1. Copyright © Cengage Learning. All rights reserved.15 | 1 Chapter 15 Social Influences on Consumer Behavior

2. 15 | 2 Copyright © Cengage Learning. All rights reserved. Key Concepts 1.General sources of influence differ in four key ways. 2.Influence of opinion leaders. 3.Types/characteristics of reference groups. 4.Normative versus informational influence.

3. 15 | 3 Copyright © Cengage Learning. All rights reserved. Social Influences “... information pressures... [that have] a strong influence on consumers because the information source is very credible;... they have a strong influence simply because the source can communicate information widely.”

4. 15 | 4 Copyright © Cengage Learning. All rights reserved. Chapter Overview: Social Influences (Exhibit 15.1)

5. 15 | 5 Copyright © Cengage Learning. All rights reserved. General Sources of Influence Marketer-dominated Non-marketer-dominated Delivered –Via mass media –Personally Sources differ? –Reach –Capacity for two-way communication –Credibility

6. 15 | 6 Copyright © Cengage Learning. All rights reserved. Sources of Influence (Exhibit 15.2)

7. 15 | 7 Copyright © Cengage Learning. All rights reserved. Opinion Leaders Gatekeepers –Knowledgeable about products –Heavy users of mass media –Buy new products when introduced –Perceived as credible Market maven Marketing implications –Target –Use in marketing communications –Refer consumers to

8. 15 | 8 Copyright © Cengage Learning. All rights reserved. Reference Groups as Sources of Influence: Types of Reference Groups Aspirational –Associate products with Associative –Accurately represent –Brand communities Disassociative –Avoid using

9. 15 | 9 Copyright © Cengage Learning. All rights reserved. Reference Groups Characteristics Degree of Group Contact –Primary –Secondary Formality Homophily: Similarity among members Group attractiveness Density Degree of identity Tie strength

10. 15 | 10 Copyright © Cengage Learning. All rights reserved. Tie-Strength and Social Influence (Exhibit 15.7)

11. 15 | 11 Copyright © Cengage Learning. All rights reserved. Marketing Implications Understand information transmission Target formal reference groups Target homophilous consumers Target the network Understand strength of weak ties –Embedded markets

12. 15 | 12 Copyright © Cengage Learning. All rights reserved. Reference Groups as Socializing Agents People Media and marketplace

13. 15 | 13 Copyright © Cengage Learning. All rights reserved. Normative Influence “... derives from norms, society’s collective decisions about what behavior should be.” Implies Consumers Will Be –Sanctioned/punished if norms not followed –Rewarded for performing expected behaviors

14. 15 | 14 Copyright © Cengage Learning. All rights reserved. Sources and Types of Influence (Exhibit 15.9)

15. 15 | 15 Copyright © Cengage Learning. All rights reserved. Normative Influence and Consumer Behavior Brand-choice congruence and conformity Compliance versus reactance Characteristics affecting strength –Product –Consumer –Group-coercive power

16. 15 | 16 Copyright © Cengage Learning. All rights reserved. Reference Group Influences on Publicly/Privately Consumed Products (Exhibit 15.10)

17. 15 | 17 Copyright © Cengage Learning. All rights reserved. Marketing Implications Rewards/sanctions for product use/nonuse Create norms for group behavior Create conformity pressures Use compliance techniques –Foot-in-the door –Door-in-the-face –Even-a-penny will help Ask consumers to predict behavior Provide freedom of choice Use service providers similar to customers

18. 15 | 18 Copyright © Cengage Learning. All rights reserved. Informational Influence “... influence, reference groups and other influence sources can exert... by offering information to help make decisions.” “... can affect how much time and effort consumers devote to information search and decision making.”

19. 15 | 19 Copyright © Cengage Learning. All rights reserved. Factors Affecting Informational Influence Strength Product characteristics Consumer and influencer characteristics Group characteristics

20. 15 | 20 Copyright © Cengage Learning. All rights reserved. Descriptive Dimensions of Information Valence: Information positive or negative? –Negative more likely to be communicated –People pay more attention to and give weight to negative Modality: Verbal or nonverbal? Pervasive/Persuasive: Word-of-mouth, viral marketing

21. 15 | 21 Copyright © Cengage Learning. All rights reserved. Restoring Public Trust (Exhibit 15.13)

22. 15 | 22 Copyright © Cengage Learning. All rights reserved. Negative Word of Mouth Pervasive and persuasive –Viral marketing What to do –Prevent and respond to negative word of mouth –Engineer favorable word of mouth –Handle rumors –Track word of mouth

23. 15 | 23 Copyright © Cengage Learning. All rights reserved. Handling Rumors and Scandals Do nothing Do something locally Do something discreetly Do something big