Chapter 13. Group and Personal Influences

Transcription

1 Chapter 13 Group and Personal Influences Personal and Group Influence on Individuals High Degree of Influence Personal and Group Influences on Individuals Types of Influence Transmission of Influence Individual Lifestyles, Behaviors, Purchases, and Consumption Low Degree of Influence 2 1

2 Group and Personal Influences on Individuals Reference group: any person or group of people that significantly influences an individual s behavior May be individuals (celebrities, athletes, or political leaders) or groups of individuals with similarities (musical groups or sports teams) 3 Types of Reference Groups Primary: a social aggregation that is sufficiently intimate to permit and facilitate unrestricted face-to-face interaction (ex: family) Secondary: groups in which face-toface interaction occurs, but it is more sporadic, less comprehensive, and less influential in shaping thought and behavior (ex: professional associations or community organizations) 4 2

3 Types of Reference Groups Formal: groups characterized by a defined structure (often written) and a known list of members and requirements for membership Informal: have less structure than formal groups and are likely to be based on friendship or interests 5 Types of Reference Groups Membership: when individuals are recognized as members of a group, they have achieved formal acceptance status in the group Aspirational: groups that exhibit a desire to adopt the norms, values, and behaviors of others with whom the individuals aspire to associate 6 3

4 Types of Reference Groups Dissociative: groups from which an individual tries to avoid association Virtual: groups that are based on sets of social relations among people rather than face-to-face relationships 7 Personal and Group Influence on Individuals Personal and Group Influences on Individuals Types of Influence 8 4

5 Types of Group Influence Normative: when individuals alter their behaviors or beliefs to meet the expectations of a group Value-expressive: when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviors Informational: when people have difficulty assessing product or brand characteristics by their own contacts or observations 9 Personal and Group Influence on Individuals Personal and Group Influences on Individuals Types of Influence Transmission of Influence 10 5

6 Personal and Group Influence on Individuals High Degree of Influence Personal and Group Influences on Individuals Types of Influence Transmission of Influence Individual Lifestyles, Behaviors, Purchases, and Consumption Low Degree of Influence 11 How Reference Groups Influence Individuals Socialization: permits an individual to know what behavior is likely to result in stability both for the individual and for the group Manual may tell people how to dress in the workplace Informal groups may tell them what is acceptable and the norm in that particular environment 12 6

7 How Reference Groups Influence Individuals Self-concept: people protect and modify their self-concept in their interactions with group members People can maintain self-concept by conforming to learned roles Testimonial advertising is effective when the self projected in the ad is consistent with the idealized self of the target consumer 13 How Reference Groups Influence Individuals Social comparison: individuals often assess themselves by comparing themselves to others Consumers often use reference groups as benchmarks to measure their own behaviors, opinions, abilities, and possessions Advertising or television can be sources of social comparison 14 7

8 How Reference Groups Influence Individuals Conformity: a change in beliefs or actions based on real or perceived group pressures Compliance: when an individual conforms to the wishes of the group without accepting all its beliefs or behaviors Acceptance: when an individual actually changes his or her beliefs and values to those of the group 15 How Reference Groups Influence Individuals Factors affecting how likely people are to conform to group norms: Cohesiveness of group Size of group Group s expertise on topic Person s desire to belong Individual s need for social acceptance Public versus private use of product 16 8

9 Reference Group Influence on Product and Brand Purchase Decisions PRODUCT Weak Reference Group Strong Reference Group Influences Influences PUBLIC NECESSITIES PUBLIC LUXURIES Influence: Weak product & strong brand (watch, autos, suits) PRIVATE NECESSITIES Influence: Weak product & weak brand (mattress, refrigerator) Influence: Strong product & strong brand (golf clubs, skis, boat) PRIVATE LUXURIES Influence: Strong product & weak brand (icemaker) Source: William O. Bearden and Michael J. Etzel, Reference Group Influences on Product and Brand Purchase Decisions, Journal of Consumer Research, 917(September 1982), Normative Influence in Marketing Strategy Normative compliance is declining in its impact as many consumers put individual needs ahead of group needs Extended families have less face-to-face contact and people are more socially isolated than in the past Television and mass media expand people s horizons beyond social circles Some consumers want to express individuality more than group affiliation 18 9

10 Celebrity and Other Reference Group Appeals in Advertising Testimonials: celebrities tout products based on personal usage Endorsements: celebrities lend their name or likeness to a product without necessarily being an expert in the area Spokesperson: someone who represents a brand or company for an extended period of time 19 Linda Evans, a television star famous for her role as Crystal Karrington on Dynasty (Denver Clan), touts a facial toning mask

11 Pierce Brosnan endorses Omega watches, as does his film character James Bond. 21 Celebrity and Other Reference Group Appeals in Advertising Expert appeal: appeal from a person possessing unique information or skills that can help consumers make better purchase decisions than other types of spokespersons Common-man appeal: testimonials from regular consumers with whom most consumers can relate 22 11

