1. Chapter 11 Groups and Social Media
CONSUMER BEHAVIOR, 11e Michael R. Solomon
Chapter 11 begins the final section of the text. This section focuses on the subcultures of consumer groups. In Chapter 11, the focus is on group behaviors.

2. Chapter Objectives
When you finish this chapter, you should understand why:
Others, especially those who possess some kind of social power, often influence us.
We seek out others who share our interests in products or services.
We are motivated to buy or use products in order to be consistent with what other people do.

3. Chapter Objectives (continued)
Certain people are especially likely to influence others’ product choices.
The things that other consumers tell us about products (good and bad) are often more influential than the advertising we see.
Online technologies are accelerating the impact of word-of-mouth communication.
Social media are changing the way companies and consumers interact.

4. Power of Influence
Other people and groups, especially those who possess some kind of social power, often influence us.
We belong to or admire many different groups, and a desire for them to accept us often drives our purchase decisions.
Individuals or groups whose opinions or behavior is particularly important to consumers are reference groups.
Serve as a frame of reference
Jockey has quickly made 2,000 pairs of limited-edition "Mad Bum" underwear to commemorate the third World Series championship won by Madison Bumgarner, the San Francisco Giants pitcher, who tossed one shutout and saved the final win.
"MadBum" is his nickname.
Alas , the unusual underwear — imprinted with the words MAD BUM across the backside — is not for sale. But it will be carefully distributed by Jockey to Giants fans at the city's parade on Friday celebrating the World Series championship.
"We wanted to provide fans with a fun, eye-catching keepsake in support of Madison's postseason greatness," said Dustin Cohn, CMO of Jockey International, in an .
The Jockey street team already passed out hundreds of pairs to fans Wednesday night at AT&T Park and the city's public viewing of the game at Civic Center. On Friday, it will be passing out thousands more at the San Francisco parade along the official route on Market Street.

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7. Objective 1: Other people and groups, often influence our decisions about what to buy.
A reference group - an actual or imaginary individual or group conceived of as having significant relevance upon an individual’s evaluations, aspirations, or behavior.
Possess some kind of social power.
Desire for them to accept us often drives our purchase decisions
We go to great lengths to please members of a group whose acceptance we want.
Often we have never met or associated directly with them
This chapter opens with the story of Zachary. Zachary leads a secret life. During the week he is a stock analyst, but on the weekends, he’s out on the road with his Harley-Davidson. Zachary’s group of biker friends is an important part of his identity and this membership influences many buying decisions. The biker group is a reference group. A reference group is an actual or imaginary individual or group conceived of as having significant relevance upon an individual’s evaluations, aspirations, or behavior.

8. Marketers use of reference groups
Lend credibility to products and services
Help convince potential customers to purchase the product.
Celebrity product endorsements are a common strategy used to sell products.
Create advertising that implies that your reference group prefers a particular product or service.
Influence us 3 ways:
Informational
Utilitarian
Value-expressive
Your child wants to be a professional basketball player and practically worships a certain professional basketball player. Your son's sports hero has a side gig as a product endorser for an athletic company that sells shoes, apparel and equipment. Your son begs you to purchase the shoes, apparels and equipment endorsed by his hero because he wants to be like the pro.
You like playing the violin and your favorite concert violinist endorses a particular violin produced by a particular manufacturer. You decide that the artist must know what she is doing, so you purchase the type and brand endorsed.
You're an avid hunter and participate in competitive shooting. You are looking for a new rifle for competition and see an endorsement for a particular brand of competition rifle by a U.S. Army sniper. You decide that a sniper must know which product is the best, and you want to be as good as him, so you buy the rifle.
Your kid sees an advertisement that shows various groups of kids his age playing the same video game and having a great time. He wants you to purchase the game because if kids like him enjoy the game, he will also enjoy it.

9. Informational Influence
Provide information on the choices we make.
Useful when a consumer lacks the knowledge of a certain product and the experience of purchasing this item
Marketers use expert power by placing doctors, and fireman in their ads to sell product.
Others provide information on the choices we make
Only functions when the individual regards the behavior and value of reference group members as useful information and takes them into consideration.
Useful when a consumer lacks the knowledge of a certain product and the experience of purchasing this item,
Information and recommendation from his/her reference group as credible and thus accept them with certain confidence.
Marketers use expert power by placing doctors, and fireman in their ads to sell product.
A best demonstration for the utilitarian influence may be the famous Asch Experiment in which participants were
found to willingly conform to the group answers, even changing their original right answers (Rock, 1990).

