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3. Individual Determinants of CB
7. Demographics, Psychographics, and Personality
8. Consumer Motivation
9. Consumer Knowledge
10. Consumer Beliefs, Feelings, Attitudes, and Intentions
Consumer Behaviour Analysis
4. Environmental Influence on CB
11. Culture, Ethnicity, and Social Class
12. Family and Household Influence
13. Group and Personal Influence
Low Degree
of Influence
Personal and Group Influence
on Individuals
Personal
Influences:
•Groups
•Individuals
Types of Reference Groups
Primary Groups: a social
aggregation that is sufficiently
intimate to permit and facilitate
unrestricted direct interaction
(e.g., family)
Types of Reference Groups
Secondary Groups: also have
direct interaction, but it is more
sporadic, less comprehensive, and
less influential in shaping thought
and behavior (e.g., professional
associations or community
organizations)
Types of Reference Groups
Formal Groups: characterized by a
defined structure (often written)
and a known list of members and
requirements for membership
Informal Groups: have less
structure than formal groups and
are likely to be based on
friendship or interests
Types of Reference Groups
Membership: when individuals are
recognized as members of a group,
they have achieved formal
acceptance status in the group
Aspirational Groups: exhibit a
desire to adopt the norms, values,
and behaviors of others with whom
the individuals aspire to associate
Types of Reference Groups
Dissociative Groups: groups from
which an individual tries to avoid
association
Virtual Groups: groups that are
based on virtual communities
rather than geographic ones
Personal and Group Influence
on Individuals
Personal
Influences:
•Groups
•Individuals
Personal and Group Influence
on Individuals
Personal Types of
Influences: Influence
•Groups Normative
Value Expressive
•Individuals
Informational
Types of Group Influence
Normative: when individuals alter
their behaviors or beliefs to meet the
expectations of a particular group
Types of Group Influence
Normative: when individuals alter
their behaviors or beliefs to meet the
expectations of a particular group
Value-expressive: when a need for
psychological association with a
group causes acceptance of its
norms, values, attitudes, or behaviors
Types of Group Influence
Normative: when individuals alter
their behaviors or beliefs to meet the
expectations of a particular group
Value-expressive: when a need for
psychological association with a
group causes acceptance of its
norms, values, attitudes, or behaviors
Informational: when people have
difficulty assessing product or brand
characteristics by their own
observations or contact
Personal and Group Influence
on Individuals
Personal Types of
Influences: Influence
•Groups Normative
Value Expressive
•Individuals
Informational
Personal and Group Influence
on Individuals
Personal Types of
Influences: Influence
•Groups Normative Transmission
Value Expressive
•Individuals
Informational
Personal and Group Influence
High Degree
on Individuals of Influence
Low Degree
of Influence
How Reference Groups Influence
Individuals
How Reference Groups Influence
Individuals
Socialization: permits an individual
to know what behavior is likely to
result in stability both for the
individual and the group
Company manual may explain the
dress code in the workplace
Informal groups may tell them
what styles are most comfortable
and easiest to maintain
How Reference Groups Influence
Individuals
Self-concept: people protect and
modify their self-concept by their
interactions with group members
People can maintain self-concept
by conforming to learned roles
Testimonial advertising is effective
when the self projected in the ad is
consistent with the idealized self of
the target consumer
Reference Groups Help
Define Self-Concept
How Reference Groups Influence
Individuals
Social comparison: individuals
often evaluate themselves by
comparing themselves to others
Consumers often use reference
groups as benchmarks to measure
their own behaviors, opinions,
abilities, and possessions
Advertising or television can be
sources of social comparison
How Reference Groups Influence
Individuals
Conformity: a change in beliefs or
actions based on real or perceived
group pressures
Compliance: when an individual
conforms to the wishes of the group
without accepting all its beliefs or
behaviors
Acceptance: when an individual
actually changes his or her beliefs
and values to those of the group
How Reference Groups Influence
Individuals
Factors affecting how likely people
are to conform to group norms:
How Reference Groups Influence
Individuals
When are people more likely to
conform to norms?
