Lecture Consumer behaviour: Chapter 14 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 14 - Group influence and communication. This lecture explains how groups are defined and their influence on consumption. Marketers use information about groups to devise various strategies and utilise groups to communicate information about their products. The concept of diffusion of innovations or ideas is an example of the influence of groups in marketing.

Chapter 14 Group Influence and Communication • • • • • • • • Group function and classification of groups Impact of reference groups on consumption Marketing strategies based on group influence Roles of group members and marketing strategies Group communication Importance of opinion leaders Diffusion of innovations Adopter groups and their characteristics  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–1 Group Influences 12–2 Groups and their Definitions • Group: – ‘Two or more individuals who share a set of norms, values, or beliefs, and have certain implicitly or explicitly defined relationships which make their behaviour interdependent’ • Reference group: – ‘A group whose presumed perspectives or values are being used by an individual as the basis for his or her current behaviour’  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–3 Types of Groups • Membership – either yes or no • Degree of contact – – – larger groups generally have less contact primary groups generally have frequent interpersonal contact secondary groups generally have limited interpersonal contact • Attraction – – desirability of being member either positive or negative  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–4 Changes in Reference Groups as the Situation Changes 12–5 Types of Groups (cont.) • Aspirational reference groups – – – non-membership groups positive attraction exert a strong influence on some products  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–6 Types of Groups (cont.) 12–7 Reference Group Influences on the Consumption Process • Conformity: – – – …makes groups influential …is the tendency to want to be like ‘relevant and significant others’ …generally makes life more pleasant • Norms: – – are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold are often communicated non-verbally  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–8 The Nature of Reference-Group Influence Conformity is not a uni-dimensional concept • Information influence – behaviours and opinions of reference groups are used as potentially useful pieces of information • Normative influence (utilitarian influence) – when an individual fulfils group expectations to gain a direct reward or avoid a punishment • Identification influence (value-expressive influence) – when an individual uses perceived-group norms and values as a guide for their own attitudes or values  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–9 Consumption Situations and Reference-Group Influence 12–10 Roles • A role is: – a prescribed pattern of behaviour expected of a person in a given situation by virtue of the person’s position in that situation • Role parameter: – range of behaviour acceptable within a given role • Role overload: – occurs when an individual attempts to fill more roles than the available time, energy or money allows • Role conflict: – incompatible role demands Copyrightê2004McGrawưHillAustraliaPtyLtd 1419 Applying Role Theory to Marketing Practice Role-related product cluster e.g new mother • Evolving roles e.g career females • Role conflict and role overload e.g working mother, working student • Role acquisition and transition e.g student to employee  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–20 Role Set for a Student 12–21 Communication Within Groups • The power of word-of-mouth communication • People learn about new products from friends and reference groups by: – – observing or participating with them as they use the product, or by seeking and receiving advice or information from them Copyrightê2004McGrawưHillAustraliaPtyLtd 1422 Opinion Leadership Opinion leaders filter, interpret or provide information for individuals within groups • Situations in which opinion leadership occurs: – – – one individual exchanges information with another one individual volunteers information as a by-product of normal group interaction  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–23 Characteristics of Opinion Leaders • Opinion leaders have enduring involvement with • • • • • • product category Function primarily through interpersonal communications and observation Similar demographic characteristics to the group Public individuation – attention seeking High level of exposure to media The market maven – expert on all products! Motivation of dissatisfied customers to tell others of their negative message  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–24 Likelihood of Seeking an Opinion Leader 12–25 Marketing Strategy and Opinion Leadership • Identifying opinion leaders • Targeting for marketing research • Product sampling • Retailing/personal selling • Advertising attempts to encourage and simulate opinion leadership  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–26 Diffusion of Innovations • Nature of the innovation – ‘new’ as perceived by individuals or group • Categories of innovations – – – continuous innovation: small changes needed dynamically continuous innovation: modest changes discontinuous innovation: large changes  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–27 Categories of Innovations 12–28 The Adoption Process and Extended Decision Making 12–29 Adoption of Innovation Curve 12–30 Marketing Strategies and the Diffusion Process Market segmentation Diffusion-enhancement strategies Copyrightê2004McGrawưHillAustraliaPtyLtd 1431 Factors Affecting Innovation Uptake • Type of group • Type of decision • Marketing effort • Fulfillment of felt need • Compatibility • Relative advantage • Complexity • Observability • Trialability Perceived risk Copyrightê2004McGrawưHillAustraliaPtyLtd 1432 Next Lecture Chapter 15: Social Class  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14–33 ... they hold are often communicated non-verbally  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14 8 The Nature of Reference-Group Influence Conformity is not a uni-dimensional concept • Information...  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  14 13 Product Characteristics and Type of Reference-Group Influence 12 14 Influence of Two Consumption Situation Characteristics on Product/Brand Choices 12–15 Consumption-Situation... Reference-Group Influence • R-Group influence is strongest when use of the product or brand is visible and relevant – e.g product category, product type and brand are all visible • R-group influence