10. Utilitarian Influence
Choices are influenced by important others in our reference group
Known as ‘compliance process’ in which an individual is willing to satisfy a certain group’s expectation in order to obtain the praise or to avoid the punishment from the group
Marketers use ads where people are obtaining social approval and acceptance by using a certain brand.
Or, one might be rejected from the group, if they don’t use that brand.
Choices are influenced by important others.
Known as ‘compliance process’ in which an individual is willing to satisfy a certain group’s expectation in order to obtain the praise or to avoid the punishment from the group
Marketers use ads where people are obtaining social approval and acceptance by using a certain brand.
Or, one might be rejected from the group, if they don’t use that brand.

12. Value Expressive Influence
The ‘identification process’ in which people are willing to better express themselves to the society by making themselves similar to the group that they want to belong to
Follow groups’ beliefs and rules
Accept and internalize the value of that reference group
The ‘identification process’ in which people are willing to better express themselves to the society by making themselves similar to the group that they want to belong to
Under this influence, one may actively follow the groups’ beliefs and rules while neglecting the praises or punishments, and decide to completely accept and internalize the value of that reference group.
Pepsi advertises its Young Generation brand image extensively so that its targeted consumers had accepted the value of this specific group.
Pistachio Board uses Psy as a spokesperson to sell nuts, to attract consumers who identify with is values and aspire to be like him

13. Sometimes groups matter more than at other times.
Objective 2: We seek out others who share our interests in products or services
Sometimes groups matter more than at other times.
Not as likely to take others’ preferences into account when choose simple products or products we can try before we buy.
Sometimes groups matter more than at other times. We are not as likely, for instance, to take others’ preferences into account when we choose simple products or products we can try before we buy. Knowing what others prefer at a general level can influence us.
Brand communities unite consumers who share a common passion for a product. Brandfests, when companies organize to encourage this kind of community, can build brand loyalty and reinforce group membership.

14. Home Security Blog
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15. (police officers, teachers, priests)
Types of Social Power
Reference groups derive their persuasiveness through social power, the capacity to alter the actions of others. The following are types of social power:
Referent power
when a person admires a person or group and tries to imitate them.
Information power
power from merely possessing valuable
information that others do not have access to
Legitimate power
power that is granted by social agreement
(police officers, teachers, priests)
Expert power
power based on possessing specific
knowledge about a content area.
Referent power exists when the one person admires the qualities of another and tries to copy the referent’s behavior. It’s important to marketers because consumers voluntarily modify what they do and buy to identify with the referent. –
ATTRACTIVE POWER. BASED ON HAVING QUALITIES THAT ARE ATTRACTIVE TO OTHERS.
Information power exists when someone knows something others would like to know.
Legitimate power is granted through true authority in a situation. For instance, police officers have legitimate power.
Expert power accrues to a person who is an expert in a particular field. Due to their expertise, others will be influenced by them.
Reward power refers to the influence held by a person who has the ability to offer a reward.
Coercive power is the opposite of reward power. It is held by someone who has the ability to punish.
Reward power
when a person or group has the
means to provide positive reinforcement.
Coercive power
the power to influence a person by
social or physical intimidation.

16. Types of Reference Groups
Reference group may be used loosely to identify external influence that provides social cues.
We like others who share our names or initials better than those who do not.
Some individuals are more powerful than others are and affect a broader range of our consumption decisions.
Parents are among individuals in a reference group that helps set and enforce fundamental standards of conduct (normative influence).
Decisions about specific brands or activities are affected (e.g., a club that you belong to) is called comparative influence
The term reference group may be used loosely to identify external influence that provides social cues.
The name-letter effect suggests we like others who share our names or initials better than those who do not.
Some individuals are more powerful than others are and affect a broader range of our consumption decisions.
Parents are among individuals in a reference group that helps set and enforce fundamental standards of conduct (normative influence).
Decisions about specific brands or activities are affected (e.g., a club that you belong to) is called comparative influence

17. Brand Communities and Consumer Tribes
Reference groups can be a brand community
A group of consumers who share a set of social relationships based upon usage or interest in a product
Don’t live near each other
Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product
Brandfests celebrated by community
Bond with fellow enthusiasts
Brandfests are held by many companies like Mini and Harley-Davidson. The festivals enable consumers to interact with others who share a similar brand passion.
People that participate in brand events feel more positive about the product as a result and this enhances brand loyalty. Forgive product failures or lapses into service quality, and are less likely to switch brands even if the competition is better.

