C HAPTER 7: G ROUP I NFLUENCE AND C ONSUMER B EHAVIOR Iffat Tarannum

W HO ARE THEY ? D O THEY HAVE ANY RELATIONSHIP ? A RE THEIR BEHAVIOR INTERDEPENDENT ?

T YPES OF G ROUP : group 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. reference group 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.

C RITERIA 1. Membership (member, not member) 2. Strength of Social Tie ((primary and secondary) 3. Type of Contact (direct or indirect  online communities) 4. Attraction( aspiration and dissociative)

C ONSUMPTION S UBCULTURE Distinctive subgroup of a society on the basis of a shared commitment to a particular product class, brand or consumption activity. use of jargons, rituals and modes of symbolic expression Examples? Fitness lover, Geeky Movie lover/ La Liga lovers/ cyclist

B RAND C OMMUNITIES Non-geographically bound community, based on ownership and psychological relationship with the brand. Brand communities can add value to the ownership of the product and build intense loyalty. Example: Prince Bazar

O NLINE C OMMUNITY AND S OCIAL NETWORKS 9GAG CAT lovers of Bangladesh Airtel page- Hotel Al Razzaque Campaign

I NFLUENCE OF R EFERENCE G ROUP Informational Normative- fulfilling group expectation (utilitarian) Identification (value Expressive)

D EGREE OF R EFERENCE G ROUP : Strongest when the brand is visible to group Higher the less of a necessity of an item is The more commitment The more relevant a particular activity to the groups’ functioning Individual confidence/personality

M ARKETING S TRATEGIES BASED ON R EFERENCE G ROUP I NFLUENCES Asch Phenomenon Personal selling strategies Advertisement strategies- show 3 ads

C OMMUNICATION ABOUT G ROUPS AND O PINION LEADERSHIP Word of Mouth: sharing information in a verbal from including face to face, phone and the internet Opinion leader( internet utshab)

S ITUATION IN WHICH WOM OCCURS

C HARACTERISTIC OF OPINION LEADER Enduring involvement Market mavens (special type of opinion leader) Influential (10% population by Roper Starch) E –influentials

M ARKETING S TRATEGY FOR WOM AND OPINION L EADER Stimulations (encourages current owner to talk more about brands) # campaign Simulating - having an acknowledged opinion leader Product sampling Retailing and personal selling (discount, free advising) Creating Buzz (world cup flash mob, movies)

D IFFUSION OF I NNOVATIONS Why study innovation category? Continuous innovation Dynamically continuous innovation (camera  digital camera) Discontinuous innovation (major change) (hydrogen car) Adoption Process (awareness  interest  evaluation  trial  adoption) Diffusion process- how innovation is spread throughout a market

D IFFUSION RATES OF CONSUMER ELECTRONICS

F ACTORS AFFECTING SPREAD OF INNOVATIONS Types of groups Types of decision(individual v group) Marketing effort Fulfillment of felt need Compatibility (with values, belief,etc) (stake cooked with wine) Relative advantage Complexity Observability Trailability Perceived risk

C HARACTERISTIC OF INDIVIDUAL Innovators Early adopters Early majority Late majority laggards

M ARKETING STRATEGIES AND DIFFUSION PROCESS Moving target market Diffusion enhancement strategies (see the book and ask questions to student)

C LASS A CTIVITY Choose a Bangladeshi Brand Suggest an innovations (discontinuous or dynamically continous) Analyze the factors of diffusion of innovations Develop a brief diffusion enhancement strategies Present in class by someone who did not present earlier Types of groups Types of decision(individu al v group) Marketing effort Fulfillment of felt need Compatibility (with values, belief,etc) Relative advantage Complexity Observability Trailability Perceived risk