CSU MKT 361 - Chapter 10 Group and Interpersonal Influence

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Chapter 10 Group and Interpersonal InfluencePART I● Reference Group: group of individuals who has significant relevance for a consumer who impacts the consumer’s evaluations, aspirations, and behavior○ shared interests● Group Influence: ways in which group members influence the attitudes, opinions, and 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-model2. legitimate power: based on hierarchy, ex. boss3. expert power: possesses knowledge4. 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 affectvalue 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)<---->highPART 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○ “infiltrating”: fake identities to post reviews ex. do not trust apartment reviews● Consumer Influencers ○ 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 okayChapter 11 Consumers in SituationsUnderstand how value varies with situations1. Time2. Time available3. Purpose4. Where5. Who we are with6. External forces7. 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-fulfillment● Situational memory● Utilitarian● Personality Traits ○ Consumer self-regulation: a tendency for consumers to inhibit outside, or situational influences from interfering with shopping intentions■ Action oriented: high capacity

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CSU MKT 361 - Chapter 10 Group and Interpersonal Influence

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