Group Dynami

cs

PRESENTATION ON

Presented ByAnnaji sarma.M

What is a Group???A group may be defined as two or more people who interact to accomplish either individual or mutual goals.

Factors that affect Reference Group Influence Information And Experience Credibility, Attractiveness, and Power of Reference Group Conspicuousness of the Product

VIRTUAL or VIRTUAL or COMMUNITIESCOMMUNITIES

CONSUMER CONSUMER ACTION ACTION

FRIENDSHIPFRIENDSHIP

WORKWORK

SHOPPINGSHOPPING

Reference Reference GroupsGroups

Three forms of Three forms of reference group reference group influenceinfluence::Informational influence:Informational influence:

The individual seeks information about various brands from an The individual seeks information about various brands from an association of professionals association of professionals The individual seeks information from those who work with the The individual seeks information from those who work with the product as a professionproduct as a professionThe individual seeks brand related knowledge and experience The individual seeks brand related knowledge and experience from friends neighbor, or relatives who have reliable from friends neighbor, or relatives who have reliable information about the brandsinformation about the brandsThe brand the individual selects is influenced by observing a The brand the individual selects is influenced by observing a seal of approval of an independent testing agencyseal of approval of an independent testing agencyThe individuals observations of what experts do influences his The individuals observations of what experts do influences his or her choice of a brandor her choice of a brand

Utilitarian influenceUtilitarian influence::So that he or she satisfies the expectation of fellow work So that he or she satisfies the expectation of fellow work associates ,the individual’s decision to purchase a particular associates ,the individual’s decision to purchase a particular brand is influenced by their preferencesbrand is influenced by their preferencesThe individual’s decision to purchase a particular brand is The individual’s decision to purchase a particular brand is influenced by the preferences of the people with whom he or influenced by the preferences of the people with whom he or she has social interactionshe has social interactionThe individual’s decision to purchase a particular brand is The individual’s decision to purchase a particular brand is influenced by the preferences of the family membersinfluenced by the preferences of the family membersThe desire to satisfy the expectations that others have of him The desire to satisfy the expectations that others have of him has a impact on the individuals brand choicehas a impact on the individuals brand choice

Value expressive Value expressive influence:influence:

The individual feels that the purchase or use of a particular The individual feels that the purchase or use of a particular brand will enhance the image others have of him or herbrand will enhance the image others have of him or herThe individual feels that those who purchase or use a particular The individual feels that those who purchase or use a particular brand possesses the characteristics that he or she would like to brand possesses the characteristics that he or she would like to havehaveThe individual sometimes feels that it would be nice to be like The individual sometimes feels that it would be nice to be like the type of person that advertisements show using a particular the type of person that advertisements show using a particular brandbrandThe individual feels that the people who purchase a particular The individual feels that the people who purchase a particular brand are admired and respected by othersbrand are admired and respected by othersThe individual feels that that the purchase of the particular The individual feels that that the purchase of the particular brand would help show others what he or she would like to be.brand would help show others what he or she would like to be.

Normative Vs. Normative Vs. Comparative InfluenceComparative Influence

The ref group help set The ref group help set and enforce and enforce fundamental fundamental standards of conduct standards of conduct as it gives as it gives reinforcement and reinforcement and criticism to the criticism to the individual individual

Where decision about Where decision about specific brands or specific brands or activities are affected activities are affected as individual compare as individual compare themselves to group themselves to group membersmembers

Formal Vs. InformalFormal Vs. InformalA ref group that takes the A ref group that takes the form of a large ,formal form of a large ,formal organization that has a organization that has a recognized structure recognized structure complete with a charter, complete with a charter, regular meeting times, and regular meeting times, and officers.officers.Marketers tend to be more Marketers tend to be more successful at influencing this successful at influencing this grp as they are more easily grp as they are more easily identifiable and accessibleidentifiable and accessible

Small & informal such as as Small & informal such as as a grp of friends and students a grp of friends and students living in the dormitory.living in the dormitory.

Membership Vs. Membership Vs. AspirationalAspirational

Group consist of people Group consist of people consumers actually know.consumers actually know.Factors influencing that Factors influencing that people will become the part people will become the part of a consumer identification of a consumer identification ref group is:ref group is:

1) propinquity1) propinquity2) Mere exposure phenomenon2) Mere exposure phenomenon3) group cohesiveness3) group cohesiveness

Composed of idealized Composed of idealized figures such as figures such as successful bussines successful bussines people ,athletes ,or people ,athletes ,or performers.performers.

Positive Vs. Positive Vs. NegativeNegative Consumer model their Consumer model their

behavior to be behavior to be consistent with what consistent with what they think the group they think the group expects of him.expects of him.

