Consumer Behaviourinfluencing dimensions of Opinion Leadershipand its preferred usage as a marketing tool over traditional advertisements & promotions in rural markets

Debanjan Saha, Ph.D.

Agenda

IntroductionWhy the TopicConcepts/Theories/PhilosophiesContemporary

Development/ResearchAnalysis/Own ThoughtsSuggestionsConclusionAppendix

Introduction

Budget Exercise

Current Practices in Media Plan

Traditional ATL & Innovative BTL

ROMI Customer Acquisition/Retention

Why the Topic

Rural Markets : Growth Prospects Cost-effective marketing

communications Enhanced conversion from prospects Better Customer Engagement Improved Customer Retention Realize higher Customer Life Time

Value Growth in Volume & Value

Concepts/Theories

Consumer Buying Behaviour – influencers

Culture Society Personal Psychological

Consumer Buying Behaviour – stagesNeed/

Problem Recognition

Info Search Evaluation of Alternatives

Purchase Decision

Post Purchase Evaluation

Concepts/Theories contd.

Dimensions of Opinion Leadership Tremendous Passion Vast updated Knowledge High Innovativeness / risk appetite Desire to share information Good Social Interaction / influence Personality – Distinctiveness, Individuality,

Confidence Enjoys trust and respect of society Advice and Guidance are willingly accepted by

others

Contemporary Research

Topic Author

Opinion Leadership

King & Summers, 1970 Myres & Robertson, 1972Childers, 1986Chan & Misra, 1990

Market MavenFlyn, Goldsmith & Eastman 1996Clark & Goldsmith, 2005

Consumer InnovativenessGoldsmith & Hofacker, 1991Goldsmith & d’Hauteville, 1998

Analysis/Own Thoughts

Traits of Rural Consumers :• High distrust on communication by business

organisations• High levels of skepticism of new offerings• Higher conservatism and lower consumer

innovativeness• Perception of lack of adequate information of

products• Limited access to internet and specialized magazines • Seeking value for money options over novelty

purchases• Higher levels of socializing and shared problem

solving• Culture of moderation and a propensity to save

SuggestionsActivation of Opinion Leadership

1. Activate Info access in vernacular languages2. Targeted Advertisements3. Identify Opinion Leaders (OLs)4. Information Sharing mechanism with OLs5. Engage with OLs: Hands-on field trials/demos 6. Facilitate mass Diffusion of innovations by OLs7. Regular Feedback & feed-forward - OLs

Conclusion

Cost-effective marketing communications

Higher ROMI compared to traditional advertisements and promotions.

Higher customer conversions at lower costs

Better engagement & loyalty

Appendix

Appendix

Appendix - BibliographyArmstrong, Gary M, and Feldman, Laurence P., “Exposure and Sources of Opinion Leaders”, Journal of Advertising Research, Vol. 16, No. 4, Aug 1976, pp. 21-27 Blackwell, R.D., et.al., Consumer behavior.9th ed. Orlando, Harcourt College Publishers, 2001 Chan, K.K. and Misra, S., “Characteristics of the Opinion Leader: A New Dimension”, Journal of Advertising, Vol.19, No. 3, 1990, pp.53-60

Childers, T. L., “Assessment of the psychometric properties of an opinion leadership scale”, Journal of Marketing Research, Vol. 23, 1986, pp. 184–188.

Clark, R. A., & Goldsmith, R. E., “Market mavens: Psychological influences”, Psychology & Marketing, Vol. 22, 2005, pp. 289–312.

Corey, Lawrence G., “People Who Claim to be Opinion Leaders: Identifying Their Characteristics by Self-Report”, Journal of Marketing, Vol. 35, Oct 1971, pp. 48-53.

Appendix - BibliographyFeick, L and L.L. Price, “The market maven: A diffuser of market place information”, Journal of Marketing, Vol. 51 (1), 1987, pp. 83-97

Flynn, L.R., Goldsmith, R.E., & Eastman, J.K., “Opinion leaders and opinion seekers: Two new measurement scales”, Journal of the Academy of Marketing Science, Vol. 24, 1996, pp. 137–147.

Goldsmith, R.E., & d’Hauteville, F., “Theory and measurement of consumer innovativeness”, European Journal of Marketing, Vol. 32, 1998, pp. 340–353.

Goldsmith, R. E., & Hofacker, C. F., “Measuring consumer innovativeness”, Journal of the Academy of Marketing Science, Vol. 19, 1991, pp. 209–221.

Grewal, R., R. Mehta, and F. R. Kardes. “The role of the social identity function of attitudes in consumer innovativeness and opinion leadership”, Journal of Economic Psychology, Vol. 21 (3), 2000, pp. 233–52.

King, C. W., and J. O. Summers, “Overlap of opinion leadership across consumer product categories”, Journal of Marketing Research, Vol. 7 (1), Feb 1970, pp. 43–50.

Appendix - Bibliography

Mancuso, J.R., “Why Not Create Opinion Leaders for New Product Introductions?”, Journal of Marketing, Vol. 33, July 1969, pp. 20-25

Merwe, R.van der and G van Heerden, “Finding and utilizing opinion leaders: Social networks and the power of relationships”, South African Journal of Business Management Vol. 40(3), 2009, pp. 65-76 Myers, James H, and Thomas S Robertson, “Dimensions of Opinion Leadership”, Journal of Marketing Research, Vol. 9, Feb 1972, pp. 41-46. Rogers, Everett, Diffusion of Innovations, New York, The Free Press, 1962.Schiffnam, L.G. and Kanuk, L.L., Consumer Behavior, 6th Ed, New Delhi, Prentice-Hall of India Pvt. Ltd., 1998

Venkatraman, M. P., “Opinion leaders, adopters, and communication adopters: A role analysis”, Psychology & Marketing, Vol. 6, 1989, pp. 51–68.

Thank You