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PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit
CHAPTER 07 Group Influences on Consumer Behavior McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved 7-2 Learning Objectives Explain reference groups and the criteria used to classify them Discuss consumption subcultures, including brand and online communities and their importance for marketing Summarize the types and degree of reference group influence Discuss within-group communications and the importance of word-of-mouth communications to marketers Understand opinion leaders (both online and offline) and their importance to markets Discuss innovation diffusion and use an innovation analysis to develop marketing strategy 7-3 Consumer Behavior In The News… What Matters to Early Tech Adopters? Which of the following laptop aspects is most important to early adopters of technology? Price and warranty Brand reputation Technologically advanced Innovative design What are the marketing implications? Source: “Early Adopters Expect More From Technology,” Advertising Age, March 15, 2010 7-4 Consumer Behavior In The News… What Matters to Early Tech Adopters? Which of the following laptop aspects are most important to early adopters of technology? If you said tech advanced and innovative design you are right! Price is just not that big a deal What are the marketing implications? Think iPod/iPhone/iPad!! Clearly designed with the early adopter in mind – higher priced, but great design and technology! Source: “Early Adopters Expect More From Technology,” Advertising Age, March 15, 2010 7-5 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 defined relationships to one another such that their behaviors are interdependent A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior 7-6 Reference Group Influence Four criteria that are particularly useful in classifying groups: groups Membership Strength of Social Tie Type of Contact Attraction 7-7 Types of Groups Consumption Subcultures Identifiable hierarchy Set of shared beliefs and values Unique jargon and rituals Sneakerheads – The Culture of Shoe Collectors viewer discretion due to language content YouTube Spotlight 7-8 Reference Group Influence Brand Communities Brand communities can add value to the ownership of the product and build intense loyalty When a consumer becomes part of a brand community, remaining generally requires continuing to own and use the brand This can create intense brand loyalty! 7-9 Video Application The following Video Clip demonstrates how MINI Cooper used marketing to create a brand community and generate buzz! 7-10 Communications within Groups and Opinion Leadership Mass Communication Information Flows 7-21 Communications within Groups and Opinion Leadership Situations in Which WOM and Opinion Leadership Occur The exchange of advice and information between group members can occur directly via WOM in the following situations: Likelihood of Seeking an Opinion Leader Individual seeks information from another, or Individual volunteers information 7-22 Communications within Groups and Opinion Leadership Crowdsourcing Goes well beyond consumer-generated ads Can involve setting up a forum in which customers help other customers Can include input into product and service design 7-23 Communications within Groups and Opinion Leadership Mavens, Influentials, and e-fluentials A market maven is a generalized market influencer who provides significant amounts of information about various products, places to shop, and so on Roper Starch identifies a group similar to market mavens called influentials influentials Influentials are 10% of population but use broad social networks to influence the other 90%! Roper Starch identifies a group similar to Internet market mavens called e-fluentials They wield significant online and offline influence 7-24 Communications within Groups and Opinion Leadership Marketing Strategy, WOM, and Opinion Leadership Strategies designed to generate WOM and encourage opinion leadership include: Advertising Product Sampling Retailing/Personal Selling Creating Buzz 7-25 Applications in Consumer Behavior Marketing Strategy, WOM, and Opinion Leadership Advertising can stimulate and simulate WOM and opinion leadership This ad would likely stimulate WOM via interest and excitement © Christopher Kerrigan 7-26 Communications within Groups and Opinion Leadership Online Strategies to Leverage Buzz and WOM Viral marketing is an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages (often via email) throughout a widespread network of buyers.” Blogs are personalized journals where people and organizations can keep a running dialogue Twitter is a micro-blogging tool that has evolved quickly into one of the largest social media outlets 7-27 Applications in Consumer Behavior Angie’s List is an example of a consumer review site Courtesy Angie’s List Inc 7-28 Diffusion Innovations An innovation is an idea, practice, or product perceived to be new by the relevant individual or group The manner by which a new product spreads through a market is basically a group phenomenon New products can be placed on a continuum from no change to radical change, depending on the market’s perception 7-29 Diffusion Innovations Categories of Innovation Adoption Process Diffusion Rate Adopter