Chapter 13

Group and Personal Influence

Personal and Group

Influence on Individuals

Personal
and
Types of Transmission
Group
Influence Influence of Influence
s on
Individua
ls

High
Degree of
Influence

Individual
Lifestyles,
Behaviors,
Purchases,
and
Consumpti
on
Low Degree
of Influence

Personal and Group

Influence on Individuals

Personal
and
Group
Influence
s on
Individua
ls

Group and Personal Influences on

Individuals

Reference group: any person

or group of people that
significantly influences or
serves as a guide for an
individuals behavior

Types of Reference Groups

Primary: a social aggregation

that is sufficiently intimate
to permit and facilitate
unrestricted face-to-face
interaction (ex: family)
Secondary: groups in which
face-to-face interaction
occurs, but is more sporadic,
less comprehensive, and less
influential in shaping
thought and behavior (ex:

Types of Reference Groups

Formal: groups characterized

by a defined structure (often
written) and a known list of
members and requirements
for membership
Informal: have less structure
than formal groups and are
likely to be based on
friendship or interests

Types of Reference Groups

Primary

Secondary

(tend to see them

every day)

(less contact, less

influence)

Formal A workgroup that An alumni

(requireme
nts for
admission)

you belong to at
your place of
employment

Inform
al

You and your

roommates

(unstructur
ed, greater
social
influence)

association; this
section of CS657

Reading groups;
play groups

Types of Reference Groups

Membership: when
individuals are recognized as
members of a group, they
have achieved formal
acceptance status in the
group groups that you
belong to
Dissociative: groups from
Aspirational:
groupstries
that to
an
which an individual
individual
aspires
to
be
a
avoid association
member of

Types of Reference Groups

Dissociat
ive
Aspiratio
nal
Members
hip

Formal

Informal

Prima
ry

Second
ary

Ex. Where does a fraternity/sorority fit

for you?

Personal and Group

Influence on Individuals

Personal
and
Types of
Group
Influence Influence
s on
Individua
ls

Types of Group Influence

Normative (utilitarian): when

an individual fulfills others
expectations to gain a direct
reward or to avoid a sanction
Value-expressive
(identification): when
individuals have internalized
the norms, values, and
behaviors of the group; no
longer thinking of rewards or
sanctions

Personal and Group

Influence on Individuals

Personal
and
Types of Transmission
Group
Influence Influence of Influence
s on
Individua
ls

High
Degree of
Influence

Individual
Lifestyles,
Behaviors,
Purchases,
and
Consumpti
on
Low Degree
of Influence

How Reference Groups Influence

Individuals

Socialization: teaches an
individual to know what
behavior is appropriate for
members of the group
Self-concept: communicating
meaning to others in the
group through what products
we buy and use
Social comparison:
individuals often assess
themselves by comparing

How Reference Groups Influence

Individuals

Conformity: a change in
beliefs or actions based on
real or perceived group
pressures
Compliance: when an individual
conforms to the wishes of the
group without accepting all of
its beliefs or behaviors
Acceptance: when an individual
actually changes his or her
beliefs and values to those of
the group

How Reference Groups Influence

Individuals

Factors affecting how likely

people are to adhere to group
norms:
Cohesiveness of group
Size of group
Groups expertise on topic
Persons desire to belong
Individuals need for social
acceptance
Public versus private use of

Reference Group Influence on Product and Brand

Purchase Decisions

Strong
Group
Influences
(+)

Weak Reference
Group Influences

Strong Reference
Group Influences

PUBLIC
NECESSITIES

PUBLIC LUXURIES

Influence: Weak
product & strong
brand
PRIVATE
(watch,
autos,
NECESSITIES
suits)
Influence: Weak
product & weak
brand

Weak
Group
Influences
(-)

BRAND

PRODUCT

(mattress,

Influence: Strong
product & strong
brand
(golf
clubs,
skis,
PRIVATE
LUXURIES
boat)
Influence: Strong
product & weak
brand
(trash compactor,
hot tub)

Why would someone buy a Ferrari laptop?

Normative Influence in Marketing

Strategy
Normative compliance is declining
in its impact as many consumers
put individual needs ahead of
group needs
Extended families have less faceto-face contact and people are
more socially isolated than in the
past
Television and mass media expand
peoples horizons beyond social
circles

Celebrity Appeals in Advertising

Testimonials: celebrities tout

products based on personal
usage
Endorsements: celebrities
lend their name or likeness
to a product without
necessarily being an expert
in the area
Spokesperson: someone who
represents a brand or

Ken Jennings

Transmission of Influence Through

Dyadic Exchanges

Person-to-person exchange in
which an individual receives
personal communication
from someone about
behaviors or lifestyles

Dyadic Exchanges

Word-of-mouth
communication: informal
transmission of ideas,
comments, opinions, and
information between two
people, neither one of which is
a marketer
The receiver gains
information about behaviors
and choices
The sender increases his/her

