘Guerilla’
    Ambushing consumers with
     promotional content in places
     where it is not expected in order to
     get people talking
    Unconventional
    Good for small businesses or
     limited budgets
    Examples
         Smirnoff underpass in England
         Burnout 2 speeding fines
         Discover and New Year’s Eve
    Viral Marketing
   Company recruits customers to be sales agents by
    offering some incentive to spread the word about the
    product
   Providing opportunity for exponential growth
   Includes implied endorsement from a friend
   Must be easy to transfer and replicate

     “Get Your Free E-mail at Hotmail.com”
            Grew from 0 to 12 million users in 18 months
            Grew more rapidly than any company in any media
            Budget $50,000

        Other examples: evite.com, e-cards
Where does 6 degrees of separation
come from?
   Not Kevin Bacon
   Each person has a v. close network of 8 to 12 people
   Broader network of hundreds or thousands of people

Milgram late 60s
   Chain letter sent to 160 random people in Omaha, Nebraska
   Included name and address of stockbroker in Boston
   Write name and address and send to friend or acquaintance who
    you think would get letter closer to stockbroker
   Looked at the list of all those whose hands it went through to get
    there and establish how closely connected someone chosen at
    random from one part of the country is to another person in
    another part of the country
What’s the difference between
Buzz vs. Hype?

  Buzz            Hype

  Word of Mouth   Advertising

  Grassroots      Corporate

  Authentic       Fake

  Credibility     Skepticism
          Group Communications
Opinion Leadership – what is it?
      Knowledgeable group member
      Greater product involvement and knowledge
      Public individuation – willing to act differently
      Influence others’ attitudes and behaviors
        Group Communications
Market Maven
       Someone who has a lot of information on a lot of different
        products, prices, or places
       Likes to share the information with others but not a persuader
Connectors
       Know lots of people
       Social glue – bring people together
Salespeople
       Persuaders through trust and rapport not forced conformity
       Emotional contagion (Cacioppo) – expressive and contagious
        personalities


From “The Tipping Point” by Malcolm Gladwell

				
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posted:8/9/2012
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