1. Social Influences on Consumer Behavior
Chapter 11
Social Influences
on Consumer Behavior

2. Learning Objectives~ Ch. 11
To understand:
How general sources of influence differ in four key ways
The influence of opinion leaders-especially in the era of social media
The types/characteristics of reference groups
Both normative & informational influence

3. Social Influences
“. . . information pressures [that have] a strong influence on consumers because the information source is very credible; they have a strong influence simply because the source can communicate information widely.”

4. Social Influences

5. General Sources of Influence
Marketer-dominated
Non-marketer-dominated
Delivered
Via mass media
Personally
Sources differ?
Reach
Capacity for two-way communication
Credibility

6. Sources of Influence

7. Opinion Leaders Gatekeepers Knowledgeable about products
Heavy users of mass media
Buy new products when introduced
Perceived as credible
Market maven
Marketing implications
Target
Use in marketing communications
Refer consumers

8. Types of Reference Groups
Aspirational
Associate products with
Associative
Accurately represent
Brand communities
Dissociative
Avoid using

9. Reference Groups Characteristics
Degree of Group Contact
Primary
Secondary
Formality
Homophily: Similarity among members
Group attractiveness
Density
Degree of identity
Tie strength
Many facebook friends, LinkedIn contacts & twitter followers- a large social & or professional network

10. Tie-Strength & Social Influence

11. Marketing Implications
Understand information transmission
Target formal reference groups
Target homophilous consumers
Target the network
Understand strength of weak ties
Embedded markets

12. Reference Groups as Socializing Agents
People
Media & marketplace
Celebrity
Sorority/Fraternity
Campus organizations
Sport

13. In What Ways is Tiger an Influencer?
Adage.com

14. Normative Influence
“. . . derives from norms, society’s collective decisions about what behavior should be.”
Implies Consumers Will Be
Sanctioned/punished if norms not followed
Rewarded for performing expected behaviors

15. Sources & Types of Influence

16. Normative Influence & CB
Brand-choice congruence & conformity
Compliance versus reactance
Characteristics affecting strength
Product
Consumer
Group-coercive power
May be more visible in this era of social media & events

17. Marketing Implications
Rewards/sanctions for product use/nonuse
Create norms for group behavior
Create conformity pressures
Use compliance techniques
Foot-in-the door
Door-in-the-face
Even-a-penny will help
Ask consumers to predict behavior
Provide freedom of choice
Use service providers similar to customers

18. Informational Influence
“. . . influence, reference groups & other influence sources can exert by offering information to help make decisions.”
“. . . can affect how much time & effort consumers devote to information search & decision making.”

19. Informational Influence Strength
Is impacted by:
Product characteristics
Consumer & influencer characteristics
Group characteristics

20. Descriptive Dimensions of Information
Valence: Information positive or negative?
Negative more likely to be communicated
People pay more attention to & give weight to negative
Modality: Verbal or nonverbal?
Pervasive/Persuasive: Word-of-mouth, viral marketing

21. Restoring Public Trust

22. Negative Wom/eWOM Pervasive & persuasive Viral marketing What to do
Prevent & respond to negative word of mouth
Engineer favorable word of mouth
Handle rumors
Track word of mouth

23. Handling Rumors & Scandals
Do nothing
Do something locally
Do something discreetly
Do something big
Take responsibility for what is right

24. Questions?