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Chapter 15 Consumer Influence and the Diffusion of Innovations

Consumer Behavior, Ninth Edition Schiffman & Kanuk

Copyright 2007 by Prentice Hall

Chapter Outline
• • • • • • • What Is Opinion Leadership? Dynamics of the Opinion Leadership Process The Motivation Behind Opinion Leadership Measurement of Opinion Leadership The Interpersonal Flow of Communication Diffusion of Innovations The Adoption Process

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Opinion Leadership

The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients.

Copyright 2007 by Prentice Hall

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What Is Opinion Leadership?

Opinion Leader

Opinion Receiver

Opinion Seeker

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Word of Mouth in Action Figure 15-1 Copyright 2007 by Prentice Hall 15 .5 .

6 .Discussion Question • Who are the most influential opinion leaders to college-aged people? • Why are they influential? Copyright 2007 by Prentice Hall 15 .

Dynamics of the Opinion Leadership Process • Credibility • Positive and Negative Product Information • Information and Advice • Opinion Leadership Is CategorySpecific • Opinion Leadership Is a Two-way Street Copyright 2007 by Prentice Hall 15 .7 .

8 . count on opinion leaders. Copyright 2007 by Prentice Hall 15 .Many not-forprofit organizations that hope to change behavior.

9 .Motivations Behind Opinion Leadership Issues • The Needs of Opinion Leaders • The Needs of Opinion Receivers • Purchase Pals • Surrogate Buyers versus Opinion Leaders Copyright 2007 by Prentice Hall • • • • Self-involvement Social involvement Product involvement Message involvement 15 .

Motivations Behind Opinion Leadership Issues • The Needs of Opinion Leaders • The Needs of Opinion Receivers • Purchase Pals • Surrogate Buyers versus Opinion Leaders Copyright 2007 by Prentice Hall • New product or new usage information • Reduction of perceived risk • Reduction of search time • Receiving the approval of the opinion leader 15 .10 .

Motivations Behind Opinion Leadership Issues • The Needs of Opinion Leaders • The Needs of Opinion Receivers • Purchase Pals • Surrogate Buyers versus Opinion Leaders Copyright 2007 by Prentice Hall • Actually accompany consumers on shopping trips • Used 25 percent of the time for purchases of electronic equipment 15 .11 .

12 .Motivations Behind Opinion Leadership Issues • The Needs of Opinion Leaders • The Needs of Opinion Receivers • Purchase Pals • Surrogate Buyers versus Opinion Leaders Copyright 2007 by Prentice Hall • Surrogate buyers may replace opinion leaders • An example is a wardrobe consultant who helps in the purchase of business clothes 15 .

Homophilous (to a certain extent) to end users 4. Information exchange occurs in the context of a casual interaction 3.3 Key Differences Between Opinion Leaders and Surrogate Buyers Part I: Opinion Leaders OPINION LEADER 1. Usually socially more active than end users 6. Likely to have used the product personally 9.13 . Does not get paid for advice 5.Table 15. rigor in search and screening of alternatives low 8. Same person can be an opinion leader for a variety of related product categories Copyright 2007 by Prentice Hall 15 . Informal relationship with end users 2. Accountability limited regarding the outcome of advice 7. As accountability limited. More than one can be consulted before making a final decision 10.

Information exchange in the form of formal instructions/advice 3. Heterophilus to end users (that is. Usually specializes for a specific product/service category Copyright 2007 by Prentice Hall 15 . High level of accountability 7. Usually hired.3 Key Differences Between Opinion Leaders and Surrogate Buyers Part II: Surrogate Buyers SURROGATE BUYER 1.Table 15. is the source of power) 4. Not necessarily socially more active than end-users 6. therefore gets paid 5. Formal relationship. occupation-related status 2. Second opinion taken on rare occasions 10.14 . Search and screening of alternatives more rigorous 8. May not have used the product for personal consumption 9.

Online Retailers Compete with “Specialty Shoppers” Who Give Advice weblink Copyright 2007 by Prentice Hall 15 .15 .

16 .Measurement of Opinion Leadership • • • • Self-Designating Method Sociometric Method Key Informant Method Objective Method Copyright 2007 by Prentice Hall 15 .

17 . personally. that you would consider an opinion leader? • What is it about that person that makes them an opinion leader? What personality traits might they have which prompt their status? Copyright 2007 by Prentice Hall 15 .Discussion Question • Who do you know.

Table 15. “Whom do you ask?”“Who asks you for info about that product category?” Copyright 2007 by Prentice Hall 15 . “Do you influence other people in their selection of products?” SOCIOMETRIC METHOD Members of a social system are asked to identify to whom they give advice and to whom they go for advice.4 Measuring Opinion Leadership OPINION LEADERSHIP MEASUREMENT METHOD DESCRIPTION OF METHOD SAMPLE QUESTIONS ASKED SELF-DESIGNATING METHOD Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader.18 .

19 .Table 15. Copyright 2007 by Prentice Hall 15 . the group?” OBJECTIVE METHOD Artificially places individuals in a “Have you tried the position to act as opinion leaders product?” and measures results of their efforts.4 continued OPINION LEADERSHIP MEASUREMENT METHOD DESCRIPTION OF METHOD SAMPLE QUESTIONS ASKED KEY INFORMANT METHOD Carefully selected key informants in “Who are the most a social system are asked to influential people in designate opinion leaders.