Categories Marketing Strategies and the Diffusion Process 7-30 Diffusion Innovations Categories of Innovations Continuous Innovation Adoption of this type of innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer Dynamically Continuous Innovation Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual Discontinuous Innovation Adoption of this type of innovation requires major changes in behavior of significant importance to the individual or group 7-31 Diffusion Innovations Adoption Process and Extended Decision Making 7-32 Diffusion Innovations Diffusion Rates for Popular Consumer Electronics (Cumulative) 7-33 Diffusion Innovations Factors Affecting the Spread of Innovations 7-34 Diffusion Innovations Adopter Categories Innovators Early Adopters Early Majority Late Majority Laggards 7-35 [...]... Marketing Strategy, WOM, and Opinion Leadership Strategies designed to generate WOM and encourage opinion leadership include: 1 Advertising 2 Product Sampling 3 Retailing/Personal Selling 4 Creating Buzz 7-25 Applications in Consumer Behavior Marketing Strategy, WOM, and Opinion Leadership Advertising can stimulate and simulate WOM and opinion leadership This ad would likely stimulate WOM via interest and. .. Influence on the Consumption Process Consumption Situations and Reference Group Influence 7-16 Reference Group Influence on the Consumption Process 7-17 Communications within Groups and Opinion Leadership WOM Opinion Leaders Market Mavens, Influentials, and e-fluentials Marketing and Online Strategies 7-18 Communications within Groups and Opinion Leadership WOM Versus Advertising (% who put people... Christopher Kerrigan 7-26 Communications within Groups and Opinion Leadership Online Strategies to Leverage Buzz and WOM Viral marketing is an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages (often via email) throughout a widespread network of buyers.” Blogs are personalized journals where people and organizations can keep a running dialogue Twitter... Categories Marketing Strategies and the Diffusion Process 7-30 Diffusion Innovations Categories of Innovations Continuous Innovation Adoption of this type of innovation requires relatively minor changes in behavior( s) that are unimportant to the consumer Dynamically Continuous Innovation Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior. .. Individual volunteers information 7-22 Communications within Groups and Opinion Leadership Crowdsourcing Goes well beyond consumer- generated ads Can involve setting up a forum in which customers help other customers Can include input into product and service design 7-23 Communications within Groups and Opinion Leadership Mavens, Influentials, and e-fluentials 1 A market maven is a generalized market influencer... shop, and so on 2 Roper Starch identifies a group similar to market mavens called influentials influentials Influentials are 10% of population but use broad social networks to influence the other 90%! 3 Roper Starch identifies a group similar to Internet market mavens called e-fluentials They wield significant online and offline influence 7-24 Communications within Groups and Opinion Leadership Marketing. ..7-117-11 Types of Groups Online Communities and Social Networks Community interacts around a topic of interest on the Internet Online Social Network Sites Facebook and MySpace YouTube and Flickr Twitter 7-12 Types of Groups When Using Social Media in Marketing Be transparent Be part of the community Take advantage of the unique capabilities... opinion leader in one product category is often an opinion seeker in others 7-20 Communications within Groups and Opinion Leadership Mass Communication Information Flows 7-21 Communications within Groups and Opinion Leadership Situations in Which WOM and Opinion Leadership Occur The exchange of advice and information between group members can occur directly via WOM in the following situations: Likelihood... capabilities of each venue 7-13 Reference Group Influence on the Consumption Process Types of Reference Group Influence Situational Determinants of Reference Group Influence Brand vs Product Class Influence Marketing Strategy and Reference Groups 7-14 Reference Group Influence on the Consumption Process Types of Reference Group Influence Reference group influence can take three forms: 1 Informational... people and organizations can keep a running dialogue Twitter is a micro-blogging tool that has evolved quickly into one of the largest social media outlets 7-27 Applications in Consumer Behavior Angie’s List is an example of a consumer review site Courtesy Angie’s List Inc 7-28 Diffusion Innovations An innovation is an idea, practice, or product perceived to be new by the relevant individual or group ... Applications in Consumer Behavior Marketing Strategy, WOM, and Opinion Leadership Advertising can stimulate and simulate WOM and opinion leadership This ad would likely stimulate WOM via interest and excitement... significant online and offline influence 7-24 Communications within Groups and Opinion Leadership Marketing Strategy, WOM, and Opinion Leadership Strategies designed to generate WOM and encourage... reference groups and the criteria used to classify them Discuss consumption subcultures, including brand and online communities and their importance for marketing Summarize the types and degree of