Dyadic Exchanges

Opinion leadership: the sender

of information is often
considered an opinion leader a person who influences the
decisions of others
Opinion leaders might be
experts in one area but not in
others
The greater the perceived
knowledge of a category, the
more likely that persons

Dyadic Exchanges

Market mavens: individuals

who serve as information
sources about the
marketplace because of their
awareness of new products
and other marketplace
activities
Surrogate consumers
(shoppers): an individual who
acts as an agent to guide,
direct, and/or conduct

Dyadic Exchanges

Service encounters: occurs

when there is personal
communication between a
consumer and a marketer
Service providers must
understand the needs of
different customers and match
the appropriate sales associate
or sales approach to a
particular type of customer

Transmitting Personal Influences

Trickle-down: alleges that

lower classes often emulate
the behavior of their higherclass
counterparts
Influence
is transmitted
vertically through social classes,
as higher classes express wealth
through conspicuous
consumption, and lower classes
copy their behavior
Today, trends are transmitted
through mass media and classes
do not have direct contact

Transmitting Personal Influences

Two-step Flow

Information
Mass
Medi
a

Opinio
n
Leader

Informatio
n and
Influence
Opinion
Seekers

Transmitting Personal Influences

Multistep Flow

Mass
Medi
a

Opinio
n
Leader
Gatekeepe
rs

Opinion
Seekers

The Advertising-WOM Relationship

For some firms, WOM is a

substitute for advertising
Advertising could be targeted
to opinion leaders, although it
is difficult to identify this
segment unless they belong to
an identifiable group

Diffusion of Innovations

Innovation: any idea or

product perceived by the
potential adopter to be new
3 Types:
- Continuous innovation
- Dynamically continuous
innovation
- Discontinuous innovation

Continuous Innovation

The modification of an
existing product rather than
the establishment of a new
product or product category
Modification may be in the
taste, appearance,
performance, or reliability of
the product

Crayola
introduce
d a new
crayon
which is
washable
and can
be
removed
from a
variety of
surfaces.

Dynamically Continuous Innovation

May involve the creation of

either a new product or a
significant alteration of an
existing one
Does not significantly alter
established purchase or
usage patterns

Pringles
introduce
d a fatfree
potato
chip
using the
new fat
substitute
Olestra.

Discontinuous Innovation

Involves the introduction of

an entirely new product that
significantly alters
consumers behavior patterns
and lifestyles
Examples include television,
automobiles, and computers

Evaluating Innovation

Relative Advantage: The

degree to which consumers
may perceive the innovation
to offer substantially greater
benefits than the product
currently used
Compatibility: The degree to
which a new product is
consistent with an
individuals existing
practices, values, needs, and

Evaluating Innovation

Complexity: The degree to

which an innovation is
perceived as difficult to
understand and use
The more complex, the more
difficult it may be to gain
acceptance
Complexity is a deterrent of
trying new technology

Evaluating Innovation

Trialability: New products are

more likely to be accepted if
experimenting or using the
product is made easy
Observability: The degree to
which results from using a
new product are visible to
friends and neighbors
If consumers can see others
using a new product, that
innovation is likely to diffuse

The Diffusion Process

Diffusion: the process by

which an innovation is
communicated through
certain channels over time
among the members of a
social system

The Diffusion Process

Accept

Organi
-zation

Influenc
er

C
o
n
s
u
m
e
r

Diffusion
of
Innovatio
n

(X number of people)

Reject
Diffusion of
Information and
Communication
Consumer decision
process

Demise
of
Innovatio
n

Speed of Diffusion

Diffusion will be faster if:

Supplier is intensely
competitive
Suppliers reputation is
good
Standardized technology is
used
Vertical coordination
among channel members

Rogers Model of Innovation Decision Process

Knowledge

Characteristics of
the Decision
Making Unit

Rogers Model of Innovation Decision Process

Knowledge Persuasion

Perceived
Characteristics of the

Rogers Model of Innovation Decision Process

Knowledge Persuasion Decision

Adoptio
n
Rejectio

Continued
adoption
Later
adoption
Discontinuan
ce

Rogers Model of Innovation Decision Process

Knowledge Persuasion Decision Implementation

Rogers Model of Innovation Decision Process

Knowledge Persuasion Decision Implemen- Confirtation

mation

Adopter Classes

Time

Adopter Classes
Innovators: Venturesome people, pulling the
change. Innovators are very important for
communications.
Early Adopters: Respectable people, opinion
leaders, try out new ideas, but in a careful
way.
Early Majority: Thoughtful people, careful but
accepting change more quickly than the
average.
Late Majority: Skeptical people, will use new
ideas or products only when the majority is
using it.
Laggards: Traditional people, preferring the
old ways, are critical towards new ideas and
will only accept it if the new idea has become
mainstream or even tradition.

Consumers Likely to Buy New

Products

Innovativeness: the degree to

which an individual adopts an
innovation earlier than other
members of a social system
Cognitive innovators: have a
strong preference for new mental
experiences
Sensory innovators: have a strong
preference for new sensory
experiences

Questions?