Chapter 12The meaning of groupsImportance of groupsTypes of social groupsSlide 5RolesSlide 7StatusReference groupsTypes of reference groupsSlide 11Factors that affect reference group influence1. Consumer’s information and experience2. Credibility, power and attractiveness of the reference groupSlide 153. Conspicuousness of the productImplications for marketingSelected consumer-related reference groups1. Friendship groups2. Shopping groups3. Work groups4. Consumer action groupsReference group appeals1. Celebrity appealsSlide 252. Expert appeals3. The common man appeal4. The executive spokespersonGroup InfluenceGroup InfluenceChapter 12Group InfluenceThe meaning of groupsTwo or more individuals who Share a set of norms, values or beliefsHave certain role relationshipsExperience interdependent behaviorA social system in which membersHave regular contactAct cooperativelyShare common goalsImportance of groupsPlay an important role in consumer socializationThe process by which we acquire the skills, knowledge and attitudes necessary to function as consumersAs consumers we learn to think and behave according to society’s expectations as modeled by the groups we interact withTypes of social groupsPrimary groups: small and intimate groups we come together with frequently and face-to-faceSecondary groups: less intimacy and personal interactionKey difference is the extent of influence over one’s attitudes, beliefs, behavior, etc.Formal groups: organized, hierarchical groups where structure is defined, roles delineated, etc.Informal groups: often emerge from formal groups, but may also emerge between neighbors, friends, etc.RolesPatterns of behavior expected of individuals within a given social contextMay develop in one of three ways1. Formal role definitions prescribed by the group2. Informal rules of the group3. History of prior experiencesRoles influence consumption behaviorA role-related product cluster is a set of goods necessary to play a given roleStatusThe relative position of a person in a group’s social spectrumConsumers often purchase goods and services appropriate to their status within a groupReference groupsAny person or group that serves as a point of comparison (reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behaviorReference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisionsTypes of reference groupsNormative: groups that influence general or broadly defined values or behaviorComparative: groups that benchmark specific or narrowly defined attitudes or behaviorsIndirect: individuals or groups with whom a person does not have direct contact, such as movie stars, sports heroes, celebrities, political leaders, etc.Membership reference groupsAspirational reference groupsDissociative reference groupsFactors that affect reference group influenceDegree of influence a reference group exerts on a consumer’s actions depend on several factors:1. Nature and extent of consumer’s information and experience2. Credibility, attractiveness, and power of the group3. Conspicuousness of the product1. Consumer’s information and experienceGreater the consumer’s access to information about or experience with a product, the less likely it is that he or she will be influenced by the advice or examples of others2. Credibility, power and attractiveness of the reference groupDirect relationship between these factors and the influence the group wieldsConsumers are more likely to be persuaded by those whom they consider trustworthy and knowledgeable—i.e., high credibilityConsumers who are concerned with the power that a group can exert over them might choose products or services that conform to the norms of that person or groupConsumers who are concerned with the acceptance or approval of others they like or identify with are likely to adopt their product, brand, or other behavioral characteristics3. Conspicuousness of the productA purchase that will stand out and be noticed is more likely to be made with the reaction of a reference group in mindParticularly true for luxury and status-revealing purchasesImplications for marketingMarketers who employ reference group influence must understand that consumers have multiple reference groupsDifferent groups may influence consumer purchases in different areasMarketers must first identify the types of groups that consumers are likely to refer to when making a purchaseThen they are in a position to select appropriate influencers to deliver the marketing messageSelected consumer-related reference groupsThere is a large and diverse range of groups that have the potential to influence consumer behavior; we will look at four:1. Friendship groups2. Shopping groups3. Work groups4. Consumer action groups1. Friendship groupsGenerally considered informal groupsNext to family, considered the most likely to influence individual’s purchase decisionSeeking and maintaining friendships is a basic drive of most peopleOpinions and preferences of friends are an important influence in determining the products and brands a consumer selectsMarketers recognize this and often depict friendship situations in their ads, especially for products such as clothing, snack foods and alcoholic beverages2. Shopping groupsTwo or more people who shop togetherA range of reasons1. Social--to share time together2. Risk reduction--to have a second opinion3. Informational--others in the group may know more about certain products3. Work groupsThe workplace actually creates two different types of group: formal and informalFormal work groups involve individuals who work together as a team and thus there is an opportunity for influencing each other’s consumption-related activitiesInformal work groups are people who have become friends through their work, though they may not work as a team4. Consumer action groupsToday there are many groups whose purpose is to provide information and assistance to consumersSeveral different typesPublic vs. privateSingle-issue vs. broad-basedTemporary vs. permanentReference group appealsFour very common and effective reference group appeals used by advertisers include1. Celebrity appeals2. Expert appeals3. Common-man appeals4. Executive appeals1. Celebrity