Chapter 14: Group Influences

1
Chapter 14 Group Influences
2
What is a Reference Group?
An actual or imaginary group which has an
influence on a persons evaluations, aspirations
and behavior.
Forms of Influence informational
(pre-purchase, purchase, and
post-purchase) utilitarian (groups
preferences) value-expressive (social image)
3
Types of Reference Group Influence
Normative Setting fundamental standards of
how to conduct oneself. This kind of
influence affects the product class one
consumes, not so much the
specific brand. Comparative This influences
the specific brands one purchases rather the
broader product class level decisions.
4
Variations in Reference Groups
Formality (1) Formal reference groups
characterized by structure charter, periodic
meetings, officers, explicit set of rules (e.g.,
Religious groups etc.). These are more
marketable (2) Informal reference groups
(e.g., Friends) Nature of Relationship (1) Membe
rship groups. Here identification depends
on propinquity or physical distance
group cohesiveness mere exposure (2) Aspirati
onal
5
Variations in Reference Groups (Continued)
Valence of Relationship (1) Positive or
Approach (2) Negative or Avoidance In summary,
reference groups vary in terms or (a)degree of
formality, (b) nature of relationship and (c)
valence of relationship.
6
When Do Reference Groups Have the most Influence?
Some factors are Level of Risk Luxury or
Necessity Public or Private Consumption Also,
some times the influence is at the brand level
and other times it may be at the product level.

7
The effect of the reference group depends on the
visibility of the consumption and the extent to
which a product is a necessity. For example, in
the grid below, reference groups generally affect
brand choice for publicly consumed necessities,
and affect product class choices for privately
consumed luxury goods.
8
Types of Power Which Reference Groups Have
Social Power refers to the ability to change a
persons behavior. referent power (the
model) informational power (editors)
legitimate power (officers in a formal
structure) expert power (your friend who is a
computer expert) reward power coercive power
9
Factors that Influence Conformity to the Group
Dictat
Culture Pressures Fear and Consequences of
Deviance Commitment principle of least
interest Group Unanimity, Size and
Expertise Gender Differences
10
Family Decision Making

• What are the key issues?
• Different people.
• Different goals for each member.
• Different capabilities/involvement for each
  person.
• Differing importance of a given person.
• Joint versus individual priorities.

11
Roles in Consumption

• Influencer
• Provides different forms of influence.
• Gatekeeper
• Manages information flow.
• Buyer
• User
• Disposer

12
Differing Involvement

• Involvement varies? Example?
• By product.
• By stage of decision making.
• Some families are simply more involved than
  others.
• Involvement varies across families, within
  families, across products, and within decision
  stages.

13
Types of Influence Strategies in Families

• Expert
• Legitimate
• Has to do with role expectations.
• Bargaining
• Give up something to get something later.
• Reward/Referent
• Especially, parents. Sometimes kids. KIDS???
• Emotional
• Impression management.
• not my fault strategy.

14
Customer Socialization

• Acquisition of consumption skills.
• Example?
• Home Depot

15
Factors influencing Family

• Changes in role of women.
• Employment, empowerment.
• Marriage and divorce.
• Newer definitions of what constitutes marriage.
• Changes in child-birth and rearing practices.

16
Traditional Family Life Cycle

• Single
• Married without children.
• Young, married with children.
• Middle-aged, married, with children.
• Empty nesters.
• Older married.
• Older unmarried.

17
New Additions to Family Life Cycle

• Single
• Married without children.
• Single again, without children.
• Young, married with children.
• Single parent, with children.
• Middle-aged, married, with children.
• Middle-aged, divorced with children.
• Empty nesters.
• Divorced empty-nesters.
• Older married.
• Older unmarried.