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Buyer Behaviour

Group Influence and


Social Media

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-of-mouth
communication
Understand the nature of opinion
leadership
Understand the impact of Groups and
Social Networks
Outline
Reference Group Influences
Types of Reference Groups
Power of Reference Groups
Conformity
Resistance to Influence
W.O.M. Communications
Social Networks
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 Community

3. Membership vs. Aspirational

4. Positive vs. Negative

5. Antibrand Community

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, White, and Dahl, 2014, p. 324


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 Fear
to of
Influence Likelihood Deviance
of
Conforming
Gender
Commitment
Differences Group
unanimity,
size,
expertise
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 Viral
Encouraging
Marketing Marketing
Factors

http://www.youtube.com/watch?v=ad4fagTyaM4
Negative WOM:

Rumours Distortion
Opinion Leadership

Reduce
Risk
Similar first to buy
Technically
Values Competent
referent power
Key
Characteristics
of
Opinion Leaders

Legitimate Knowledge
Power Power
Social Networks
COMPONENTS
Social networks (set of socially relevant nodes) = social graphs
Nodes = members in a network
Ties = relationships among nodes
Nodes (members of the network)
Have interactions (behaviour based ties)
Have flows (exchange information, influence, etc.)
ELEMENTS
Media multiplexity flows are in many directions
Social object theory object of common interest
(more powerful if there is a way to activate relationship between
people and objects)

Object sociality extent objects can be shared


Virtual Communities
Virtual community of consumption
Common love of a product
Remain anonymous through cyberspace only
Operation is similar to any community
Social media provides the connection

Virtual World Communities:


Presence
Collective interest
Democracy
Standards of behaviour - flaming
Levels of participation
Tourists: Lack strong social ties to group, and maintain only a passing
interest in the activity.
Minglers: Maintain strong social ties, but are not very
interested in the central consumption activity.
Devotees: Express strong interest in the activity, but
have few social attachments to the group.
Insiders: Exhibit both strong social ties and strong interest in the activity
Thank You
PERCEPTION IS REALITY