Buyer Behaviour

Group Influence and Opinion Leadership

Chp. 11 with Duane Weaver

Where Reality meets the Road! Perception in Action!

Learning Objectives
Understand how reference groups influence consumer behaviour
Discuss the role of conformity as a social influence Discuss the importance of word-ofmouth communication Understand the nature of opinion leadership

Outline
Reference Group Influences Types of Reference Groups Power of Reference Groups

Conformity
Resistance to Influence W.O.M. Communications

Reference Group Influences

Reference group
An actual or imaginary individual or group that has a significant effect upon an individuals evaluations, aspirations or behaviour

Reference Group Influences

1.Informational

2.Utilitarian
3.Value

Expressive

Types of Reference Groups

1. Formal vs. Informal 2. Brand Communities

3. Membership vs. Aspirational

4. Positive vs. Negative
Get together in a groups of three and come up with ideas as to how we might use each of these to our advantage as Marketers. Pick two types and create one example for each of the two.

Power of Reference Groups

SOCIAL POWER:
the capacity to alter the actions of others
Solomon, Zaichkowsky Polegato p. 315

Power of Reference Groups

Referent Power
Based on admiration of an individual or group Patterns of consumption are copied

Legitimate Power
Power granted by virtue of social agreements

Reward Power
Power based on the ability to provide positive reinforcement

Information Power
Based on access to information that others seek

Expert Power
The individual possesses a special knowledge or skill

Coercive Power
Effective in the short term, requires surveillance to ensure compliance

Conformity
Conformity: A change in beliefs or actions as a reaction to real or imagined group pressures
Cultural Pressures

Susceptibility to Influence

Gender Differences

Likelihood of Conforming Group unanimity, size, expertise

Fear of Deviance

Commitment

Resistance to Influence
Anti-Conformity
Defiance is the root of this behaviour Paradox: being intentionally different requires a concerted effort

Independence
The individual is oblivious to expected social patterns

Reactance
Consumer resistance to stimuli boomerang effect

WOM Communications
The Dominance of WOM:

Guerilla Marketing

Viral Marketing

Encouraging Factors

Negative WOM:

Rumours

Distortion

Virtual Communities (online consumer groupings)

1) Tourists: Lack strong social ties to group, and maintain only a passing interest in the activity. 2) Minglers: Maintain strong social ties, but are not very interested in the central consumption activity. 3) Devotees: Express strong interest in the activity, but have few social attachments to the group. 4) Insiders: Exhibit both strong social ties and strong interest in the activity

Opinion Leadership
Reduce Risk
referent power

Similar Values

first to buy

Technically Competent

Key Characteristics of Opinion Leaders

Knowledge Power

Legitimate Power

Communication Process
Change in perspective of Group Influences on Communication

Static modelopinion leader absorbs and retransmits

Most product related discourse is in the context of a casual conversation

Thank You
PERCEPTION IS REALITY