12 Transmission of Influence Through Dyadic Exchanges Person-to-person exchange in which an individual receives personal communication from someone about behaviors or opinions) and then receives feedback on their own behaviors Dyadic exchange requires the exchange of resources (comments and opinions) 23 Dyadic Exchanges Word-of-mouth Communication Opinion Leadership Service Encounters 24 12

13 Word-of-mouth Communication Word-of-mouth communication: informal transmission of ideas, comments, opinions, and information between two people, neither one of which is a marketer The receiver gains information about behaviors and choices The sender increases its confidence in its product or behavior choice by persuading others to do the same 25 Benefits of Word-of-Mouth Hedonic Benefits -decrease risk of new behavior -increase confidence in choice -decrease cognitive dissonance -increase likelihood of acceptance by a desired group or individual -feeling of power and prestige of influencing others behaviors -enhanced position within a grou -decreased doubt about one s own behavior 26 Functional Benefits -more information about options -more reliable/credible information -less time spent on search -enhanced relationship with another individual -potential reciprocity of exchange -increased attention and status -increased number of individuals with similar behaviors -increased cohesion within group -satisfaction of verbal expression 13

14 Opinion Leadership Opinion leadership: the sender of information is often considered an opinion leader--a person who influences the decisions of others Opinion leaders might be experts in one area but not in others The greater the perceived knowledge of a category, the more likely that person s opinions are to influence others decisions 27 Opinion Leadership Personal influence in the form of opinion leadership is likely to occur when: An individual has limited knowledge A person cannot evaluate options The consumer does not trust advertising or other sources of information Other information sources have low credibility with the consumer The individual has a high need for social approval 28 14

15 Opinion Leadership Strong social ties exist between sender and receiver The product is complex The product is difficult to test against objective criterion The product is highly visible to others 29 Opinion Leadership Market mavens: individuals who serve as information sources about the marketplace because of their awareness of new products and other marketplace activities Surrogate consumers (shoppers): an individual who acts as an agent to guide, direct, and or conduct activities in the marketplace 30 15

16 Service Encounters Service encounters: occurs when there is personal communication between a consumer and a marketer May be a consumption experience within a store--the various transactions and services that occur during a purchase Maybeanexperiencewithaspecific service a consumer purchases 31 Service Encounters Service providers must understand the needs of different customers and matching the appropriate sales associate or sales approach to a particular type of customer Which customers need a lot of attention and which ones prefer to be left alone Salesperson fosters a relationship between buyer and seller 32 16

17 Transmitting Personal Influences Trickle-down: alleges that lower classes often emulate the behavior their higher-class counterparts Influence is transmitted vertically through social classes, as higher classes express wealth through conspicuous consumption, and lower classes copy their behavior Today, trends are transmitted through mass media and classes do not have direct contact 33 Transmitting Personal Influences Two-step Flow Information Information and Influence Mass Media Opinion Leader Opinion Seekers 34 17

18 Transmitting Personal Influences Multistep Flow Mass Media Opinion Leader Gatekeepers Opinion Seekers 35 WOM and Opinion Leaders in Advertising and Marketing Strategy Advertising can provide information to consumers about products they might seek from other sources and which may be discussed in WOM Advertising can create WOM among consumers and peer groups 36 18

19 As more consumers are concerned about their health, this ad provides them with valuable information about the benefits of soy protein, which may be passed on with WOM. 37 Internet-based firms seek to create WOM with their ads, as hotjobs.com does with this ad written for Hillary Clinton

20 The Advertising-WOM Relationship For some firms, WOM is a substitute for advertising Advertising could be targeted to opinion leaders, although it is difficult to identify this segment unless they belong to an identifiable group 39 The Advertising-WOM Relationship Victoria s Secret built much of its brand awareness with WOM generated by its catalog, models, and promotions 40 20

21 The Advertising-WOM Relationship Firms may stimulate WOM by giving away or loaning products to opinion leaders to use or display Organizations may hire opinion leaders to influence consumers (camera stores may hire professional photographers to work in their stores) 41 The Advertising-WOM Relationship Firms can create opinion leaders by providing incentives for new customers to attract others to the store Companies can activate search through advertising that encourages consumers to ask a person who knows or tell a friend 42 21

22 Managing Negative WOM Monitoring the content of WOM--what consumers are saying about the product or company Monitoring rumors which do not always appear in customer complaint reports Creating a strategy to respond to rumors and negative WOM 43 Diffusion of Innovations Innovation: any idea or product perceived by the potential adopter to be new Marketers often use the word new to symbolize an innovation Innovations may also be usagebased--using an existing product in a new way 44 22