18. Bronies

19. Homeschooling

20. Homeschool Convention

21. Both Membership and Aspirational Reference Groups effect our behavior
Membership reference groups
People the consumer actually knows
Advertisers use “ordinary people”
Aspirational reference groups
People the consumer doesn’t know but admire
Advertisers use celebrity spokespeople
Membership reference groups are people we know like our families, friendship groups, and colleagues. Because we tend to compare ourselves with similar others, many promotional strategies include ordinary people. Seeing the consumption activities of others acts as a form of social influence. Aspirational reference groups are people we admire. They may be successful businesspeople, athletes, or performers.

22. Positive versus Negative Reference Groups
Reference groups exert either a positive or a negative influence on consumption behaviors.
Avoidance groups are groups from which the consumers wish to distance themselves.
Antibrand communities: rally around a celebrity, store, or brand—but in this case they’re united by their disdain for it
Justin Beiber
Nike products
Reference groups can affect our decisions both positively and negatively. Sometimes we deliberately do the opposite if we want to distance ourselves from avoidance groups.
Antibrand communities are those that coalesce around a brand but they are united by a disdain for the brand. Many brands have been targeted by antibrand communities including Dunkin’ Donuts, Rachael Ray, and Starbucks.

23. Consumers Do It in Groups
People in larger groups have fewer constraints on behavior.
We get away with more when we are in a group
Deindividuation: individual identities become submerged within a group
Social loafing: people don’t devote as much to a task when their contribution is part of a larger group
Risky shift: group members show a greater willingness to consider riskier alternatives following group discussion than if members made their own decisions
People in larger groups have fewer constraints on behavior. Deindividuation occurs when our individual identities are submerged in the group. In other words, we don’t stay out alone so we may behave differently. At a costume party, we may act wilder than we would in our everyday lives.
Social loafing is a similar effect. It happens when we don’t devote as much to a task because our contribution is part of a large group effort. For instance, people tend to tip less when going in together to cover a restaurant bill.
The risky shift effect explains why decisions we make as part of a group tend to differ from those each of us would choose on our own. Why would the risky shift effect occur? Psychologists say it could be a diffusion of responsibility. Individuals are less accountable for the outcomes when more people are involved in a decision. The value hypothesis is another possible explanation. It states that our culture values risky behavior so when people make group decisions they conform to this expectation.
The group could also increase decision polarization, meaning whichever way the group was leaning at the start of the discussion, the group becomes more extreme in that direction.
The change in our shopping behavior in groups is the reason some brands use home shopping parties.

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25. Objective 3: Conformity
Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure
We are motivated to buy or use products in order to be consistent with what other people do.
We conform to the desires of others for two basic reasons:
(1) informational social influence
(2) normative social influence
This section of Chapter 11 looks at the topic of conformity. Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure.
) People who model their behavior after others because they take others’ behavior as evidence of the correct way to act --informational social influence
(2) People who conform to satisfy the expectations of others or to be accepted by the group are affected by normative social influence.

26. Objective 4: Opinion Leadership
Opinion leaders are especially likely to influence others’ product choices.
Are people who are frequently able to influence others’ attitudes or behaviors.
This learning objective focuses on the role of the opinion leader in consumer decisions. An opinion leader is someone who is frequently able to influence others’ attitudes and/or behaviors. Opinion leaders possess the social po
Certain people are especially likely to influence others’ product choices.
Technically competent. - EXPERTS
They have prescreened, evaluated, and synthesized (in an unbiased way) product information.
Socially active and interconnected in their community.
Similar to the consumer in values and beliefs, a characteristic described by the term homophily.
Tend to be slightly higher in terms of status and educational attainment
Often among the first to buy new products and are more credible because of their hands-on experience.

27. Our beliefs about Opinion Leaders
Technically competent
Prescreened, evaluated, and synthesized (in an unbiased way) product information.
Socially active and interconnected in their community.
Similar to the consumer in values and beliefs, a characteristic described by the term homophily.
Higher status and educational attainment than those they influence do, but not so high as to be in a different social class.
Innovators – first to buy. They often absorb risk because they purchase products first. They are more credible because of their hands-on experience.

