Opinion Leadership

Opinion LeadershipThe process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients.

It is interpersonal and informal and takes place between two or more people, none of whom represents a commercial selling source that would gain directly from the sale of something. Opinion leadership process is a very dynamic and powerful consumer force. Opinion leaders are remarkably effective at influencing consumers in their product-related decisions.

How important is word of mouth?A recent study in the United Kingdom asked consumers which information sources would make them more comfortable with the company. The answer at the top of the list was friends recommendation ( 71% consumers), whereas past experience was response of 63%. Only 15% of the consumers mentioned advertising.Additionally, it has been reported that 40% consumers will actively seek the advice of family for shopping.

What is Opinion Leadership?Opinion LeaderOpinion ReceiverOpinion Seeker

Examples of Opinion LeadershipDuring a coffee break, a co-worker talks about the movie he saw last night and recommends seeing it.A person shows a friend photographs of his recent Australian Outback vacation and the friend suggests that using a polarizing filter might produce better pictures.

Special Issues

Information seekers seek a strong-tie source when they know little about a topic, and weak-tie sources when they have some knowledge

Reasons for the Effectiveness of Opinion LeadershipCredibilityPositive and Negative Product InformationInformation and AdviceOpinion Leadership Is Category-Specific

Credibility

Opinion leaders are highly credible sources of information because they usually are perceived as objective concerning the product or service information or advice they give. Their intentions are perceived as being in the best interests of the opinion recipients because they receive no compensation for the advice.

Positive and Negative Product InformationOpinion leaders provide both favorable and unfavorable informationConsumers are specially likely to note such information and avoid products or brands that receive negative evaluation.Consumers like to share more about negative experience than positive one.

Information and AdviceOpinion leaders are the source of both information and advice.They may simply talk about their experience with the product, relate what they know about a product, or, more aggressively, advise others to buy or to avoid a specific product.

Opinion Leadership Is Category-SpecificOpinion leaders often specialize in certain product categories about which they offer information and advice.

Motivations Behind Opinion LeadershipThe Needs of Opinion LeadersThe Needs of Opinion Receivers

The Needs of Opinion LeadersWhat motivates a person to talk about a product or service?Opinion leaders may simply be trying to reduce their own post purchase dissonance by confirming their own buying decisions,

For example, if Bradley subscribes to a satellite TV service and then is uncertain that he made the right choice, he may try to reassure himself by talking up the services advantages to others. In this way, he relieves his own psychological discomfort. Further when he can influence a friend or neighbor to also get satellite TV, he confirms his own good judgment in selecting the service first. Thus, the opinion leaders true motivation may really be self confirmation.

The Needs of Opinion Leaders

Self involvementSocial involvementProduct involvementMessage involvement

The Needs of Opinion ReceiversNew-product or new usage informationReduction of perceived riskReduction of search timeReceiving the approval of the opinion leader

A Comparison of Motivations(Experts)

Measurement of Opinion LeadershipSelf-Designating MethodSociometric MethodKey Informant MethodObjective Method

Measuring Opinion Leadership

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Profile of Opinion LeadersGENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIESCATEGORY-SPECIFIC ATTRIBUTESInnovativenessWillingness to talkSelf-confidenceInterestKnowledgeSame ageSame social statusSocial exposure outside group

The Interpersonal Flow of CommunicationTwo-Step FlowA communication model that portrays opinion leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.Multistep FlowA revision of the traditional two-step theory that shows multiple communication flows

Two-Step Flow of Communication TheoryMass MediaOpinion LeadersOpinion Receivers (the masses)Step 1Step 2

Multistep Flow of Communication TheoryMass MediaInformation ReceiversOpinion Receivers/ SeekersOpinion LeadersStep 1aStep 1bStep 2Step 3

Issues In Opinion Leadership and Marketing StrategyPrograms Designed to Stimulate Opinion LeadershipAdvertisements Stimulating Opinion LeadershipCreation of Opinion Leaders

Market MavenIndividuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

Diffusion ProcessThe process by which the acceptance of an innovation ( a new product, new service, new idea, or new practice) is spread by communication( mass media, salespeople, or informal conversations) to members of social system( target market) over a period of time.

Elements of the Diffusion ProcessThe InnovationThe Channels of CommunicationThe Social SystemTime

Product Characteristics That Influence DiffusionRelative Advantage: The degree to which potential customers perceive a new product as superior to existing product.Compatibility: The degree to which potential consumers feel a new product is consistent with their present needs, values, and practices.Complexity: The degree to which a new product is difficult to understand or use.Trialability: The degree to which a new product is capable of being tried on a limited basisObservability:The degree to which a products benefits or attributes can be observed, imagined, or described to potential customers.

Characteristics That Influence DiffusionCHARACTERISTICSEXAMPLESRelative AdvantageAir travel over train travel, cordless phones over corded telephonesCompatibilityGillette MACH3 over disposable razors, digital telephone answering machines over machines using tapeComplexityElectric shavers, instant puddings

continuedCHARACTERISTICSEXAMPLESTrialabilityTrial size jars and bottles of new products, free trials of software, free samples, ObservabilityClothing, such as a new Tommy Hilfiger jacket, a car, wristwatches, eyeglasses

Adoption ProcessThe stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

Stages in Adoption Process

Stages in Adoption Process

An Enhanced Adoption Process Model

The Relative Importance of Different Types of Information Sources in the Adoption ProcessImportanceHighLowAwarenessAdoptionTrialEvaluationInterestPersonal and interpersonal sourcesImpersonal mass-media sources