ch. chapter 7. hawkins

PART II: EXTERNAL INFLUENCESPART II: EXTERNAL INFLUENCES

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CHAPTERCHAPTER 77

GROUP GROUP INFLUENCES INFLUENCES

ON CONSUMER ON CONSUMER BEHAVIORBEHAVIOR

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Consumer Behavior In The News…Consumer Behavior In The News…

What are the top 5 brands in terms of Word of Mouth What are the top 5 brands in terms of Word of Mouth (WOM) in the U.S.?(WOM) in the U.S.?

How has the internet aided WOM?How has the internet aided WOM?

Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4.7-4

Consumer Behavior In The News…Consumer Behavior In The News…

What are the top 5 brands in terms of Word of Mouth What are the top 5 brands in terms of Word of Mouth (WOM) in the U.S.?(WOM) in the U.S.?

Toyota Toyota

Wal-MartWal-Mart

HondaHonda

iPodiPod

ChevroletChevrolet

How has the Internet aided WOM?How has the Internet aided WOM?

The Internet allows for easy WOM in the form of e-The Internet allows for easy WOM in the form of e-mail, blogs, etc., that can create buzz.mail, blogs, etc., that can create buzz.

Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4.7-5

Reference Group InfluenceReference Group Influence

A group group 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.

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 Group InfluenceReference Group Influence

Four criteria that are particularly useful in classifying groupsgroups:

1.1. MembershipMembership

2.2. Strength of Social TieStrength of Social Tie

3.3. Type of ContactType of Contact

4.4. AttractionAttraction

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Types of GroupsTypes of Groups

Consumption SubculturesConsumption Subcultures

Identifiable hierarchyIdentifiable hierarchy

Set of shared beliefs and valuesSet of shared beliefs and values

Unique jargon and ritualsUnique jargon and rituals

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Types of Groups

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

Brand CommunitiesBrand Communities

Jeep has a longstanding loyal brand communityJeep has a longstanding loyal brand community

Click the online button to link to Click the online button to link to the Jeep Jamboree Web sitethe Jeep Jamboree Web site

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Video Application

The following Video Clip demonstrates The following Video Clip demonstrates how MINI Cooper used marketing to how MINI Cooper used marketing to create a brand community and generate create a brand community and generate buzz!buzz!

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Online CommunityOnline Community

Community interacts around a topic of interest on the Community interacts around a topic of interest on the InternetInternet

Online Social Network SitesOnline Social Network Sites

MySpaceMySpace

TwitterTwitter

YouTubeYouTube

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Four Guiding PrinciplesFour Guiding Principles

Be transparentBe transparent

Be part of the communityBe part of the community

Adapt efforts to fit nature of site Adapt efforts to fit nature of site

Take advantage of the unique capabilities of each Take advantage of the unique capabilities of each venuevenue

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

Types of Reference Group InfluenceTypes of Reference Group Influence

Situational determinants of Reference Group InfluenceSituational determinants of Reference Group Influence

Brand vs. Product Class InfluenceBrand vs. Product Class Influence

Marketing Strategy and Reference GroupsMarketing Strategy and Reference Groups

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Reference group influence can take three forms:

1.1. Informational InfluenceInformational 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 expressive) (a.k.a. value expressive)

Types of Reference Group Influence

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Differential Reference Group Influence on Differential Reference Group Influence on Product Versus Brand ChoiceProduct Versus Brand Choice

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WOMWOM

Opinion LeadersOpinion Leaders

Market Mavens, Influentials, and e-fluentialsMarket Mavens, Influentials, and e-fluentials

Marketing and Online StrategiesMarketing and Online Strategies

Communications within Groups and Opinion Leadership

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Communications within Groups and Opinion LeadershipWOM Versus Advertising

(% who put people vs. advertising as best source)

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Opinion Leaders

An opinion leaderopinion leader is the “go to person” for specific types of information. This person filters, interprets, and 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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Mass Communication Information FlowsMass Communication Information Flows

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Mavens, Influentials, and e-fluentialsMavens, Influentials, and e-fluentials

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.

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 e-fluentials. e-fluentials. They wield significant online and offline influence.

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Marketing 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:

1.1. AdvertisingAdvertising

2.2. Product SamplingProduct Sampling

3.3. Retailing/Personal SellingRetailing/Personal Selling

4.4. Creating BuzzCreating Buzz

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Applications in Consumer Behavior

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

AdvertisingAdvertising can stimulate and simulate WOM and opinion leadership.

This ad would likely stimulate WOM via interest and excitementThis ad would likely stimulate WOM via interest and excitement

© Christopher Kerrigan

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Online 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 network of buyers.”

Consumer review sites Consumer review sites provide consumer product and service reviews in a host of different formats.

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

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Diffusion of InnovationsDiffusion of Innovations

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 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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Categories of InnovationCategories of Innovation

Adoption ProcessAdoption Process

Diffusion RateDiffusion Rate

Adopter CategoriesAdopter Categories

Marketing Strategies and the Diffusion ProcessMarketing Strategies and the Diffusion Process

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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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Diffusion of Innovations

Adoption Process and Extended Decision MakingAdoption Process and Extended Decision Making

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Diffusion of Innovations

Factors Affecting the Spread of InnovationsFactors Affecting the Spread of Innovations

Perceived RiskPerceived Risk

TrialabilityTrialability

ObservabilityObservability

ComplexityComplexity

Relative AdvantageRelative Advantage

CompatibilityCompatibility

Fulfillment of Fulfillment of Felt NeedFelt Need

Marketing EffortMarketing Effort

Type of DecisionType of Decision

Type of GroupType of Group

Rate of DiffusionRate of Diffusion

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InnovatorsInnovators

Early AdoptersEarly Adopters

Early MajorityEarly Majority

Late MajorityLate Majority

LaggardsLaggards

Adopter Categories

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ch. chapter 7. hawkins

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