28. The Market Maven – special type of opinion leader
Market maven: actively involved in transmitting marketplace information of all types
Into shopping and aware of what’s happening in the marketplace
Overall knowledge of how and where to get products
People can also be influenced by a special type of opinion leader called the market maven. Researchers use a scale to identify market mavens. The scale includes items like “I like introducing new brands and products to my friends.”
Youtube: Sugarplum

29. The Surrogate Consumer
Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions.
Interior decorators, stockbrokers, professional shoppers, college consultants
Consumer relinquishes control over decision-making functions
Marketers should not overlook influence of surrogates!
Unlike opinion leaders or market mavens, we usually pay surrogates for advice. Their recommendations are very influential!

30. Word-of-Mouth Communication
WOM is product information transmitted by individuals to individuals
More reliable form of marketing
Social pressure to conform
Influences two-thirds of all sales
We rely upon WOM in later stages of product adoption
Powerful when we are unfamiliar with product category
Because we tend to believe people when they give us product information, WOM communication is considered reliable and credible.
Word of mouth is product information that individuals transmit to other individuals.
Because WOM comes from people we know, most people view it as being reliable and trustworthy.
It is especially powerful when the consumer is relatively unfamiliar with the product category.
People talk about products because:
They are involved with the product and enjoy talking about it
They are knowledgeable about the product and conversations are used to let others know
They are concerned for someone else

31. Objective 5: Word of Mouth Communication
Travelocity’s Roaming Gnome boosted word-of-mouth communication about the brand by appealing to its online fans to help it become more popular than the Aflac Duck on Facebook. The challenge worked with much heavier brand-related word-of-mouth communication leading up to International Gnome Day.

32. Objective 6: Negative Word of Mouth
Online technologies accelerate the impact of word-of-mouth communication.
Negative word-of-mouth (WOM) is weighted more heavily than positive WOM.
Online word-of-mouth communication, both positive and negative, spreads farther and more rapidly than offline. Sometimes the negative word-of-mouth communication isn’t true. Hoaxkill.com is a Web site dedicated to tracking hoaxes and debunking product rumors.

33. Negative WOM and Power of Rumors
Injustice
Identity
Ninety percent of unhappy customers will not do business with a company again. Each of these people is likely to share his grievance with at least nine other people.
A study of 40 complaint Web sites such as walmartsucks.com found three basic themes reflected in the sites. These are injustice, identity, and agency. Consumer protestors frequently talked about their fruitless attempts to
There are three basic themes that came to light in a study of complaint websites:
Injustice – consumers talked about the difficulty in contacting the company
Identity – posters characterize the company as evil, not just incompetent
Agency – individuals try to create a sense of collective identity
Serial reproduction is the examination of how content mutatesthe company. Posters characterized the violator as evil rather than as incompetent. Individual Web site creators try to create a collective identity for those who share their anger with a company.
Agency

34. The Transmission of Misinformation
This figure illustrates how information changes as it is transmitted. The farther from the original source, the more difference exists in the information transmitted.

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36. Objective 7: Social Networks
Social media are changing the way companies and consumers interact.
Social networking, where members post information and make contact with others who share similar interests and opinions, changes the way we think about marketing.
As Web 2.0 continues to develop, companies and consumers increasingly interact directly.
The wisdom of crowds’ perspective argues that under the right circumstances, groups are smarter than the smartest people in them are.
If this is true, it implies that large numbers of consumers can predict successful products.
Groups don’t just exist offline – they exist in the form of social communities online too. Social networks are our primary form of online community. A social network is a set of socially relevant nodes connected by one or more relations. Nodes are members of the network. Members are connected to each other by ties. Networks are sometimes called social graphs.

37. Characteristics of Online Communities
Conversation
Presence
Collective interest
Democracy
Behavioral standards
Participation
Crowd power
Network effect
Online communities have several characteristics. These are listed in the slide and explained here. Communities thrive on communication, that is conversation, among members. Though online communities exist virtually rather than at a physical location, the better ones supply tangible characteristics, called presence, that create the sensation of actually being in a place. Just as your offline communities are based on family, religious beliefs, social activities, hobbies, goals, place of residence, and so on, your online communities also need commonalities to create bonds among the members. This is called collective interest. The political model of most online communities is democratic, meaning rule by the people. Virtual communities need rules that govern behavior in order to operate. For an online community to thrive, a significant proportion of its members must participate. In fact, the larger an online community is, the more likely it will thrive. This is known as the network effect. Online communities benefit from crowd power.

38. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter Summary
WOM communication about products, especially from opinion leaders, may be more influential than information from marketers.
Web 2.0 accelerates the speed of delivery and the power of WOM communication.
Online communities have many characteristics that support them as a powerful source of influence on consumer behavior.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall