1. Buyer Behaviour Group Influence and Social Media Chp. 11 with Duane Weaver

2. Learning Objectives Understand how reference groups influence consumer behaviour Discuss the role of conformity as a social influence Discuss the importance of word-of-mouth communication Understand the nature of opinion leadership Understand the impact of Groups and Social Networks

3. Outline Reference Group Influences Types of Reference Groups Power of Reference Groups Conformity Resistance to Influence W.O.M. Communications Social Networks

4. Reference Group Influences Reference group −An actual or imaginary individual or group that has a significant effect upon an individual’s evaluations, aspirations or behaviour Reference Group Influences 1. Informational 2. Utilitarian 3. Value Expressive

5. Types of Reference Groups 1.Formal vs. Informal 2.Brand Community 3.Membership vs. Aspirational 4.Positive vs. Negative 5.Antibrand Community Get together in a groups of three and come up with ideas as to how we might use each of these to our advantage as Marketers. Pick two types and create one example for each of the two.

6. SOCIAL POWER: “the capacity to alter the actions of others” Solomon, White, and Dahl, 2014, p. 324 Power of Reference Groups

7. Referent Power −Based on admiration of an individual or group −Patterns of consumption are copied Legitimate Power −Power granted by virtue of social agreements Reward Power −Power based on the ability to provide positive reinforcement Information Power −Based on access to information that others seek Expert Power −The individual possesses a special knowledge or skill Coercive Power −Effective in the short term, requires surveillance to ensure compliance

8. Conformity Gender Differences Fear of Deviance Susceptibility to Influence Cultural Pressures Likelihood of Conforming Group unanimity, size, expertise Commitment Conformity: A change in beliefs or actions as a reaction to real or imagined group pressures

9. Resistance to Influence Anti-Conformity −Defiance is the root of this behaviour Paradox: being intentionally different requires a concerted effort Independence −The individual is oblivious to expected social patterns Reactance −Consumer resistance to stimuli “boomerang effect”

10. WOM Communications The Dominance of WOM: Negative WOM: Encouraging Factors Encouraging Factors Viral Marketing Viral Marketing Guerilla Marketing Guerilla Marketing RumoursDistortion http://www.youtube.com/watch?v=ad4fagTyaM4

11. Legitimate Power Legitimate Power Similar Values “referent power” Similar Values “referent power” Reduce Risk Reduce Risk Knowledge Power Knowledge Power Technically Competent Technically Competent Opinion Leadership Key Characteristics of Opinion Leaders “first to buy”

12. Social Networks COMPONENTS Social networks (set of socially relevant nodes) = social graphs Nodes = members in a network Ties = relationships among nodes Nodes (members of the network) −Have interactions (behaviour based ties) −Have flows (exchange information, influence, etc.) ELEMENTS Media multiplexity – flows are in many directions Social object theory – object of common interest (more powerful if there is a way to activate relationship between people and objects) Object sociality – extent objects can be shared

13. Virtual Communities V irtual community of consumption −Common love of a product −Remain anonymous – through cyberspace only −Operation is similar to any community −Social media provides the connection Virtual World Communities: −Presence −Collective interest −Democracy −Standards of behaviour - flaming Levels of participation – −Tourists: Lack strong social ties to group, and maintain only a passing interest in the activity. −Minglers: Maintain strong social ties, but are not very interested in the central consumption activity. −Devotees: Express strong interest in the activity, but have few social attachments to the group. −Insiders: Exhibit both strong social ties and strong interest in the activity

14. Thank You PERCEPTION IS REALITY