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Marketing 334

Consumer Behavior

Chapter 7Group Influences

Based on Consumer Behavior, 10th edition by Hawkins, Mothersbaugh and Best

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7-2

Consumer Behavior In The News

Goodyear is beginning to offer collegiate tires which have thecollege name in white letters on the tires sidewalls.

Goodyear claims these tires are only for the ultimate fan.

Source: J. Halliday, Tire maker eyes college sports fans, Advertising Age, November 8, 2004, p. 8.

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Consumer Behavior In The News

What would drive a fan to put his/her teams name on theirtires?

How big do you think this market is?

Source: J. Halliday, Tire maker eyes college sports fans, Advertising Age, November 8, 2004, p. 8.

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Reference Group Influence

A group is defined as two or more individuals who share a set of norms,values, or beliefs and have certain implicitly or explicitly definedrelationships to one another such that their behaviors areinterdependent.

A reference group is a group whose presumed perspectives or values arebeing used by an individual as the basis for his/her current behavior.

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Reference Group Influence

Four criteria that are particularly useful in classifyinggroups:

1. Membership

2. Strength of Social Tie

3. Type of Contact

4. Attraction

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Types of Groups

Consumption Subcultures

Brand Communities

Virtual Communities

Leaders

Participants

Lurkers

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Types of Groups

Brand communities can add

value to the ownership of theproduct and build intenseloyalty.

Marketing and Brand Communities

Jeep has a longstanding loyal brand community

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Types of Groups

Marketing in virtual communities is both possible andpotentially beneficial.

The approach taken must be tailored to the type of virtualcommunity.

Virtual Communities

Many online groups are sensitive tocommercial interference and

companies have to be careful notto overstep.

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Reference Group Influences on theConsumption Process

Types of Reference Group Influence

Situational determinants of Reference Group Influence

Brand vs. Product Class Influence

Marketing Strategy and Reference Groups

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Reference Group Influences on theConsumption Process

Reference group influence can take three forms:

1. Informational Influence

2. Normative Influence (a.k.a. utilitarian influence)

3. Identification Influence (a.k.a. value expressive)

Types of Reference Group Influence

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WOM

Opinion Leaders

Market Mavens, Influentials, and e-fluentials

Marketing and Online Strategies

Communications within Groups andOpinion Leadership

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Communications within Groups andOpinion Leadership

Mass Communication Information Flows

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Communications within Groups andOpinion Leadership

1. Individual seeks

information fromanother or

2. Individualvolunteersinformation

Situations in Which WOM and Opinion Leadership Occur

Likelihood of Seeking an Opinion Leader

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Communications within Groups andOpinion LeadershipMarketing Strategy, WOM, and Opinion Leadership

Strategies designed to generate WOM and encourage opinionleadership include:

1. Advertising2. Product Sampling

3. Retailing/Personal Selling

4. Creating Buzz

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Communications within Groups andOpinion LeadershipOnline Strategies to Leverage Buzz and WOM

Viral marketing

Online GuidesBlogs

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Applications in Consumer Behavior

Example of Online Viral Marketing Campaign

Courtesy of HersheyCorporation.

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Diffusion of Innovations

Categories of Innovation

Adoption Process

Diffusion Rate

Adopter Categories

Marketing Strategies and the Diffusion Process

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Diffusion of Innovations

Categories of Innovations

Continuous Innovation

Dynamically continuous Innovation

Discontinuous Innovation

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Diffusion of Innovations

Diffusion Rates for Popular Consumer Electronics (Cumulative)

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7-20

Diffusion of Innovations

Factors Affecting the Spread of Innovations

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Diffusion of Innovations

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

Adopter Categories