Consumers may try to Consumers may try to distance himself or distance himself or herself from other herself from other people or groups that people or groups that function as function as avoidance avoidance group group and scrupulously and scrupulously avoid buying anything avoid buying anything that might identify him that might identify him or her with that groupor her with that group

WHEN REFERENCE WHEN REFERENCE GROUP ARE GROUP ARE IMPORTANT?IMPORTANT?Two dimensions that influence the degree to Two dimensions that influence the degree to

which ref group are important is whether the which ref group are important is whether the purchase is to be consumed publicly or purchase is to be consumed publicly or privately and whether it’s a luxury or a privately and whether it’s a luxury or a necessitynecessity

1.1. LuxuriesLuxuries2.2. Socially conspicuous or visible to othersSocially conspicuous or visible to others

The power of The power of reference group:reference group:

Social powerSocial powerReferent powerReferent powerInformation powerInformation powerLegitimate powerLegitimate powerExpert powerExpert powerReward powerReward powerCoercive powerCoercive power

Celebrity & other Celebrity & other reference group reference group appeal:appeal:TestimonialTestimonial: Based on personal usage celebrity attest : Based on personal usage celebrity attest

to the quality of the productto the quality of the productEndorsementEndorsement: Celebrity lends his or her name and : Celebrity lends his or her name and appear on behalf of a product with which he or she appear on behalf of a product with which he or she may not be an expertmay not be an expertActorActor: Celebrity presents a product or service as part : Celebrity presents a product or service as part of character endorsementof character endorsementSpokespersonSpokesperson: Celebrity represents the brand or : Celebrity represents the brand or company over an extended period of timecompany over an extended period of time

Advantages of using Advantages of using celebrity groups:celebrity groups:

Audience (reader or viewers) will react Audience (reader or viewers) will react positively to the celebrity’s association with the positively to the celebrity’s association with the productproductThe loyal followers will be much easily The loyal followers will be much easily influenced .influenced .

The Expert:The Expert: A person because of his or her A person because of his or her occupation, special training or xperience ,is in a occupation, special training or xperience ,is in a unique position to help the prospective customer unique position to help the prospective customer to evaluate the product or service that the add to evaluate the product or service that the add promotespromotes

The “Common Man”:The “Common Man”: The reference The reference group appeal that uses the testimonial of satisfied group appeal that uses the testimonial of satisfied customers customers

The Executive & Employee The Executive & Employee SpokespersonSpokesperson::Trade or Spokes-Characters:Trade or Spokes-Characters: Quasi celebrity endorserQuasi celebrity endorser

FamilyFamily

Two or more persons related by blood, Two or more persons related by blood, marriage or adoption who reside together.marriage or adoption who reside together.

Families are not to be confused with Families are not to be confused with households.households.

Types of familiesTypes of families

Nuclear familyNuclear familyJoint familyJoint familyExtended familyExtended familySingle – parent familySingle – parent family

Consumer Socialization of Consumer Socialization of ChildrenChildren

Process by which children acquire the skills, Process by which children acquire the skills, knowledge, attitudes and experiences necessary to knowledge, attitudes and experiences necessary to function as consumers.function as consumers.Children acquire their most basic behavior and values Children acquire their most basic behavior and values from the family members.from the family members.Consumer behavior norms acquired through Consumer behavior norms acquired through observation of parents and older siblings who observation of parents and older siblings who function as role models. function as role models.

Family Consumption Family Consumption RolesRoles

InfluencersInfluencersGatekeepersGatekeepersDecidersDecidersBuyersBuyersPreparersPreparersUsersUsersMaintainersMaintainersDisposers Disposers

Family Decision MakingFamily Decision Making

Husband – wife decision makingHusband – wife decision making

Influence of childrenInfluence of children

Influence of other membersInfluence of other members

Family Life CycleFamily Life CycleYoung, single, earningYoung, single, earningYoung, single, earning, in loveYoung, single, earning, in loveYoung, married, earning (honeymooners)Young, married, earning (honeymooners)Married with small kidsMarried with small kidsMarried with school going kidsMarried with school going kidsMarried with teensMarried with teensMarried with independent childrenMarried with independent childrenOld and married (empty nesters)Old and married (empty nesters)Older, unmarried (dissolution)Older, unmarried (dissolution)

Fashion Independence: Fashion Independence: “Resistance to change”“Resistance to change”

INDIVIDUALITYINDIVIDUALITYRejecting styles that are in fashion because they are Rejecting styles that are in fashion because they are unflatteringunflatteringRefraining from wearing the same style garments, hair Refraining from wearing the same style garments, hair styles, an so on that every one else is wearingstyles, an so on that every one else is wearingChoosing to wear a favorite colorChoosing to wear a favorite colorHaving a signature “look”Having a signature “look”Being known as the first to try new stylesBeing known as the first to try new styles