6 Profile of Opinion Leaders GENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIES Innovativeness Willingness to talk Self-confidence Gregariousness Cognitive differentiation CATEGORY-SPECIFIC ATTRIBUTES Interest Knowledge Special-interest media exposure Same age Same social status Social exposure outside group Copyright 2007 by Prentice Hall 15 .20 .Table 15.

21 .Market Maven Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services. Copyright 2007 by Prentice Hall 15 .

The Interpersonal Flow of Communication • Two-Step Flow – A communication model that portrays opinion leaders as direct receivers of information from mass media sources who.22 . interpret and transmit this information • Multistep Flow – A revision of the traditional two-step theory that shows multiple communication flows Copyright 2007 by Prentice Hall 15 . in turn.

23 .Two-Step Flow of Communication Theory Figure 15.3 Copyright 2007 by Prentice Hall 15 .

Multistep Flow of Communication Theory Figure 15.24 .4 Copyright 2007 by Prentice Hall 15 .

Issues in Opinion Leadership and Marketing Strategy • Advertisements Stimulating Opinion Leadership • Word of Mouth May Be Uncontrollable eGo Bikes Video Copyright 2007 by Prentice Hall 15 .25 .

26 .Marketers Seek to Take Control of the Opinion Leadership Process • Creating products with built-in buzz potential • Strategy designed to stimulate buzz • Viral marketing • Weblogs Copyright 2007 by Prentice Hall 15 .

At Blogwise You Can Find a Blog on Almost Any Topic weblink Copyright 2007 by Prentice Hall 15 .27 .

Proctor & Gamble Uses Tremor to Influence Buzz Marketing weblink Copyright 2007 by Prentice Hall 15 .28 .

Copyright 2007 by Prentice Hall 15 .29 .Diffusion Process The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.

to continue using (or discontinue using) a new product. Copyright 2007 by Prentice Hall 15 .30 .Adoption Process The stages through which an individual consumer passes in arriving at a decision to try (or not to try).

31 .Elements of the Diffusion Process • • • • The Innovation The Channels of Communication The Social System Time Copyright 2007 by Prentice Hall 15 .

Defining Innovations • Firm-oriented definitions – Product is “new” to the company • Product-oriented definitions – Continuous – Dynamically continuous – Discontinuous • Market-oriented definitions – Based on consumer exposure • Consumer-oriented definitions – Consumer judges it as “new” 15 .32 Copyright 2007 by Prentice Hall .

33 .What type of product innovation is this product? Copyright 2007 by Prentice Hall 15 .

Telephone Innovations Figure 15.7 Copyright 2007 by Prentice Hall 15 .34 .

35 .Product Characteristics That Influence Diffusion • • • • • Relative Advantage Compatibility Complexity Trialability Observability Copyright 2007 by Prentice Hall 15 .

36 .Time and Diffusion • Purchase Time • Adopter Categories • Rate of Adoption Copyright 2007 by Prentice Hall 15 .

37 . Copyright 2007 by Prentice Hall 15 .Adopter Categories A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

38 .Adopter Categories Figure 15.8 Copyright 2007 by Prentice Hall 15 .

39 . Copyright 2007 by Prentice Hall 15 .This ad is designed to appeal to innovators.

40 .Discussion Question • Which adaptor category are you? • Does it differ with different product categories? • How about your parents. what category are they? • Is age a factor in innovation behavior? Copyright 2007 by Prentice Hall 15 .

Consumer is interested in the product and searches for additional information. After talking to a knowledgeable friend. Eric decides that his TV will fit nicely on top of the chest in his bedroom.14 Stages in Adoption Process WHAT HAPPENS NAME OF DURING THIS STAGE STAGE Awareness Consumer is first exposed to the product innovation.41 Interest Evaluation Copyright 2007 by Prentice Hall .Table 15.” EXAMPLE Eric sees an ad for a 23-inch thin LCD HDTV in a magazine he is reading. Eric reads about the HDTV set on the manufacturer’s Web site and then goes to an electronics store near his apartment and has a sales person show him the unit. He also calls his cable company and finds out that he can exchange his “standard” cable box at no cost for an HDTV cable box. 15 . Consumer decides whether or not to believe that this product or service will satisfy the need--a kind of “mental trial.

Eric buys the TV at this local electronics store on his way home from work. Since the HDTV set cannot be “tried” like a small tube of toothpaste. rather than a limited basis--if unfavorable. the consumer decides to reject it. Copyright 2007 by Prentice Hall 15 .14 Stages in Adoption Process WHAT HAPPENS NAME OF DURING THIS STAGE STAGE EXAMPLE Trial Consumer uses the product on a limited basis Adoption (Rejection) If trial is favorable. consumer decides to use the product on a full.Table 15. Eric loves his new HDTV set and expects many year of service from it. The store offers a 14-day full refund policy.42 .

An Enhanced Adoption Process Model Figure 15.43 .10 Copyright 2007 by Prentice Hall 15 .

Issues in Profiling Consumer Innovators • • • • • • • • Defining the Consumer Innovator Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators? 15 .44 Copyright 2007 by Prentice Hall .