Lecture6GroupsandSocialInfluencesem121.pptx
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March 31, 2022Impact of Technology on Accounting
March 31, 2022Lecture 6
Groups and Social Influence
Chapter 11
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6.1 Introduction to Groups and Social Influence
You are here!
Conceptual Map of Groups and Social Influence
Peers
Decision Making
Communities
Influential Others
Family
This chapter is about the consumers network and how the network of influences consumer decision-making and subsequent behaviour. This is particularly pertinent when extending this thinking to the explosion of social media and virtual networks.
There are three major reference groups that influence consumers; family, peers, communities and those that we don’t personally know but that we respect and admire (eg celebrities). These reference groups can be real or imagined, virtual or in the physical world.
We look at each of these groups and how they influence us.
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Social Identity Theory
Argues that each of us has several ‘selves’ that relate to groups. These linkages are so important that we think of ourselves not just as ‘I’, but also ‘we’.
Reference Groups
People’s desire to ‘fit in’ or to identify with desirable individuals or groups is the primary motivation for many purchases and activities. A reference group is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour. Reference groups influence consumers in three ways:
Informational
Utilitarian
Value-expressive
Social Identities and Influence
End section
6.2 Group Theory
Need to differentiate between…
How groups influence individual actions
versus
How groups behave as a collective
6.2.1 Reference Groups
Definitions
Group: two or more individuals who share a set of norms, values or beliefs and have certain implicitly or explicitly defined relationships that make their behaviours interdependent
Reference Group: An actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour.
6.2.2 Group Characteristics
Group Characteristics
Membership
either yes or no
Degree of contact
larger groups generally have less contact
primary groups generally have frequent interpersonal contact
secondary groups generally have limited interpersonal contact
Attraction
desirability of being member
either positive or negative
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Groups may be classified on the basis of membership, nature of contact, and attraction.
The nature of contact is based on the degree of interpersonal contact. Groups that have frequent personal contact are called primary groups, while those with limited interpersonal contact are called secondary groups. Attraction refers to the degree of positive or negative desirability the group has to the individual. (See page 451.)
| REFERENCE GROUP TYPE | DEFINITION |
| Membership (or associative) groupPositive associations | A membership group is formed of ordinary people whose consumption activities provide informational social influence |
| Formal groupMember of the group | A formal group is typically influenced by outside structures and is likely to have a formalised constitution and set of rules of conduct for members |
| Informal groupMember of the group | An informal group does not necessarily have any formally defined structure or people who are known to each other, nor does the group have to gather together physically; members get together because of a mutual interest or through friendship |
| Aspirational groupNon-member of the group | An aspirational group is composed of celebrities and other high-profile people such as sports stars or businesspeople that a consumer can identify with or admire from a distance, and who they aspire to be like |
| Dissociative (or avoidance) groupNegative associations | A dissociative group is a group with which the individual wishes to avoid being associated and feels a sense of disidentification |
Types of reference groups
Table 11.1 , pg 359
The table has 5 rows and 2 columns. The column headings from the left to the right are reference group type and definition. The row entries are as follows.
Row 1. Reference Group Type. Membership or associative group. Positive association. Definition. A membership group is formed of ordinary people whose consumption activities provide informational social influence.
Row 2. Reference Group Type. Formal group. Member of the group. Definition. A formal group is typically influenced by outside structures and is likely to have a formalised constitution and set of rules of conduct for members.
Row 3. Reference Group Type. Informal group. Member of the group. Definition. An informal group does not necessarily have any formally defined structure or people who are known to each other, nor does the group have to gather together physically, members get together because of a mutual interest or through friendship.
Row 4. Reference Group Type. Aspirational group. Non-member of the group. Definition. An aspirational group is composed of celebrities and other high-profile people such as sports stars or businesspeople that a consumer can identify with or admire from a distance, and who they aspire to be like.
Row 5. Reference Group Type. Dissociative (or avoidance) group. Negative associations. Definition. A dissociative group is a group with which the individual wishes to avoid being associated and feels a sense of disidentification.
Types of Groups
Schiffman, Bednall, Watson & Kanuk (1997) page 314
| Membership Group | Non-membership group | |
| Positive influence | Contactual (Formal / Informal) | Aspirational |
| Negative influence | Disclaimant (Disidentification) | Avoidance/ Dissociative |
End section
6.3 Types of Social Influence
General types of social influences
Types:
Informational (use of information)
Normative (to avoid/gain)
Identification (aspire to join)
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The Asch phenomenon is used when groups of potential customers are brought together and the group is used to influence individuals to conform by giving approval to the product.
When left to make a decision on our own, we rely on the information in front of us. When we have to make a decision after hearing others opinion, we often rely on others opinions more than the information in front of us.
Other strategies are used in advertising. Advertising using informational influence typically shows members of a group using the product, with a message that if you want to be in the group, you should purchase the product.
Normative influences suggest that an individual will be rewarded or not have the group’s disapproval by using a given product. For example, an expensive branded product will gain approval from the group.
An example of identification influence would be those wishing to become ‘identified’ with a group. They may see popular people owning and driving a certain brand of car and then aspire to also own a similar brand. (See pages 457–459.)
