Lecture6GroupsandSocialInfluencesem121.pptx

Lecture 6

Groups and Social Influence

Chapter 11

6.1 Introduction to Groups and Social Influence

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Conceptual Map of Groups and Social Influence

Peers

Decision Making

Communities

Influential Others

Family

This chapter is about the consumers network and how the network of influences consumer decision-making and subsequent behaviour. This is particularly pertinent when extending this thinking to the explosion of social media and virtual networks.

There are three major reference groups that influence consumers; family, peers, communities and those that we don’t personally know but that we respect and admire (eg celebrities). These reference groups can be real or imagined, virtual or in the physical world.

We look at each of these groups and how they influence us.

Social Identity Theory

Argues that each of us has several ‘selves’ that relate to groups. These linkages are so important that we think of ourselves not just as ‘I’, but also ‘we’.

Reference Groups

People’s desire to ‘fit in’ or to identify with desirable individuals or groups is the primary motivation for many purchases and activities. A reference group is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour. Reference groups influence consumers in three ways:

Informational

Utilitarian

Value-expressive

Social Identities and Influence

End section

6.2 Group Theory

Need to differentiate between…

How groups influence individual actions

versus

How groups behave as a collective

6.2.1 Reference Groups

Definitions

Group: two or more individuals who share a set of norms, values or beliefs and have certain implicitly or explicitly defined relationships that make their behaviours interdependent

Reference Group: An actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour.

6.2.2 Group Characteristics

Group Characteristics

Membership

either yes or no

Degree of contact

larger groups generally have less contact

primary groups generally have frequent interpersonal contact

secondary groups generally have limited interpersonal contact

Attraction

desirability of being member

either positive or negative

Groups may be classified on the basis of membership, nature of contact, and attraction.

The nature of contact is based on the degree of interpersonal contact. Groups that have frequent personal contact are called primary groups, while those with limited interpersonal contact are called secondary groups. Attraction refers to the degree of positive or negative desirability the group has to the individual. (See page 451.)

REFERENCE GROUP TYPE	DEFINITION
Membership (or associative) groupPositive associations	A membership group is formed of ordinary people whose consumption activities provide informational social influence
Formal groupMember of the group	A formal group is typically influenced by outside structures and is likely to have a formalised constitution and set of rules of conduct for members
Informal groupMember of the group	An informal group does not necessarily have any formally defined structure or people who are known to each other, nor does the group have to gather together physically; members get together because of a mutual interest or through friendship
Aspirational groupNon-member of the group	An aspirational group is composed of celebrities and other high-profile people such as sports stars or businesspeople that a consumer can identify with or admire from a distance, and who they aspire to be like
Dissociative (or avoidance) groupNegative associations	A dissociative group is a group with which the individual wishes to avoid being associated and feels a sense of disidentification

Types of reference groups

Table 11.1 , pg 359

The table has 5 rows and 2 columns. The column headings from the left to the right are reference group type and definition. The row entries are as follows.

Row 1. Reference Group Type. Membership or associative group. Positive association. Definition. A membership group is formed of ordinary people whose consumption activities provide informational social influence.

Row 2. Reference Group Type. Formal group. Member of the group. Definition. A formal group is typically influenced by outside structures and is likely to have a formalised constitution and set of rules of conduct for members.

Row 3. Reference Group Type. Informal group. Member of the group. Definition. An informal group does not necessarily have any formally defined structure or people who are known to each other, nor does the group have to gather together physically, members get together because of a mutual interest or through friendship.

Row 4. Reference Group Type. Aspirational group. Non-member of the group. Definition. An aspirational group is composed of celebrities and other high-profile people such as sports stars or businesspeople that a consumer can identify with or admire from a distance, and who they aspire to be like.

Row 5. Reference Group Type. Dissociative (or avoidance) group. Negative associations. Definition. A dissociative group is a group with which the individual wishes to avoid being associated and feels a sense of disidentification.

Types of Groups

Schiffman, Bednall, Watson & Kanuk (1997) page 314

	Membership Group	Non-membership group
Positive influence	Contactual (Formal / Informal)	Aspirational

Negative influence	Disclaimant (Disidentification)	Avoidance/ Dissociative

End section

6.3 Types of Social Influence

General types of social influences

Types:

Informational (use of information)

Normative (to avoid/gain)

Identification (aspire to join)

The Asch phenomenon is used when groups of potential customers are brought together and the group is used to influence individuals to conform by giving approval to the product.

When left to make a decision on our own, we rely on the information in front of us. When we have to make a decision after hearing others opinion, we often rely on others opinions more than the information in front of us.

Other strategies are used in advertising. Advertising using informational influence typically shows members of a group using the product, with a message that if you want to be in the group, you should purchase the product.

Normative influences suggest that an individual will be rewarded or not have the group’s disapproval by using a given product. For example, an expensive branded product will gain approval from the group.

An example of identification influence would be those wishing to become ‘identified’ with a group. They may see popular people owning and driving a certain brand of car and then aspire to also own a similar brand. (See pages 457–459.)

