© 2009 South-Western, a division of Cengage Learning.

Chapter 9Group InfluenceChapter 9Group Influence

BABIN / HARRISBABIN / HARRIS

© 2009 South-Western, a division of Cengage Learning. 9-2

Learning Outcomes

Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions.

Describe the various types of social power that reference groups exert on members.

Comprehend the difference between informational, utilitarian, and value-expressive reference group influence.

Understand the importance of word-of-mouth communications in consumer behavior.

Comprehend the role of household influence in consumer behavior.

LO1

LO2

LO3

LO4

LO5

© 2009 South-Western, a division of Cengage Learning.

LO1

Understand the different types of reference groups that influence consumers and how reference

groups influence value perceptions.

Understand the different types of reference groups that influence consumers and how reference

groups influence value perceptions.

© 2009 South-Western, a division of Cengage Learning. 9-4

Reference Group

A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.

A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.

LO1

© 2009 South-Western, a division of Cengage Learning. 9-5

Group Influence

• Refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group.

• Group members:– Share common goals

and interests– Communicate with,

and influence, one another

– Share a set of expectations, rules, and roles

– View themselves as members of a common social unit

LO1

© 2009 South-Western, a division of Cengage Learning. 9-6

Reference Group Influence

Fraternity brothers often have a great deal of influence on each other.

LO1

© 2009 South-Western, a division of Cengage Learning. 9-7

Types of GroupsLO1

Primary & Secondary

Primary & Secondary

Formal & Informal

Formal & Informal

Aspirational & Dissociative

Aspirational & Dissociative

© 2009 South-Western, a division of Cengage Learning. 9-8

Aspirational Groups

Do you know a Parrot-Head?

© 2009 South-Western, a division of Cengage Learning. 9-9

Conformity

ConformityA result of group influence in which an individual yields to the attitudes and behavior of others.

ConformityA result of group influence in which an individual yields to the attitudes and behavior of others.

LO1

Peer PressureThe extent to which group members feel

pressure to behave in accordance with group

expectations.

Peer PressureThe extent to which group members feel

pressure to behave in accordance with group

expectations.

© 2009 South-Western, a division of Cengage Learning. 9-10

Peer Pressure

Friends are especially influential during the teen years.

LO1

© 2009 South-Western, a division of Cengage Learning.

LO2

Describe the various types of social power that reference groups exert on members.

Describe the various types of social power that reference groups exert on members.

© 2009 South-Western, a division of Cengage Learning. 9-12

Exhibit 9.1Types of Social Power

LO2

© 2009 South-Western, a division of Cengage Learning.

LO3

Comprehend the difference between informational, utilitarian, and value-expressive reference

group influence.

Comprehend the difference between informational, utilitarian, and value-expressive reference

group influence.

© 2009 South-Western, a division of Cengage Learning. 9-14

Reference Group Influence

• Informational influence – consumers use the behaviors and attitudes of reference groups as information into making their own decisions.

• Utilitarian influence – consumers conform to group expectations to receive a reward or avoid punishment.

• Value-expressive influence – consumers internalize a group’s values or join groups to express their own values and beliefs.

LO3

© 2009 South-Western, a division of Cengage Learning. 9-15

We’ve Got Connections

Membership has its privileges!

© 2009 South-Western, a division of Cengage Learning. 9-16

Value and Reference Groups

• Utilitarian value – group membership becomes a means to a valued end state.

• Hedonic value – value is an end in and of itself.

• Information obtained directly impacts consumer expectations, which then affect value perceptions and satisfaction.

LO3

© 2009 South-Western, a division of Cengage Learning. 9-17

Exhibit 9.2: Reference Group Influence on Product Selection

LO3

© 2009 South-Western, a division of Cengage Learning. 9-18

Individual Difference in Susceptibility to Group Influence

LO3

Susceptibility to interpersonal

influences

Susceptibility to interpersonal

influences

Attention to social comparison information

Attention to social comparison information

Separateness - connectedness

Separateness - connectedness EmbarrassmentEmbarrassment

© 2009 South-Western, a division of Cengage Learning. 9-19

Connectedness

Consumers with connected self schemas respond favorably toadvertisements promoting togetherness.