Reference Group Influence
Reference groups influence consumers in three ways:
Informational reference group influence occurs during an internalisation process where an individual’s knowledge is enhanced by interactions about the marketplace or an ability to cope.
Utilitarian reference group influence is similar to normative influence in that an individual in a product purchase situation will comply with the preferences or expectations of an individual or the group.
Value-expressive group influence relates to a person’s motive to enhance or support their self-concept. Companies regularly develop ads which link their brand to a visually attractive model or entity with a view to enhancing brand image through association made by connection to the admired individual.
Factors That Affect Reference Group Influence
Information and experience
Credibility, attractiveness, and power of the reference group
Conspicuousness of the product (Private v public consumption)
Necessity of the product (Need versus luxury)
End section
6.4 Power
The power of social Influence
Conformity
Social norms
Types of power
6.4.1 Conformity
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Norms are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold. Norms arise quickly and naturally in any group situation. (See page 452.)
Conformity
Changes in beliefs or actions due to group pressure to conform
norms — informal rules that govern behavior
govern many aspects of consumption
eg. about appropriate use of clothing and other personal items, gift giving, sex roles, personal hygiene
Normative social influences
people conform to the expectations of the group
Cultural Pressures to conform
Factors that Influence Conformity to the Group
Individual differencesFear and Consequences of Deviance (sanctions)
Commitment – motivation
Group Unanimity, Size and Expertise
Gender Differences – women conform more?
Implications of Group Influence for Marketing
Impact on developing advertising appeals (e.g. informational influence via use of “experts”)
Impact on personal selling (salespeople as experts-objective sources of information or as a referent with similar needs as consumer)
Marketing research needed, to assess group membership (attitudes, psychographics)
Public versus private consumption of goods and services is an important issue
Conformity versus Individuality
Factors Influencing Conformity
But conformity is not an automatic process. There are several factors that affect the likelihood of conformity:
Cultural pressures: different cultures encourage conformity to varying degrees
Fear of deviance: conformity is also more likely where there is fear of deviance, when the group punishes deviant behaviours e.g. it is not uncommon for people to be teased for being different
Commitment: the more people are dedicated to the group and value membership, the more likely it is they will conform.
Group unanimity, size, and expertise: as the group gains power, compliance increases. Harder to resist the demands of a large group than just a few, even more so when the group members are perceived to know what they are talking about.
Susceptibility to interpersonal influence: this trait refers to an individual’s need to identify or enhance their image in the opinion of significant others.
Some people are more susceptible than others and therefore are more likely to conform.
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Factors Influencing Conformity
Cultural Pressures
Fear of Deviance
Commitment
Group unanimity, size and expertise
Susceptibility to interpersonal influence
Conformity
…makes groups influential
…is the tendency to want to be like ‘relevant and significant others’
…generally makes life more pleasant
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Norms are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold. Norms arise quickly and naturally in any group situation. (See page 452.)
Conformity
Changes in beliefs or actions due to group pressure to conform
norms — informal rules that govern behavior
govern many aspects of consumption
eg. about appropriate use of clothing and other personal items, gift giving, sex roles, personal hygiene
Normative social influences
people conform to the expectations of the group
Cultural Pressures to conform
Factors that Influence Conformity to the Group
Individual differencesFear and Consequences of Deviance (sanctions)
Commitment – motivation
Group Unanimity, Size and Expertise
Gender Differences – women conform more?
Implications of Group Influence for Marketing
Impact on developing advertising appeals (e.g. informational influence via use of “experts”)
Impact on personal selling (salespeople as experts-objective sources of information or as a referent with similar needs as consumer)
Marketing research needed, to assess group membership (attitudes, psychographics)
Public versus private consumption of goods and services is an important issue
6.4.2 Social Norms
are general expectations about behaviours that are deemed appropriate for all persons in a social context, regardless of the position they hold
are often communicated
6.4.3 Types of Power
The Stanford Prison
Power and Reference groups
Referent power: when consumers imitate qualities by copying the referent’s behaviour
Information power: able to influence consumer opinion by virtue of their (assumed) access to the ‘truth’
Legitimate power: granted to people by virtue of social agreements (sometimes conferred by a uniform)
Expert power: possessing specific knowledge about a content area
Reward power: when a person or groups has the means to provide positive reinforcement
Coercive power: influence through social or physical intimidation
End section
6.5 The Family
“Two or more people related by blood, marriage or adoption who reside together in the same household.”
Note: This definition of a family does not require the presence of children.
What are families?
Projected trends in major household types
6.5.1 Family Decision Making
Family Decision Making
Roles in the family decision making process
Family decision-making
Influencers
Preparers
Gatekeepers
Deciders
Buyers
Users
Maintainers
Disposers
6.5.2 Husband-Wife Decision Making
Influencing spouses and resolving conflict
Expert – using superior knowledge
Legitimacy – based on position in household
Bargaining – a trade-off
Reward – offering some form of gift
Impression – persuasive argument
Emotional – using emotional language and behaviour
6.5.3 Family Compositions
Family compositions: Traditional
Family compositions: Modern
non-traditional families
6.5.4 The Role of Children
Children
http://www.howcoolbrandsstayhot.com/2012/05/07/genz-parents-would-like-their-tweens-to-de-tech/
Children:
End section
6.6 Opinion Leadership
Opinion Leadership
People who are knowledgeable about products and who are able to influence others’ attitudes or behaviours.
