1. Group Influence on Consumer Behavior
CHAPTER SEVEN
Group Influence on Consumer Behavior
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Types of Groups 7-1 Uncategorized Membership Attraction Contact
Purchasers
(parents)
Frequent
(primary associative)
Limited
(secondary associative)
(primary dissociative)
(secondary dissociative)
Desired
(aspiration)
Avoided
(dissociative)
Positive
(associative)
Negative
Yes
(membership) No
(nonmembership)
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Three Types of Group Influence
7-2
Normative influence Informational influence Identification influence
Conformity
High
Neutral
Low
Degree of reward or sanction from group
Importance of
information provided by group
Degree to which group attitudes/values guide individual attitudes/values
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

4. Consumption Situations and Reference Group Influences
7-3
Informational
A friend mentions that Brooks Brothers has a good selection of suits.
At several friends’ home, Maxwell House coffee is served.
The best skier in the group uses TRAK skis.
Needing a new suit, Tim visits a Brooks Brothers store.
Tim decides to give Maxwell House a try.
Tim buys a set of TRAK skis.
Situation Behavioral response Type of influence
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

5. Consumption Situations and Reference Group Influences
7-3 (II)
Normative
Two neighbors joke about Tim’s car being dirty.
Tim notices that his friends buy premium beers though he can’t taste the difference.
An ad stresses that “Even your friends won’t tell you” if you have bad breath — they will just ignore you.
Tim washes and waxes his car.
For parties, but not for home use, Tim buys premium beers.
Tim buys the recom-mended mouthwash.
Situation Behavioral response Type of influence
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

6. Consumption Situations and Reference Group Influences
7-3 (III)
Identification
Over time, Tim notices that successful executives dress conservatively.
Tim sees an ad showing “smart young people on the way up” serving Redondo.
Many of Tim’s friends regularly consume health foods.
Tim believes that a conservative image is appropriate for execu-tives and develops a conservative wardrobe.
Tim begins to serve Redondo.
Tim decides that health foods are good for you and begins to consume them regularly.
Situation Behavioral response Type of influence
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

7. Reference Groups Change as the Situation Changes
7-4
Co-workers at weekend job
Hometown friends
Friends from apartment complex
Consumer behavior classmates
Intramural basketball team
Immediate family
Individual
Reference group influencing behavior at Thanksgiving Day dinner celebration
Reference group influencing behavior at “After the final exam” celebration
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

8. Two Consumption Situation Characteristics and Product/Brand Choice
7-5
Degree Needed
Necessity Nonnecessity
Weak reference group
influence on product
Public necessities
Influence: Weak product and
strong brand
Examples:
Wristwatch, Automobile
Private necessities
Influence: Weak product
and brand
Mattress, Refrigerator
Strong reference group
influence on product
Public luxuries
Influence: Strong product
and brand
Examples:
Snow skis, Health club
Private luxuries
and weak brand
Hot tubs, Home
entertainment center
Consumption
Visible
Strong reference group
influence on brand
Private
Weak reference group
Source: Reference Group Influence on Product and Brand Purchase Decision,” Journal of Consumer Research,
September 1982, p Copyright © 1982 by the University of Chicago

9. Consumption Situation Determinants of Reference Group Influence
7-6
High degree
of reference
group influence
Visible usage
High relevance of
product to group
Low individual
purchase confidence
Strong individual
commitment to group
Nonnecessary item
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

10. Relative Importance of Information Sources for Purchases of Home Video Game Hardware
7-7
Source
Played at friend’s home
Advice from friend
Advice from children
Played in store
Played coin-operated version
Newspaper and magazine articles
Advertising
Manufacturer brochures
Salesperson
Index of relative importance
Source: Derived from “ Newsweek Study of Home Video Game Hardware Purchasers,”
Newsweek Magazine, 1983.

