4 – CONSUMERS IN THEIR SOCIAL AND CULTURAL SETTING
Unit 1 – Groups and Social Media
Overview
Humans are social animals. We belong to groups, try to please others, and look to others’ behavior for clues about what we should do in public settings. In fact, our desire to “fit in” or to identify with desirable individuals or groups is the primary motivation for many of our consumption behaviors. We may go to great lengths to please the members of a group whose acceptance we covet.
Learning Objectives
• Other people and groups, especially those that possess social power, influence our decisions.
• Word-of-mouth communication is the most important driver of product choice.
• Opinion leaders’ recommendations are more influential than others when we decide what to buy.
• Social media changes the way we learn about and select products.
Course materials
Other people and groups, especially those that possess social power, influence our decisions.
We belong to or admire many different groups, and a desire for them to accept us often drives our purchase decisions. Individuals or groups whose opinions or behavior are particularly important to consumers are reference groups. Both formal and informal groups influence the individual’s purchase decisions, although such factors as the conspicuousness of the product and the relevance of the reference group for a particular purchase determine how influential the reference group is.
Individuals have influence in a group to the extent that they possess social power. Types of social power include information power, referent power, legitimate power, expert power, reward power, and coercive power.
Brand communities unite consumers who share a common passion for a product. Brandfests, which companies organize to encourage this kind of community, can build brand loyalty and reinforce group membership.
We conform to the desires of others for two basic reasons: (1) People who model their behavior after others because they take others’ behavior as evidence of the correct way to
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act are conforming because of informational social influence; and (2) those who conform to satisfy the expectations of others or to be accepted by the group are affected by normative social influence. Group members often do things they would not do as individuals because their identities become merged with the group; they become deindividuated.
Word-of-mouth communication is the most important driver of product choice.
Much of what we know about products we learn through word-of-mouth (WOM) communication rather than formal advertising. We tend to exchange product-related information in casual conversations. Although WOM often is helpful to make consumers aware of products, it can also hurt companies when damaging product rumors or negative WOM occur.
Opinion leaders’ recommendations are more influential than others when we decide what to buy.
Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence others’ choices. Specific opinion leaders are somewhat hard to identify, but marketers who know their general characteristics can try to target them in their media and promotional strategies. Other influencers include market mavens, who have a general interest in marketplace activities; and surrogate consumers, who are compensated for their advice about purchases.
Social media changes the way we learn about and select products.
Social media platforms significantly increase our access to others’ opinions about products and services. Virtual consumption communities unite those who share a common passion for products that include apparel, cars, music, beer, political candidates, etc. Many social media users post content online that satisfies motive for self enhancement as well as the desire to share opinions and experiences about products and services. Consumers may engage with these brands via social games. Viral marketing techniques enlist individuals to spread online WOM about brands. Online opinion leaders play a pivotal role in disseminating influential recommendations and product information.
Read:
Chapter 11 – Groups and Social Media
Consumer Behavior 12e
by: Michael R. Solomon
Activities/assessment:
Answer the following Review Questions:
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1. What is buzz building, and how does it work?
2. What is meant by homophily?
3. Describe some ways in which marketers use the Internet to encourage positive word-of-mouth.
4. Could a marketer create a generalized opinion leader?
5. What is an opinion leader? Give three reasons why they are powerful influences on consumers’ opinions.
6. Is there such a thing as a generalized opinion leader? Why or why not?
7. What is klout, and how is it measured?
8. How do you find a suitable opinion leader?
9. What is FOMO, and why might it be important?
10. List three types of social power, and give an example of each.
11. What is a brand community, and why is it of interest to marketers?
12. Define conformity and give an example of it. Name three reasons why people conform.
13. How does the Principle of Least Interest relate to your success in a romantic relationship?