Reference Group Influence

Reference groups influence consumers in three ways:

Informational reference group influence occurs during an internalisation process where an individual’s knowledge is enhanced by interactions about the marketplace or an ability to cope.

Utilitarian reference group influence is similar to normative influence in that an individual in a product purchase situation will comply with the preferences or expectations of an individual or the group.

Value-expressive group influence relates to a person’s motive to enhance or support their self-concept. Companies regularly develop ads which link their brand to a visually attractive model or entity with a view to enhancing brand image through association made by connection to the admired individual.

Factors That Affect Reference Group Influence

Information and experience

Credibility, attractiveness, and power of the reference group

Conspicuousness of the product (Private v public consumption)

Necessity of the product (Need versus luxury)

End section

6.4 Power

The power of social Influence

Conformity

Social norms

Types of power

6.4.1 Conformity

Norms are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold. Norms arise quickly and naturally in any group situation. (See page 452.)

Conformity

Changes in beliefs or actions due to group pressure to conform

norms — informal rules that govern behavior

govern many aspects of consumption

eg. about appropriate use of clothing and other personal items, gift giving, sex roles, personal hygiene

Normative social influences

people conform to the expectations of the group

Cultural Pressures to conform

Factors that Influence Conformity to the Group

Individual differencesFear and Consequences of Deviance (sanctions)

Commitment – motivation

Group Unanimity, Size and Expertise

Gender Differences – women conform more?

Implications of Group Influence for Marketing

Impact on developing advertising appeals (e.g. informational influence via use of “experts”)

Impact on personal selling (salespeople as experts-objective sources of information or as a referent with similar needs as consumer)

Marketing research needed, to assess group membership (attitudes, psychographics)

Public versus private consumption of goods and services is an important issue

Conformity versus Individuality

Factors Influencing Conformity

But conformity is not an automatic process. There are several factors that affect the likelihood of conformity:

Cultural pressures: different cultures encourage conformity to varying degrees

Fear of deviance: conformity is also more likely where there is fear of deviance, when the group punishes deviant behaviours e.g. it is not uncommon for people to be teased for being different

Commitment: the more people are dedicated to the group and value membership, the more likely it is they will conform.

Group unanimity, size, and expertise: as the group gains power, compliance increases. Harder to resist the demands of a large group than just a few, even more so when the group members are perceived to know what they are talking about.

Susceptibility to interpersonal influence: this trait refers to an individual’s need to identify or enhance their image in the opinion of significant others.

Some people are more susceptible than others and therefore are more likely to conform.

Factors Influencing Conformity

Cultural Pressures

Fear of Deviance

Commitment

Group unanimity, size and expertise

Susceptibility to interpersonal influence

Conformity

…makes groups influential

…is the tendency to want to be like ‘relevant and significant others’

…generally makes life more pleasant

Conformity

Changes in beliefs or actions due to group pressure to conform

norms — informal rules that govern behavior

govern many aspects of consumption

eg. about appropriate use of clothing and other personal items, gift giving, sex roles, personal hygiene

Normative social influences

people conform to the expectations of the group

Cultural Pressures to conform

Factors that Influence Conformity to the Group

Individual differencesFear and Consequences of Deviance (sanctions)

Commitment – motivation

Group Unanimity, Size and Expertise

Gender Differences – women conform more?

Implications of Group Influence for Marketing

Impact on developing advertising appeals (e.g. informational influence via use of “experts”)

Impact on personal selling (salespeople as experts-objective sources of information or as a referent with similar needs as consumer)

Marketing research needed, to assess group membership (attitudes, psychographics)

Public versus private consumption of goods and services is an important issue

6.4.2 Social Norms

are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold

are often communicated

6.4.3 Types of Power

The Stanford Prison

Power and Reference groups

Referent power: when consumers imitate qualities by copying the referent’s behaviour

Information power: able to influence consumer opinion by virtue of their (assumed) access to the ‘truth’

Legitimate power: granted to people by virtue of social agreements (sometimes conferred by a uniform)

Expert power: possessing specific knowledge about a content area

Reward power: when a person or groups has the means to provide positive reinforcement

Coercive power: influence through social or physical intimidation

End section

6.5 The Family

“Two or more people related by blood, marriage or adoption who reside together in the same household.”

Note: This definition of a family does not require the presence of children.

What are families?

Projected trends in major household types

6.5.1 Family Decision Making

Family Decision Making

Roles in the family decision making process

Family decision-making

Influencers

Preparers

Gatekeepers

Deciders

Buyers

Users

Maintainers

Disposers

6.5.2 Husband-Wife Decision Making

Influencing spouses and resolving conflict

Expert – using superior knowledge

Legitimacy – based on position in household

Bargaining – a trade-off

Reward – offering some form of gift

Impression – persuasive argument

Emotional – using emotional language and behaviour

6.5.3 Family Compositions

Family compositions: Traditional

Family compositions: Modern

non-traditional families

6.5.4 The Role of Children

Children

http://www.howcoolbrandsstayhot.com/2012/05/07/genz-parents-would-like-their-tweens-to-de-tech/

Children:

End section

6.6 Opinion Leadership

Opinion Leadership

People who are knowledgeable about products and who are able to influence others’ attitudes or behaviours.