11. Mass Communication Information Flows
7-8
Marketing effort
Relevant market segment
Opinion
leader
Direct flow
Multistep flow
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

12. Likelihood of Seeking an Opinion Leader
7-9
Product/purchase involvement
Product knowledge
High Low
High
Low
Moderate
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

13. Opinion Leadership and Opinion Seeking Scales*
7-10
Instructions: This short questionnaire is about __________________ (product category). Please read each statement carefully. For each statement, please circle the number that most closely matches your view of the opinions stated. The items are scaled from 1 to 7, with a higher number meaning stronger agreement.
1. My opinion on ____________ seems not to count with other people.
2. When I consider buying a ____________ , I ask other people for advice.
3. When they choose a ____________ , other people do not turn to me for advice.
4. I don’t need to talk to others before I buy ____________ .
5. Other people come to me for advice about choosing ____________ .
6. I rarely ask other people what ____________ to buy.
7. People that I know pick ____________ based on what I have told them.
8. I like to get others’ opinions before I buy a ____________ .
9. I often persuade other people to buy the ____________ that I like.
10. I feel more comfortable buying a ____________ when I have gotten other people’s opinions on it.
*Even items measure opinion seeking and odd items measure opinion leadership. Scoring needs to be reversed on some items for consistency.
Source: L. A. Flynn, R. E. Goldsmith, and J. K. Eastman, “Opinion Leaders and Opinion Seekers,”
Journal of the Academy of Marketing Science, Spring 1996, p ©Academy of Marketing Science.

14. Categories of Innovations
7-11
Degree of innovation
Behavioral change required
Small Modest Large
Examples
Electric car
Radial keratotomy
Norplant contraceptive
Digital camera
Personal navigator
Internet shopping
Direct digital television
Light snacks
Microbrew beer
Discontinuous
Dynamically
continuous
Continuous
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

15. Adoption Process and Extended Decision Making
7-12
Stages in the adoption process
Steps in extended decision making
Awareness
Trial
Interest
Evaluation
Adoption
Problem recognition
Information search
Alternative evaluation
Purchase
Postpurchase evaluation
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

16. Diffusion Rate of an Innovation over Time
7-13
Time
Fast diffusion
Percentage
of total
group
adopting
innovation
100
Typical diffusion
Slow diffusion
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17. Adoptions of an Innovation over Time
7-14
Fast Diffusion
Slow Diffusion
Time Time
Early majority
Early adopters
Innovators
Late majority
Laggards
2½% 13½% 34% 34% 16% 2½% 13½% 34% 34% 16%
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

18. Early Purchasers of Home Computers and VCRs
7-15
Home Computer VCR
Age*
Education*
Marital Status*
Married
Single
*Results are index number where 100 equals average consumption.
Source: A. J. Kover, “Somebody Buys New Products Early—But Who?” Unpublished paper prepared for Cunningham & Walsh, Inc.

19. Early Purchasers of Home Computers and VCRs
7-15 (II)
Home Computer VCR
Products Owned†
Tennis clothing 0 +
Squash racket 0 —
Water skis — +
Target gun — +
Bowling ball — +
Ski boots — 0
Luxury car — 0
Men’s diamond ring — +
Classical folk records /tapes 0 —
Contemporary jazz records/tapes — 0
Book club 0 —
Solar heating + —
Food dehydrator + —
Electric ice cream maker — +
† + = Heavy consumption; 0 = Moderate consumption; and — = Light consumption
Source: A. J. Kover, “Somebody Buys New Products Early—But Who?” Unpublished paper prepared for Cunningham & Walsh, Inc.

20. Determinants of a Rapid Rate of Diffusion
7-16
High
observability
Rapid diffusion
Low
risk
Low complexity
Large relative advantage
High compatability
Strong felt need
Extensive marketing effort
Individual adoption decision
Change-prone target market
Easy trial
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

21. Innovation Analysis and Diffusion Enhancement Strategies
7-17
Diffusion Diffusion Diffusion Enhancement
Determinant Inhibitor Strategies
1. Nature of group Conservative  Search for other markets
Target innovators within group
2. Type of decision Group  Choose media to reach all deciders
Provide conflict reduction themes
3. Marketing effort Limited  Target innovators within group
Use regional rollout
4. Felt need Weak  Extensive advertising showing importance
of benefits
5. Compatibility Conflict  Stress attributes consistent with values norms
6. Relative advantage Low  Lower price
Redesign product
7. Complexity High  Distribute through high-service outlets
Use skilled sales force
Use product demonstrations
Extensive marketing efforts
8. Observability Low  Use extensive advertising
9. Triability Difficult  Use free samples to early adopter types
Special prices to rental agencies
Use high-service outlets
10. Perceived risk High  Success documentation
Endorsement by credible sources
Guarantees
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.