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Chapter 11

Chapter 11. Social Influences on Consumer Behavior. Learning Objectives~ Ch. 11. To understand: How general sources of influence differ in four key ways The influence of opinion leaders-especially in the era of social media The types /characteristics of reference groups

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Chapter 11

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  1. Chapter 11 Social Influences on Consumer Behavior

  2. Learning Objectives~ Ch. 11 To understand: • How general sources of influence differ in four key ways • The influence of opinion leaders-especially in the era of social media • The types/characteristics of reference groups • Both normative & informational influence

  3. 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.”

  4. Social Influences

  5. General Sources of Influence • Marketer-dominated • Non-marketer-dominated • Delivered • Via mass media • Personally • Sources differ? • Reach • Capacity for two-way communication • Credibility

  6. Sources of Influence

  7. 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

  8. Types of Reference Groups • Aspirational • Associate products with • Associative • Accurately represent • Brand communities • Dissociative • Avoid using

  9. Reference Groups Characteristics • Degree 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

  10. Tie-Strength & Social Influence

  11. Marketing Implications • Understand information transmission • Target formal reference groups • Target homophilous consumers • Target the network • Understand strength of weak ties • Embedded markets

  12. Reference Groups as Socializing Agents • People • Media & marketplace • Celebrity • Sorority/Fraternity • Campus organizations • Sport

  13. In What Ways is Tiger an Influencer? Adage.com

  14. 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

  15. Sources & Types of Influence

  16. 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

  17. 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

  18. 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.”

  19. Informational Influence Strength Is impacted by: • Product characteristics • Consumer & influencer characteristics • Group characteristics

  20. 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

  21. Restoring Public Trust

  22. 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

  23. Handling Rumors & Scandals • Do nothing • Do something locally • Do something discreetly • Do something big • Take responsibility for what is right

  24. Questions?

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