Lecture Consumer behaviour: Chapter 14 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 14 - Group influence and communication. This lecture explains how groups are defined and their influence on consumption. Marketers use information about groups to devise various strategies and utilise groups to communicate information about their products. The concept of diffusion of innovations or ideas is an example of the influence of groups in marketing.

• Group function and classification of groups

• Impact of reference groups on consumption

• Marketing strategies based on group influence

• Roles of group members and marketing strategies

Group Influences

– ‘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’

– 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

Changes in Reference Groups as

the Situation Changes

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

14–6

Types of Groups (cont.)

• Aspirational reference groups

– non-membership groups

– positive attraction

– exert a strong influence on some products

Types of Groups (cont.)

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

14–8

Reference Group Influences on

the Consumption Process

• Conformity:

– …makes groups influential

– …is the tendency to want to be like ‘relevant and

significant others’

– …generally makes life more pleasant

• Norms:

– are general expectations about behaviours that are

deemed appropriate for all persons in a social context, regardless of the position they hold

– are often communicated non-verbally

• Normative influence (utilitarian influence)

– when an individual fulfils group expectations to gain a direct reward or avoid a punishment

• Identification influence (value-expressive influence)

– when an individual uses perceived-group norms and

values as a guide for their own attitudes or values

Consumption Situations and

Reference-Group Influence

Consumption Situations and

Reference-Group Influence (cont.)

Consumption Situations and

Reference-Group Influence (cont.)

• R-Group influence is strongest when use of the

product or brand is visible and relevant

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

visible

• R-group influence increases as necessity of an

item decreases

• The more commitment an individual feels to a

group, the higher the level of conformity to group

norms

• Individual’s confidence with purchase: low

confidence, then higher influence

Product Characteristics and Type of

Reference-Group Influence

Influence of Two Consumption Situation Characteristics on Product/Brand Choices

Consumption-Situation Determinants of

Reference-Group Influence

 informational (use of information)

 normative (to avoid/gain)

 identification (aspire to join)

• A consumption subculture is a distinctive subgroup

of society that self-selects on the basis of a shared commitment to a particular product class, brand or consumption activity

• Examples: Product: Harley-Davidson

Activities: Body building, golf

– a prescribed pattern of behaviour expected of a person in

a given situation by virtue of the person’s position in that situation

• Role-related product cluster e.g new mother

• Evolving roles e.g career females

• Role conflict and role overload e.g working mother,

working student

• Role acquisition and transition e.g student to employee

Role Set for a Student

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

14–22

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

• 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

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

14–24

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 – attention seeking

• High level of exposure to media

• The market maven – expert on all products!

• Motivation of dissatisfied customers to tell others of their negative message

Likelihood of Seeking an Opinion Leader

• Identifying opinion leaders

• Targeting for marketing research

• Product sampling

• Retailing/personal selling

• Advertising attempts to encourage and simulate

opinion leadership

• Nature of the innovation

– ‘new’ as perceived by individuals or group

• Categories of innovations

– continuous innovation: small changes needed

– dynamically continuous innovation: modest changes

– discontinuous innovation: large changes

Categories of Innovations

The Adoption Process and Extended Decision Making

Adoption of Innovation Curve