Group Influence and Communication

Manner of group function; classification of groups Impact of reference groups on the consumption process Marketing strategies based on group influence Importance of roles of group members to marketing strategies Nature of word-of-mouth communication and its implications Group communicationan important marketing factor Importance of opinion leaders in shaping behaviour of others Market mavensinformation disseminators Diffusion of innovation Adopter groups and their characteristics
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Chapter 14

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 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

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 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Types of Groups (cont.)

Aspirational reference groups
non-membership groups positive attraction exert a strong influence from some products

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Conformity
Conformity is the tendency to want to be like relevant and significant others Conformity generally makes life more pleasant Norms:
general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold often communicated non-verbally
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

The Nature of Referencegroup Influence

Conformity is not a uni-dimensional concept Information influence
behaviours and opinions of reference groups are used as potentially useful pieces of information when an individual fulfils group expectations to gain a direct reward or avoid a sanction

Normative influence (utilitarian influence)

Identification influence (value-expressive influence)
when an individual uses perceived-group norms and values as a guide for their own attitudes or values
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

 Group influence is strongest when use of the product or brand is visible to the group Reference-group influence typically affects aspects of the product that are visible to the group Reference-group influence increases as the degree of necessity of an item decreases In general, the more commitment an individual feels to a group, the higher the level of conformity to group norms
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Determinants of the Degree of Reference-group Influence

e.g. product category, product type and brand are all visible

Marketing Strategies based on Reference-group Influences

Personal sales strategies
Asch phenomenon

Advertising strategies
all three types of reference groups are used by advertisers

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Roles
A role is:
a prescribed pattern of behaviour expected of a person in a given situation by virtue of the persons 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

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

Applications of Role Theory in Marketing Practice

Role-related product cluster Evolving roles Role conflict and role overload Role acquisition and transition

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

10

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
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

11

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 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

12

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 High level of exposure to media Motivation of dissatisfied customers to tell others of their negative message The market maven
Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

13

Marketing Strategy and Opinion Leaders

Identifying opinion leader Targeting for marketing research Product sampling Retailing/personal selling Advertising attempts to encourage and simulate opinion leadership

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

14

Diffusion of Innovations
Nature of the innovation
new as perceived by individuals or group

Categories of innovations
continuous innovation dynamically continuous innovation discontinuous innovation

Copyright 2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins

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