23 Pringles introduced a fatfree potato chip using the new fat substitute Olean. 45 Types of Innovations Continuous innovation Dynamically continuous innovation Discontinuous innovation 46 23

24 Continuous Innovation The modification of an existing product rather than the establishment of a new product or product category Modification may be in the taste, appearance, performance, or reliability of the product 47 Crayola introduced a new crayon which is washable and can be removed from a variety of surfaces

25 Dynamically Continuous Innovation May involve the creation of either a new product or a significant alteration of an existing one Does not generally alter established purchase or usage patterns 49 The Kodak Advantix system allows consumers to take pictures as they have in the past; however, they have three picture formats to choose from and they must use different film

26 Discontinuous Innovation Involves the introduction of an entirely new product that significantly alters consumers behavior patterns and lifestyles Examples include television, automobiles, and computers 51 Evaluating Innovation Relative Advantage Compatibility Complexity Trialability Observability 52 26

27 Relative Advantage The degree to which consumers may perceive the innovation to offer substantially greater benefits than the product currently used Relative advantages are often featured in communication pieces, advertising, and packaging of products once in the marketplace Advantages over old technology become touted product features 53 Compatibility The degree to which a new product is consistent with an individual s existing practices, values, needs, and past experiences of the potential adopter How does the innovation blend with products consumers might own? Will it replace other products or will it become a part of an existing system? How does the innovation fit current purchase or consumption behaviors? 54 27

28 Complexity The degree to which an innovation is perceived as difficult to understand and use The more complex, the more difficult itmaybetobeaccepted Complexity is a deterrent of trying new technology 55 Complexity How difficult is the innovation to understand? How easy is it to explain to consumers in written form and oral communication? How frustrating will it be to consumers when evaluating products or learning how to use new innovation? How much time will consumers have to devote to learning how to use and care for the product? 56 28

29 Trialability New products are more likely to be accepted if experimenting or using the product is made easy How easy will it be for people to try the new product without buying it? How can a company encourage consumers to try a new product? Where will consumers be able to try the innovation and how will they receive answers to their questions? 57 Observability The degree to which results from using a new product are visible to friends and neighbors If consumers can see others using a new product, that innovation is likely to diffuse faster than if the product were used privately 58 29

30 The Diffusion Process Diffusion: the process by which an innovation is communicated through certain channels over time among the members of a social system Includes: Diffusion of information and communication Consumer decision process Diffusion or demise of innovation 59 The Diffusion Process Organization Influencer C o ns u m e r Accept Diffusion of Innovation (X number of people) Reject Demise of Innovation Diffusion of Information and Communication Consumer decision process 60 30

31 Factors Affecting Diffusion Communication (how consumers learn about innovation) Time (how long it takes for a person to move from product awareness to purchase or rejection) Social system (the groups or segments to which individuals belong) 61 Speed of Diffusion Diffusion will be faster if: Supplier is intensely competitive Supplier s reputation is good Standardized technology is used Vertical coordination among channel members exists Resource commitments are significant 62 31

32 Consumer Decision Process for Innovations Rogers Model of Innovation Decision Process Knowledge Characteristics of the Decision Making Unit 63 Consumer Decision Process for Innovations Rogers Model of Innovation Decision Process Knowledge Persuasion Perceived Characteristics of the Innovation 64 32

33 Consumer Decision Process for Innovations Rogers Model of Innovation Decision Process Knowledge Persuasion Decision 65 Adoption Rejection Continued adoption Later adoption Discontinuance Continued Rejection Consumer Decision Process for Innovations Rogers Model of Innovation Decision Process Knowledge Persuasion Decision Implementation Confirmation 66 33

34 Consumer Decision Process for Innovations Rogers Model of Innovation Decision Process Communication Channels Knowledge Persuasion Decision Implementation Confirmation Source: Everett M. Rogers, Diffusion of Innovation, 3rd Edition (New York; The Free Press, 1983), Consumers Likely to Buy New Products Innovativeness: the degree to which an individual adopts an innovation earlier than other members of a social system Cognitive innovators: have a strong preference for new sensory experiences Sensory innovators: have a strong preference for new sensory experiences Advertising can be targeted to various types of innovators 68 34

35 Adopter Classes A B C D E A= Innovators (2.5%) B= Early Adopters (13.5%) C= Early Majority (34%) D= Late Majority (34%) E= Laggards (16%) 69 Managerial Perspectives on Adoption and Diffusion of Innovations Most firms develop new products to fuel long-term growth and profitability Consumer insight helps create products that consumers are likely to adopt Intuition and information (often gained from consumers through research) contribute to the formation of an insight Insights drive the creation of a new or adaptation of an existing product 70 35

36 V8 introduces new packaging, which is shelf-stable and comes in individual serving sizes. It appeals to consumers desire to drink on-thego. 71 Review Questions 1. List and define the types of reference groups. 2. Briefly discuss the issue of service encounters