BABIN / HARRIS CB

Group and Interpersonal

InfluenceCHAPTER 10

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

PART 3

Learning Outcomes1. Understand the different types of reference groups that

influence consumers and how reference groups influence value perceptions.

2. Describe the various types of social power that reference groups exert on members.

3. Comprehend the difference between informational, utilitarian, and value-expressive reference group influence.

4. Understand the importance of word-of-mouth communications in consumer behavior.

5. Comprehend the role of household influence in consumer behavior.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Group Influence• Reference group—a group of individuals who has

significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.

• Group influence—refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group.

• Group members:• Share common goals and interests.• Communicate with, and influence, one another.• Share a set of expectations, rules, and roles.• View themselves as members of a common social unit.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Primary/Secondary Groups• Primary group—includes members who have

frequent, direct contact with one another.• Most influence• Strong social ties

• Secondary group—less frequent interaction than in a primary group.• Brand community—groups of consumers who

develop relationships based on shared interests or product usage.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Formal/Informal Groups• Formal group—one in which a consumer

formally becomes a member.• Set of stated rules• Accepted values• Codes of conduct

• Informal group—one that has no membership or application requirements and codes of conduct may be non-existent.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Aspirational/Dissociative Groups• Aspirational group—one in which a

consumer desires to become a member.• Often appeals to the consumer’s ideal self.

• Dissociative group—one to which a consumer does not want to belong.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Conformity• Conformity—a result of group influence in

which an individual yields to the attitudes and behaviors of others.

• Peer pressure—the extent to which group members feel pressure to behave in accordance with group expectations.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Social Power• The ability of an individual or a group to alter the

actions of others.

• Types:• Referent power• Legitimate power• Expert power• Reward power• Coercive power

• For power to originate, members must:• Be aware that the power base exists.• Desire to maintain or establish membership into the

group.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Reference Group Influence• Generally falls into one of three categories:

• Informational influence• Utilitarian influence• Value-expressive influence

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Value and Reference Groups• Utilitarian value—group membership

becomes a means to a valued end state.• Hedonic value—value is an end in and of

itself.• Information obtained directly impacts

consumer expectations, which then effect value perceptions and satisfaction.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Reference Group Influence on Product Selection

• The influence of reference groups on product selection is affected by:• Situation in which the product is consumed.• Extent to which the product is considered a

necessity or a luxury.• Whether selecting a type of product or a

particular brand.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Social Media and Group Influence

• Social media• Social networks• Social networking websites

Individual Differences in Susceptibility to Group Influence• Susceptibility to interpersonal influence• Attention to social comparison information

(ATSCI)• Separateness-Connectedness• Embarrassment

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Word-of-Mouth (WOM)• Information about products, services, and

experiences that is transmitted from consumer to consumer.

• Types:• Organic—occurs naturally.• Amplified—occurs when marketers attempt

to launch or accelerate WOM in existing customer circles.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Buzz Marketing• Includes marketing efforts that focus on

generating excitement (“buzz”) that is spread from consumer to consumer.

• A form of guerrilla marketing—the marketing of a product using unconventional means.

• Viral marketing—uses online technologies to facilitate WOM by having consumers spread marketing messages through their online conversations.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Stealth Marketing• A guerilla marketing tactic that is similar to

buzz marketing, but consumers are completely unaware that they are being marketed to.

• Often considered unethical, along with practices called “shilling” and “infiltrating.”

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Opinion Leaders• Opinion leader—has great influence on the

behavior of others relating to product adoption and purchase.• Influence is category specific.

• Market maven—spreads information about all types of products and services that are available in the marketplace.• Influence is not category specific.

• Surrogate consumer—hired by another to provide input into a purchase decision.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Diffusion Process• The way in which new products are

adopted and spread throughout a marketplace.

• Adopter categories:• Innovators• Early adopters• Early majority• Late majority• Laggards

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Household Decision Making• The process by which decisions are made in

household units.• Family household—at least two people related by

blood or marriage occupying a housing unit.• Nuclear family—mother and father and a set of

siblings.• Extended family—three or more generations of

family members.• Emerging trends in family structure:

• “Nontraditional” household arrangements• Blended families• Single parent households

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Household Life Cycle (HLC)• Represents a segmentation technique that

acknowledges that changes in family composition and income alters household demand for products and services.

• Two evolving issues:• Boomerang kids—college graduates moving back

home.• Sandwich generation—consumers taking care of

both their own children and their aging parents.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Household Purchase Roles• Influencer• Gatekeeper• User• Decision maker• Purchaser• A family’s sex role orientation (SRO)

influences the ways in which household decisions are reached.

• Children influence household purchases.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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