The Impact of Social Influence on Consumer Behavior FINAL

8/19/2019 The Impact of Social Influence on Consumer Behavior FINAL

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THE IMPACT OF SOCIAL INFLUENCE

ON CONSUMER BEHAVIOR


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CONSUMER DECISION MAKINGPROCESS

• Cognitive process ofselecting an action

among alternatives

• Steps in decision

making


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WHERE DOES SOCIAL INFLUENCE COMEIN THE DECISION MAKING PROCESS?

Social factors

aect

decision

making at all

stages.


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WHAT IS SOCIAL INFLUENCE?

• Occurs when one's emotions, opinions, actions,

reaction, thoughts or behaviors are aected byothers.

• t can take many forms and can be seen in!


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CLASSIFICATIONS OF SOCIAL INFLUENCE


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TYPES OF SOCIAL INFLUENCE


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• "any brands look to target opinion leaders to spreadthe use and purchase of their product in a social group.

• Can be an internal person of the group when it comes to asmall social group

• Can be through a sponsorship or a partnership with areference leader #celebrity, actor, musician, athlete, etc.$for larger groups

REFERENCE GROUPS ANDMEMBERSHIP GROUPS


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FAMILY • %orms an environment of sociali&ation in which an individual will

evolve, shape his personality, acuire values.

• (eople will tend to keep the same as those acuired with theirfamilies.

•

%or e)ample, parents describing Coke as a product *full of sugar andnot good for health+

• %or rands - specially for %ast/"oving Consumer 0oods (FMCG) orConsumer (ackaged 0oods (CPG) - successfully *integrating+ thefamily is both a real challenge and an opportunity.


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SOCIAL ROLES ANDSTATUS

• 1e2ects the rank and the importance of role in society or in social

groups

• %or e)ample, a consumer may buy a Ferrari for the uality of thecar but also for the e)ternal signs of social success that this kindof cars represents

• CO driving a small car like a Ford Fiesta would be taken lessseriously by its customers and business partners than if he isdriving a 0erman lu)ury car

•

"any brands have understood it by creating an image.


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STATISTICS•

Forbes conducted research to see howconsumers engage with dierent industriesincluding retail 3 travel.

•

81% of respondents indicated posts from theirfriends and family directly in2uence theirpurchase decisions.

•

n the same survey, they found out that 38% ofmoms are more likely to buy products frombrands that other women 45ike6 on %acebook


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• 78% of people say that a company6s social

media posts impact their purchase decision.

• 9 out of 10 users watch videos about the techproducts they buy.

• 7fter marking an item as a favourite - 0% ofsocial media purchases take place within aweek, and 80% of purchases take place within 8

weeks.


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What does the HBR say?

• mplications for "arketers9

•

0uide people6s behavior at any givenmoment.

•

Successful athletes tend to buysimilar cars and read similarmaga&ines.


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• :aiting in the business lounge to

board a plane, we might reach for Harvard Business Review, not ;ustfor its content but also,

subconsciously, to reinforce ouridentity as a successful e)ecutive.

•

Our social identity helps usunderstand how to act in a conte)tin a way that enhances ourdistinctiveness and status.


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Unilever Italy

•


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• =oung men in taly were often still living

with their parents.

• >hey saw the ads on >? at home, their

relevant social identity was *dutiful son+rather than *available man.+

• 7s a result they re;ected the ads6 message,

since it focused on behavior that seemeduncomfortable in front of mom.


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SOCIAL INFLUENCE


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HOW DOES IT AFFECTCONSUMER BEHAVIOR?

• Consumers not handcued byinformation asymmetries

• )tent of the in2uence of social media

• >wo @ey 7gents of Social n2uence

A. onding

B. >rusted )pert


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Social Infuencer #1: Bondin

• (eople much like us, similar needs

• f we believe in the idea that we share a like

mind with someone or something, we havea connection

• (reference for similar product issubconsciously elevated in our preferenceladder, and will in2uence our own decisions


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Social Infuencer #": Trusted $%ert

• Sources we perceive know morethan us

• :hen the knowledge is a product ofe)perience, the level of in2uencee)pands

• >he important in2uencer is not thee)pertise so much as our perceptionof e)pertise


