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GROUP INFLUENCES ON

CONSUMER BEHAVIOR

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Group Processes

Group: Two or more individuals who share a set ofnorms, values, or beliefs and have certainimplicitly or explicitly defined relationships to one

another such that their behaviors areinterdependent.

Notes about groups and group processes:

Interdependence

Purpose

Influence on behavior

2 ways: as individuals & group decisions

Dichotomous membership

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Types of GroupsReference group: an actual or imaginary

individual/group conceived of having significantrelevance upon an individuals evaluations,aspirations, or behavior

Any external influence that provides social clues canbe a reference group

1. Aspiration groups

2. Dissociative/avoidance groups

3. Formal vs. Informal groups

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When Reference Groups Are Important

Social power: capacity to alter the actions of

others

Types of social power:

Referent power Information power

Legitimate power Expert power

Reward power Coercive power

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3 ways:

Group Influence Processes

Roles Conformity

How Groups Influence Consumers

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1. Group Influence Processes:

a) Informational

* Acquire information from the group

b) Normative (utilitarian)

* Gain approval or avoid disapproval from group

c) Identification (value expressive)

* Identify with the group and incorporate groupvalues and norms as part of your own self-

concept and identity

How Groups Influence Consumers

How do you get information from groups? Through whatprocess?

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How Groups Influence Consumers

2. Roles

Defn: specific behaviors expected of a person in agiven position

Role Related Products: group of products neededby a person to fulfill a role

What are Some Role Related Products for Students?

Functionally necessary product for students?

Symbolically necessary product for students?

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The Asch Experiment

Which of the 3 lines (A, B or C) are closest in length

to the length of line X?

X

A

B

C

Why did these subjects make the wrong choice?

Were the subjects convinced or did they just go

along with the crowd?

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How Groups Influence Consumers

3. Conformity

Defn: Changing behavior or beliefs toward a group as a result

of real or imagined group pressure.

Two types of conformity: compliance & private acceptance

i) compliancethe consumer conforms to a group without

really accepting the groups beliefs

ii)private acceptancethe consumer actually changes his

or her beliefs in the direction of the group

What would lead someone to conform to group pressure?

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How Groups Influence Consumers

What Factors lead to Conformity?Within the group

CohesivenessExpertiseSize

Within the individualInformation availableSelf-esteem

Attractiveness of the group and Need to be likedType of decision

Product salienceDegree of conspicuousness

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Guerrilla Marketing

Origination of term Guerilla

Ambushing consumers with

promotional content in places

where it is not expected in order toget people talking

Unconventional

Good for small businesses or

limited budgets

Examples

Smirnoff underpass in England

Burnout 2 speeding fines

Discover and New Years Eve

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Viral Marketing

Company recruits customers to be sales agents byoffering some incentive to spread the word about the

product

Providing opportunity for exponential growth

Includes implied endorsement from a friend

Must be easy to transfer and replicate

Get Your Free E-mail at Hotmail.com

Grew from 0 to 12 million users in 18 months Grew more rapidly than any company in any media

Budget $50,000

Other examples: evite.com, e-cards

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Whats the difference between

Buzz vs. Hype?

Buzz Hype

Word of Mouth Advertising

Grassroots Corporate

Authentic Fake

Credibility Skepticism

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Group Communications

Opinion Leadershipwhat is it?

Knowledgeable group member

Greater product involvement and knowledge

Public individuationwilling to act differently

Influence others attitudes and behaviors

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Group Communications

Market Maven

Someone who has a lot of information on a lot of differentproducts, prices, or places

Likes to share the information with others but not a persuader

Connectors Know lots of people

Social gluebring people together

Salespeople

Persuaders through trust and rapport not forced conformity Emotional contagion (Cacioppo)expressive and contagious

personalities

From The Tipping Point by Malcolm Gladwell