Buyer Behaviour Group Influence and Social Media

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Buyer BehaviourGroup Influence and Social Media
Chp. 11 with Duane Weaver
Where Reality meets the Road!Perception in
Action!
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Learning Objectives

• Understand how reference groups influence
  consumer behaviour
• Discuss the role of conformity as a social
  influence
• Discuss the importance of word-of-mouth
  communication
• Understand the nature of opinion leadership
• Understand the impact of Groups and Social
  Networks

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Outline

• Reference Group Influences
• Types of Reference Groups
• Power of Reference Groups
• Conformity
• Resistance to Influence
• W.O.M. Communications
• Social Networks

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Reference Group Influences

• Reference group
• An actual or imaginary individual or group that
  has a significant effect upon an individuals
  evaluations, aspirations or behaviour

• Reference Group Influences
• Informational
• Utilitarian
• Value Expressive

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Types of Reference Groups

1. Formal vs. Informal
2. Brand Community
3. Membership vs. Aspirational
4. Positive vs. Negative
5. Antibrand Community

Get together in a groups of three and come up
with ideas as to how we might use each of these
to our advantage as Marketers.Pick two types
and create one example for each of the two.
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Power of Reference Groups

• SOCIAL POWER
• the capacity to alter the actions of others
• Solomon, White, and Dahl, 2014, p. 324

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Power of Reference Groups

• Referent Power
• Based on admiration of an individual or group
• Patterns of consumption are copied
• Legitimate Power
• Power granted by virtue of social agreements
• Reward Power
• Power based on the ability to provide positive
  reinforcement
• Information Power
• Based on access to information that others seek
• Expert Power
• The individual possesses a special knowledge or
  skill
• Coercive Power
• Effective in the short term, requires
  surveillance to ensure compliance

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Conformity
Conformity A change in beliefs or actions as a
reaction to real or imagined group pressures
Cultural Pressures
Fear of Deviance
Susceptibility to Influence
Likelihood of Conforming
Gender Differences
Commitment
Group unanimity, size, expertise
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Resistance to Influence

• Anti-Conformity
• Defiance is the root of this behaviour
• Paradox being intentionally different requires a
  concerted effort
• Independence
• The individual is oblivious to expected social
  patterns
• Reactance
• Consumer resistance to stimuli
• boomerang effect

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WOM Communications
The Dominance of WOM
Encouraging Factors
Viral Marketing
Guerilla Marketing
Negative WOM
http//www.youtube.com/watch?vad4fagTyaM4
Rumours
Distortion
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Opinion Leadership
Reduce Risk
Similar Values referent power
Technically Competent
first to buy
Key Characteristics of Opinion Leaders
Legitimate Power
Knowledge Power
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Social Networks

• COMPONENTS
• Social networks (set of socially relevant nodes)
  social graphs
• Nodes members in a network
• Ties relationships among nodes
• Nodes (members of the network)
• Have interactions (behaviour based ties)
• Have flows (exchange information, influence,
  etc.)
• ELEMENTS
• Media multiplexity flows are in many directions
  
• Social object theory object of common
  interest(more powerful if there is a way to
  activate relationship between people and objects)
• Object sociality extent objects can be shared

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Virtual Communities

• Virtual community of consumption
• Common love of a product
• Remain anonymous through cyberspace only
• Operation is similar to any community
• Social media provides the connection
• Virtual World Communities
• Presence
• Collective interest
• Democracy
• Standards of behaviour - flaming
• Levels of participation
• Tourists Lack strong social ties to group, and
  maintain only a passing interest in the activity.
• Minglers Maintain strong social ties, but are
  not very
• interested in the central consumption activity.
• Devotees Express strong interest in the
  activity, but
• have few social attachments to the group.
• Insiders Exhibit both strong social ties and
  strong interest in the activity

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Thank You

• PERCEPTION IS REALITY