1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Group and Interpersonal Influence

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions Describe the various types of social power that reference groups exert on members Comprehend the difference between informational, utilitarian, and value-expressive reference group influence

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes Understand the importance of word-of-mouth in influencing consumer behavior Comprehend the role of household influence in consumer behavior

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reference Group and Group Influence Reference Group – Have significant ­ relevance for a consumer – An impact on the consumer’s evaluations, aspirations, and behavior – Consumers become members of many groups that either meet physically, or meet in cyberspace Group Influence – Ways in which group members influence attitudes, opinions, and behaviors of others within the group

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Groups Primary: Members who have frequent, direct contact with one another Secondary: Interaction within the group is much less frequent than in a primary group Formal: Consumer formally becomes a member Informal: Nonexistent membership or application requirements, and codes of conduct Aspirational: Consumer desires to become a memberDissociative: ­Consumer does not want to belong

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Conformity and Peer Pressure Conformity occurs when an individual yields to the attitudes and behaviors of other consumers Peer pressure is the pressure an individual feels to behave in accordance with group expectations – Consumers sometimes succumb to group pressures that encourage counter­produc­tive behaviors

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. Reference Group Influence Informational influence: Ways in which consumers use the behaviors and attitudes of reference groups as information Utilitarian influence: When consumers conform to group expectations to receive a reward or avoid punishment Value-expressive influence: Ways in which consumers internalize a group’s values

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Social Media and Consumer Behavior Social media: Media through which communication occurs Social networks: Networks of consumers that are formed based on common interest, associations, or goals Social networking websites: Facilitate online social networking Social networking helps to fulfill the need to belong Both utilitarian and hedonic value can be derived from social media

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Buying and Couponing Social buying – Consumer buying behavior that takes place on social networking sites Social couponing – Type of buying where consumers receive a coupon, or deal, by joining a special social networking website

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual Difference in Susceptibility to Group Influence Susceptibility to interpersonal influences Attention to social comparison information Separateness – connectednessSocial presence and embarrassment

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Word-of-Mouth (WOM) Information about products, services, and experiences that is transmitted from consumer to consumer – Organic – Amplified Consumers spread WOM when a product is particularly relevant to their own self-concept Negative WOM creates more damage than positive WOM

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Value and Word-of-Mouth WOM is affected in large part by the perceived value that consumers receive from products and services Marketers may encourage digital WOM in order to help build brand communities. They also attempt to monitor and respond to negative digital WOM Consumer researchers gather information on WOM statistics through certain social networks, blogs, and video views

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Buzz and Stealth Marketing Includes marketing efforts that fo­cus on generating excite­ment (or buzz) that is spread among market segments Guerrilla ­marketing: Marketing of a product using unconventional means Viral marketing: Uses online technologies to facilitate WOM Stealth marketing: Consumers are completely unaware that they are being marketed to – Shilling – Infiltrating

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Influencers Opinion Leaders: Consumers who have great influence on the behavior of others Market Maven: Consumer who spreads information about all types of products and services Surrogate Consumer: Consumer who is hired by another to provide input into a purchase decision

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. Traditional Family Structure and Emerging Trends Family household: At least two people who are related by blood or marriage – Nuclear family – Extended family Emerging trends include: – “Nontraditional” household arrangements – Blended families – Single parent households Boomerang kids Sandwich generation

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20. Household Purchase Roles Influencer - Provides information about a potential purchase to ­others Gatekeeper - Controls information flow into the household User - Actual user of the product Decision maker - Makes the final decision regarding product purchase Purchaser - Actually buys the ­product

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Gender Roles and Household Decision Making Sex role orientation (SRO): A family’s set of beliefs that influences the way household decisions are made Kid Power – Children in the ages of 8 and 12 greatly influence many household purchases Consumer socialization: Process in which young consumers develop attitudes and learn skills that help them function in the marketplace