36 Questions
What is a reference group?
A group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior
Which of the following is NOT one of the criteria used in classifying groups?
Age of group members
Which group may be less influential in shaping behaviors, but can influence in field of shared interest?
Secondary Groups
What is an aspirational reference group?
A group which one wishes to join
What is a dissociative reference group?
A group to which one does not belong
What happened to Burberry's sales and brand image after being copied by an antithetical segment called “chavs”?
Sales decreased
What is the main difference between consumption subcultures and brand communities?
Subcultures focus on shared social activity, while brand communities focus on shared consumption of brands
What is a potential advantage of anonymity in virtual communities?
Allows people to express personal and potentially controversial opinions honestly
What is a key way in which brand communities differ from consumption subcultures?
Brand communities are centered around a specific brand, while subcultures are not
What is a potential disadvantage of shared practices, rules, and terminology in virtual communities?
It can act as a barrier to those unfamiliar with the community
What is a key way in which brand communities may co-create value with the business?
By providing feedback and ideas for product development
What is a normative belief?
An individual's subjective understanding of the rules within a society
What is the difference between formal and informal rules?
Formal rules are written and enforceable by law, while informal rules are unwritten and enforced by society
What is normative influence also known as?
Utilitarian influence
What is the difference between compliance and acceptance?
Compliance is when an individual adopts the behaviors and beliefs of a group, while acceptance is when an individual goes along with a behavior without accepting its beliefs
What is referent power?
The capacity to alter the actions of others through admiration
What is legitimate power based on?
Both perception and reality
What is Word of Mouth (WOM)?
A communication method between groups
What is an opinion leader?
A person who filters, interprets, and passes along information
What is the difference between an opinion leader and a market maven?
An opinion leader is product-specific while a market maven has general market expertise
What are the categories of innovation?
Continuous Innovation, Dynamically Continuous Innovation, Discontinuous Innovation
What is the difference between Dynamically Continuous Innovation and Discontinuous Innovation?
Dynamically Continuous Innovation requires a moderate change in an important behavior while Discontinuous Innovation requires major changes in behavior of significant importance to the individual or group
What is the adoption rate of Innovators in the Diffusion of Innovations model?
2.5%
What is the difference between Early Majority and Late Majority in the Diffusion of Innovations model?
Early Majority adopts an innovation before the average person while Late Majority adopts an innovation after the average person
What has Burberry done to tackle fake products?
Created an internal anti-counterfeit team
What has been the impact of Burberry's association with 'chav' culture on the brand?
It has not affected the brand's global success
What is Burberry's approach to downmarket customers who champion the brand?
They embrace those customers and want to be seen as an 'accessible luxury' brand
What does Rita Clifton, the chairman of Interbrand, believe about Burberry's move to expand upmarket?
It will prove difficult for the brand
What is the percentage of Burberry's products that feature the plaid check?
8%
What is the name of Burberry's top-end label that includes very little check?
Prorsum
What is the name of Burberry's chairman?
Rita Clifton
What is the age range for Burberry's Thomas Burberry label?
16-25
What is the name of Burberry's latest fragrance?
Burberry Brit
What is the market capitalisation of Burberry in the past seven years?
£2bn
What is the name of the marketing professor at London Business School who previously believed that the mainstream hijacking of Burberry had irrevocably damaged the brand?
Mark Ritson
How many countries does Burberry operate in?
26
Study Notes
Burberry Embraces 'Chav' Culture and Maintains Global Success
- Burberry has grown from a £200m business to a market capitalisation of £2bn in the past seven years under the leadership of Rose Marie Bravo.
- The brand's iconic plaid check has become associated with 'chav' culture in the UK, but Burberry has extended the pattern into different colours and designs.
- The check only features on 8% of Burberry's products, but it is the first thing to greet visitors to the company's website and adorns the company's latest fragrance, Burberry Brit.
- Burberry has an internal anti-counterfeit team to tackle fake products, but the company wants to be seen as an "accessible luxury" brand, with a wide appeal.
- The brand has not expressed outrage over its association with downmarket customers and instead embraces its customers, whether they hail from council estates or country estates.
- Mark Ritson, a marketing professor at London Business School, previously believed that the mainstream hijacking of Burberry had irrevocably damaged the brand, but now recognises that the brand has maintained its global strength.
- Rita Clifton, the chairman of Interbrand, believes that Burberry's business must be set in its successful global context and that the brand's move to expand upmarket with the top-end Burberry Prorsum label may prove difficult.
- Burberry has three labels: Prorsum, which includes very little check; Burberry London, the most well-known and largest range, which includes the famous check-lined trenchcoats; and Thomas Burberry, for 16- to 25-year-olds.
- Burberry has extended the plaid check into a pink colourway and added a "scratch-look" design and striped variants.
- Burberry's success is not limited to the UK, and the brand operates in 26 countries.
- The brand's CEO, Rose Marie Bravo, has just signed a new contract keeping her at Burberry until July 2006, demonstrating her unwavering commitment to the brand.
- Burberry's strategy of not trying to stop downmarket customers championing the brand has prevented it from coming across as snobbish, and the brand is seen as "welcoming" and "democratic".
Test your knowledge on reference groups with this sociology quiz! Learn about social interactions, group formation, culture, social class, and the family. Discover the definition of a group and the concept of reference groups. Challenge yourself and see how much you know about human behavior in groups.
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