Group Influence and Family Decision Making

Group and Situational Influence• A group is two or more individuals

who share a set of norms, have role relationships, and experience interdependent behaviors.

• Groups influence the socialization process--i.e., they influence what we learn and how we behave.

Classification of Groups

• Content or function– Membership group– Symbolic group

• Degree of personal involvement– Primary – Secondary

• Degree of organization– Formal– Informal

Reference Groups

• A group to which a consumer looks for guidance for values and behavior. Serves as a frame of reference for individuals in their purchase or consumption decisions.

• Broad categories of reference groups:– Normative– Comparative

How Do Reference Groups Influence Consumers?• Social power theory

• Information and experience

• Product conspicuousness and exclusivity

Social Power Theory

• Groups have potential power over members through 5 different types of social powers.

• Three processes that impact the likelihood that social power will influence an individual member:– Compliance– Internalization– Identification

Social Powers

• Legitimate• Expert• Referent• Coercive• Reward

Information and Experience• Members of reference groups

share experiences and information about products.– Family, friends– Expert power

Product Conspicuousness and Exclusivity• How much a reference group

influences depends on two characteristics of a product:– Conspicuousness

• How visible the product is to people• Public vs. private

– Exclusivity• How exclusively the product is owned• Necessity vs. luxury

“Private necessities”

Reference group influence:Weak for product ownership and weak for brand choice.

Examples:MattressFloor lamprefrigerator

“Public Luxuries”

Reference group influence:Strong for product ownership and strong for brand choice.

Examples:Golf clubsSail boatSnowboard

“Private luxuries”

Reference group influence:Strong for product ownershipbut weak for brand choice.

Examples:Theater sound systemPool tableTrash compactor

“Public necessities”

Reference group influence:Weak for product ownershipBut strong for brand choice.

Examples:CarComputerClothes

Low exclusivity High exclusivity

Lowvisibility

High visibility

Reference Group Appeals

• Appeals that consumers identify with in some way:– Admiration– Aspiration– Empathy– Recognition

Types of Appeals

• Celebrity appeals– Testimonial– Endorsement– Actor– Spokesperson

Appeals, continued...

• Expert appeals• “Common man” appeals• Executive spokesperson appeals• Trade or spokes-characters

Benefits of Reference Group Appeals

• Increase brand awareness

• Decrease perceived risk

Family

• A family is the most important reference group.

• What is a family?

• Family vs. household

Functions of the Family

• Economic function

• Emotional support

• Establish lifestyle

• Socialization

Consumer Socialization

• The process by which children acquire skills, knowledge, and attitudes necessary to function as consumers.

• Primary socialization agent– Parents

• Secondary socialization agent– Peers– Media

Family Decision Roles

• Related to sex– Instrumental vs. expressive– Traditional vs. egalitarian

• Related to purchase and consumption– Influencer– Gatekeeper– Decider– Buyer– User

Family Decision Making Models• Husband-wife decisions

– Wife dominant – Husband dominant– Autonomic– Syncratic (joint)

• Classification based on degree of role specialization and relative influence.

Models, continued...

• Purchase decision strategies– Consensual decisions

• Goal consensus• Requires problem solving strategy or rule

strategy

– Accommodative decisions• Conflicting goals• Requires conflict resolution, persuasion

strategies, bargaining strategies

Models, continued...

• Husband-wife influence strategies– Expert influence– Legitimate influence– Bargaining– Reward/referent influence– Emotional influence– Impression management

• Partners use a combination of strategies

Influence Strategy MixesInfluence Strategy Mix % of Sample Strategy Choices

Non-influencers 22.0% Expert

Light influencers 35.9% Impression managementExpert

Subtle influencers 18.8% Reward/referentExpert

Emotional influencers 6.6% EmotionalReward.referent

Combination influencers 9.9% Moderate use of all strategies

Heavy influencers 6.6% Heavy use of all strategies

Involvement of Children in Family Decision Making• Children are significant market

segment:– As influencers of family purchases– As individual consumers

• Primary influence on family purchases:– Personal involvement– Initiation stage of purchase process– Sub-decisions

Children….

• Direct vs. indirect influence

• Influence strategies

Family Life Cycle (FLC)

• A classification scheme based on the assumption that families pass through an orderly progression of stages, each having unique characteristics, financial situations, and purchasing patterns.

• A useful tool for predicting certain household purchases.

FLC, continued

• FLC models– Base categorization on either

husband’s or wife’s age and on age of youngest child in family.

– Spending patterns generally follow an inverted U pattern over the life cycle.

Traditional FLC

• Stage 1--Bachelorhood• Stage 2--Honeymooners• Stage 3--Parenthood

– Full nest I-III

• Stage 4--Postparenthood– Empty nest I-II

• Stage 5--Dissolution

Updated FLC

• Address societal changes– Never married– Divorce– Childless couples– Single parents– Delayed marriage– Delayed children