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JM602 Consumer Behaviour

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Neal, Quester and Hawkins (2005). Consumer behaviour: Implications ... Examples: Product: Harley-Davidson. Activities: Body building, golf. Roles. A role is: ... – PowerPoint PPT presentation

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Title: JM602 Consumer Behaviour


1
JM602Consumer Behaviour
  • Lecture 14 Group influence and communication

2
(No Transcript)
3
Material in these slides
  • Primarily drawn from
  • Neal, Quester and Hawkins (2005). Consumer
    behaviour Implications for marketing strategy
    (4th ed). McGraw-Hill Irwin Queensland

4
Group Influence and Communication - overview
  • How do groups function and how can they be
    classified?
  • What is the impact of reference groups on
    consumption?
  • What marketing strategies are based on group
    influence?

5
Group Influence and Communication - overview
  • What are the roles of group members and marketing
    strategies?
  • How do groups communicate?
  • How important are opinion leaders?
  • What is the adoption process for innovations?
  • What are adopter groups and their
    characteristics?

6
Group Influences
7
Groups and their Definitions
  • Group
  • Two or more individuals who share a set of
    norms, values, or beliefs, and have certain
    implicitly or explicitly defined relationships
    which make their behaviour interdependent
  • Reference group
  • A group whose presumed perspectives or values
    are being used by an individual as the basis for
    his or her current behaviour

8
Types of Groups
  • Membership
  • either yes or no
  • Degree of contact
  • larger groups generally have less contact
  • primary groups generally have frequent
    interpersonal contact
  • secondary groups generally have limited
    interpersonal contact
  • Attraction
  • desirability of being member
  • either positive or negative

9
Changes in Reference Groups as the Situation
Changes
10
Types of Groups (cont.)
  • Aspirational reference groups
  • non-membership groups
  • positive attraction
  • exert a strong influence on some products

11
Types of Groups (cont.)
12
Reference Group Influences on the Consumption
Process
  • Conformity
  • makes groups influential
  • is the tendency to want to be like relevant and
    significant others
  • generally makes life more pleasant

13
Reference Group Influences on the Consumption
Process
  • Norms
  • are general expectations about behaviours that
    are deemed appropriate for all persons in a
    social context, regardless of the position they
    hold
  • are often communicated non-verbally

14
The Nature of Reference-Group Influence
  • Information influence
  • behaviours and opinions of reference groups are
    used as potentially useful pieces of information
  • Normative influence (utilitarian influence)
  • when an individual fulfils group expectations to
    gain a direct reward or avoid a punishment
  • Identification influence (value-expressive
    influence)
  • when an individual uses perceived-group norms and
    values as a guide for their own attitudes or
    values

15
Consumption Situations and Reference-Group
Influence
16
Consumption Situations and Reference-Group
Influence (cont.)
17
Consumption Situations and Reference-Group
Influence (cont.)
18
Determinants of the Degree of Reference-Group
Influence
  • R-Group influence is strongest when use of the
    product or brand is visible and relevant
  • e.g. product category, product type and brand are
    all visible
  • R-group influence increases as necessity of an
    item decreases
  • The more commitment an individual feels to a
    group, the higher the level of conformity to
    group norms
  • Individuals confidence with purchase low
    confidence, then higher influence

19
Product Characteristics and Type of
Reference-Group Influence
20
Influence of Two Consumption Situation
Characteristics on Product/Brand Choices
21
Consumption-Situation Determinants of
Reference-Group Influence
22
Marketing Strategies Based on Reference-Group
Influences
  • Personal sales strategies
  • Asch phenomenon
  • Advertising strategies
  • all three types of reference groups are used by
    advertisers
  • informational (use of information)
  • normative (to avoid/gain)
  • identification (aspire to join)

23
Consumption Subcultures
  • A consumption subculture 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
  • Examples Product Harley-Davidson
  • Activities Body building, golf

24
Roles
  • A role is
  • a prescribed pattern of behaviour expected of a
    person in a given situation by virtue of the
    persons position in that situation
  • Role parameter
  • range of behaviour acceptable within a given role

25
Role (cont.)
  • Role overload
  • occurs when an individual attempts to fill more
    roles than the available time, energy or money
    allows
  • Role conflict
  • incompatible role demands

26
Applying Role Theory to Marketing Practice
  • Role-related product cluster e.g. new mother
  • Evolving roles e.g. career females
  • Role conflict and role overload e.g. working
    mother, working student
  • Role acquisition and transition e.g. student to
    employee

27
Role Set for a Student
28
Communication Within Groups
  • The power of word-of-mouth communication
  • People learn about new products from friends and
    reference groups by
  • observing or participating with them as they use
    the product, or
  • by seeking and receiving advice or information
    from them

29
Opinion Leadership
  • Opinion leaders filter, interpret or provide
    information for individuals within groups
  • Situations in which opinion leadership occurs
  • one individual exchanges information with another
  • one individual volunteers information
  • as a by-product of normal group interaction

30
Characteristics of Opinion Leaders
  • Opinion leaders have enduring involvement with
    product category
  • Function primarily through interpersonal
    communications and observation
  • Similar demographic characteristics to the group

31
Characteristics of Opinion Leaders
  • Public individuation attention seeking
  • High level of exposure to media
  • The market maven expert on all products!
  • Motivation of dissatisfied customers to tell
    others of their negative message

32
Likelihood of Seeking an Opinion Leader
33
Marketing Strategy and Opinion Leadership
  • Identifying opinion leaders
  • Targeting for marketing research
  • Product sampling
  • Retailing/personal selling
  • Advertising attempts to encourage and simulate
    opinion leadership

34
Diffusion of Innovations
  • Nature of the innovation
  • new as perceived by individuals or group
  • Categories of innovations
  • continuous innovation small changes needed
  • dynamically continuous innovation modest changes
  • discontinuous innovation large changes

35
Categories of Innovations
36
The Adoption Process and Extended Decision Making
37
Adoption of Innovation Curve
38
Marketing Strategies and the Diffusion Process
  • Market segmentation
  • Diffusion-enhancement strategies

39
Factors Affecting Innovation Uptake
  • Type of group
  • Type of decision
  • Marketing effort
  • Fulfillment of felt need
  • Compatibility

40
Factors Affecting Innovation Uptake
  • Relative advantage
  • Complexity
  • Observability
  • Trialability
  • Perceived risk

41
Next Lecture
  • Social Class
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