Buyer Behaviour Group Influence and Social Media

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

2. 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

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

4. Reference Group Influences • Reference group • An actual or imaginary individual or group that has a significant effect upon an individual’s evaluations, aspirations or behaviour • Reference Group Influences • Informational • Utilitarian • Value Expressive

5. Types of Reference Groups • Formal vs. Informal • Brand Community • Membership vs. Aspirational • Positive vs. Negative • 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.

6. Power of Reference Groups SOCIAL POWER: “the capacity to alter the actions of others” Solomon, White, and Dahl, 2014, p. 324

7. 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

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

9. 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”

10. WOM Communications The Dominance of WOM: Guerilla Marketing Viral Marketing Encouraging Factors Negative WOM: http://www.youtube.com/watch?v=ad4fagTyaM4 Rumours Distortion

11. Opinion Leadership Reduce Risk Similar Values “referent power” Technically Competent “first to buy” Key Characteristics of Opinion Leaders Legitimate Power Knowledge Power

12. 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

13. 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

14. Thank You • PERCEPTION IS REALITY