Summary for the second midterm of Consumer and Marketing (323623-B-6). It includes chapters 7 through 12 of the book Consumer Behaviour 3rd Edition Isabelle Szmigin and Maria Piacentini. ISBN: 9780198862567.
Chapter 7 – Groups, Social Processes, and Communications
Reference groups
Understanding the types of people we associate with, or with whom we would prefer not to
associate with, is fundamental to marketing. Many products are purchased and consumed in a public
setting so we see what other people buy and often associate beliefs, attitudes, and behaviours with
them.
Reference = those groups that are used by a person as a basis for comparison and guidance
groups when forming their beliefs, attitudes, and behaviours.
Park and Lessig developed the concept to include ‘an actual or imaginary institution, individual or
group conceived as having significant relevance upon an individual’s evaluations, aspirations or
behaviour’. This broadens the idea of reference groups from an individual person to an institution
(real or imaginary).
Types of reference group
Reference groups can be described across two dimensions – membership and attractiveness of the
group. Membership groups are those to which we belong (contractual, identificational, or
associative) and those which we no longer wish to be associated with (disclaimant). There are also
groups to which we aspire to belong (aspirational) and others which we wish to avoid entirely
(avoidance or dissociative).
Contractual = generally close groups with which we interact regularly and where there is a degree
or associative of proximity.
groups
Disclaimant = one that we currently belong to or perhaps belonged to in the past but no longer
group want to associate ourselves with. For example a person may be part of a social group
that drinks alcohol, but if the group then experiments with soft drugs they may no
longer join in with them.
Aspirational = composed of people that the consumer can identify with or admire (often from
groups afar) and aspires to be like in some way. The aspirational group is actually an
individual representing some state or position we aspire to be like. We may respect
them for their skills (such as sports personalities) or for their style and glamour or
their lifestyle (such as famous actors).
Dissociative or = groups we have negative feelings towards and whom we avoid being associated
avoidance with. They differ from disclaimant groups in that we have never been members of
groups such groups, and we associate negative feelings with them for their intrinsic qualities
rather than because we or they have changed.
Reference groups are also classified as formal or informal.
Formal group = one that is usually formed by some kind of outside structure, and it is likely to have
a formalized constitution and set of rules of conduct for members. For example being
a member of a golf club and adhering to the strict dress codes associated with such a
club.
Informal group = formed by a group of individuals who have some sort of commonality but no formal
connection to each other.
,Reference groups influence
Mechanisms of reference group influence
Leigh (1989) recognized that reference group influence can be direct from the reference group to
individual members or indirect through an individual observing the behaviour of group members and
altering their own behaviour because of it. There are three main mechanisms of reference group
influence: informational, utilitarian, and value-expressive.
- Informational group influence = when a consumer uses the reference group to
actively get information from opinion leaders or
expert groups.
- Utilitarian reference group influence = when a person is influenced in their choice of brand
by the preferences of those with whom they
socialize, including family members and work
colleagues.
- Value-expressive influence = when someone buys a particular brand to enhance
their image and because they admire characteristics
of people who use the brand.
Development of conformity
For the concept of reference groups to be useful to marketers, there has to be some degree of
conformity that results from group membership.
Conformity = adoption of behaviour resulting from real or perceived pressure to comply with a
person or group. For example: if you are with a group of friends and they all want to
watch a football match, but you would prefer to go shopping, you may conform to
their decision because their friendship is more important to you than going shopping.
Mann (1969) identified four types of conformity: normative, informational, compliance, and
internalization.
- Normative conformity = when a person wants to fit in with the group or is afraid of being
rejected by them and will publicly accept the group’s view even if
privately they do not agree.
- Informational conformity = when someone actively looks for guidance from the group where
they lack knowledge or are in an ambiguous situation.
- Compliance = refers to publicly changing behaviour to fit in with the group but
privately disagreeing, that is, a behavioural shift without an
attitudinal one.
- Internalization = involves both an attitudinal and behavioural change in favour of the
group.
How group norms influence conformity
Venkatesan (1966) developed some of the early ideas on conformity in the context of consumer
decision-making and concluded that in a group situation, and where it is difficult to assess the quality
of the product, individuals will accept the information provided by others in the group.
Reactance = a motivational state, which acts as a counterforce to threats to a person’s freedom.
Social power and reference groups
Social power = potential influence, consists of six bases: coercive, reward, legitimacy, expert,
reference, and informational.
, Reward power = may be present when a person responds to the influence of the group and is
rewarded in some way.
Coercive = conformity to the group is brought about through the threat of punishment.
power
Legitimate = where the referent is seen to have authority by virtue of their position in the
power particular context, often achieved in service businesses through the se of uniforms to
show authority.
Expert power = when we are influenced to behave or purchase something by someone who we
recognize has particular expertise, for example, a doctor or scientist.
Referent = similar, although the influence stems from our admiration of the qualities of a
power person and how we try to imitate those qualities by copying their behaviour, often
evident in the way we consider celebrities.
Informational = based on logical argument and knowledge that someone may have acquired from
power experience or through the nature of their job.
Opinion leaders and opinion seekers
Opinion = ‘individuals who exert an unequal amount of influence on the decisions of others’.
leaders
The idea that a small group of influential people can accelerate or stop the adoption of a product has
become central to our idea of what an opinion leader is.
- Connectors = people who tend to know lots of other people, often from different
subcultures to their own, not necessarily very well, but well enough to pass
on information to others.
- Mavens = collectors and brokers of information, but they use this information and
want to start discussions with others or respond to requests.
- Salesmen = the arch persuaders, people who will not accept ‘No’ for an answer and are
always looking for an opportunity to get their message across to someone
else.
Opinion = people who seek opinions and information to help their purchase decision.
seekers
Expert influentials
Expert influential are people who have real power to influence the marketplace. This can be due to
their expertise or the nature of the message.
The search for cool
For companies trying to discover influential people who can affect whether a brand or product will
be successful, identifying trendsetters – those who set the agenda for what is worn, played with,
eaten, watched, and listened to – is crucial. Marketers believe that where these ‘cool’ (usually young)
people lead, the rest will follow.
Social connectedness: the importance of word of mouth
Early studies of diffusion and mass communication revealed that it is rare for people to respond only
to mass media information without transmission through personal ties as well.
Word of = an informal communication, either positive or negative, about goods, services, and
mouth (WOM) sellers. It occurs in both face-to-face contexts and electronic contexts (mostly online),
when it is often referred to as eWOM.
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