Chapter 14: Group Influences

1. Chapter 14: Group Influences

2. What is a Reference Group? An actual or imaginary group which has an influence on a person’s evaluations, aspirations and behavior. Forms of Influence: ~ informational (pre-purchase, purchase, and post-purchase) ~ utilitarian (group’s preferences) ~ value-expressive (social image)

3. Types of Reference Group Influence Normative: Setting fundamental standards of “how” to conduct oneself. This kind of influence affects the product class one consumes, not so much the specific brand. Comparative: This influences the specific brands one purchases rather the broader product class level decisions.

4. Variations in Reference Groups Formality: (1) Formal reference groups characterized by structure charter, periodic meetings, officers, explicit set of rules (e.g., Religious groups etc.). These are more “marketable” (2) Informal reference groups (e.g., Friends) Nature of Relationship: (1) Membership groups. Here identification depends on: ~ propinquity or physical distance ~ group cohesiveness ~ mere exposure (2) Aspirational

5. Variations in Reference Groups (Continued) Valence of Relationship: (1) Positive or Approach (2) Negative or Avoidance In summary, reference groups vary in terms or (a)degree of formality, (b) nature of relationship and (c) valence of relationship.

6. When Do Reference Groups Have the most Influence? Some factors are: Level of Risk Luxury or Necessity Public or Private Consumption Also, some times the influence is at the brand level and other times it may be at the product level.

7. Necessity Luxury Brand Product Class Brand None Product Class Public Private The effect of the reference group depends on the visibility of the consumption and the extent to which a product is a necessity. For example, in the grid below, reference groups generally affect brand choice for publicly consumed necessities, and affect product class choices for privately consumed luxury goods.

8. Types of Power Which Reference Groups Have Social Power refers to the ability to change a person’s behavior. ~ referent power (the model) ~ informational power (editors) ~ legitimate power (officers in a formal structure) ~ expert power (your friend who is a computer expert) ~ reward power ~ coercive power

9. Factors that Influence Conformity to the Group Dictat Culture Pressures Fear and Consequences of Deviance Commitment ~ principle of least interest Group Unanimity, Size and Expertise Gender Differences