How influential is an Opinion Leader?

Generalised Opinion Leader: somebody whose recommendations are sought for all types of purchases.

Monomorphic: an expert in a limited field.

Polymorphic: an expert in many fields.

Opinion Leadership

Although consumers get information from personal sources, they do not tend to ask just anyone for advice about purchases.

The Nature of Opinion Leadership

Everyone knows people who are knowledgeable about products and whose advice is taken seriously by others. These people are called opinion leaders. An opinion leader is a person who is frequently able to influence others’ attitudes or behaviours. Opinion leaders are valuable information sources for a number of reasons:

They are technically competent and thus convincing because of their expert power.

They have pre-screened, evaluated, and synthesised (in an unbiased way) product information, so they possess knowledge power.

They are socially active and interconnected in their community.

They are similar to the consumer in value and beliefs, a characteristic described by the term homophily.

They are often among the first to buy new products. They often absorb risk because they purchase products first.

How Influential is an Opinion Leader?

When marketers and social scientists initially developed the concept of the opinion leader, it was assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. Today we question whether there is such a thing as a generalised opinion leader. Opinion leaders tend to be concentrated in their field of interest or expertise (i.e. monomorphic), but it is possible for them to be experts in several concentrated fields (i.e. polymorphic).

Perspectives on the communication process

Long Description of Figure 11.4, page 374

The details are as follows:

Traditional model: ‘Mass media’ leads to ‘opinion leaders’, which leads to ‘recipients’.

Updated model:

‘Mass media’ leads to ‘gatekeepers’ and ‘opinion leaders’. It also leads to ‘recipients’.

‘Recipients’ is connected by bi-directional arrows to ‘opinion leaders’ and ‘gatekeepers’.

From ‘gatekeepers’, an arrow also points towards ‘opinion leaders’.

Consumer Research: Typologies of Consumption Communities

Canniford (2011)

A literature review of consumption community concepts:

Subcultures of consumption

Brand communities

Consumer Tribes

Marketing in Action: Opinion Leadership and Sneakers

Consumption Community Composition

Peripheral / Wannabes

Intermediate / Followers

Hardcore/

Opinion

Leaders

Mainstream

Society /

Outsiders

Consumption Community Composition

Peripheral / Wannabes

Intermediate / Followers

Hardcore/

Opinion

Leaders

Mainstream

Society /

Outsiders

Contactual

Groups

Consumption Community Composition

Peripheral / Wannabes

Intermediate / Followers

Hardcore/

Opinion

Leaders

Mainstream

Society /

Outsiders

Aspirational

Groups

Consumption Community Composition

Peripheral / Wannabes

Intermediate / Followers

Hardcore/

Opinion

Leaders

Mainstream

Society /

Outsiders

Disassociative

Groups

Hip Hop Wannabes

Hip Hop Followers

Rappers /

Run DMC

Mainstream

Society /

Outsiders

Opinion leadership and Fashion diffusion

Status Symbols?In search of exclusivity: The Case of Air Force 1s

Play Sneakers – 43-45.30

Limited Distribution

Limited Brand lines

Special Editions

Designer versions

Fashion trends

An interesting manifestation of social influence can be found in consumers’ adoption of so-called status symbols. While one characteristic of many status symbols is their expense–not everyone can afford a Porsche–other factors can come into play. For example, some of the status associated with torn jeans and backward caps derives from the insight that one must have to know to adopt such intuitively meaningless conventions. Similarly, the fact that parents and other sources of authority object to practices such as the wearing of earrings by boys or multiple ones by girls can result in increased status for those accomplishing successful defiance.

(1:07:45)

Sneaker Hunters Case

Losing Identity

Hip Hop Wannabes

Hip Hop Followers

Rappers /

JayZ

Mainstream

Society

Creating Status – Marketing Strategies

Limited brand lines

Limited distribution

Special editions

Designer versions

Fashion trends

Targeted media

……

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Chart1

2001	2001	2001	2001
2006	2006	2006	2006
2011	2011	2011	2011
2016	2016	2016	2016
2021	2021	2021	2021
2026	2026	2026	2026

Families with children

Families without children

Single-parent families

Lone-person households

46.6

35.6

15.7

24.5

42.9

38.5

16.8

26.4

40.4

40.6

17.2

27.3

38.7

42.4

17.2

30.4

37.8

43.5

32.3

37.2

44.3

34.2

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	Families with children	Families without children	Single-parent families	Lone-person households
2001	46.6	35.6	15.7	24.5
2006	42.9	38.5	16.8	26.4
2011	40.4	40.6	17.2	27.3
2016	38.7	42.4	17.2	30.4
2021	37.8	43.5	17	32.3
2026	37.2	44.3	17	34.2
	To resize chart data range, drag lower right corner of range.

Lecture6GroupsandSocialInfluencesem121.pptx

Lecture6GroupsandSocialInfluencesem121.pptx

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