Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 07

PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit

CHAPTER 07

Group Influences on

Consumer

Behavior

Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved McGraw-Hill/Irwin

Explain reference groups and the criteria used to classify them

Discuss consumption subcultures, including brand and

online communities and their importance for marketing

Summarize the types and degree of reference group

influence

Discuss within-group communications and the

importance of word-of-mouth communications to

marketers

Understand opinion leaders (both online and offline) and their importance to markets

Discuss innovation diffusion and use an innovation

analysis to develop marketing strategy

Learning Objectives

7-3

What Matters to Early Tech Adopters?

important to early adopters of technology?

 Price and warranty

 Brand reputation

 Technologically advanced

 Innovative design

Consumer Behavior In The News…

What Matters to Early Tech Adopters?

important to early adopters of technology?

 If you said tech advanced and innovative If you said tech advanced and innovative

design you are right! Price is just not that big a deal.

 Think iPod/iPhone/iPad!! Clearly designed Think iPod/iPhone/iPad!! Clearly designed

with the early adopter in mind – higher priced, but great design and technology!

Source: “Early Adopters Expect More From Technology,” Advertising Age, March 15, 2010.

Consumer Behavior In The News…

7-5

A group is defined as two or more individuals who share group

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 reference group

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: groups

Consumption Subcultures

 Identifiable hierarchy

 Set of shared beliefs and values

 Unique jargon and rituals

Types of Groups

YouTube Spotlight

Sneakerheads – The Culture of Shoe Collectors

viewer discretion due to language content

Brand communities

Brand communities can add value to the ownership of the

product and build intense loyalty

When a consumer becomes part of a brand community,

remaining generally requires continuing to own and use

The following Video Clip demonstrates

how MINI Cooper used marketing to

create a brand community and generate

buzz!

Video Application

7-11 7-11

Online Communities and Social Networks

the Internet

Types of Groups

When Using Social Media in Marketing

 Be transparent

 Be part of the community

 Take advantage of the unique capabilities

of each venue

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Types of Groups

 Types of Reference Group Influence

 Situational Determinants of Reference

Group Influence

 Brand vs Product Class Influence

 Marketing Strategy and Reference Groups

Reference Group Influence on the

Consumption Process

Reference group influence can take three forms:

Types of Reference Group Influence

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Reference Group Influence on the

Consumption Process

Consumption Situations and Reference Group Influence

Reference Group Influence on the

Consumption Process

Reference Group Influence on the

Consumption Process

 WOM

 Opinion Leaders

 Market Mavens, Influentials, and e-fluentials

 Marketing and Online Strategies

Communications within Groups and Opinion

Leadership

WOM Versus Advertising (% who put people vs advertising as best source)

7-19

Communications within Groups and Opinion

Leadership

Opinion Leaders

An opinion leader is the “go to person” for specific opinion leader

types of information This person filters, interprets, and

passes along information

Opinion leaders possess enduring involvement for

specific product categories This leads to greater

knowledge and expertise

Opinion leadership is category specific – an opinion

leader in one product category is often an opinion

seeker in others

Communications within Groups and Opinion

Leadership

Mass Communication Information Flows

7-21

Communications within Groups and Opinion

Leadership

Situations in Which WOM and Opinion Leadership Occur

The exchange of advice and information between group

members can occur directly via WOM in the following

situations: Likelihood of Seeking an Opinion Leader

Communications within Groups and Opinion

Leadership

 Goes well beyond consumer-generated ads

 Can involve setting up a forum in which customers

help other customers

 Can include input into product and service design

7-23

Communications within Groups and Opinion

Leadership

Mavens, Influentials, and e-fluentials

1 A market maven is a generalized market influencer who market maven

provides significant amounts of information about various products, places to shop, and so on

2 Roper Starch identifies a group similar to market mavens

called influentials Influentials are 10% of population but influentials

use broad social networks to influence the other 90%!

3 Roper Starch identifies a group similar to Internet market

mavens called e-fluentials They wield significant online e-fluentials

and offline influence

Communications within Groups and Opinion

Leadership

Marketing Strategy, WOM, and Opinion Leadership

 Strategies designed to generate WOM and encourage

opinion leadership include:

Marketing Strategy, WOM, and Opinion Leadership

Online Strategies to Leverage Buzz and WOM

Viral marketing is an online “pass-it-along” strategy, Viral marketing

utilizing electronic communication to trigger brand

messages (often via email) throughout a widespread

network of buyers.”

Blogs are personalized journals where people and Blogs

organizations can keep a running dialogue

Twitter is a micro-blogging tool that has evolved quickly

into one of the largest social media outlets

7-27

Communications within Groups and Opinion

Leadership

Courtesy Angie’s List Inc.

Applications in Consumer Behavior

An innovation is an idea, practice, or product perceived to be innovation

new by the relevant individual or group.

The manner by which a new

product spreads through a

market is basically a group

phenomenon.

New products can be placed

on a continuum from no

change to radical change,

depending on the market’s

perception.

7-29

Diffusion Innovations

Categories of Innovations

changes in behavior(s) that are unimportant to the consumer.

change in an important behavior or a major change in a

behavior of low or moderate importance to the individual.

behavior of significant importance to the individual or group.

7-31

Diffusion Innovations

Adoption Process and Extended Decision Making

Diffusion Innovations

Diffusion Rates for Popular Consumer Electronics (Cumulative)

7-33

Diffusion Innovations

Factors Affecting the Spread of Innovations

Diffusion Innovations