Group Influences and Consumer Collectives

Gro up In flu en ces a n d C onsu m er C olle ctiv es Week Week 3 R efe re n ce g ro ups Socio lo g y Sociology is the study of human behaviour in groups. Here we are interested in issues such as – Social interactions Groups, their formation, rules and role in influencing behaviour Culture...

Gro up In flu en ces a n d C onsu m er C olle ctiv es Week Week 3 R efe re n ce g ro ups Socio lo g y Sociology is the study of human behaviour in groups. Here we are interested in issues such as – Social interactions Groups, their formation, rules and role in influencing behaviour Culture Social class and social status The family R efe re n ce G ro u ps A group is defined as “two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent” (Mothersbaugh et al. 2020) A reference group “a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior .” (Mothersbaugh et al. 2020) “a group of people who act as a yardstick for our behaviour ” (Bearden and Etzel, 1982) In flu en ce o f r e fe re n ce g ro ups Four criteria that are particularly useful in classifying groups: Membership – (Members vs Non Members) Members vs Non MembersGroup Influences and Consumer Collectives 1 Some may feel more secure in their membership. Formal or informal Strength of Social Tie (Primary or Secondary groups) Primary Groups people we see daily and to whom we feel closest most substantial influence on behaviours e.g family, friends, close colleagues Secondary Groups people who we may not see every day/be closest friends Less influential in shaping behaviours, but can influence in field of shared interest. e.g. trade associations, sports clubs, hobby clubs Type of Contact (direct or indirect contact) Contact may be face to face (direct) mediated through online platforms (indirect) Attraction (aspirational or dissociative groups) Aspirational Reference Groups       A group which one wishes to join Group members may not be personally known Individuals may seek to copy/emulate attitudes and behaviours of aspirational group members. Dissociative Reference Groups “A group to which one does not belong” Consumers may alter their consumption to avoid products associated with a dissociative group . Aspirational vs. Dissociative Groups: The Case of Burberry Upmarket, aspirational brand Copied by antithetical segment “chavs” Damaged brand image and sales. Removing the symbolic ‘check’ design 2001 (20% of products carried design) 2004 (<5%) C onsu m ptio n s u bcu lt u re s a n d b ra n d c o m munit ie s C on su m ptio n S ubcu lt u re s Consumption Subcultures – Identifiable hierarchy Set of shared beliefs and values Unique jargon and rituals Consumption as Group Belonging: Protein Bars https://www .youtube.com/watch?v=dT cv5q4WfMMGroup Influences and Consumer Collectives 2 Bra n d C om m unit ie s As distinct from subcultures (who form around shared social activity) brand communities form around the shared consumption of brands. Power structure centre around the product/brand’ s core values. Brand communities seldom display resistance to dominant social structures. Brand communities may co-create value with the business. Marketing implications Social networking Impression management Community engagement Communities may not always socialise exclusively around one brand but around a collection of loosely association brands, products and services. AFOLS (Adult Fan of Lego) Harley Davidson H.O.G. –Harley Owners Group H.O.G. members are part of a ‘global family’ Uses marketing to promote a brand community and generate buzz Virtual Communities “a group of people with common goals and interests who interact via electronic media” Anonymity can allow people to express personal, potentially controversial opinions honestly Allows access to like minded individuals who would not be reachable in a physical setting. Chatrooms, blogs, social networks, file sharing Successful Online Communities Standards of Behaviour - implicit vs explicit rules Degree of connectedness - group cohesion Member contributions - active contributors (add value to community) vs passive observers (marking implications) Types of V irtual Communities Brand Communities communities of individuals with a shared interest in a specific brand e.g. classic cars Communities of Interest hobby sites for those who share an interest e.g. sports or professional interest Fantasy Communities based on games, whether fantasy or ordinary Relationship Communities based on common shared problems and experiences Norms in V irtual CommunitiesGroup Influences and Consumer Collectives 3 May have shared practices rules and terminology which can act as a barrier to those unfamiliar, such as abbreviations, which created a shared sense of understanding AFAIK - “As far as I know” AMA - “Ask me anything”, CCW - “Comments and criticism welcome” CMV - “Change my view” DAE - “Does anybody else or does anyone else” ELI5 - "Explain like I'm 5 (years old)" Refe re n ce g ro up in flu en ce a n d c o nsu m ptio n G ro up N orm s a n d N orm ativ e B elie fs A norm refers to: “informal understandings of what is acceptable and unacceptable that govern individuals' behaviour in society” A normative belief is an individual’ s subjective understanding of the rules within a society Individuals may or may not be motivated to comply with the perceived norms of a groups Socia lis atio n t h ro ugh R efe re n ce G ro ups “the process of becoming an effective and