Transcript Group influence on consumer behaviour

Chapter 14 Group Influence and
Communication
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Group function and classification of groups
Impact of reference groups on consumption
Marketing strategies based on group influence
Roles of group members and marketing strategies
Group communication
Importance of opinion leaders
Diffusion of innovations
Adopter groups and their characteristics
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–1
Group Influences
12–2
Groups and their Definitions
• Group:
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‘Two or more individuals who share a set of norms,
values, or beliefs, and have certain implicitly or explicitly
defined relationships which make their behaviour
interdependent’
• Reference group:
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‘A group whose presumed perspectives or values are
being used by an individual as the basis for his or her
current behaviour’
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–3
Types of Groups
• Membership
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either yes or no
• Degree of contact
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larger groups generally have less contact
primary groups generally have frequent interpersonal
contact
secondary groups generally have limited
interpersonal contact
• Attraction
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desirability of being member
either positive or negative
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–4
Changes in Reference Groups as
the Situation Changes
12–5
Types of Groups (cont.)
• Aspirational reference groups
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non-membership groups
positive attraction
exert a strong influence on some products
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–6
Types of Groups (cont.)
12–7
Reference Group Influences on
the Consumption Process
• Conformity:
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…makes groups influential
…is the tendency to want to be like ‘relevant and
significant others’
…generally makes life more pleasant
• Norms:
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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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–8
The Nature of Reference-Group
Influence
Conformity is not a uni-dimensional concept
• Information influence
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behaviours and opinions of reference groups are used as
potentially useful pieces of information
• Normative influence (utilitarian influence)
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when an individual fulfils group expectations to gain a
direct reward or avoid a punishment
• Identification influence (value-expressive influence)
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when an individual uses perceived-group norms and
values as a guide for their own attitudes or values
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–9
Consumption Situations and
Reference-Group Influence
12–10
Consumption Situations and
Reference-Group Influence (cont.)
12–11
Consumption Situations and ReferenceGroup Influence (cont.)
12–12
Determinants of the Degree of
Reference-Group Influence
• R-Group influence is strongest when use of the
product or brand is visible and relevant
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e.g. product category, product type and brand are all
visible
• 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
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–13
Product Characteristics and Type of
Reference-Group Influence
12–14
Influence of Two Consumption Situation
Characteristics on Product/Brand Choices
12–15
Consumption-Situation Determinants of
Reference-Group Influence
12–16
Marketing Strategies Based on
Reference-Group Influences
• Personal sales strategies
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Asch phenomenon
• Advertising strategies
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all three types of reference groups are used by
advertisers:
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informational
normative
identification
(use of information)
(to avoid/gain)
(aspire to join)
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–17
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
• Examples: Product:
Harley-Davidson
Activities:
Body building, golf
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–18
Roles
• A role is:
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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:
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range of behaviour acceptable within a given role
• Role overload:
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occurs when an individual attempts to fill more roles than
the available time, energy or money allows
• Role conflict:
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incompatible role demands
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–19
Applying Role Theory to
Marketing Practice
• Role-related product cluster e.g. new mother
• Evolving roles e.g. career females
• Role conflict and role overload e.g. working mother,
working student
• Role acquisition and transition e.g. student to employee
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–20
Role Set for a Student
12–21
Communication Within Groups
• The power of word-of-mouth communication
• People learn about new products from friends and
reference groups by:
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observing or participating with them as they use the
product, or
by seeking and receiving advice or information from them
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–22
Opinion Leadership
• Opinion leaders filter, interpret or provide
information for individuals within groups
• Situations in which opinion leadership occurs:
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one individual exchanges information with another
one individual volunteers information
as a by-product of normal group interaction
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–23
Characteristics of Opinion Leaders
• Opinion leaders have enduring involvement with
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product category
Function primarily through interpersonal
communications and observation
Similar demographic characteristics to the group
Public individuation – attention seeking
High level of exposure to media
The market maven – expert on all products!
Motivation of dissatisfied customers to tell others of
their negative message
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–24
Likelihood of Seeking an Opinion Leader
12–25
Marketing Strategy and
Opinion Leadership
• Identifying opinion leaders
• Targeting for marketing research
• Product sampling
• Retailing/personal selling
• Advertising attempts to encourage and simulate
opinion leadership
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–26
Diffusion of Innovations
• Nature of the innovation
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‘new’ as perceived by individuals or group
• Categories of innovations
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continuous innovation: small changes needed
dynamically continuous innovation: modest changes
discontinuous innovation: large changes
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–27
Categories of Innovations
12–28
The Adoption Process and Extended Decision Making
12–29
Adoption of Innovation Curve
12–30
Marketing Strategies and the
Diffusion Process
• Market segmentation
• Diffusion-enhancement strategies
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–31
Factors Affecting Innovation Uptake
• Type of group
• Type of decision
• Marketing effort
• Fulfillment of felt need
• Compatibility
• Relative advantage
• Complexity
• Observability
• Trialability
• Perceived risk
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–32
Next Lecture…
Chapter 15:
Social Class
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
14–33