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334 - Chapter 7

This document discusses group influences on consumer behavior. It describes how reference groups can influence consumers through informational, normative, and identification influences. It also discusses different types of groups like consumption subcultures, brand communities, and virtual communities. The document outlines how word-of-mouth recommendations and opinion leaders within groups can impact product adoption. It provides strategies for marketers to leverage buzz, viral marketing, and online guides to encourage positive word-of-mouth. Finally, it covers the diffusion of innovations process and how innovations are adopted by different categories of consumers over time.

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Akhil Vijay
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97 views22 pages

334 - Chapter 7

This document discusses group influences on consumer behavior. It describes how reference groups can influence consumers through informational, normative, and identification influences. It also discusses different types of groups like consumption subcultures, brand communities, and virtual communities. The document outlines how word-of-mouth recommendations and opinion leaders within groups can impact product adoption. It provides strategies for marketers to leverage buzz, viral marketing, and online guides to encourage positive word-of-mouth. Finally, it covers the diffusion of innovations process and how innovations are adopted by different categories of consumers over time.

Uploaded by

Akhil Vijay
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Marketing 334 Consumer Behavior

Chapter 7 Group Influences


Based on Consumer Behavior, 10th edition by Hawkins, Mothersbaugh and Best

Consumer Behavior In The News


Goodyear is beginning to offer collegiate tires which have the college name in white letters on the tires sidewalls. Goodyear claims these tires are only for the ultimate fan.

7-2 Source: J. Halliday, Tire maker eyes college sports fans, Advertising Age, November 8, 2004, p. 8.

Consumer Behavior In The News


What would drive a fan to put his/her teams name on their tires?

How big do you think this market is?

Source: J. Halliday, Tire maker eyes college sports fans, Advertising Age, November 8, 2004, p. 8.

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.

Reference Group Influence


Four criteria that are particularly useful in classifying groups: 1. Membership 2. Strength of Social Tie 3. Type of Contact 4. Attraction

Types of Groups
Consumption Subcultures

Brand Communities
Virtual Communities Leaders Participants Lurkers

Types of Groups
Marketing and Brand Communities

Brand communities can add value to the ownership of the product and build intense loyalty.
Jeep has a longstanding loyal brand community

Types of Groups
Virtual Communities
Marketing in virtual communities is both possible and potentially beneficial. The approach taken must be tailored to the type of virtual community. Many online groups are sensitive to commercial interference and companies have to be careful not to overstep.

Reference Group Influences 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

Reference Group Influences on the Consumption Process


Types of Reference Group Influence

Reference group influence can take three forms: 1. Informational Influence 2. Normative Influence (a.k.a. utilitarian influence) 3. Identification Influence (a.k.a. value expressive)

Communications within Groups and Opinion Leadership


WOM
Opinion Leaders Market Mavens, Influentials, and e-fluentials Marketing and Online Strategies

Communications within Groups and Opinion Leadership


Mass Communication Information Flows

Communications within Groups and Opinion Leadership


Situations in Which WOM and Opinion Leadership Occur 1. Individual seeks information from another or 2. Individual volunteers information

Likelihood of Seeking an Opinion Leader

Communications within Groups and Opinion Leadership


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

Communications within Groups and Opinion Leadership


Online Strategies to Leverage Buzz and WOM

Viral marketing Online Guides

Blogs

Applications in Consumer Behavior


Example of Online Viral Marketing Campaign

Courtesy of Hershey Corporation.

Diffusion of Innovations
Categories of Innovation
Adoption Process Diffusion Rate Adopter Categories Marketing Strategies and the Diffusion Process

Diffusion of Innovations
Categories of Innovations

Continuous Innovation Dynamically continuous Innovation Discontinuous Innovation

Diffusion of Innovations
Diffusion Rates for Popular Consumer Electronics (Cumulative)

7-19

Diffusion of Innovations
Factors Affecting the Spread of Innovations

7-20

Diffusion of Innovations
Adopter Categories
Innovators Early Adopters Early Majority Late Majority Laggards

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