Consumer Influence and Group Dynamics

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Questions and Answers

What is a reference group?

A group whose values are used by an individual as a basis for behavior. (correct)

A group that only consists of family members.

A group of individuals who are located geographically close to each other.

A group that includes only friends.

A dissociative reference group is one that an individual wishes to connect with.

False

What type of reference group involves close and enduring relationships?

primary reference groups

Electronic word-of-mouth is abbreviated as _____.

eWOM Signup and view all the answers

Match the type of reference group with its definition:

Dissociative Reference Group = Group one wishes to avoid becoming a member of Aspirational Reference Group = Group one does not belong to but wishes to join Primary Reference Group = Small group with close and enduring relationships Secondary Reference Group = Group based on interests and more temporary relationships Signup and view all the answers

Which factor does NOT influence information influence according to the content?

Source popularity Signup and view all the answers

Most consumers purchase products solely based on their own opinions.

False Signup and view all the answers

What is the main challenge that eWOM poses to marketers?

Consumers have access to multiple sources of product information beyond just sellers. Signup and view all the answers

What is normative influence primarily driven by?

Desire to belong or gain approval Signup and view all the answers

Identification influence occurs when individuals do not internalize the group’s values.

False Signup and view all the answers

What factor is NOT related to the extent of consumer conformity to group behavior?

Level of interest in the group Signup and view all the answers

Social contagion is defined as the spread of ______ or behavior from one crowd participant to another.

affect Signup and view all the answers

Match the following terms with their definitions:

Normative influence = Fulfillment of group expectations for rewards or sanctions Identification influence = Internalized values of a group Social contagion = Spread of behavior among crowd participants Opinion leaders = Individuals who filter and interpret product information Signup and view all the answers

Which factor impacts the likelihood of consumer conformity the most?

Individual's confidence in their judgment Signup and view all the answers

External influences involve only verbal communication.

False Signup and view all the answers

What phenomenon explains the rapid spread of consumer behavior similar to an infectious disease?

Bandwagon effect Signup and view all the answers

The process of how innovations spread throughout a market is called the ______ process.

diffusion Signup and view all the answers

Which group is characterized by having general knowledge about various products in the marketplace?

Market mavens Signup and view all the answers

Study Notes

Consumer Influence by Groups

Groups are defined as two or more individuals sharing norms, values, or beliefs, with interdependent behaviors.
Reference groups provide perspectives and values influencing individual behavior.
Dissociative reference groups are ones individuals wish to avoid, while aspirational reference groups are desired but not currently belonged to.
Reference groups can be primary (small, close relationships) or secondary (based on interests, temporary).
Reference groups can also be formal or informal.
Consumers rely on opinions, recommendations, and experiences of others (family, friends, colleagues).

Electronic Word-of-Mouth (eWOM)

Internet technologies, social media, and mobile phones facilitate easy access to consumer experiences (online reviews).
eWOM provides consumers with extensive product information and experiences.
eWOM challenges marketers as sellers are no longer the sole information source.

Group Influences on Consumers

Consumers often conform to group expectations to feel a sense of belonging, even unintentionally.
Influence dimensions include:
- Information influence: Using group behavior/opinions as information, relying on source credibility, similarity, and expertise.
- Normative influence (utilitarian): Fulfilling group expectations to gain rewards or avoid sanctions.
- Identification influence (value-expressive): Internalizing group values and norms.
Factors affecting consumer conformity to group opinions:
- Individual's commitment to the group.
- Relevance of behavior to group functioning.
- Individual's confidence in judgment.
- Visibility of usage situation.
- Product necessity level.

Group Communications

External influences on consumers occur through communication (verbal and nonverbal).
Verbal communication involves word-of-mouth (WOM).
Nonverbal communication includes observing others, like queue length as a quality signal.
Past sales volume can signal product quality (e.g., movie box office success).
The bandwagon effect (social contagion) drives the spread of affect/behavior between crowd participants.

Innovation and Diffusion

An innovation is a new idea, practice, or product to the user.
The diffusion process describes innovations spreading through a market.
Social contagion, like the adoption of a product (e.g., Pokémon Go) follows patterns similar to epidemics.

Opinion Leaders and Market Mavens

In the two-step flow communication theory, opinion leaders receive information from mass media and share it with others.
Opinion leaders actively filter, interpret, and share product/brand information.
Market mavens have general knowledge about various products available.

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Description

Explore how consumer behavior is shaped by group dynamics in this quiz. Learn about reference groups, their classifications, and the impact of electronic word-of-mouth (eWOM) in today's digital age. Understand the significance of opinions and experiences shared within social circles.