1. 11 - 1 Chapter 11 Group Influence and Opinion Leadership By Michael R. Solomon Consumer Behavior Buying, Having, and Being Sixth Edition

2. 11 - 2 Opening Vignette: Zachary Does Zachary meet your mental stereotype for a Harley Davidson owner? Why does Zachary desire to have more Harley “stuff”? How do Zach’s fellow RUBs influence his purchases? What benefits does Zach enjoy from his association with other Harley owners?

3. 11 - 3 Harley Owners Group

4. 11 - 4 Reference Groups Reference Group –An actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior –Three ways reference groups influence consumers Informational Utilitarian Value-Expressive –Some people are more influential than others in affecting consumers’ product preferences.

5. 11 - 5 Relative Reference Groups’ Influence on Purchase Intention Figure 11.1

6. 11 - 6 When Reference Groups Are Important Social Power: –The capacity to alter the actions of others Referent Power: – When consumers imitate qualities by copying behaviors of a prominent person they admire. Information Power: – Able to influence consumer opinion by virtue of their (assumed) access to the “truth” Legitimate Power: – Granted to people by virtue of social agreements, sometimes conferred by a uniform

7. 11 - 7 Expert Power A physician has expert power, and a white coat reinforces this expertise by conferring legitimate power.

8. 11 - 8 When Reference Groups Are Important (cont.) Expert Power: –Derived from possessing specific knowledge about a content area Reward Power: –When a person or group has the means to provide positive reinforcement Coercive Power: –Influencing a person by social or physical intimidation

9. 11 - 9 Types of Reference Groups Reference Group: –Any external influence that provides social cues Normative Influence: –The reference group helps to set and enforce fundamental standards of conduct. Comparative Influence: –When decisions about specific brands or activities are affected.

10. 11 - 10 Marketers often portray products being used in groups that represent favorable reference groups to the target market. What type of message does this ad convey? What type of influence is this ad designed to exert on its target audience? Discussion Question

11. 11 - 11 Brand Communities and Tribes Brand Community: –A set of consumers who share a set of social relationships based upon usage or interest in a product. Brandfests Consumer Tribe: –A group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or product. Tribal Marketing: –To link one’s product to the needs of a group as a whole.

12. 11 - 12 Products as a Way to be Popular Many products, especially those targeted to young people, are often touted as a way to take the inside track to popularity. This Brazilian ad lets us know about people who don’t like a certain shoe.

13. 11 - 13 Membership vs. Aspirational Reference Groups Aspirational Reference Groups –Comprise idealized figures such as successful business people, athletes, or performers. Membership Reference Group –Ordinary people whose consumption activities provide informational social influence. Propinquity: Physical nearness. Mere Exposure: Liking persons or things simply as a result of seeing them more often (mere exposure phenomenon) Group Cohesiveness: The degree to which members of a group are attracted to each other and value their group membership.

14. 11 - 14 Match.com

15. 11 - 15 Positive Versus Negative Reference Groups Avoidance Groups –Groups that consumers purposely try to distance themselves from Nerds Druggies Preppies –The motivation to distance oneself from a negative reference group can be as powerful or more powerful than the desire to please a positive group

16. 11 - 16 Positive Reference Groups This recruiting ad presents a compelling role model for young women contemplating a career in the armed forces.

17. 11 - 17 Consumers Do it in Groups Deindividuation: – A process in which individual identities become submerged within a group. Social Loafing: –People do not devote as much to a task when their contribution is part of a larger group effort Risky Shift: –Group members are willing to consider riskier alternatives subsequent to group discussion Diffusion of Responsibility: –As more people are involved in a decision, each individual is less accountable for the outcome

18. 11 - 18 Deindividuation Costumes hide our true identities and encourage deindividuation.

19. 11 - 19 Consumers Do it in Groups (cont.) Value Hypothesis: –Riskiness is a culturally valued characteristic to which individuals feel pressure to conform Decision Polarization: –Whichever direction the group members were leaning toward before discussion becomes more extreme subsequent to discussion Home Shopping Parties: –Capitalize on group pressures to increase sales

20. 11 - 20 Home Shopping Parties Women at a home Tupperware party.

