BMGT451 Final Social Influence 12 13 2012 6 Basic tendencies of human behavior generate positive response o reciprocity consistency social validation liking authority scarcity social influence influence of other people on our everyday thoughts feelings and behavior conformity change in beliefs opinions and behaviors as a result of our perceptions about what other people believe or do o majority influence conforming to the group descriptive norms perceptions of what is commonly done in a given situation injunctive norms perceptions of what is commonly approved or disapproved within the culture personality psychographics and segmentation personality stable response tendency across similar situations trait theories stable internal characterisitcs or traits o consistent and measurable difference across individual single trait theories consumer ethnocentricsm o need for cognition o need for uniqueness multi trait theories o five factor model openness to experience conscientiousness extraversion agreeableness neuroticism lifestyle usage rates psychographics attempt to develop quantitative measures of o attitudes values activities demographics media pattersn o types general vals and prizm or specific o VALS 8 segments of American adults Psycho characteristics that correlate with purchase patterns Motivations and resources Primary motiv Ideals achievement and self expression Resources are ability to pursue primary motivation Psychological physical economic Increase over life spand then decline o Prizm Geo lifestyle analysis People with similar cultural backgrounds means and perspectives gravitate towards each other live amongst each other shared patterns consumer behavior 66 segments based on social and life stage grousp social groups urband suburban second city town life stage young family mature segmentation strategy o developing segments marketers use demo psycho and motivation personality to develop consumer segments helps to identify target consumers focus on consumer types groups most worth pursuing strengthen brand identity by making messages for different groups o tailor segmentation to a strategic decision o actual purchasing behavior and likely behavior o redefine segments as market conditions change GROUP AND SITUATIONAL INFLUENCES Group two or more individuals who share a set of norms values or beliefs that have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent Reference group group whose presumed perspecties or values are being used by an individual as basis for his or her current behavior Classification of groups o Membership o Strength of social tie o Type of contract o Attraction Convergence people imitate the behaviors of those around them o Bandwagon and herding o Fact that other do it means it is good better if expert Degree of reference group influence o Stronger if use of product is visible to group less of a necessity item is individuals are committed to group activity is relevant to grop functioning lack of confidence in purchase situation Divergence avoiding what others do 2 types o Uniqueness people see themselves as special too many people doing same thing makes it unspecial o Identity signaling people buy and do things because of function and what they SYMBOLIZE people make inferences based on the brand product choices of others o More likely to see divergence in identity relevant domains o People diverge if value of brand is lost For symbolic goods value is communication new adopters new meaning Informational influence using the behaviors and opinions of reference group as potentially useful bits of information Normative utilitarian influence acting based on what reference group considers appropriate or not Identification influence acting after internalization or reference group s values norms Innovation idea practice or product perceived to be new by the relevant individual or group o Continuous minor changes in behavior o Dynamically continuous moderate change o Discontinuous major changes Diffusion of innovations manner in which innovations spread throughout a market slow growth then rapid then slow situational influence factors relating to a particular time and place that are not based on personality or stimuli but still affect behavior o can be very powerful tend to be underestimated physical surroundings ambience atmosphere weather social surroundings alone vs group situational characteristics o temporal persepctives deal with effect of time o task definition reason for consumption activity self use vs gift giving o antecedent states moods and momentry conditions o Non conscious influences Culture learned set of shared knowledge beliefs rituals norms and traditions that are shared among members of an organized society Sub cultures a segment of a lrger culture whose members share distinguishing values and patterns of behavior o Religion ethnic Iceberg model evident culture customs language vs deep culture Norms rules dictating what is right vs wrong socially enforced Laws rule of conduct or action prescribed or formally recognized as binding or enforced by a controlling authority Culture can affect all aspects of consumer behavior o Expectations of product characteristics o Perception of product benefits Maintain growth by moving into international market Individualistic culture importance of personal goals o change memberships when demand too high o personal enhoyments o usa England Canada collectivistic culture subordinate personal goals to those of a stable in group o self discipline and accept ones position in life o Venezuela Taiwan turkey Greece japan Country of origin effects stereotypes about countries in which products were made impact people s consumption choices o Usually product specific o Match up hypotheses preference for goods that match their notion of country of origin o Assumes that consumers are knowledgable of brand origins o Animosity of products made in certain countries Subcultures native American Hispanic arab American Religios subcultures chrisitan jewish muslim Buddhist Key takeaways need to undersyand norms within culture to understand expectations and perceptions o Consumers often cannot articulate in advance their cultural assumptions o Some expectations are product specific o Some types of assumptions are deeply embedded cultural values e g individualism vs collectivism o Marketers often will need to test their ideas with the different cultures sub cultures to