How influential is an Opinion Leader?
Generalised Opinion Leader: somebody whose recommendations are sought for all types of purchases.
Monomorphic: an expert in a limited field.
Polymorphic: an expert in many fields.
Opinion Leadership
Although consumers get information from personal sources, they do not tend to ask just anyone for advice about purchases.
The Nature of Opinion Leadership
Everyone knows people who are knowledgeable about products and whose advice is taken seriously by others. These people are called opinion leaders. An opinion leader is a person who is frequently able to influence others’ attitudes or behaviours. Opinion leaders are valuable information sources for a number of reasons:
They are technically competent and thus convincing because of their expert power.
They have pre-screened, evaluated, and synthesised (in an unbiased way) product information, so they possess knowledge power.
They are socially active and interconnected in their community.
They are similar to the consumer in value and beliefs, a characteristic described by the term homophily.
They are often among the first to buy new products. They often absorb risk because they purchase products first.
How Influential is an Opinion Leader?
When marketers and social scientists initially developed the concept of the opinion leader, it was assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. Today we question whether there is such a thing as a generalised opinion leader. Opinion leaders tend to be concentrated in their field of interest or expertise (i.e. monomorphic), but it is possible for them to be experts in several concentrated fields (i.e. polymorphic).
Perspectives on the communication process
Long Description of Figure 11.4, page 374
The details are as follows:
Traditional model: ‘Mass media’ leads to ‘opinion leaders’, which leads to ‘recipients’.
Updated model:
‘Mass media’ leads to ‘gatekeepers’ and ‘opinion leaders’. It also leads to ‘recipients’.
‘Recipients’ is connected by bi-directional arrows to ‘opinion leaders’ and ‘gatekeepers’.
From ‘gatekeepers’, an arrow also points towards ‘opinion leaders’.
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Consumer Research: Typologies of Consumption Communities
Canniford (2011)
A literature review of consumption community concepts:
Subcultures of consumption
Brand communities
Consumer Tribes
Marketing in Action: Opinion Leadership and Sneakers
Consumption Community Composition
Peripheral / Wannabes
Intermediate / Followers
Hardcore/
Opinion
Leaders
Mainstream
Society /
Outsiders
Consumption Community Composition
Peripheral / Wannabes
Intermediate / Followers
Hardcore/
Opinion
Leaders
Mainstream
Society /
Outsiders
Contactual
Groups
Consumption Community Composition
Peripheral / Wannabes
Intermediate / Followers
Hardcore/
Opinion
Leaders
Mainstream
Society /
Outsiders
Aspirational
Groups
Consumption Community Composition
Peripheral / Wannabes
Intermediate / Followers
Hardcore/
Opinion
Leaders
Mainstream
Society /
Outsiders
Disassociative
Groups
Hip Hop Wannabes
Hip Hop Followers
Rappers /
Run DMC
Mainstream
Society /
Outsiders
Opinion leadership and Fashion diffusion
Status Symbols?In search of exclusivity: The Case of Air Force 1s
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Play Sneakers – 43-45.30
Limited Distribution
Limited Brand lines
Special Editions
Designer versions
Fashion trends
An interesting manifestation of social influence can be found in consumers’ adoption of so-called status symbols. While one characteristic of many status symbols is their expense–not everyone can afford a Porsche–other factors can come into play. For example, some of the status associated with torn jeans and backward caps derives from the insight that one must have to know to adopt such intuitively meaningless conventions. Similarly, the fact that parents and other sources of authority object to practices such as the wearing of earrings by boys or multiple ones by girls can result in increased status for those accomplishing successful defiance.
(1:07:45)
Sneaker Hunters Case
Losing Identity
Hip Hop Wannabes
Hip Hop Followers
Rappers /
JayZ
Mainstream
Society
Creating Status – Marketing Strategies
Limited brand lines
Limited distribution
Special editions
Designer versions
Fashion trends
Targeted media
……
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Chart1
| 2001 | 2001 | 2001 | 2001 |
| 2006 | 2006 | 2006 | 2006 |
| 2011 | 2011 | 2011 | 2011 |
| 2016 | 2016 | 2016 | 2016 |
| 2021 | 2021 | 2021 | 2021 |
| 2026 | 2026 | 2026 | 2026 |
Sheet1
| Families with children | Families without children | Single-parent families | Lone-person households | |
| 2001 | 46.6 | 35.6 | 15.7 | 24.5 |
| 2006 | 42.9 | 38.5 | 16.8 | 26.4 |
| 2011 | 40.4 | 40.6 | 17.2 | 27.3 |
| 2016 | 38.7 | 42.4 | 17.2 | 30.4 |
| 2021 | 37.8 | 43.5 | 17 | 32.3 |
| 2026 | 37.2 | 44.3 | 17 | 34.2 |
| To resize chart data range, drag lower right corner of range. |
