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
• 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
Organizational
and Household
Decision Making
• The purchase decisions in conjunction with others,
especially coworkers or family members
1.
Chapter
outline
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
Reference Group
1
1
Why do others, especially those who possess
some kind of social power, often influence us?
1
Reference Group: is an actual or imaginary
individual or group conceived of having significant
relevance upon an individual’s evaluations,
aspirations, or behavior.
1
Reference Groups: influence in 3 ways
Informational
•
•
•
•
•
Information seeking
brand- related knowledge
and experience
Reliable information about
brands
Information from experts
ValueExpression
Utilitarian
•
•
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”
1
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
1
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
1
Types of Reference Groups
1
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
1
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
1
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
1
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,
1
How can we predict which people you know
will be part of your membership reference
group?
1. 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:
1
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
2
2
* Why are we motivated to buy or use products
in order to be consistent with what other
people do?
Conformity
2
• 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
Conformity
2
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
3
Opinion Leadership
3
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
3
* 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
3
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
3
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
Any Question?