Lecture 5.. Group Influences Chapter 7 Lifestyles Chapter 12

Opinion Leaders Opinion Leaders have a significant and long term involvement with the product/market Market Mavens = a wide range of experiences eg technology… tend to be better informed.. Tend to be better educated. Tend to be well respected… - credible. Tend to be well read. WOM – Viral Social Networks – sharing…

What is a group? A group is two or more people who interact to acheive either individual or mutual goals A group is a set of individuals who interact with one another over some period of time and who share a common goal

Types of Group Reference Groups Ascribed Groups Aspirational Groups Dissociative group Primary Group Formal Group Informal Group

Formal Groups A group whose organisation and structure are defined in writing – constitution, rules. Informal Groups People who interact together often on a social basis to pursue a fun objective or short term task

Dissociative Groups Those sets of people with whom a consumer does not want to be associated with. For example CHAVS

Reference Groups Groups of people that a consumer uses as a point of reference to evaluate the correctness of his / her actions, beliefs and attitudes

Reference Groups Informational –Learning Normative – conforming Identification – relating to Examples of = Figure 7-2

Lifestyle How people live their lives in terms of Activities Interests Likes/dislikes Attitudes Consumption Expectations Feelings

Sociocultural Influences Personal Influence Opinion leadership Word of mouth and rumors Reference groups Associative: “We’re the Pepsi generation…” Dissociative: “It’s not your father’s car.” Aspirational Culture Subculture

Self Between ideal state And Real state

Self Concept Self concept is the totality of a person’s thoughts and feelings having reference to himself or herself as an object = Who do you think you are? How you want to be perceived? Ideal Self – aspirational Social Self – how others see you.

Extended Self Concept Self plus possessions Leads into Lifestyle

Potential Family Life Cycle Stages YOUNG COUPLE YOUNG SINGLE EMPTY NEST I/II FULL NEST I/II/III SINGLE PARENT OLDER SINGLE BLENDED

Economic/Marketing Implications of Household Cycles Income tends to increase with time But children/ obligations add cost Divorce increases costs may change income distribution marriage Product demand due to singles with low expenses new couples divorced families children empty nesters --> more income

Household Decision Making Roles/influence Information gatherers/holders Influencers Decision makers Purchasers Users

FLC and Marketing Structure of family unit Family purchases and consumption behavior Marketing strategy Structure of family unit Stage of the family life cycle Family decision process

Family Structure Nuclear family Extended family Single family

A Modern Family Life Cycle Middle-aged divorced without children Young divorced without children Middle-aged married without children Middle- aged married with children Middle-aged married without dependent children Young married without children Young married with children Older married Older unmarried Young single Middle-aged divorced without dependent children Young divorced with children Middle-aged divorced with children Usual flow Recycle flow Traditional family flow

Stages of the Family Life Cycle Stage Marital Status Children at Home Single Married None < 6 years > 6 years Younger(<35) Single I Young married Full nest I Single parent I Middle-aged (35-64) Single II Delayed full nest I Full nest II Single parent II Empty nest I Older (>64) Empty nest II Single III

Roles in Family Decision Making Description of Roles Influencers Gatekeepers Deciders Buyers Users Disposers

Family Decision-Making Process for Children’s Products Influencers (children) (parents) Communications targeted at children (taste, image) Initiators (parents, (children) Decision makers (parents, children) Purchasers (parents) (children) User (children) Communications targeted at parents (nutrition) Information gatherers (parents) (children)

Consumer Socialization Antecedents Socialization Process Outcomes Social Structural Variables Agent-Learner Relationships Modeling Reinforcement Social Interaction Socialization Agents Parents Peers Schools Mass media Learning Properties Age or Life Cycle Position (Moschis and Churchill 1978)

Dynamics of Husband-Wife Decision Making Husband-Dominated Wife-Dominated Joint Autonomic

Family Life Cycle/Social Stratification Matrix Stage of House- hold Life Cycle Social Class Lower- Upper- Lower- Upper- Lower Lower Working Middle Upper Upper Single I Young married Full nest I Single parent I Single II Delayed full nest I Full nest II Single parent II Empty nest I Single III Empty nest II

Diffusion Of Innovations How and when and if consumers adopt new products…… Innovation = introduction of new products and concepts onto the market May be involve no change to Attitude Process but may be radical new chocolate bar – wearable technology

Diffusion of Innovation Adoption process STAGES Awareness Interest Evaluation Trial Adoption

Diffusion of Innovation Consumer Framework STAGES Problem Recognition Search Alternative Evaluation of Solutions Purchase PPE

Factors Influencing Spread of Innovation pp231-233 Group Targeted Involvement in decision Marketing Investment Need met Compatibility with norms Net benefit Complexity Visibility Trial ability/sampling Perceived Risk

Types of people adopting -- Innovators Early Adopters Early Majority Late Majority Laggards Think about Ewatches? Burger Kings? Contact Lenses,