Learning Objectives (1 of 2) 11.1 Other people and groups, especially those that possess social power, influence our decisions. 11.2 Marketers often need to understand consumers’ behavior rather than a consumer’s behavior. 11.3 The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use. 11.4 Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.
Learning Objectives (2 of 2) 11.5 Word-of-mouth communication is the most important driver of product choice. 11.6 Opinion leaders’ recommendations are more influential than others when we decide what to buy. 11.7 Social media changes the way we learn about and select products.
What Are Sources of Power? Social power: capacity to alter the actions of others. • Referent power • Information power • Legitimate power • Expert power • Reward power • Coercive power
Positive Versus Negative Reference Groups • Avoidance groups: motivation to distance oneself from other people/groups • Antibrand communities: coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it
Consumers Do It in Groups Why do we conform? • Cultural pressure • Fear of deviance • Commitment • Group unanimity • Interpersonal influence • Environmental cues
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
Organizational Decision Making • Organizational buyers: purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale. • Business-to-business (B2B) marketers: specialize in meeting needs of organizations such as corporations, government agencies, hospitals, and retailers.
Compared to Consumer Decision Making, Organizational Decision Making… • Involves many people • Requires precise, technical specifications • Is based on past experience and careful weighing of alternatives • May require risky decisions • Involves substantial dollar volume • Places more emphasis on personal selling
What Influences Organizational Buyers? The buyclass theory of purchasing divides organizational buying decisions into 3 types: • Level of information required • Seriousness of decision • Familiarity with purchase
Buying Decisions Buyclass theory: organizational buying decisions divided into three types, ranging from most to least complex. Table 11.1 Types of Organizational Buying Decisions
Buying Situation Extent of Effort Risk Buyer’s Involvement
Straight rebuy Habitual decision- Low Automatic reorder making Modified rebuy Limited problem Low to moderate One or a few solving New task Extensive problem High Many solving
Source: Adapted from Patrick J. Robinson, Charles W. Faris, and Yoram Wind, Industrial Buying and Creative Marketing (Boston: Allyn & Bacon, 1967).
For Reflection (2 of 6) • Assume that you are a sales representative for a large company that markets laptop computers. • List all the people that may be involved in making the decision to purchase from you. • Try to match all the people to their possible decision roles as outlined on the previous slide.
Learning Objective 11.3 Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.
Who Makes Key Decisions in the Family? • Autonomic decision: one family member chooses a product • Syncretic decision: involve both partners – Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service – As education increases, so does syncretic decision making
For Reflection (3 of 6) • What exposure have you had to family decisions made in your own family? Can you see the patterns discussed in the chapter in those decisions? Give an example.
The Market Maven Market mavens are actively involved in transmitting marketplace information of all types • They are into shopping and aware of what’s happening in the marketplace • They have 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
Chapter Summary (1 of 2) • Other people and groups, especially those that possess social power, influence our decisions. • Marketers often need to understand consumers’ behavior rather than a consumer’s behavior. • The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use. • Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.
Chapter Summary (2 of 2) • Word-of-mouth communication is the most important driver of product choice. • Opinion leaders’ recommendations are more influential than others when we decide what to buy. • Social media changes the way we learn about and select products.
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