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Social Infuence


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SOCIAL NETWORKING

" platfor# to build so$ialrelations a#on people &ho share

si#ilar interests' a$tiities'ba$krounds or reallife $onne$tions*

• Cultural %avorites• ndia - world6s largest growth of social mediausers• 7n increasing amount of people are looking tosocial media to fulll $onitie' a+e$tie'personal interatie' so$ial interatie' andtension free needs


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>he things you share are things that make you

look good, things which you are happy to tieinto your identity.Dilary "ason, Chief Eata Scientist, itly,

?enture eat, BFAB

• Eata "ining - Getwork 7nalysis Software•

%acebook6s *Social 7ds+ to tailor content• %acebook eacon - tracks the websites usedoutside of %acebook• rand Getworking


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,o$ialMediaand

Consu#ers

-ord of Mouth

.elationship/uildin

/rand oalt

2eeps ,takeholdersinfor#ed

#po&eredConsu#eris#

-ants to 4eeds

5nteration (5MC)5n$entii6ation

Conenien$e

IMPLICATIONS

/rand uit


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IMPLICATIONS

Consu#ers &ho use so$ial #edia durin their shoppinpro$ess are four ti#es #ore likel to spend #ore on

pur$hases than those &ho do not*

(Deloitte, !"


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P%&i't%)' Pe*'+eti-e

Consumer6s ehavior and ectiveness of Social"edia / 0hulam 1asool "adni

- 7% of respondents bu ite#s usin so$ial

#edia portals- More fe#ales than #ales- .s* 30'000 salar - 3% $onsu#ers $ondu$t prepur$hase sear$h-

5ntera$tie a#es' linked ads and behaioral

.,:;


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$a&%les

• Mi$rosoft (-indo&s lie photo aller) @ylie H and half year child

)citement

ase of use

• M$eenagers

usiness customer / >ime value

%un place for children


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'ideos lin(

• Mi$rosoft

https=>> &&&*outube*$o#>&at$h?@> &&&*outube*$o#>&at$h?@A7;6Bu&

https://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=qj7gTz2ugvwhttps://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=DtilWL4mnhIhttps://www.youtube.com/watch?v=DtilWL4mnhI


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•

oanas, ., Stoica, ., BFAH, Social "edia and its impact onConsumer ehavior, nternational Iournal of conomic>heories and (ractices, pp. BJK/8F8.

• "adni, 1, 0., BFAH, Consumer6s ehavior and ectivenessof Social "edia. 0lobal Iournal of "anagement and

usiness 1esearch! "arketing, pp. KL/MB.• http!NNwww.bu&&le.comNarticlesNtypes/of/social/in2uence.html

• http!NN;ournalofbusiness.orgNinde).phpN0I"1NarticleNview%ileNAKBNAHK

• https!NNhbr.orgNBFAKNFANwhy/your/customers/social/identities

/matter• http!NNwww.forbes.comNsitesNmarketshareNBFABNFKNFLNare/brands/wielding/more/in2uence/in/social/media/than/we/thought

• http!NNwww.adweek.comNsocialtimesNlesNBFAHNFANsocial/media/purchase/decisions.;pg

• http!NNwwwB deloitte comNcontentNdamNEeloitteNusNEocument

REFERENCES
http://journalofbusiness.org/index.php/GJMBR/article/viewFile/1582/1485http://journalofbusiness.org/index.php/GJMBR/article/viewFile/1582/1485https://hbr.org/2015/01/why-your-customers-social-identities-matterhttps://hbr.org/2015/01/why-your-customers-social-identities-matterhttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttp://www.adweek.com/socialtimes/files/2014/01/social-media-purchase-decisions.jpghttp://www.adweek.com/socialtimes/files/2014/01/social-media-purchase-decisions.jpghttp://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-navigating-the-new-digital-divide-051315.pdfhttp://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-navigating-the-new-digital-divide-051315.pdfhttp://www.adweek.com/socialtimes/files/2014/01/social-media-purchase-decisions.jpghttp://www.adweek.com/socialtimes/files/2014/01/social-media-purchase-decisions.jpghttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttp://www.forbes.com/sites/marketshare/2012/05/07/are-brands-wielding-more-influence-in-social-media-than-we-thoughthttps://hbr.org/2015/01/why-your-customers-social-identities-matterhttps://hbr.org/2015/01/why-your-customers-social-identities-matterhttp://journalofbusiness.org/index.php/GJMBR/article/viewFile/1582/1485http://journalofbusiness.org/index.php/GJMBR/article/viewFile/1582/1485