1. Group Influences on Consumer Behavior
CHAPTER SEVEN
Group Influences on Consumer Behavior
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Variety of Reference Groups

3. Group Classification Criteria
Three Criteria:
Membership
Either/Or
Degree of Commitment
Attraction
Dissociative Reference Groups
Aspiration Reference Groups
Type of Contact
Primary Groups
Secondary Groups

4. Types of Groups Uncategorized Membership Attraction Contact Frequent
Purchasers
(parents)
Frequent
(primary associative)
Limited
(secondary associative)
(primary dissociative)
(secondary dissociative)
Desired
(aspiration)
Avoided
(dissociative)
Positive
(associative)
Negative
Yes
(membership) No
(nonmembership)

5. Consumption Subcultures
They are a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity.
Consumption Subculture Characteristics:
Identifiable, hierarchical social structure
Set of shared beliefs or values
Unique jargon, rituals, and modes of symbolic expression

6. Consumer Insight 7-1 Can meaningful communities exist on the Internet?
What are the implications for society of the emergence of Internet-based communities?
What are the ethics of marketers monitoring Internet interest groups for product and advertising insights?
What are the ethics of marketers participating in Internet interest groups without revealing their identity or purpose?

7. Brand Communities
A nongeographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product use, and the firm.
Nature of Brand Communities:
Consciousness of Kind
Rituals and Traditions
Moral Responsibility

8. The Nature of Reference Group Influence
Informational: when an individual uses behavior and opinions of reference group members as potentially useful bits of information
Normative: when an individual fulfills group expectations to gain a direct reward or to avoid a sanction
Identification: when individuals have internalized the group’s values and norms

9. Situations and Influence

10. Consumption Situations and Influence

11. Determinants of Reference Group Influence

12. Discussion Question (#30)
Using college students as the market segment, describe the most relevant reference group(s) and indicate the probable degree of influence for each of the following decisions:
a. Brand of mouthwash
b. Purchase of a Segway
c. Novel to Read
d. Becoming a vegetarian
e. Choice of movie

13. Discussion Question (#31)
How important are reference groups to the purchase of these products? Would their influence also affect the brand or model? Would their influence be informational, normative, or identification?
a. Sports drinks
b. DVD players
c. Dentists
d. An Internet connection
e. Segway HT
f. Volunteering with a nonprofit organization

14. Discussion Question (#32)
What reference groups would be relevant to the decision to purchase the product or activity (based on students on your campus)?
a. Sports drinks
b. DVD players
c. Dentists
d. An Internet connection
e. Segway HT
f. Volunteering with a nonprofit organization

15. Group Communication Means of communication Word of Mouth
Free
Experience Based
Varies by Product Category
Negativity Bias
Opinion Leadership
Filter of Information
Enduring Product Knowledge
More Innovative
Have a More Defined Role in Multistep Flow

16. Mass Communication Information Flows

17. Likelihood of Seeking an Opinion Leader

18. Opinion Leadership and Opinion Seeking Scales

19. Categories of Innovations
Degree of innovation
Behavioral change required
Small Modest Large
Examples
Norplant contraceptive
Becoming Vegetarian
Segway Human Transport
Digital camera
Personal navigator
Internet shopping
DVD Players
Light snacks
Microbrew beer
Discontinuous
Dynamically
continuous
Continuous
The McGraw-Hill Companies, Inc., 1998

20. Adoption Process & Extended Decision Making

21. Diffusion Rate of an Innovation over Time

22. Factors Affecting the Spread of Innovations
High
observability
Rapid diffusion
Low
risk
Low complexity
Large relative advantage
High compatibility
Strong felt need
Extensive marketing effort
Individual adoption decision
Change-prone target market
Easy trial

23. Recent Diffusion Curves

24. Adoptions of an Innovation over Time

25. Early Purchasers of Computers and VCRs

26. Enhancing Marketing Strategy