21. 11 - 21 Group Influences Group pressure often influences our clothing choices.

22. 11 - 22 Conformity –A change in beliefs or actions as a reaction to real or imagined group pressure. Norms –Informal rules that govern behavior. Factors Influencing the Likelihood of Conformity –Cultural Pressures –Fear of Deviance –Commitment Principle of Least Interest –Group Unanimity, Size, and Expertise –Susceptibility to Interpersonal Influence Role-relaxed consumers

23. 11 - 23 Social Comparison Social Comparison Theory: –Asserts that people look to the behavior of others to increase the stability of their self-evaluation –Co-oriented peer: A person of equivalent standing Resisting Conformity: –Independence: Being oblivious or indifferent to the expectations of others –Anticonformity: Defiance of the group is the actual behavior –Reactance: The negative emotional state that results when we are deprived of our freedom to choose

24. 11 - 24 Word of mouth

25. 11 - 25 Word-of-Mouth Communication Word-of-Mouth (WOM): –Product information transmitted by individuals to individuals. Negative WOM and the Power of Rumors: –Negative WOM: Consumers weigh negative info from other consumers more heavily than they do positive comments

26. 11 - 26 Word-of-Mouth The U.S. Postal Service hopes to create a buzz via word of mouth.

27. 11 - 27 Rumors Hoaxkill.com is a Web site dedicated to tracking hoaxes and debunking product rumors.

28. 11 - 28 The Transmission of Misinformation Figure 11.2

29. 11 - 29 Cutting-Edge WOM Strategies Virtual Communities –Virtual Community of Consumption: A collection of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity. Multi-user Dungeons (MUD) Rooms, rings and lists (e.g. chat rooms) Boards Blogs (weblog)

30. 11 - 30 Four Types of Virtual Community Members Tourists: –Lack strong social ties to the group Minglers: –Maintain strong social ties, but are not 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

31. 11 - 31 Virtual Communities Figure 11.3

32. 11 - 32 Guerrilla Marketing –Promotional strategies that use unconventional locations and intensive word-of-mouth campaigns to push products. Brand Ambassadors Viral Marketing –Refers to the strategy of getting customers to sell a product on behalf of the company that creates it.

33. 11 - 33 Guerrilla Marketing Ads Ads painted on sidewalks are one form of guerrilla marketing.

34. 11 - 34 Opinion Leadership The Nature of Opinion Leadership –Opinion Leaders: People who are knowledgeable about products and whose advice is taken seriously by others. –Homophily: The degree to which a pair of individuals is similar in terms of education, social status, and beliefs. How Influential Is an Opinion Leader? –Generalized Opinion Leader: Somebody whose recommendations are sought for all types of purchases. –Monomorphic: An expert in a limited field. –Polymorphic: An expert in many fields.

35. 11 - 35 Opinion Leaders Market Shoes Opinion leadership is a big factor in the marketing of athletic shoes. Many styles first become popular in the inner city and then spread by word-of- mouth.

36. 11 - 36 Types of Opinion Leaders Innovators –Early purchasers Innovative Communicators –Opinion leaders who also are early purchasers –Opinion leaders also are likely to be opinion seekers The Market Maven –Describes people who are actively involved in transmitting marketplace information of all types. The Surrogate Consumer –A person who is hired to provide input in purchase decisions.

37. 11 - 37 Cool hunters and mavens Maven - unpaid enthusiasts who initiate discussions with consumers and respond to requests for information –neighbourhoods mavens –professional mavens (critics, reviewers, correspondents) –celebrity mavens (Beckham) modern consumers need maverns to –seek relevant information –provide a ‘trustworthy’ recommendation –decide which is best examples –Blair Witch Project –Harry Potter Lewis and Bridger 2000 http://www.sharperimage.com http://www.NewConsumer.co.uk/

38. 11 - 38 Perspectives on the Communications Process Figure 11.4

39. 11 - 39 Fashion Opinion Leaders Fashion opinion leaders tend to be knowledgeable about clothing and highly motivated to stay on top of fashion trends.

40. 11 - 40 Revised Opinion Leadership Scale Figure 11.5