Chapter 11

Social Influences on Consumer Behavior

Learning Objectives~ Ch. 11

To understand:

1.How general sources of influence differ in four key ways

2.The influence of opinion leaders-especially in the era of social media

3.The types/characteristics of reference groups

4.Both normative & informational influence

Social Influences

“. . . information pressures . . . [that have] a strong influence on consumers because the information source is very credible; . . . they have a strong influence simply because the source can communicate information widely.”

Social Influences

General Sources of InfluenceMarketer-dominated

Non-marketer-dominated

Delivered– Via mass media– Personally

Sources differ?– Reach– Capacity for two-way communication– Credibility

Sources of Influence

Opinion Leaders

Gatekeepers

– Knowledgeable about products

– Heavy users of mass media

– Buy new products when introduced

– Perceived as credible

Market maven

Marketing implications

– Target

– Use in marketing communications

– Refer consumers

Types of Reference Groups

Aspirational– Associate products with

Associative– Accurately represent– Brand communities

Dissociative – Avoid using

Reference Groups

CharacteristicsDegree of Group Contact– Primary– Secondary

Formality

Homophily: Similarity among members

Group attractiveness

Density

Degree of identity

Tie strength

Many facebook friends, LinkedIn contacts & twitter followers- a large social & or professional network

Tie-Strength & Social Influence

Marketing Implications

Understand information transmission

Target formal reference groups

Target homophilous consumers

Target the network

Understand strength of weak ties– Embedded markets

Reference Groups as Socializing Agents

People

Media & marketplace

Celebrity

Sorority/Fraternity

Campus organizations

Sport

In What Ways is Tiger an Influencer?

Normative Influence

“. . . derives from norms, society’s collective decisions about what behavior should be.”

Implies Consumers Will Be– Sanctioned/punished if norms not followed– Rewarded for performing expected

behaviors

Sources & Types of Influence

Normative Influence & CB

Brand-choice congruence & conformity

Compliance versus reactance

Characteristics affecting strength– Product– Consumer– Group-coercive power– May be more visible in this era of

social media & events

Marketing Implications

Rewards/sanctions for product use/nonuse

Create norms for group behavior

Create conformity pressures

Use compliance techniques

– Foot-in-the door

– Door-in-the-face

– Even-a-penny will help

Ask consumers to predict behavior

Provide freedom of choice

Use service providers similar to customers

Informational Influence

“. . . influence, reference groups & other influence sources can exert . . . by offering

information to help make decisions.”

“. . . can affect how much time & effort consumers devote to information search & decision making.”

Informational Influence Strength

Is impacted by:

Product characteristics

Consumer & influencer characteristics

Group characteristics

Descriptive Dimensions of Information

Valence: Information positive or negative?– Negative more likely to be communicated– People pay more attention to & give weight to

negative

Modality: Verbal or nonverbal?

Pervasive/Persuasive: Word-of-mouth, viral marketing

Restoring Public Trust

Negative Wom/eWOM

Pervasive & persuasive– Viral marketing

What to do– Prevent & respond to negative word of

mouth– Engineer favorable word of mouth– Handle rumors– Track word of mouth

Handling Rumors & Scandals

Do nothing

Do something locally

Do something discreetly

Do something big

Take responsibility for what is right

Questions?