bb chapter fourteen : group influence and communication

Chapter Fourteen:Chapter Fourteen:

Group influence and

communication

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Chapter 14:Group influence and

communication• How groups function and classification of

groups• Impact of reference groups on consumption• How social roles influence consumption

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• Importance of word-of-mouth and group communication as marketing factors

• Role of opinion leaders in shaping consumer behavior

• The diffusion of innovations and the different adopter groups

Group influences

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Reference Group InfluenceReference Group Influence

A groupgroup is defined as two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent.their behaviors are interdependent.

A reference groupreference group is a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior.

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Reference Groups Change as the Situation ChangesReference Groups Change as the Situation Changes

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Four criteria that are particularly useful in classifying groupsgroups:

1.1. MembershipMembership

2.2. Strength of Social TieStrength of Social Tie2.2. Strength of Social TieStrength of Social Tie

3.3. Type of ContactType of Contact

4.4. AttractionAttraction

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Types of groups

• Membership– Either yes or no

• Degree of contact– Larger groups generally have less contact– Primary groups generally have frequent

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Primary groups generally have frequent interpersonal contact

– Secondary groups generally have limited interpersonal contact

• Attraction– Desirability of being member– Either positive or negative

Types of groups (cont.)

• Aspirational reference groups– Non-membership groups– Positive attraction

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– Exert a strong influence on some products

Types of groups (cont.)

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Reference group influences on the consumption process

• Conformity– Makes groups influential– Is the tendency to want to be like ‘relevant and

significant others’– Generally makes life more pleasant

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– Generally makes life more pleasant

• Norms – Are general expectations about behaviours that

are deemed appropriate for all persons in a social context, regardless of the position they hold

– Are often communicated non-verbally

Reference Group Influences on the Reference Group Influences on the Consumption ProcessConsumption Process

Reference group influence can take three forms:

1.1. Informational Informational InfluenceInfluence

Types of Reference Group Influence

2.2. Normative InfluenceNormative Influence (a.k.a. utilitarian influence)(a.k.a. utilitarian influence)

3.3. Identification InfluenceIdentification Influence (a.k.a. value (a.k.a. value expressive)expressive)

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The nature of reference-group 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)

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• Normative influence (utilitarian influence)– When an individual fulfils group expectations to

gain a direct reward or avoid a punishment

• Identification influence (value-expressive influence)– When an individual uses perceived-group norms

and values as a guide for their own attitudes or values

Consumption situations and reference-group influence

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Consumption situations and reference-group influence (cont.)

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Consumption situations and reference-group influence (cont.)

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Consumption Situation Determinants of Reference Group InfluenceConsumption Situation Determinants of Reference Group Influence

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Determinants of the degree of reference-group influence

• R-Group influence is strongest when use of the product or brand is visible and relevant– E.g.. product category, product type and brand are

all visible

• R-group influence increases as necessity of

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• R-group influence increases as necessity of an item decreases

• The more commitment an individual feels to a group, the higher the level of conformity to group norms

• Individual’s confidence with purchase: low confidence, then higher influence

Product characteristics and type of reference-group influence

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Influence of two consumption situation characteristics on product/brand

choices

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Consumption-situation determinants of reference-group influence

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Marketing strategies based on reference-group influences

• Personal sales strategies– Asch phenomenon

• Advertising strategies

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• Advertising strategies– All three types of reference groups are used by

advertisers:� informational (use of information)� normative (to avoid/gain) � identification (aspire to join)

Consumption subcultures

• A consumption subculture is a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand or consumption activity

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• Examples: Product: Harley-DavidsonActivities: Body building, golf

Consumption Subcultures

A Consumption subcultureConsumption subculture is a subgroup that self-selects on the basis of a shared commitment to a particular product, brand, or consumption activity. consumption activity.

These groups have:

•an identifiable, hierarchical social structure.

•a set of shared beliefs or values.

•unique jargon, rituals, and modes of symbolic expression.

