Download Group influence on consumer behaviour

Group Influence and
Communication
Chapter 14
 Manner of group function; classification of groups
 Impact of reference groups on the consumption process
 Marketing strategies based on group influence
 Importance of roles of group members to marketing
strategies
 Nature of word-of-mouth communication and its implications
 Group communication—an important marketing factor
 Importance of opinion leaders in shaping behaviour of
others
 Market mavens—information disseminators
 Diffusion of innovation
 Adopter groups and their characteristics
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
1
Groups and their Definitions
 Group:
 ‘Two or more individuals who share a set of
norms, values, or beliefs, and have certain
implicitly or explicitly defined relationships which
make their behaviour interdependent’
 Reference group:
 ‘A group whose presumed perspectives or
values are being used by an individual as the
basis for his or her current behaviour’
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
2
Types of Groups
 Membership
 either yes or no
 Degree of contact
 larger groups generally have less contact
 primary groups generally have frequent interpersonal
contact
 secondary groups generally have limited interpersonal
contact
 Attraction
 desirability of being member
 either positive or negative
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
3
Types of Groups (cont.)
 Aspirational reference groups
 non-membership groups
 positive attraction
 exert a strong influence from some products
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
4
Conformity
 Conformity is the tendency to want to be
like relevant and significant others
 Conformity generally makes life more
pleasant
 Norms:
 general expectations about behaviours that are
deemed appropriate for all persons in a social
context, regardless of the position they hold
 often communicated non-verbally
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
5
The Nature of Referencegroup Influence
 Conformity is not a uni-dimensional concept
 Information influence
 behaviours and opinions of reference groups are used as
potentially useful pieces of information
 Normative influence (utilitarian influence)
 when an individual fulfils group expectations to gain a
direct reward or avoid a sanction
 Identification influence (value-expressive
influence)
 when an individual uses perceived-group norms and
values as a guide for their own attitudes or values
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
6
Determinants of the Degree of
Reference-group Influence
 Group influence is strongest when use of the
product or brand is visible to the group
 e.g. product category, product type and brand are all visible
 Reference-group influence typically affects
aspects of the product that are visible to the
group
 Reference-group influence increases as the
degree of necessity of an item decreases
 In general, the more commitment an
individual feels to a group, the higher the
level of conformity to group norms
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
7
Marketing Strategies based on
Reference-group Influences
 Personal sales strategies
 Asch phenomenon
 Advertising strategies
 all three types of reference groups are used by
advertisers
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
8
Roles
 A role is:
 a prescribed pattern of behaviour expected of a person in
a given situation by virtue of the person’s position in that
situation
 Role parameter:
 range of behaviour acceptable within a given role
 Role overload:
 occurs when an individual attempts to fill more roles than
the available time, energy or money allows
 Role conflict:
 incompatible role demands
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
9
Applications of Role Theory
in Marketing Practice
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Role-related product cluster
Evolving roles
Role conflict and role overload
Role acquisition and transition
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
10
Communication within
Groups
 The power of word-of-mouth
communication
 People learn about new products from
friends and reference groups by:
 observing or participating with them as they use
the product, or
 by seeking and receiving advice or information
from them
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
11
Opinion Leadership
 Opinion leaders filter, interpret or provide
information for individuals within groups.
 Situations in which opinion leadership
occurs
 one individual exchanges information with
another
 one individual volunteers information
 as a by-product of normal group interaction
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
12
Characteristics of Opinion
Leaders
 Opinion leaders have enduring involvement with
product category
 Function primarily through interpersonal
communications and observation
 Similar demographic characteristics to the group
 Public individuation
 High level of exposure to media
 Motivation of dissatisfied customers to tell others of
their negative message
 The market maven
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
13
Marketing Strategy
and Opinion Leaders
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Identifying opinion leader
Targeting for marketing research
Product sampling
Retailing/personal selling
Advertising attempts to encourage and
simulate opinion leadership
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
14
Diffusion of Innovations
 Nature of the innovation
 new as perceived by individuals or group
 Categories of innovations
 continuous innovation
 dynamically continuous innovation
 discontinuous innovation
Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a
Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins
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