Chapter 12 Group, Dyadic and Diffusion Processes

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Chapter 12Group, Dyadic and Diffusion Processes

• Consumer Behavior A FrameworkJohn C.
  MowenMichael S. Minor

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Key Concepts

• Groups and types of groups
• Role
• Social comparison processes
• Group polarization
• Trends in household demographics

• Child influence on family decisions
• How business to business and consumer buying
  differ
• Service encounters as theater
• Market mavens
• Diffusion

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Group

• Set of individuals which
• interacts over period of time
• common need or goal.

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Groups Influence Buying in Two Ways

• Affect purchases made by individual consumers
• Make decisions as a group

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Types of Groups

• Reference group
• Aspiration group
• Dissociative group
• Primary group
• Formal group
• Informal group

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How Do Groups Influence Consumers?

• Group influence processes
• The creation of roles within the group
• The development of conformity pressures
• The social-comparison process
• The development of group polarization

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1. Group Influence Processes

• Normative influence
• Informational influence
• Value-expressive influence
• Public goods vs. private goods

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2. Role

• The specific behaviors expected of a person in a
  certain position
• Role-related product cluster

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3. Conformity

• Change in behavior or belief as a result of
  group pressure.
• Compliance
• Private Acceptance

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Factors Leading to Conformity

• Group factors
• Cohesiveness
• Expertise
• Size of group

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Factors Leading to Conformity (continued)

• Individual Factors
• Amount of information the individual possesses
• Attractiveness of group
• Individuals need to be liked
• Type of Decision

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4. Social-Comparison Processes

• Compare with others to evaluate
• Correctness of their opinions
• Extent of their abilities
• Appropriateness of their possessions

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5. Group Polarization

• Groups tend to select more extreme positions than
  that of the average group member.
• Conservative as well as risky shifts are possible.

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Households

• All those people who occupy a living unit
• Families (70.6)
• Nonfamilies (29.4)

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Family Households

• The Nuclear Family
• The Extended Family
• The Detached Nuclear Family
• Married couples
• Married with children at home
• Married with no children at home
• Single fathers
• Single mothers
• Other families

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Nonfamily Households

• Men Living Alone
• Women Living Alone
• Other Nonfamilies

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Some Household Trends

• Size has shrunk from 3.14 to 2.67 persons.
• Increase in divorce
• Children leave home prior to marriage
• Older people maintain own homes.
• Later marriage.
• 2-career families.

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Family Decision Making

• The decision maker may not be the user or
  maintainer of the product.
• Families come in many different configurations so
  it is difficult to identify average family
  decision making.
• Over-reporting of influence, participation, and
  authority in purchase decisions.

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Relative Influence Of Decision Makers

• Wife-Dominated Decisions
• Husband-Dominated Decisions
• Autonomic Decisions
• Syncratic Decisions

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Relative Influence Of Decision Makers (continued)

• Financial resources
• Importance to the family member
• Gender-role orientations

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Family InfluenceChildren

• Children have more influence on
• Food, vacations, eating out .
• Adept at forming alliances with 1 parent to
  constitute a majority.
• Child influence increases with age and earnings.

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Childhood Consumer Socialization

• The processes by which young people acquire
  skills, knowledge and attitudes relevant to their
  functioning as consumers in the marketplace.

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Model of Consumer Socialization
Background Factors
Socialization Agents
Learning Mechanisms
Outcomes
Modeling Reinforce- ment Cognitive develop- ment
SES Sex Age Class Religion
Media Family Peers Teachers
The Socialized Customer
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Organizational Buying Behavior

• Organizational buying center
• Participate in the buying decision
• Share the risks and goals of the decision
• Consumer behavior principles apply
• Differences from families

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Building Relationships in Organizational Buying

• Relationship marketing
• Overt attempt of exchange partners to build a
  long-term association characterized by
• Purposeful cooperation
• Mutual dependence
• Development of structural and social bonds
• Trust
• Commitment

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Dyadic Exchange

• Two individuals transfer resources between each
  other

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Word-of-Mouth Communication

• Exchange of comments, thoughts, or ideas between
  two or more consumers, neither of whom is a
  marketing source.

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Word-of-Mouth Communication

• May account for 3 times as many sales as
  advertising.
• Is twice as effective as radio ads, 4 times as
  effective as personal selling, 7 times as
  effective as newspapers or magazines.
• Negativity bias

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Opinion Leaders...

• Lead in a specific product category and situation
• Involved with the product category
• Higher social status than followers
• More innovative in purchases than followers

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Types of WOM Influencers

• Market Maven
• General market knowledge
• Expertise not product specific.
• Surrogate Consumer
• Often professional tax consultant, wine steward,
  stock broker.

• Opinion Leader
• Always involved in product category.
• High status, socially active.
• Product Innovator
• Purchases innovative products
• Less integrated into social groups.

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Service Encounter

• A personal interaction between a consumer and a
  marketer.

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Symmetrical Customer/ Employee Service Themes

• Autonomy
• Mutual cooperation
• Total dependence

• Indifference
• Cooperation
• Dominance

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Diffusion

• Substances and ideas can gradually spread through
  a medium of some type and reach a state of
  equilibrium.
• In the consumer behavior setting the process by
  which innovative ideas, products, and services
  spread through the consumer population.

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Transmission Processes

• Trickle-Down Theory
• Multi-Step Flow Model
• Opinion Leaders
• Gatekeepers
• Followers

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The Diffusion of Innovations

• A product innovation is a product that has been
  recently introduced and is perceived by consumers
  to be new in relation to existing products or
  services

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Factors that Influence Diffusion of Innovations

• Social System
• Innovation compatible with cultural values
• Homogeneity of the social system
• Characteristics of Innovation
• Symbolic
• Technological
• Characteristics of innovators

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Factors that Influence Diffusion of Innovations
(continued)

• Factors that influence the diffusion pattern
• Characteristics of product
• Characteristics of target market
• Extent of marketing effort

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Managerial Implications

• Positioning
• Environmental Scanning
• Market Research
• Marketing Mix
• Segmentation