GROUP INFLUENCES ON CONSUMER BEHAVIOR Group Processes Group: Two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent. Notes about groups and group processes: • Interdependence • Purpose • Influence on behavior – 2 ways: as individuals & group decisions • Dichotomous membership Types of Groups Reference group: an actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior Any external influence that provides social clues can be a reference group 1. Aspiration groups 2. Dissociative/avoidance groups 3. Formal vs. Informal groups When Reference Groups Are Important Social power: capacity to alter the actions of others Types of social power: Referent power Information power Legitimate power Expert power Reward power Coercive power How Groups Influence Consumers 3 ways: Group Influence Processes Roles Conformity How Groups Influence Consumers How do you get information from groups? Through what process? 1. Group Influence Processes: a) Informational * Acquire information from the group b) Normative (utilitarian) * Gain approval or avoid disapproval from group c) Identification (value expressive) * Identify with the group and incorporate group values and norms as part of your own selfconcept and identity How Groups Influence Consumers 2. Roles Defn: specific behaviors expected of a person in a given position Role Related Products: group of products needed by a person to fulfill a role What are Some Role Related Products for Students? Functionally necessary product for students? Symbolically necessary product for students? The Asch Experiment Which of the 3 lines (A, B or C) are closest in length to the length of line X? X A B C Why did these subjects make the wrong choice? Were the subjects convinced or did they just go along with the crowd? How Groups Influence Consumers 3. Conformity Defn: Changing behavior or beliefs toward a group as a result of real or imagined group pressure. Two types of conformity: compliance & private acceptance i) compliance – the consumer conforms to a group without really accepting the groups beliefs ii) private acceptance – the consumer actually changes his or her beliefs in the direction of the group What would lead someone to conform to group pressure? How Groups Influence Consumers What Factors lead to Conformity? Within the group Cohesiveness Expertise Size Within the individual Information available Self-esteem Attractiveness of the group and Need to be liked Type of decision Product salience Degree of conspicuousness Guerrilla Marketing Origination of term ‘Guerilla’ Ambushing consumers with promotional content in places where it is not expected in order to get people talking Unconventional Good for small businesses or limited budgets Examples Smirnoff underpass in England Burnout 2 speeding fines Discover and New Year’s Eve Viral Marketing Company recruits customers to be sales agents by offering some incentive to spread the word about the product Providing opportunity for exponential growth Includes implied endorsement from a friend Must be easy to transfer and replicate “Get Your Free E-mail at Hotmail.com” Grew from 0 to 12 million users in 18 months Grew more rapidly than any company in any media Budget $50,000 Other examples: evite.com, e-cards Where does 6 degrees of separation come from? Not Kevin Bacon Each person has a v. close network of 8 to 12 people Broader network of hundreds or thousands of people Milgram late 60s Chain letter sent to 160 random people in Omaha, Nebraska Included name and address of stockbroker in Boston Write name and address and send to friend or acquaintance who you think would get letter closer to stockbroker Looked at the list of all those whose hands it went through to get there and establish how closely connected someone chosen at random from one part of the country is to another person in another part of the country What’s the difference between Buzz vs. Hype? Buzz Hype Word of Mouth Advertising Grassroots Corporate Authentic Fake Credibility Skepticism Group Communications Opinion Leadership – what is it? Knowledgeable group member Greater product involvement and knowledge Public individuation – willing to act differently Influence others’ attitudes and behaviors Group Communications Market Maven Someone who has a lot of information on a lot of different products, prices, or places Likes to share the information with others but not a persuader Connectors Know lots of people Social glue – bring people together Salespeople Persuaders through trust and rapport not forced conformity Emotional contagion (Cacioppo) – expressive and contagious personalities From “The Tipping Point” by Malcolm Gladwell