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Types of Groups

Consumption subculturesConsumption subcultures based on activities obviously are markets for the requirements of the activity itself.

Marketing and Consumption SubculturesMarketing and Consumption Subcultures

the requirements of the activity itself.

But these groups develop rituals and modes of symbolic communicationthat often involve other products or services.

The larger market often appropriates their symbols, at least for a time.

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Types of GroupsTypes of Groups

Brand Communities

��Consumption subculturesConsumption subcultures focus on the interactions of individuals around an activity, product category, or occasionally a brand.occasionally a brand.

�A brand communitybrand community is a non-geographically bound community, based on �a structured set of social relationships among owners of a brand and… �the psychological relationship they have with the brand itself, the product in use, and the firm.

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Brand Communities (cont.)

�The nature of communities (generally) and brand communities (specifically) include:

•Consciousness of Kind

•Rituals and Traditions

•Moral Responsibility

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Types of Groups

Brand communities Brand communities can add value to the ownership of the product and build intense loyalty.

Marketing and Marketing and Brand CommunitiesBrand Communities

loyalty.

When a consumer becomes part of a brand community, remaining generally requires continuing to own and use the brand.

This can create intense brand loyalty!

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Virtual Communities

�A virtual communityvirtual community is a community that interacts over time around a topic of interest on the Internet via Usenet, blogs, professional sites, and sites for nonprofit groups.

�Such groups may be viewed as not being “real” communities.

�However virtual communitiesvirtual communities do exist for many and there can be a sense of community online.

�This sense of community moves beyond mere interaction to include affective or emotional attachments to the online group.

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Three types of virtual community members:

1.1. LeadersLeaders

� A relatively small group who are highly influential and take on the most responsibility for community maintenance.maintenance.

2.2. ParticipantsParticipants

� A larger group who are active members but not deemed as leaders.

3.3. LurkersLurkers

� The largest group and only passively peruse the group discussions without being active participants.

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Types of Groups

Marketing in virtual communitiesvirtual communities is both possible and potentially beneficial.

The approach taken must be tailored to the type of virtual virtual

Marketing and Virtual CommunitiesMarketing and Virtual Communities

The approach taken must be tailored to the type of virtual virtual communitycommunity.

Many online groups are sensitive to “commercial” interference and companies have to be careful not to overstep.

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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

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– 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

Applying role theory to marketing practice

• Role-related product cluster e.g. new mother

• Evolving roles e.g. career females

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• Role conflict and role overload e.g. working mother, working student

• Role acquisition and transition e.g. student to employee

Role set possibilities for a student

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�� WOMWOM

�� Opinion LeadersOpinion Leaders�� Opinion LeadersOpinion Leaders

�� Market Mavens, Influentials, and eMarket Mavens, Influentials, and e--fluentialsfluentials

�� Marketing and Online StrategiesMarketing and Online Strategies

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Communications within Groups and Opinion Leadership

1. By observing or participating with them as they use products and

We learn about new products, services, brands, as well as retail and information outlets from our friends and other reference groups in two basic ways:

them as they use products and services.

2. Through WordWord--ofof--mouth (WOM)mouth (WOM), which involves individuals sharing information with other individuals in a verbal form including face-to-face, phone, and the Internet.

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Communications within Groups and Opinion LeadershipWord-Of-Mouth

�Consumers generally trust the opinions of people (family, friends, acquaintances) more than marketing communications because…communications because…

�Unlike marketing communications, these personal sources have no reason not to express their true opinions and feelings.

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Communications within Groups and Opinion LeadershipWord-Of-Mouth

�The importance of WOM WOM is generally high, and its importance relative to advertising varies somewhat across product types.across product types.

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Communications within Groups and Opinion LeadershipOpinion Leaders

�An opinion leaderopinion leader is the “go to person” for specific types of information. This person filters, interprets, and passes along information.passes along information.

�Opinion leaders possess enduring involvement for specific product categories. This leads to greater knowledge and expertise.

