1. © 2009 South-Western, a division of Cengage Learning. Chapter 9 Group Influence BABIN / HARRIS

2. © 2009 South-Western, a division of Cengage Learning.9-2 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. Understand the importance of word-of-mouth communications in consumer behavior. Comprehend the role of household influence in consumer behavior. LO 1 LO 2 LO 3 LO 4 LO 5

3. © 2009 South-Western, a division of Cengage Learning. LO 1 Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions.

4. © 2009 South-Western, a division of Cengage Learning.9-4 Reference Group A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior. LO 1

5. © 2009 South-Western, a division of Cengage Learning.9-5 Group Influence Refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group. Group members: –Share common goals and interests –Communicate with, and influence, one another –Share a set of expectations, rules, and roles –View themselves as members of a common social unit LO 1

6. © 2009 South-Western, a division of Cengage Learning.9-6 Reference Group Influence Fraternity brothers often have a great deal of influence on each other. LO 1

7. © 2009 South-Western, a division of Cengage Learning.9-7 Types of Groups LO 1 Primary & Secondary Formal & Informal Aspirational & Dissociative

8. © 2009 South-Western, a division of Cengage Learning.9-8 Aspirational Groups Do you know a Parrot-Head?

9. © 2009 South-Western, a division of Cengage Learning.9-9 Conformity A result of group influence in which an individual yields to the attitudes and behavior of others. Conformity A result of group influence in which an individual yields to the attitudes and behavior of others. LO 1 Peer Pressure The extent to which group members feel pressure to behave in accordance with group expectations. Peer Pressure The extent to which group members feel pressure to behave in accordance with group expectations.

10. © 2009 South-Western, a division of Cengage Learning.9-10 Peer Pressure Friends are especially influential during the teen years. LO 1

11. © 2009 South-Western, a division of Cengage Learning. LO 2 Describe the various types of social power that reference groups exert on members.

12. © 2009 South-Western, a division of Cengage Learning.9-12 Exhibit 9.1 Types of Social Power LO 2

13. © 2009 South-Western, a division of Cengage Learning. LO 3 Comprehend the difference between informational, utilitarian, and value-expressive reference group influence.

14. © 2009 South-Western, a division of Cengage Learning.9-14 Reference Group Influence Informational influence – consumers use the behaviors and attitudes of reference groups as information into making their own decisions. Utilitarian influence – consumers conform to group expectations to receive a reward or avoid punishment. Value-expressive influence – consumers internalize a group’s values or join groups to express their own values and beliefs. LO 3

15. © 2009 South-Western, a division of Cengage Learning.9-15 We’ve Got Connections Membership has its privileges!

16. © 2009 South-Western, a division of Cengage Learning.9-16 Value and Reference Groups Utilitarian value – group membership becomes a means to a valued end state. Hedonic value – value is an end in and of itself. Information obtained directly impacts consumer expectations, which then affect value perceptions and satisfaction. LO 3

17. © 2009 South-Western, a division of Cengage Learning.9-17 Exhibit 9.2: Reference Group Influence on Product Selection LO 3

18. © 2009 South-Western, a division of Cengage Learning.9-18 Individual Difference in Susceptibility to Group Influence LO 3 Susceptibility to interpersonal influences Attention to social comparison information Separateness - connectedness Embarrassment

19. © 2009 South-Western, a division of Cengage Learning.9-19 Connectedness Consumers with connected self schemas respond favorably to advertisements promoting togetherness.

20. © 2009 South-Western, a division of Cengage Learning. LO 4 Understand the importance of word-of-mouth communications in consumer behavior.

21. © 2009 South-Western, a division of Cengage Learning.9-21 Word-of-Mouth (WOM) Information about products, services, and experience that is transmitted from consumer to consumer. LO 4 Organic Amplified

22. © 2009 South-Western, a division of Cengage Learning.9-22 Online Social Networking Web sites like momjunction.com have grown in popularity.

23. © 2009 South-Western, a division of Cengage Learning.9-23 Buzz Marketing Includes marketing efforts that focus on generating excitement (“buzz”) that is spread from consumer to consumer. A form of guerilla marketing – the marketing of a product using unconventional means. Viral marketing – uses online technologies to facilitate WOM by having consumers spread marketing messages through their online conversations. LO 4

24. © 2009 South-Western, a division of Cengage Learning.9-24 Stealth Marketing A guerilla marketing tactic that is similar to buzz marketing, but consumers are completely unaware that they are being marketed to. Often considered unethical, along with practices called “shilling” and “infiltrating.” LO 4

25. © 2009 South-Western, a division of Cengage Learning.9-25 Opinion Leaders Consumers who have great influence on the behavior of others relating to product adoption and purchase. LO 4

26. © 2009 South-Western, a division of Cengage Learning.9-26 Market Mavens and Surrogate Consumers Market Maven A consumer who spreads information about all types of products and services. Market Maven A consumer who spreads information about all types of products and services. LO 4 Surrogate Consumer Hired by another consumer to provide input into a purchase decision. Surrogate Consumer Hired by another consumer to provide input into a purchase decision.

27. © 2009 South-Western, a division of Cengage Learning.9-27 Diffusion Process The way in which new products are adopted and spread throughout a marketplace. LO 4

28. © 2009 South-Western, a division of Cengage Learning.9-28 Maybe Talk Isn’t Cheap Some bloggers are paid to talk about products.

29. © 2009 South-Western, a division of Cengage Learning.9-29 Exhibit 9.4 Adopter Categories LO 4

30. © 2009 South-Western, a division of Cengage Learning. LO 5 Comprehend the role of household influence in consumer behavior.

31. © 2009 South-Western, a division of Cengage Learning.9-31 Traditional Family Household At least two people who are related by blood or marriage who occupy a housing unit. LO 5 Nuclear family Extended family

32. © 2009 South-Western, a division of Cengage Learning.9-32 Emerging Trends in Family Structure “Non-traditional” household arrangements Single parent households Blended families LO 5

33. © 2009 South-Western, a division of Cengage Learning.9-33 Exhibit 9.6: Traditional Household Life Cycle Categories LO 5

34. © 2009 South-Western, a division of Cengage Learning.9-34 Household Purchase Roles LO 5 Gatekeeper Decision Maker Influencer User Purchaser

35. © 2009 South-Western, a division of Cengage Learning.9-35 Kid Power Children play a much larger role in influencing household purchases than ever before.

36. © 2009 South-Western, a division of Cengage Learning.9-36 K.G.O.Y. Kids are growing older younger!

37. © 2009 South-Western, a division of Cengage Learning.9-37 Polariod Gives Kids What They Want! LO 5