1 Chapter 16 SOCIAL INFLUENCES

2 Chapter Overview n Sources of Influence u Characteristics u Special sources of influence n Reference Groups u Characteristics u Socialization n Normative vs. Informational Influence

3 General Sources of Influence on Consumers Reach 2-Way Communication HighLow High Credibility Low High

4 Special Sources of Influence n Opinion leaders u offering-specific information n Market mavens u knowledge about large variety of offerings/markets

5 Types of Reference Groups Reference Groups

6 Reference Group Characteristics n Degree of contact u primary u secondary n Formality n Homophily n Density n Degree of identification n Tie-strength

7 BrianPenny Pamela Goldie Mark DoloresJoe Weak tie Ties That Bind: The Strong and the Weak Strong tie

8 Socialization--The Way We Acquire Values and Beliefs n Typically informal; learned through example n Sources of influence u family u institutions (e.g., schools, day care facilities, religious organizations) u peers u media First come, first served--a cultural standard in the U.S.

9 Social Influence n N u social pressure designed to encourage conformity to the expectations of others u implies punishment or rewards n I u extent sources influence consumers simply by providing information What do you mean you don’t have a cell phone? How can you be a cool person without being wired?

10 Strength of Influence--Sources STRENGTH OF REFERENCE GROUP INFLUENCE PRODUCT CHARACTERISTICS CONSUMER CHARACTERISTICS GROUP CHARACTERISTICS

11 Where Is Reference Group Influence Greater? Influence on brand choice Low High Product usage influence Low

12 Chapter 16 Review n Sources of Influence u Characteristics u Special sources of influence n Reference Groups u Characteristics u Socialization n Normative vs. Informational Influence