�Opinion leadership is category specific – an opinion leader in one product category is often an opinion seeker in others.

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Opinion leadership

• Opinion leaders filter, interpret or provide information for individuals within groups

• Situations in which opinion leadership occurs:– one individual exchanges information with

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– one individual exchanges information with another

– one individual volunteers information– as a by-product of normal group interaction

Mass communication information flows

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Characteristics of opinion leaders

1. Opinion leaders have enduring involvement with product category

2. Function primarily through interpersonal communications and observation

3. Similar demographic characteristics to the group

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3. Similar demographic characteristics to the group4. Public individuation – attention seeking5. High level of exposure to media6. The market maven – expert on all products!7. Motivation of dissatisfied customers to tell others

of their negative message


1. Individual seeks

Situations in Which WOM and Opinion Leadership Occur

The exchange of advice and information between group members can occur directly via WOM in the following situations:

Likelihood of Seeking an Opinion LeaderLikelihood of Seeking an Opinion Leader

1. Individual seeks information from another or

2. Individual volunteers information

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Communications within Groups and Opinion LeadershipMarketing Strategy, WOM, and Opinion Leadership

� Marketers are increasingly relying on WOM and influential consumers as part of their marketing strategies. Strategies designed to generate WOM and encourage opinion leadership include:encourage opinion leadership include:

1.1. AdvertisingAdvertising

2.2. Product SamplingProduct Sampling

3.3. Retailing/Personal SellingRetailing/Personal Selling

4.4. Creating BuzzCreating Buzz

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Marketing strategy and opinion leadership

1. Identifying opinion leaders 2. Targeting for marketing research3. Product sampling

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4. Retailing/personal selling5. Advertising attempts to encourage

and simulate opinion leadership


Marketing Strategy, WOM, and Opinion LeadershipMarketing Strategy, WOM, and Opinion Leadership

Product SamplingProduct Sampling is sometimes called “seeding” and involves getting and involves getting product into the hands of potential consumers.

Sampling can be a very potent WOM tool when it involves opinion leaders.

Wine tasting events can be a great seeding technique.

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Ad using celebrity

endorsement acknowledging

an opinion leader

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leader

Ad using celebrity

endorsement acknowledging

an opinion leader

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leader

But look what has happened to him!!!


Mavens, Influentials, and eMavens, Influentials, and e--fluentialsfluentials

1. A market mavenmarket maven is a generalized market influencer who provides significant amounts of information about various products, places to shop, and so on.products, places to shop, and so on.

2. Roper Starch identifies a group similar to market mavens called influentialsinfluentials. Influentials are 10% of population but use broad social networks to influence the other 90%!

3. Roper Starch identifies a group similar to internet market mavens called ee--fluentials. fluentials. They wield significant online and offline influence.

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Numerous opportunities exist for retailers and sales retailers and sales personnelpersonnel to use opinion personnelpersonnel to use opinion leadership.

Retailers and sales personnel can encourage their current customers to pass along information to potential new customers.

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BuzzBuzz can be defined as the exponential expansion of WOM. It happens when “word spreads like wildfire” with no or limited mass media advertising supporting it.

BuzzBuzz is generally not supported by large advertising budgets.

Creating buzzCreating buzz is a key aspect of guerrillaguerrilla marketing.

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Communications within Groups and Opinion LeadershipOnline Strategies to Leverage Buzz and WOM

��Viral marketingViral marketing is an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages (often via email) throughout a widespread messages (often via email) throughout a widespread network of buyers.”

��Online GuidesOnline Guides are online opinion leaders, who are often highly knowledgeable and passionate experts, providing consumer information and advice.

��BlogsBlogs are personalized journals where people and organizations can keep a running dialogue.