© 2009 South-Western, a division of Cengage Learning.

LO4

Understand the importance of word-of-mouth communications

in consumer behavior.

Understand the importance of word-of-mouth communications

in consumer behavior.

© 2009 South-Western, a division of Cengage Learning. 9-21

Word-of-Mouth (WOM)

Information about products, services, and experience that is transmitted from consumer to consumer.

Information about products, services, and experience that is transmitted from consumer to consumer.

LO4

OrganicOrganic AmplifiedAmplified

© 2009 South-Western, a division of Cengage Learning. 9-22

Online Social Networking

Web sites like momjunction.com have grown in popularity.

© 2009 South-Western, a division of Cengage Learning. 9-23

Buzz Marketing

• Includes marketing efforts that focus on generating excitement (“buzz”) that is spread from consumer to consumer.

• A form of guerilla marketing – the marketing of a product using unconventional means.

• Viral marketing – uses online technologies to facilitate WOM by having consumers spread marketing messages through their online conversations.

LO4

© 2009 South-Western, a division of Cengage Learning. 9-24

Stealth Marketing

• A guerilla marketing tactic that is similar to buzz marketing, but consumers are completely unaware that they are being marketed to.

• Often considered unethical, along with practices called “shilling” and “infiltrating.”

LO4

© 2009 South-Western, a division of Cengage Learning. 9-25

Opinion Leaders

Consumers who have great influence on the behavior of others relating to product adoption and purchase.

Consumers who have great influence on the behavior of others relating to product adoption and purchase.

LO4

© 2009 South-Western, a division of Cengage Learning. 9-26

Market Mavens and Surrogate Consumers

Market MavenA consumer who spreads information about all types of products and services.

Market MavenA consumer who spreads information about all types of products and services.

LO4

Surrogate ConsumerHired by another

consumer to provide input into a purchase

decision.

Surrogate ConsumerHired by another

consumer to provide input into a purchase

decision.

© 2009 South-Western, a division of Cengage Learning. 9-27

Diffusion Process

The way in which new products are adopted and spread throughout a marketplace.

The way in which new products are adopted and spread throughout a marketplace.

LO4

© 2009 South-Western, a division of Cengage Learning. 9-28

Maybe Talk Isn’t Cheap

Some bloggers are paid to talk about products.

© 2009 South-Western, a division of Cengage Learning. 9-29

Exhibit 9.4Adopter Categories

LO4

© 2009 South-Western, a division of Cengage Learning.

LO5

Comprehend the role of household influence in consumer

behavior.

Comprehend the role of household influence in consumer

behavior.

© 2009 South-Western, a division of Cengage Learning. 9-31

Traditional Family Household

At least two people who are related by blood or marriage who occupy a housing unit.

At least two people who are related by blood or marriage who occupy a housing unit.

LO5

Nuclear family

Nuclear family

Extended family

Extended family

© 2009 South-Western, a division of Cengage Learning. 9-32

Emerging Trends in Family Structure

“Non-traditional” household arrangements

“Non-traditional” household arrangements

Single parent householdsSingle parent households

Blended familiesBlended families

LO5

© 2009 South-Western, a division of Cengage Learning. 9-33

Exhibit 9.6: Traditional Household Life Cycle Categories

LO5

© 2009 South-Western, a division of Cengage Learning. 9-34

Household Purchase RolesLO5

GatekeeperGatekeeper

Decision MakerDecision Maker

InfluencerInfluencer

UserUser

PurchaserPurchaser

© 2009 South-Western, a division of Cengage Learning. 9-35

Kid Power

Children play a much larger role in influencing household purchases than ever before.

© 2009 South-Western, a division of Cengage Learning. 9-36

K.G.O.Y.

Kids are growing older younger!

© 2009 South-Western, a division of Cengage Learning. 9-37

Polariod Gives Kids What They Want!

LO5