Chapter 11

Groups
Chapter Objectives
When you finish this chapter, you should
understand why:
Others, especially those who possess some
kind of social power, often influence us.
We seek out others who share our interests
in products or services.
We are motivated to buy or use products in
order to be consistent with what other people
do.
Chapter Objectives (continued)
Certain people are particularly likely to
influence others product choices.
The things that other consumers tell us
about products (good and bad) are often
more influential than the advertising we see.
Online technologies are accelerating the
impact of word-of-mouth communication.
Social networking is changing the way
companies and consumers interact.
Reference Groups
Reference group: an actual or imaginary
individual/group conceived of having
significant relevance upon an individuals
evaluations, aspirations, or behavior
Influences consumers in three ways:
Informational
Utilitarian
Value-expressive

When Reference Groups Are Important
Social power: capacity to alter the actions of
others
Referent power Information power
Legitimate power Expert power
Reward power Coercive power
Discussion
High schools have all types of reference
groups, with members representing all types of
social power. Think back and try to identify
people who had the following types of power.
Referent power
Information power
Legitimate power
Expert power
Reward power
Coercive power
Types of Reference Groups
Any external influence that provides social
clues can be a reference group
Cultural figure
Parents
Large, formal organization
Small and informal groups
Exert a more powerful influence on
individual consumers
A part of our day-to-day lives: normative
influence
Brand Communities and Consumer Tribes
A group of consumers who
share a set of social
relationships based upon
usage or interest in a product
Consumer tribes share
emotions, moral beliefs,
styles of life, and affiliated
product
Brandfests celebrated by
community
Membership versus
Aspirational Reference Groups
Membership reference groups
People the consumer actually knows
Advertisers use ordinary people

Aspirational reference groups
People the consumer doesnt know but
admire
Advertisers use celebrity spokespeople
Factors Predicting
Reference Group Membership
Propinquity
Mere exposure
Group cohesiveness
Positive versus
Negative Reference Groups
Avoidance groups: motivation to distance
oneself from other people/groups
Antibrand communities: coalesce around a
celebrity, store, or brandbut in this case
theyre united by their disdain for it
Consumers Do It in Groups
Deindividuation: individual identities become
submerged within a group
Social loafing: people dont devote as much
to a task when their contribution is part of a
larger group
Risky shift: group members show a greater
willingness to consider riskier alternatives
following group discussion than if members
made their own decisions
Discussion
Home shopping partiessuch as Tupperware, Avon,
Pampered Chef, Amway, or Botoxare designed to
put pressure on friends and neighbors to buy
merchandise.
Have you attended these parties? Why or why not?
Do you believe putting social pressure is ethical?
Why or why not?
Why are these parties more common among
women?


Factors Influencing Conformity
Cultural pressures
Fear of deviance
Commitment
Group characteristics
unanimity
size
expertise
Susceptibility to
interpersonal influence
Opinion Leadership
Opinion leaders
influence others
attitudes and behaviors
Experts
Unbiased evaluation
Socially active
Similar to the
consumer
Among the first to
buy
Opinion Leaders
Is there a generalized opinion leader whose
recommendations we seek for all types of
purchases?
Experts may be monomorphic or
polymorphic

Old and New Social Networks
The Market Maven
Market maven: actively
involved in transmitting
marketplace information of
all types
Just into shopping and
aware of whats happening
in the marketplace
Overall knowledge of how
and where to get products
The Surrogate Consumer
Surrogate consumer: a marketing
intermediary hired to provide input into
purchase decisions
Interior decorators, stockbrokers,
professional shoppers, college
consultants
Consumer relinquishes control over
decision-making functions
Marketers should not overlook influence of
surrogates!
How Do We Find Opinion Leaders?
The self-designating method
Simply ask individuals whether they
consider themselves to be opinion leaders
Easy to apply to large group of potential
opinion leaders
Inflation or unawareness of own
importance/influence
Key informant method
Key informants identify opinion leaders
Sociometric Methods
Sociometric methods: trace communication
patterns among group members
Systematic map of group interactions
Most precise method of identifying product-
information sources, but is very
difficult/expensive to implement
Network analysis
Referral behavior/network, tie strength
Bridging function, strength of weak ties
Word-of-Mouth Communication
WOM is product information transmitted by
individuals to individuals
More reliable form of marketing
Social pressure to conform
Influences two-thirds of all sales
We rely upon WOM in later stages of
product adoption
Powerful when we are unfamiliar with
product category
BzzAgent
Negative WOM and Power of Rumors
We weigh negative WOM more heavily than we do
positive comments!
Negative WOM is easy to spread, especially online
Determined detractors
Information/rumor distortion
There are 3 themes to complaint Web sites
Injustice
Identity
Agency


The Transmission of Misinformation
Cutting-Edge WOM Influences
Social Networking
Crowd Power
Guerilla Marketing
Viral Marketing
Virtual Worlds: The Next Digital Frontier
Chapter Summary
People with social power influence our behavior as
consumers.
We are motivated to buy things that are consistent
with those in our reference groups.
WOM communication about products, especially
from opinion leaders, may be more influential than
information from marketers.
Web 2.0 accelerates the speed of delivery and the
power of WOM communication.