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Diffusion of InnovationsDiffusion of Innovations

�� Categories of InnovationCategories of Innovation

�� Adoption ProcessAdoption Process

�� Diffusion RateDiffusion Rate�� Diffusion RateDiffusion Rate

�� Adopter CategoriesAdopter Categories

�� Marketing Strategies and the Diffusion ProcessMarketing Strategies and the Diffusion Process

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An innovationinnovation is an idea, practice, or product perceived to be new by the relevant individual or group.

The manner by which a new product spreads through a product spreads through a market is basically a group phenomenon.

New products can be placed on a continuum from no change to radical change, depending on the market’s perception.

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Diffusion of innovations

• Nature of the innovation– ‘New’ as perceived by individuals or group

• Categories of innovations– Continuous innovation: small changes needed

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– Continuous innovation: small changes needed– Dynamically continuous innovation: modest

changes– Discontinuous innovation: large changes


Categories of Innovations

��Continuous InnovationContinuous Innovation

�Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer.

��Dynamically continuous InnovationDynamically continuous Innovation

�Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.

��Discontinuous InnovationDiscontinuous Innovation

�Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group.

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Categories of innovations

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Ad displays a product of continuous innovation, involving minor changes in behaviour

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The adoption process and extended decision making

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Diffusion Process

�The diffusion processdiffusion process is the manner in which innovations spread throughout a market.

�Form most innovations, the diffusion processdiffusion process appears to �Form most innovations, the diffusion processdiffusion process appears to follow a similar pattern over time:

• a period of relatively slow growth

• followed by a period of rapid growth

• followed by a final period of slower growth

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Diffusion of Innovations

Diffusion Rate of an Innovation Over Time (Cumulative)Diffusion Rate of an Innovation Over Time (Cumulative)

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��InnovatorsInnovators

��Early AdoptersEarly Adopters

Adopter Categories



��Late MajorityLate Majority

��LaggardsLaggards

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Adoptions of an innovation over time

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Marketing Strategies and the Diffusion Process

� Market Segmentation

� Earlier purchasers of an innovation differ from later purchasers.purchasers.

� Firms should consider a “moving target market” approach.

1. Focus on target market most likely to be innovators and early adopters.

2. As product acceptance occurs, attention should shift to the early and late majority.

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Innovators • Younger, educated, socially mobile, venturesome risk takers

• Cosmopolitan view toward innovations • Capacity to adopt an unsuccessful product • Extensive use of commercial media, sales personnel

Adopter Categories

• Extensive use of commercial media, sales personnel and professional sources

Early Adopters

• Successful, well educated, and younger than peers• Tend to be opinion leaders in local reference groups• Will to take risk, but concerned with failure of innovation

• Use commercial media, professional, and interpersonal information sources

• Provides information to others

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Early Majority

• Somewhat older, less educated, less socially mobile• Cautious about innovations• Adopts sooner than most of their social group, but afterinnovation is proven successful

• Socially active but seldom leaders• Relies heavily on interpersonal sources of information

Adopter Categories

• Relies heavily on interpersonal sources of information

Late Majority

• Older with less social status and less mobility• Skeptical about innovations• Adopts out of social pressure, decreased previous product availability, or positive evaluation of innovation

Laggards • Dogmatic and oriented toward past• Locally oriented and engage in limited social interaction

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Factors affecting innovation uptake

• Type of group• Type of decision• Marketing effort• Fulfillment of felt

• Relative advantage• Complexity• Observability• Trialability

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• Fulfillment of felt need

• Compatibility

• Trialability• Perceived risk


Factors Affecting the Spread of InnovationsFactors Affecting the Spread of Innovations

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Marketing strategies and the diffusion process

• Market segmentation

• Diffusion-enhancement strategies

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• Diffusion-enhancement strategies

Demographic characteristics of owners of iPods and MP3 players

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Innovation Analysis and Diffusion Enhancement StrategiesInnovation Analysis and Diffusion Enhancement Strategies

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bb chapter fourteen : group influence and communication

Business

group influence conformity

reference group influences

group communication

group expectations

types of reference groups

group influences14

opinions of reference

group normsand values