Download OHT 10.3 Reference groups

OHT 10.1
Group influence and opinion leadership
© Pearson Education Limited 2003
OHT 10.2
Importance of groups
Consumers belong to or admire many different groups
and are often influenced in their purchase decisions by a
desire to be accepted by others.
© Pearson Education Limited 2003
OHT 10.3
Reference groups
A reference group is an actual or imaginary or group
conceived of having significant relevance upon an
individual’s evaluations, aspirations or behaviour.
(Cohen & Golden, 1972)
© Pearson Education Limited 2003
OHT 10.4
Types of reference groups
There are three reference groups:
1. Informational.
2. Utilitarian.
3. Value-expressive.
© Pearson Education Limited 2003
OHT 10.5
Other categories of groups
1. Formal - organisations with a recognised structure.
2. Informal groups - such as a group of friends or
neighbours.
3. Groups by membership.
4. Aspirational reference groups.
5. Identificational reference groups.
6. Positive and negative reference groups.
7. Virtual communities - collection of people whose online
interactions are based on shared enthusiasm.
© Pearson Education Limited 2003
OHT 10.6
Indentificational reference groups
The likelihood that people will become part of a consumer’s
identificational reference group is affected by the
following factors:
1. Physical nearness (propinquity).
2. Exposure.
3. Group cohesiveness.
© Pearson Education Limited 2003
OHT 10.7
Virtual communities
Figure 10.1
Adapted from Robert V. Kozinets, ‘E-Tribalized Marketing: The Strategic Implications of Virtual
Communities of Consumption’, European Management Journal 17(3)
© Pearson Education Limited 2003
(June 1999): 252–64
OHT 10.8
Member types of virtual communities
1. Tourists - lack strong ties to the group and maintain only
a passing interest in the activity.
2. Minglers - maintain strong ties but are not very
interested in the central consumption activity.
3. Devotees - express strong interest in the activity but
have few social attachments to the group.
4. Insiders - exhibit strong social ties and strong interest in
the activity.
© Pearson Education Limited 2003
OHT 10.9
Power bases within reference groups
Individuals can exert the following power within the
reference group:
1. Referent power.
2. Information power.
3. Legitimate power.
4. Expert power.
5. Reward power.
6. Coercive power.
© Pearson Education Limited 2003
OHT 10.10
Conformity
People conform to the desires of others for two basic
reasons:
1. Informational social influence - modelling behaviour on
others as people perceive other peoples’ behaviour as
evidence of the correct way to act.
2. Normative social influence - conforming to satisfy the
expectations of others and/or to be accepted by the
group.
© Pearson Education Limited 2003
OHT 10.11
Other factors for conforming
1. Cultural pressures.
2. Fear of deviance.
3. Commitment.
4. Group unanimity, size and expertise.
5. Susceptability to interpersonal influence.
© Pearson Education Limited 2003
OHT 10.12
Word of mouth communication (WOM)
Information obtained from those we know or talk directly
to tends to be more reliable and trustworthy than that
received through more formal channels.
WOM can be efficient due to the speed at which this can
occur.
WOM can have a negative marketing impact - informal
discussions among consumers can make or break a
product.
© Pearson Education Limited 2003
OHT 10.13
Viral marketing
Viral marketing refers to the strategy of getting
customers to sell a product on behalf of a company that
creates it by sending on recommendations, etc.
Viral marketing is particularly suited to the Internet, since
emails circulate so easily.
© Pearson Education Limited 2003
OHT 10.14
Opinion leadership
Opinion leaders who are knowledgeable about a product
and whose opinions are highly regarded tend to
influence the choices of others.
Specific opinion leaders can be difficult to identify but
marketers who know their general characteristics can try
to target them in their media and promotional strategies.
© Pearson Education Limited 2003
OHT 10.15
Value of opinion leaders
1. They are technically competent and possess expert
power.
2. They have pre-screened, evaluated and synthesised
product information in an unbiased way thus possessing
knowledge power.
3. They tend to be socially active and highly interconnected
in their community.
4. They tend to be similar to the consumer in terms of
values and beliefs.
5. They are often among the first to purchase new
products.
© Pearson Education Limited 2003