Consumer Behavior Topic 10Personal Influence: Reference Group and Opinion Leadership

Reference Groups – use other people as a frame of reference.

Primary groups are intimate, face-to-face such as family and peer groups. Informal primary groups include family and peer groups. Formal groups are highly defined in structure, interact frequently, such a school groups, business groups and work groups. Primary groups are more important to you. Secondary groups are seen less frequently. Informal groups are considered secondary and more impersonal as they only interact occasionally (i.e. shopping groups, sports group). Secondary formal groups might include alumni organizations and technical associations.

Symbolic groups are those that you can never join but that you try to take on your values (i.e., sport team).

How do groups affect us and shape our consumer behavior? Social Power Theory (Raven & French):There are 5 basis of power, that is 5 ways in which groups influence people:

1.Rewarded power – parents often use rewards as well as supervisors (lots of ads use reward power)2. Coercive power (punish) – you can be punished if you don’t do what they want3. Legitimate power – the other person has a legitimate right to try to influence you (i.e., religious leaders, rabbi, priest; in advertising to buy American products or union label)4. Referent power – persuaded by groups you’re either similar to or want to be like (ie., sports celebrities used in advertising, Michael Jordan for Hanes – want to be like him)5. Experent power -with superior expertise increases trustworthiness

The 3 Processes of Social Influence (Kelman)1. compliance – sometimes do something overtly but not believe in it –

compliance (i.e., to work on time – maybe do it because afraid of coercive power, that is lose job)

2. identification – sometimes satisfaction comes from conforming (i.e., dressing like members of the group you admire) or may not be a true believer and not believe deep inside – usually goes with referent power

3. internalization – real change in attitude or behavior – assimilate it with your own values – done when you believe in what the person is saying (particularly if referent or expert – parents, teachers). Advertising is limited – can not always function as referent or legitimate power (although can say to buy American goods).

Reference Group Influence – used as a frame of reference1. avoidance groups (negative) – groups you hate and you avoid what they buy –

you disapprove of them and won’t buy their products (i.e., Hell’s Angels and Harley Davidson motorcycles).

2. Disclaimant group – you may be part of the group but want to be different – a rebel (i.e., at school, dress differently such as Goth).

How reference groups influence works in general:3 forms of reference groups (influence)

1. normal compliance – normative - reward/punishment – group works by either accepting or not –normative – accepted if do as told (i.e., gangs, either shun you or accept you) – you tell group to reward or punish – ostracize, shun punish or if part of group, acceptance 2. value – expressive function – psychological association – you want to identify with people in a group – you admire them – you need to associate with the group so you take on the values of group – pleasure from acting like theminformational influence – way you get information (about what to buy) – AC, car, color TV, Doctors

re: conspicuousness – Factors Impacting Reference Group Influence1. conspicuousness of the product and status revealing (more prone to reference

group) when visibly effected by reference groupreference groups work well on publicly used products but are weak with privately consumer products

2. information and experience – if a lot of information, less likely to be influenced

3. credibility, attractiveness and he power of the reference group4. personal factors – personality not very useful in consumer behavior

How are reference groups applied by advertisers? Endorsements such as the celebrity endorser, the expert endorser (i.e., dentist, scientist); the common man (i.e., audience of shows being captured as they leave the theater for their raw responses to show); company executives.

Why use celebrities?1. source of credibility – tap into trustworthiness or likeability (i.e., Hitler had

amazing ability to influence people); people we trust/like such as Bill Cosby, Mary Tyler Moore). This is referred to as a “Q” score and these are measurable.

2. Attraction/identification (i.e., Kelly Ripca, Princess Diana, Sean Conery, Paul Newman, Michael Jordan) – not independent from #1

3. Attention getting – people who get notice – ties with #44. Cue to help people remember the ad (i.e., using a sports hero’s mom)5. Protypical bonding – image spillover – if a product has no image – try to

connect with the celebrity who has image (i.e., George Forman who is very likeable for Meinike mufflers).

Opinion LeadershipWord of mouth – friends, neighbors, work associatesPeople turn to others for adviseAdvertising bias – not always honest – if opinion leader, usually category specific

How measure opinion leadership?1. self-designating method2. sociometric method – closed community and ask people what they think about

something3. key informant method – these are the central people4. objective method

Opinion Leaders have:1. knowledge and interest about the product2. are innovators3. demographics tend to be younger for the arts and older for medical4. social class – tend to be of the same social class as the target demographic