How Reference Groups Influence
Individuals
Factors affecting how likely people
are to conform to group norms:
Desire for social acceptance
Degree of experience in situation or
with decision
Conspicuousness
Complex product or luxury item
Reference Group Influence on Product and
Brand Purchase Decisions
PRODUCT
Weak Reference Strong Reference
Weak Group Strong Group Group Influence Group Influence
Influences (-) Influences (+)
PUBLIC NECESSITIES PUBLIC LUXURIES
Influence: Weak Influence: Strong
product & strong brand product & strong brand
(watch, autos, suits) (golf clubs, skis, boat)
BRAND
Information
Information and Influence
Gatekeepers
WOM and Opinion Leaders in
Advertising and Marketing
Strategy
WOM and Opinion Leaders in
Advertising and Marketing
Strategy
WOM and personal communication
can have a more decisive role in
influencing behavior than
advertising and other marketer-
dominated sources
Viewed as a more trustworthy and
credible source of information than
salespeople or paid advertising
WOM and Opinion Leaders in
Advertising and Marketing
Strategy
Advertising can provide information
to consumers about products they
might seek from other sources and
which may be discussed in WOM
However, consumers don’t always
trust that the advertiser has their
best interests in mind
WOM and Opinion Leaders in
Advertising and Marketing
Strategy
Advertising influences the
effectiveness of WOM and vice
versa
Advertising can provide information
about products consumers might
not seek from other sources
Advertising can create WOM among
consumers and peer groups
Primary Reliance on
Word-Of-Mouth
For some occasions, companies
rely on WOM as a substitute for
advertising
Primary Reliance on
Word-Of-Mouth
For some occasions, companies
rely on WOM as a substitute for
advertising
Retailers such as Wal*Mart and
Victoria’s Secret have demonstrated
that advertising can be sharply
reduced when word-of-mouth is
strong
Targeting Opinion Leaders
Knowledge
Characteristics of the
Decision Making Unit
Rogers Model of Innovation Decision Process
Knowledge Persuasion
Perceived Characteristics
of the Innovation
Rogers Model of Innovation Decision Process
Continued adoption
Adoption
Later adoption
Discontinuance
Rejection
Continued Rejection
Rogers Model of Innovation Decision Process
Implemen-
Knowledge Persuasion Decision
tation
Rogers Model of Innovation Decision Process
Implemen-
Knowledge Persuasion Decision Confirmation
tation
Rogers Model of Innovation Decision Process
Communication Channels
Implemen-
Knowledge Persuasion Decision Confirmation
tation
Consumer Most Likely to Buy
New Products
Consumer Most Likely to Buy
New Products
Marketers need to determine who
is most likely to buy the new
product while in the development
process
Determinants include individual’s
personalities, social status, education
level, and aversion to or acceptance of
risk
Different adoptor classifications behave
differently during the decision process
Adopter Classes
A B C D E
A= Innovators (2.5%)
B= Early Adopters (13.5%)
C= Early Majority (34%)
D= Late Majority (34%)
E= Laggards (16%)
Consumers Likely to Buy New
Products
Innovators: the first consumer group to
adopt products
Early adopters: opinion leaders and role
models for others, with good social
skills and respect within larger social
systems
Early majority: consumers who
deliberate extensively before buying
new products, yet adopt them just
before the average time it takes the
target population as a whole
Consumers Likely to Buy New
Products
Late majority: tends to be cautious
when evaluating innovations, taking
more time than average to adopt them,
and often at the pressure of peers
Laggards: the last groups that tend to
be anchored in the past, are suspicious
of the new, and exhibit the lowest level
of innovativeness among adopters
Consumers Likely to Buy New
Products
Innovativeness: the degree to
which an individual adopts an
innovation earlier than other
members of a social system
Cognitive innovators: have a strong
preference for new mental experiences
Sensory innovators: have a strong
preference for new sensory experiences
Advertising and other communications
can be targeted accordingly
Managerial Perspectives on
Adoption and Diffusion of
Innovation
Managerial Perspectives on
Adoption and Diffusion of
Innovation
New products for the profitability and
long-term financial success of firms
While development groups are produc-
ing line and brand extensions,
breakthroughs are needed to fuel growth
and profits
New product development requires the
coordination of marketing, engineering,
research and other parts of the firm
Managerial Perspectives on
Adoption and Diffusion of
Innovation
Consumer insight helps create products
that consumers are likely to adopt
Intuition and information (often gained
from consumers through research) leads
to the formation of an insight
Insights drive the creation of a new or
adaptation of an existing product
Research is important to the innovation
development process
Positioning New Products on Insight