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Chapter 8 Group and Interpersonal Influence © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes • Understand the importance of word-of-mouth in influencing consumer behavior • Comprehend the role of household influence in consumer behavior © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reference Group and Group Influence Reference Group – Have significant relevance for a consumer – An impact on the consumer’s evaluations, aspirations, and behavior – Consumers become members of many groups that either meet physically, or meet in cyberspace Group Influence – Ways in which group members influence attitudes, opinions, and behaviors of others within the group © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Groups Primary: Members who have frequent, direct contact with one another Secondary: Interaction within the group is much less frequent than in a primary group Formal: Consumer formally becomes a member Informal: Nonexistent membership or application requirements, and codes of conduct Aspirational: Consumer desires to become a member Dissociative: Consumer does not want to belong © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Conformity and Peer Pressure • Conformity occurs when an individual yields to the attitudes and behaviors of other consumers • Peer pressure is the pressure an individual feels to behave in accordance with group expectations – Consumers sometimes succumb to group pressures that encourage counterproductive behaviors © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reference Group Influence • Informational influence: Ways in which consumers use the behaviors and attitudes of reference groups as information • Utilitarian influence: When consumers conform to group expectations to receive a reward or avoid punishment • Value-expressive influence: Ways in which consumers internalize a group’s values © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Media and Consumer Behavior • Social media: Media through which communication occurs • Social networks: Networks of consumers that are formed based on common interest, associations, or goals • Social networking websites: Facilitate online social networking • Social networking helps to fulfill the need to belong • Both utilitarian and hedonic value can be derived from social media © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Social Buying and Couponing • Social buying – Consumer buying behavior that takes place on social networking sites • Social couponing – Type of buying where consumers receive a coupon, or deal, by joining a special social networking website © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual Difference in Susceptibility to Group Influence Susceptibility to interpersonal influences Attention to social comparison information Separateness – connectedness Social presence and embarrassment © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Word-of-Mouth (WOM) • Information about products, services, and experiences that is transmitted from consumer to consumer – Organic – Amplified • Consumers spread WOM when a product is particularly relevant to their own self-concept • Negative WOM creates more damage than positive WOM © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Value and Word-of-Mouth • WOM is affected in large part by the perceived value that consumers receive from products and services • Marketers may encourage digital WOM in order to help build brand communities. They also attempt to monitor and respond to negative digital WOM • Consumer researchers gather information on WOM statistics through certain social networks, blogs, and video views © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Buzz and Stealth Marketing • Includes marketing efforts that focus on generating excitement (or buzz) that is spread among market segments • Guerrilla marketing: Marketing of a product using unconventional means • Viral marketing: Uses online technologies to facilitate WOM • Stealth marketing: Consumers are completely unaware that they are being marketed to – Shilling – Infiltrating © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Influencers Opinion Leaders: Consumers who have great influence on the behavior of others Market Maven: Consumer who spreads information about all types of products and services Surrogate Consumer: Consumer who is hired by another to provide input into a purchase decision © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Traditional Family Structure and Emerging Trends • Family household: At least two people who are related by blood or marriage – Nuclear family – Extended family • Emerging trends include: – “Nontraditional” household arrangements – Blended families – Single parent households • Boomerang kids • Sandwich generation © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Household Purchase Roles • Influencer - Provides information about a potential purchase to others • Gatekeeper - Controls information flow into the household • User - Actual user of the product • Decision maker - Makes the final decision regarding product purchase • Purchaser - Actually buys the product © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Gender Roles and Household Decision Making • Sex role orientation (SRO): A family’s set of beliefs that influences the way household decisions are made • Kid Power – Children in the ages of 8 and 12 greatly influence many household purchases • Consumer socialization: Process in which young consumers develop attitudes and learn skills that help them function in the marketplace © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.