Group influence and opinion leadership

Importance of groups Consumers belong to or admire many different groups and are often influenced in their purchase decisions by a desire to be accepted by others.

Reference groups A reference group is an actual or imaginary or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour. (Cohen & Golden, 1972)

Types of reference groups There are three reference groups: Informational. Utilitarian. Value-expressive.

Other categories of groups Formal - organisations with a recognised structure. Informal groups - such as a group of friends or neighbours. Groups by membership. Aspirational reference groups. Identificational reference groups. Positive and negative reference groups. Virtual communities - collection of people whose online interactions are based on shared enthusiasm.

Indentificational reference groups The likelihood that people will become part of a consumer’s identificational reference group is affected by the following factors: Physical nearness (propinquity). Exposure. Group cohesiveness.

Virtual communities Figure 10.1 Adapted from Robert V. Kozinets, ‘E-Tribalized Marketing: The Strategic Implications of Virtual Communities of Consumption’, European Management Journal 17(3) (June 1999): 252–64

Member types of virtual communities Tourists - lack strong ties to the group and maintain only a passing interest in the activity. Minglers - maintain strong ties but are not very interested in the central consumption activity. Devotees - express strong interest in the activity but have few social attachments to the group. Insiders - exhibit strong social ties and strong interest in the activity.

Power bases within reference groups Individuals can exert the following power within the reference group: Referent power. Information power. Legitimate power. Expert power. Reward power. Coercive power.

Conformity People conform to the desires of others for two basic reasons: Informational social influence - modelling behaviour on others as people perceive other peoples’ behaviour as evidence of the correct way to act. Normative social influence - conforming to satisfy the expectations of others and/or to be accepted by the group.

Other factors for conforming Cultural pressures. Fear of deviance. Commitment. Group unanimity, size and expertise. Susceptability to interpersonal influence.

Word of mouth communication (WOM) Information obtained from those we know or talk directly to tends to be more reliable and trustworthy than that received through more formal channels. WOM can be efficient due to the speed at which this can occur. WOM can have a negative marketing impact - informal discussions among consumers can make or break a product.

Viral marketing Viral marketing refers to the strategy of getting customers to sell a product on behalf of a company that creates it by sending on recommendations, etc. Viral marketing is particularly suited to the Internet, since emails circulate so easily.

Opinion leadership Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence the choices of others. Specific opinion leaders can be difficult to identify but marketers who know their general characteristics can try to target them in their media and promotional strategies.

Value of opinion leaders They are technically competent and possess expert power. They have pre-screened, evaluated and synthesised product information in an unbiased way thus possessing knowledge power. They tend to be socially active and highly interconnected in their community. They tend to be similar to the consumer in terms of values and beliefs. They are often among the first to purchase new products.