integrated member of society by attain and replicating norms, customs and ideologies in order to maintain continuity” Rules may be formal or informal Informal rules: group members need to interact with others in the group to understand norms. Ty p es o f R efe re n ce G ro up In flu en ce Informational Influence Individuals use the behaviour/opinions of reference group members as potentially useful bits of information. Arise from a need for information from the reference group about the product category being considered. People often need to get expert advice and opinion about their product choices. Ensuring reference groups are trusted e.g. professional trade organisationsGroup Influences and Consumer Collectives 4 Normative Influence (a.k.a. utilitarian influence) Pressure exerted on individuals to conform and comply. Individuals come to realise that conforming results in group approval. Pressure to conform is most effective for individuals who seek to be accepted. Consider motivation to comply with norms of associative and dissociative groups Identification Influence (Value expressive influence) Occurs where an individual has internalised the groups’ norms and values. The values of the individual have aligned with those of the group. Role Models “an individual who acts as a reference point for judging ones own behaviour” Imitation of modelled behaviours determined by Attractiveness of the model Relatability What if models are too good to be true or are insincere? Kylie Jenner & Fyre Festival How plausible is it for us to emulate models behaviours? Talent shows…. What are sources of power? Social power: capacity to alter the actions of others. Referent Power If a person is admired consumers may try to imitate them. Consumers seek to be associated with them through their actions and/or purchases. Expert Power Expert power accrues to a person who is an expert in a particular field. Influence a consumer due to the group/individual’ s knowledge of a specific subject matter” Information Power Exists when someone knows something others would like to know . Legitimate Power Granted through true authority in a situation. For instance, police of ficers have legitimate power. Legitimate power is based on both perception and reality Reward power Influence held by a person who has the ability to of fer a reward. – E.g. promise of promotion can lead employees to conform. Rewards offered need to be meaningful to have power . Coercive power Opposite of reward power. Ability to punishGroup Influences and Consumer Collectives 5 Group members have the power to sanction other members for breaking rules or failing to meet expectations. E.g. exclusion from membership. Conformity A change in belief or actions based on real or perceived group pressures. There are two forms of conformity Compliance : Happens when an individual goes along with a behaviour, without really accepting it’s beliefs Acceptance: Occurs when an individual not only adopts the behaviours, but also adapts their beliefs to come into line with those of the groups Com m unic atio n w it h G ro ups W ord o f M outh ( W OM ) Traditionally face-to-face communication From known or trusted sources Based on consumer experiences Reduces risk in purchase decisions (other ’s first hand experiences) How many degrees of separation (a friend of a friend of a friend told me… ) O pin io n L ead ers An opinion leader is the “go to person” for specific information. This person filters, interprets, and passes along information. Opinion leaders possess enduring involvement for specific product categories . Opinion leadership is category specific Information can be considered to ‘ filter ’ through opinion leaders to consumers. S it u atio ns in W hic h W OM a n d O pin io n L ead ers h ip O ccu r The exchange of advice and information between group members can occur directly via WOM in the following situations: 1. Individual seeks information from another , or 2. Individual volunteers information Information exchange can occur directly or indirectly . The Market Maven “individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information ” (Feick & Price, 1987) Differs from opinion leaders in that the expertise is not product specific . General market expertiseGroup Influences and Consumer Collectives 6 Mark etin g S tr a te g y, W OM , a n d O pin io n L ead ers h ip Strategies designed to generate WOM and encourage opinion leadership include: Advertising Product Sampling Retailing/Personal Selling Creating Buzz G ro u ps a n d D if fu sio n o f In novatio n Dif fu sio n o f In n ovatio ns Innovation: an idea, practice, or product perceived to be new by the relevant individual or group. New product spread through a market is a group phenomenon. New products can be placed on a continuum from no change to radical change, depending on the market’ s perception. Cate g o rie s o f In novatio ns Continuous Innovation requires relatively minor changes in behavior(s) that are unimportant to the consumer . Dynamically Continuous Innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual. Discontinuous Innovation major changes in behavior of significant importance to the individual or group. Dif fu sio n R ate s f o r P opula r C onsu m er E le ctr o nic s ( C um ula tiv e) A do pte r C ate g orie sGroup Influences and Consumer Collectives 7 Innovators Early Adopters Early Majority Late Majority LaggardsGroup Influences and Consumer Collectives 8