Group Influence and Word-of-mouth Advertising

C ONCEPT OF R EFERENCES G ROUPS   Actual or imaginary institutions Individuals and group Characteristics of Reference Groups:  Used as standards of comparison for self appraisal Considered to be informative experts Used as a source of norms. and attitudes   . standards.

N ATURE OF REFERENCE GROUP INFLUENCE ON BRAND CHOICE Types of Influences:  External and Explicit  Internal and Implicit  Informational  Normative .

etc). . to the extent that the group’s values become considered personal values.  The influence may simply be internalized and subconscious. occupational. ethnic. religious.W HY DO REFERENCE GROUPS HAVE SUCH INFLUENCE ?  Individual consumers are placed in various social roles  We are members of several different groups (Political.

FACTORS I NFLUENCING OF GROUP INFLUENCE THE DEGREE  Individual difference in susceptibility  Decision-Making Unit  Nature of the Product Category  Nature of the Consumption Or Purchasing Situation .

I NFORMATIONAL INFLUENCE  Word-of-Mouth: Relies on Opinion of another Motivational: Product Involvement Self Involvement Other Involvement Message Involvement Characteristics:      .

C ONT. Opinion Leadership: Marketing     Fashion Movie  Public affairs .

D IFFUSION P ROCESS  Process of adoption of new products by the consumer market place Why important?  Responsible for advertising campaign floundering and success Face to face communications surpasses the influence of advertising in stimulating brand choice Segmentation strategies   .

 .MOTIVATIONS FOR LISTENING TO OPINION LEADERS  Rewards and Satisfaction Dicter found two important conditions:-  Person who recommends something is interested in listener and his or her well being. Speaker’s experience with and knowledge about the product are convincing.

  Personal influence is more important conditions of information seeking.htm .com/in-the-news/worlds-top-50-agency-companies-2010.STUDIES ON DIFFUSION OF INNOVATIONS Gatignon and Robertson found that:  Advertisement can have its greatest influence on product and brand diffusion when level of cognitive processing is low. under http://www. Personal influence will be greatest when there is a large amount of cognitive activity.economywatch.14-02.

 One important determinant of the speed of diffusion is the compatibility of the innovation with the norm and values of the social system.C ONT .  Conditions under which the firm should or should not preannounce new product???  Depends on competitive and consumer behavior conditions. .

g. Various ways include: Stimulate direct personal experience   Slice of life advertising( group discussing the product) Normally done by one person where others listen e.g. Olay cream Media can be of a great help e.I MPLEMENTATION OF I NFORMATIONAL I NFLUENCE S TRATEGY   Target : Crucial Innovators and Opinion leaders. Vim Bar Soap   Can encourage themes like “ask the person who owns one” e. engineering news.g. . Golf Digest.

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