Class 19 Groups

CA 2018 Consumer Insight A.Kwanta Sirivajjanangkul A.Panitta Kanchanavasita Albert Laurence School of Communication Arts Department of Advertising 2013

Consumers as Decision Makers

Decision Making • Basic sequence of steps we undergo when we make decisions Buying and Disposing • How the particular situation in which we find ourselves affects these decisions and how we go about evaluating the results of our choices Group Influence and Opinion Leadership Organizational and Household Decision Making • An overview of group processes and discusses the reasons we are motivated to conform to the expectations of others when we choose and display our purchases • The purchase decisions in conjunction with others, especially coworkers or family members

Chapter outline

1. Reference Group • • • Three forms of Reference Group Influence Classification of Powers Type of Reference Groups – Brand Communities and Consumer Tribes – Membership VS Aspirational Reference Groups – Positive VS Negative Reference Groups 2.

Conformity – Common Factors 3. Opinion Leadership • • Common Characteristics of Opinion Leaders Type of Opinion Leaders

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Reference Group

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Why do others, especially those who possess some kind of social power, often influence us?

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Reference Group: is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior.

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Reference Groups: influence in 3 ways Informational Utilitarian Value Expression • • • • Information seeking brand- related knowledge and experience Reliable information about brands Information from experts • • • Brand is influenced by preference of family members Purchasing a particular brand is influenced by their preferences Purchasing a particular brand is influenced by a person whom they have social interaction • • • • • brand will enhance images others have Brand possess characteristics that others have Advertisement gives a good feeling of using a brand Purchasing a brand are admired by others brand would help show others what he or she would like to be

1 Social power

“The capacity to alter the actions of others”

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Power Classifications are as follows: 1.

Referent power: if a person admires qualities of a person or group, he tries to copy the referent’s behaviors • ex. choice of clothing, cars 2.

Information power: a person can have power simply because she knows something others would like to know • ex. Editor of trade publications such as Women’s Wear Daily 3. Legitimate power: sometimes we grant power by virtue of social agreements (legal)

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Power Classifications are as follows: 4.

Expert power:

to attract the casual internet user • ex. Showing that you are expert in that topic

5. Reward power:

a person or group with the means to provide positive reinforcement • ex. Tangible – money, award • ex. Intangible – comments or the approval from judges on American Idol/the Voice

6. Coercive power:

we use coercive

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Types of Reference Groups

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Types of Reference Groups Brand Communities and Consumer Tribes • Brand Communities: is a group of consumers who share a set of social relationships based on usage or interest in a product – unlike other kinds of communities, these members don’t live near each other, but only they will meet and join in events or brandfests – people who participate in these events feel more positive about products

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Types of Reference Groups • Brand Communities and Consumer Tribes Consumer Tribes: is a group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or a product – these people share emotions, moral beliefs, style of life and of course the products they jointly consume as part of their tribal affiliation – ex. Students who live in the same apartment

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Types of Reference Groups Membership VERSUS Aspirational Reference Groups • Membership Reference Group: People or a group of people we admire. They consists of people we actually know each other

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Types of Reference Groups Membership VERSUS Aspirational Reference Groups • Aspirational Reference Group: People or a group of people we admire. We don’t know them but we admire them anyway – ex. Successful business people, athletes, performers,

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How can we predict which people you know will be part of your membership reference group?

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• Propinquity: Physical nearness as physical distance between people decrease and opportunities for interaction increase 2. Mere exposure: Mere exposure phenomenon • We come to like persons or things if we see them more often • greater frequency of contact, even if unintentional, may help to determine one’s set of local referents 3. Group cohesiveness: • Refer to degree to which members of a group are

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Types of Reference Groups Positive VERSUS Negative Reference Groups – reference groups impact our buying decisions both positively and negatively – sometimes we do the opposite if we want to distance ourselves from avoidance groups – ex. Nerd, druggies • motivation to distance from negative reference group more powerful than desire to please a positive group • Deindividuation: a process where individual identities become submerged within a group • Social loafing: a process where individual don’t devote as much to a task because contribution is part of a larger group effort

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Conformity

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* Why are we motivated to buy or use products in order to be consistent with what other people do?

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Conformity

• Conformity: is a change in beliefs or actions as a reaction to real or imagined group pressure – in order for a society to function, its members develop norms, or informal rules that govern behavior – we conform in many small ways every day – even though we don’t realize it – Norms: • • ex. Gift-giving: We expect birthday presents from loved ones ex. Sex roles: men often pick up the check on a first

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Conformity

Conformity Factors:

1. Cultural pressures • different cultures encourage conformity to a greater or lesser degree 2. Fear of deviance • the individual may have reason to believe that the group will apply sanctions to punish nonconforming behaviors 3. Commitment • the more people are dedicated to a group and value their membership in it 4. Group unanimity, size, and expertise • As groups gain in power, compliance (agreement) increases 5. Susceptibility to interpersonal influence

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Opinion Leadership

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Why are certain people particularly likely to influence others’ product choices?

• Opinion Leader : is a person who is frequently able to influence others’ attitudes or behaviors

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* Common Characteristics of Opinion Leaders – – – – – – they are technically competent so they posses expert power they prescreen, evaluate, and synthesize product information in an unbiased way, so they possess knowledge power they are socially active and highly interconnected in their communities they are likely to hold offices in community groups and club and to be active outside of the home, so they possess legitimate power they tend to be similar to the consumer in terms of their values and beliefs, so they possess referent power they are often among the first to buy new products, so they absorb much of the risk

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Type of Opinion Leaders

• The Market Maven – A person who likes to transmit marketplace information of all types – they are not necessarily interested in certain products – they may not necessarily be early purchasers – they are simply into staying on top of what is happening in the marketplace – they tend to have a solid overall

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Type of Opinion Leaders

• The Surrogate Consumer – A person whom we retain to provide input into our purchase decisions – Unlike the opinion leader or market maven, we compensate the surrogate for his or her advice – Ex. Interior decorators, stockbrokers, professional shoppers, personal stylist, beauty advisor

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