Chapter 10 Group and Interpersonal Influence PART I Reference Group group of individuals who has significant relevance for a consumer who impacts the consumer s evaluations aspirations and behavior Group Influence ways in which group members influence the attitudes opinions and shared interests behaviors of others within the group Group members share common goals and interests communicate w and influence one another share a set of expectations norms rules roles view themselves as members of a common social unit identity Types of Groups Primary frequent contact and communication w each other ex family dorm forums Secondary associate w it less relevant ex club brand community Formal require a membership process Informal naturally occur no formal group ex friends Aspirational desire to be a member want to be in the group Dissociative do not want to be a part of a group Conformity result of group influence in which an individual yields to the attitudes and behavior of others Peer pressure the extent to which group members feel pressure to behave in accordance with group expectations can be positive can happen w o conformity Types of Social Power can have all 5 in different degrees 1 referent well liked respected role model 2 legitimate power based on hierarchy ex boss 3 expert power possesses knowledge 4 reward power power to reward ex coach more playing time 5 coercive power power to punish ex coach cannot play Reference Group Influence Informational Influence consumers use the behaviors and attitudes of reference groups as information into making their own decisions Utilitarian Influence consumers conform to group expectations to receive a reward or avoid punishment Value expressive Influence consumers internalize a group s values or join groups to express their own values and beliefs Value and Reference Groups Utilitarian value group membership becomes a means to a valued end state Hedonic value value is an end in and of itself ex fun Info obtained from referents impacts consumer expectations which then affect value perceptions and satisfaction Individual Difference in Susceptibility to Group Influence Susceptibility to interpersonal influences susceptible independent Attention to social comparison information awareness of social info Separateness Connectedness involvement in relationships Embarrassment easily low high PART II Word of Mouth info about products services and experience that is transmitted from consumer to consumer negative is stronger due to prospect theory Organic more powerful naturally occurring ex Facebook Amplified artificial ex marketers ask questions Digital Word of Mouth any activity happening online consumers seek and deliver advice online and through text messaging on the value of products and services marketers encourage in order to help build brand communities attempts to monitor and respond to negative digital WOM Buzz Marketing efforts that focus on generating excitement buzz that is spread from consumer to consumer naturally Guerilla marketing marketing of a product using unconventional means ex European water on bikes light up TNT Viral marketing uses online technologies to facilitate WOM by having consumers spread marketing messages through their online conversations companies cannot make things viral Stealth Marketing guerilla marketing tactic where consumers are completely unaware that they are being marketed to can be considered unethical shilling people are being paid compensated ex Nike gives their shoes to popular kids Consumer Influencers infiltrating fake identities to post reviews ex do not trust apartment reviews Opinion Leaders consumers who have a great influence on the behavior of others relating to product adoption and purchase in a certain product category Surrogate Consumer hired by another consumer to provide input into a purchase decision ex interior designer Market Maven a consumer who spreads information about all types of products and services Diffusion Process the way in which new products are adopted and spread throughout a marketplace goal to get more people to adopt want to target easily influenced ex fire spreads faster Household Purchase Roles ex computer in business User ex sales using it Purchaser ex manager Influencer ex IT department Gatekeeper ex ACT department budget Decision maker ex higher up that signs off gives okay Chapter 11 Consumers in Situations Understand how value varies with situations 1 Time 2 Time available 3 Purpose 4 Where 5 Who we are with 6 External forces 7 Financial or personal situation Situational Influence Categories Time changes the way info is processed Time pressure sense of urgency process less heuristics mental shortcuts ex high price high quality rely on price Time of year seasonality Time of day circadian cycle Place frames purchase consumption or info processing situation Conditions influence consumption Advertiming companies buy advertising using a schedule that runs the ad primarily at times when customers will be most receptive ex senior ads during the day turkey ads before Thanksgiving Shopping Activities Acquisitional to get something specific Epistemic to learn Experiential recreation Impulsive spontaneous buy no plans Personal Shopping Value PSV overall subjective worth of a shopping activity considering all associated benefits and costs utilitarian ex need and hedonic ex window shopping Retail Personality way a retail store is defined in the mind of a shopper Affective quality retail positioning that emphasizes a unique environment Functional quality retail positioning that emphasizes tangible things Impulsive consumption consumption acts characterized by spontaneity Impulsive vs Unplanned both spontaneous Impulsive Unplanned Diminished regard for consequences Emotional hedonic immediate self Situational memory Utilitarian fulfillment Personality Traits Consumer self regulation a tendency for consumers to inhibit outside or situational influences from interfering with shopping intentions Action oriented high capacity to self regulate ex seniors State oriented low capacity to self regulate ex teenagers Compulsive Consumer Behavior Harmful do not recognize Uncontrollable consistently Driven by chronic depression Retail and Service Atmospherics the emotional nature of an environment or more precisely the feelings created by the total aura of physical attributes that comprise the physical environment Qualities of an Environment Atmosphere Elements create competitive advantage