1. Chapter 14: Group Influences

2. What is a Reference Group? An actual or imaginary group which has an influence on a person’s evaluations, aspirations and behavior. Forms of Influence: ~ informational (pre-purchase, purchase, and post-purchase) ~ utilitarian (group’s preferences) ~ value-expressive (social image)

3. Types of Reference Group Influence Normative: Setting fundamental standards of “how” to conduct oneself. This kind of influence affects the product class one consumes, not so much the specific brand. Comparative: This influences the specific brands one purchases rather the broader product class level decisions.

4. Variations in Reference Groups Formality: (1)Formal reference groups characterized by structure charter, periodic meetings, officers, explicit set of rules (e.g., Religious groups etc.). These are more “marketable” (2)Informal reference groups (e.g., Friends) Nature of Relationship: (1)Membership groups. Here identification depends on: ~ propinquity or physical distance ~ group cohesiveness ~ mere exposure (2)Aspirational

5. Variations in Reference Groups (Continued) Valence of Relationship: (1) Positive or Approach (2) Negative or Avoidance In summary, reference groups vary in terms or (a)degree of formality, (b) nature of relationship and (c) valence of relationship.

6. When Do Reference Groups Have the most Influence? Some factors are: Level of Risk Luxury or Necessity Public or Private Consumption Also, some times the influence is at the brand level and other times it may be at the product level.

7. The effect of the reference group depends on the visibility of the consumption and the extent to which a product is a necessity. For example, in the grid below, reference groups generally affect brand choice for publicly consumed necessities, and affect product class choices for privately consumed luxury goods. NecessityLuxury Brand Product Class Brand NoneProduct Class Public Private

8. Types of Power Which Reference Groups Have Social Power refers to the ability to change a person’s behavior. ~ referent power (the model) ~ informational power (editors) ~ legitimate power (officers in a formal structure) ~ expert power (your friend who is a computer expert) ~ reward power ~ coercive power

9. Factors that Influence Conformity to the Group Dictat Culture Pressures Fear and Consequences of Deviance Commitment ~ principle of least interest Group Unanimity, Size and Expertise Gender Differences

10. Family Decision Making What are the key issues? –Different people. –Different goals for each member. –Different capabilities/involvement for each person. –Differing importance of a given person. –Joint versus individual priorities.

11. Roles in Consumption Influencer Provides different forms of influence. Gatekeeper Manages information flow. Buyer User Disposer

12. Differing Involvement Involvement varies? Example? By product. By stage of decision making. Some families are simply more involved than others. Involvement varies across families, within families, across products, and within decision stages.

13. Types of Influence Strategies in Families Expert Legitimate Has to do with role expectations. Bargaining Give up something to get something later. Reward/Referent Especially, parents. Sometimes kids. KIDS??? Emotional Impression management. “not my fault” strategy.

14. Customer Socialization Acquisition of consumption skills. Example? Home Depot

15. Factors influencing Family Changes in role of women. –Employment, empowerment. Marriage and divorce. –Newer definitions of what constitutes marriage. Changes in child-birth and rearing practices.

16. Traditional Family Life Cycle Single Married without children. Young, married with children. Middle-aged, married, with children. Empty nesters. Older married. Older unmarried.

17. New Additions to Family Life Cycle Single Married without children. Single again, without children. Young, married with children. Single parent, with children. Middle-aged, married, with children. Middle-aged, divorced with children. Empty nesters. Divorced empty-nesters. Older married. Older unmarried.