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Unformatted text preview: CHAPTER CHAPTER 7 GROUP GROUP INFLUENCES ON CONSUMER BEHAVIOR BEHAVIOR 7-1 PART II: EXTERNAL INFLUENCES PART 7-2 Consumer Behavior In The News… Consumer
What are the top 5 brands in terms of Word of Mouth What (WOM) in the U.S.? (WOM) How has the internet aided WOM? How Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4. 7-3 Consumer Behavior In The News… Consumer
What are the top 5 brands in terms of Word of Mouth What (WOM) in the U.S.? (WOM) Toyota Toyota Wal-Mart Honda iPod Chevrolet How has the Internet aided WOM? The Internet allows for easy WOM in the form of email, blogs, etc., that can create buzz.
Source: M. Fielding, “Talk of the Town,” Marketing News, September 1, 2006, p. 4. 7-4 Reference Group Influence Reference
A 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 group is a group whose presumed reference perspectives or values are being used by an individual as the basis for his/her current behavior. 7-5 Reference Group Influence Reference
Four criteria that are particularly useful in classifying groups: groups 1. 2. 3. 4. Membership Membership Strength of Social Tie Strength Type of Contact Type Attraction Attraction 7-6 Types of Groups Types
Consumption Subcultures Identifiable hierarchy Set of shared beliefs and values Unique jargon and rituals 7-7 Types of Groups
Brand communities can add Brand 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! Jeep has a longstanding loyal brand community Click the online button to link to Click the Jeep Jamboree Web site the 7-8 Video Application The following web link provides a Video The Clip on the significance of Harley Davidson’s brand community. Davidson’s http://www.youtube.com/watch?v=0Q0YqX2aTow&feature=related 7-9 Types of Groups Types
Online Community Community interacts around a topic of interest on the Community Internet Internet Online Social Network Sites MySpace Twitter YouTube 7-10 Types of Groups Types
Four Guiding Principles Be transparent Be part of the community Adapt efforts to fit nature of site Adapt Take advantage of the unique capabilities of each Take venue venue 7-11 Reference Group Influences on the Consumption Process Consumption Types of Reference Group Influence Situational determinants of Reference Group Influence Brand vs. Product Class Influence Marketing Strategy and Reference Groups 7-12 Reference Group Influences on the Consumption Process Consumption
Types of Reference Group Influence
Reference group influence can take three forms: 1. 2. 3. Informational Influence Informational Normative Influence (a.k.a. utilitarian influence) Normative Identification Influence (a.k.a. value expressive) Identification 7-13 Reference Group Influences on the Consumption Process Consumption
Consumption Situation Determinants of Reference Group Influence 7-14 Reference Group Influences on the Consumption Process Consumption
Differential Reference Group Influence on Differential Product Versus Brand Choice Product 7-15 Communications within Groups and Opinion Leadership WOM Opinion Leaders Market Mavens, Influentials, and e-fluentials Marketing and Online Strategies 7-16 WOM Versus Advertising (% who put people vs. advertising as best source) Communications within Groups and Opinion Leadership 7-17 Communications within Groups and Opinion Leadership
Opinion Leaders An opinion leader is the “go to person” for specific opinion 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.
7-18 Communications within Groups and Opinion Leadership
Mass Communication Information Flows 7-19 Communications within Groups and Opinion Leadership
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 Leader 1. Individual seeks information from another or 2. Individual volunteers information 7-20 Communications within Groups and Opinion Leadership
Mavens, Influentials, and e-fluentials 1. A market maven is a generalized market influencer who market 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 influentials. Influentials are 10% of population but influentials use broad social networks to influence the other 90%! 3. Roper Starch identifies a group similar to internet market mavens called e-fluentials. They wield significant online and offline influence.
7-21 Communications within Groups and Opinion Leadership
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. 2. 3. 4. Advertising Advertising Product Sampling Product Retailing/Personal Selling Retailing/Personal Creating Buzz Creating
7-22 Applications in Consumer Behavior
Marketing Strategy, WOM, and Opinion Leadership Advertising can stimulate and simulate WOM and opinion leadership. This ad would likely stimulate WOM via interest and excitement
© Christopher Kerrigan 7-23 Communications within Groups and Opinion Leadership
Online Strategies to Leverage Buzz and WOM Viral 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 provide consumer product and Consumer service reviews in a host of different formats. Blogs are personalized journals where people and organizations can keep a running dialogue. 7-24 Applications in Consumer Behavior
Dark Knight Viral Marketing Campaign QuickTimeª and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTimeª and a TIFF (Uncompressed) decompressor are needed to see this picture. Web link: http://www.youtube.com/watch?v=VpuC7HhCPWA http://www.youtube.com/watch?v=VpuC7HhCPWA Web
7-25 Diffusion of Innovations Diffusion
An innovation is an idea, practice, or product perceived to be innovation 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.
7-26 Diffusion of Innovations Diffusion Categories of Innovation Adoption Process Diffusion Rate Adopter Categories Marketing Strategies and the Diffusion Process 7-27 Diffusion of Innovations Diffusion
Categories of Innovations
Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer. Dynamically 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 Innovation
Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group.
7-28 Diffusion of Innovations
Adoption Process and Extended Decision Making 7-29 Diffusion of Innovations
Diffusion Rates for Popular Consumer Electronics (Cumulative) 7-30 Diffusion of Innovations
Factors Affecting the Spread of Innovations
Type of Group Perceived Risk Type of Decision Trialability Marketing Effort Rate of Diffusion
Observability Fulfillment of Fulfillment Felt Need Felt Complexity Relative Advantage Compatibility 7-31 Diffusion of Innovations Diffusion
Adopter Categories Innovators Early Adopters Early Majority Late Majority Laggards 7-32 ...
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