GROUP INFLUENCES ON

CONSUMER BEHAVIOR
Referenence
Groups Change
 is a group whose
presumed
perspectives or
values are being
used by an
individual as the
basis for his or her
current behavior
Variables
Membership
Strength of social tie
Type of Contact
Attraction (+ & -)
Types of Groups

Uncategorized Membership Attraction Contact

Frequent
Positive (primary associative)
(associative) Limited
(secondary associative)
Yes
(membership)
Frequent
Negative (primary dissociative)
(dissociative) Limited
Purchasers
(parents) (secondary dissociative)

Positive Desired
(aspiration) (aspiration)
No
(nonmembership) Avoided
Negative
(dissociative) (dissociative)
Consumption Subcultures
 is a distinctive subgroup of society that self-selects on
the basis of a shared commitment to a particular
product class, brand, or consumption activity

 These group have

 (1) an identifiable, hierarchical social structure;
 (2) a set of shared beliefs or values; and
 (3) unique jargon, rituals, and modes of symbolic expression.

 Marketing and Consumption subculture

 Example : Dancing, golfing, driving, gardening

Consumption Subcultures

Brand Communities
•Marketing and brand communities
•HDCI, MB124, TAB, TKCI

Online communities and social network

•Marketing and Online Communities and Social
Networks
•Kaskus, quora, researchgate, facebook
The Nature of Reference Group
Influence
Informational: when an individual uses behavior and
opinions of reference group members as potentially
useful bits of information
Normative: when an individual fulfills group
expectations to gain a direct reward or to avoid a
sanction
Identification: when individuals have internalized the
group’s values and norms
 REFERENCE GROUP
INFLUENCES ON
THE CONSUMPTION
PROCESS
Informational
Normative
Identification
 Two Consumption Situation Characteristics
and Product/Brand Choice PRODUCT

BRAND
Consumption
Situation
Determinants of
Reference Group
Influence
 MARKETING STRATEGIES BASED ON
REFERENCE GROUP INFLUENCES

Personal
•Asch phenomenon
Sales
•use all three types of reference
Advertising
group influence
 Communications Groups And Opinion
Leadership

Observing or participating
Seeking or receiving advice and information - WOM
Opinion Leader - expert
Characteristics of Opinion Leaders
• Market Mavens, Influentials, and e-Fluentials – 1:9

Marketing Strategy, WOM, and Opinion Leadership

• Advertising
• Product Sampling
• Retailing/Personal Selling
• Creating Buzz
• Viral Marketing
• Blogs
• Consumers Review
DIFFUSION OF INNOVATIONS

Categories
Continuous Innovation

Dynamically Continuous
Innovation
Discontinuous Innovation
Categories of Innovations

Degree of innovation Examples

Norplant contraceptive
Discontinuous Becoming Vegetarian
Segway Human Transport

Dynamically
Digital camera
continuous Personal navigator
Internet shopping

Continuous DVD Players

Light snacks
Microbrew beer

Small Modest Large

Behavioral change required

© The McGraw-Hill Companies, Inc., 1998

Factors Affecting the Spread of Innovations

Low
Easy trial
risk

High Change-prone
observability target market

Individual
Low Rapid
adoption
complexity diffusion decision

Extensive
Large relative
marketing
advantage
effort

High Strong felt

compatibility need
Diffusion Process is the manner in which
innovations spread throughout a market.
1. Type of group.
2. Type of decision – individual or group
3. Marketing effort
4. Fulfillment of felt need
5. Compatibility - value
6. Relative advantage – compare
7. Complexity – easy to use
8. Observability
9. low-cost or low-risk trial
10.Perceived risk
a. the probability that the innovation will not perform as desired;
b. the consequences of its not performing as desired; and
c. the ability (and cost) to reverse any negative consequences
Characteristics of Individuals Who Adopt an
Innovation at Varying Points in Time
Marketing Strategies and the Diffusion
Process
Market Segmentation
Diffusion Enhancement Strategies