Chapter 12 Group, Dyadic and Diffusion Processes Consumer Behavior: A Framework John C. Mowen Michael S. Minor
Chapter 12Group, Dyadic and Diffusion Processes
Consumer Behavior: A Framework
John C. MowenMichael S. Minor
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
Group Processes
A group is a set of individuals which interacts with one another over some period of
time, and shares some common need or goal.
Groups Influence Buying in Two Ways:
They affect the purchases made by individual consumers
Group members sometimes make decisions as a group
Types of Groups
“Reference group” encompasses a number of more specific types of groups. Aspiration group Dissociative group Primary group Formal group Informal group
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
Group Influence Processes Groups influence people by
providing norms providing information encouraging them to express certain types of
values. Group influence is greater for “public” goods,
not as great for “private” goods.
Normative, Informational, and Value-Expressive Influences Normative influence - occurs when group
norms act to influence individual behavior. Informational influence - operates when the
group provides highly credible information that influences the consumer’s purchase decision.
Value-expressive influence - consumers sense that a reference group has certain values and attitudes pertaining to the consumption process.
A Role . . .
. . . consists of the specific behaviors expected of a person in a certain position
Role-related product cluster - a set of products necessary for playing a particular role.
Conformity is . . .
. . . a change in behavior or belief toward a group as a result of real or imagined group pressure.
There are two types of conformity: Compliance Private Acceptance
Factors Leading to Conformity Group factors:
Cohesiveness Expertise Size of group
Individual Factors: Amount of information the individual possesses Attractiveness of group/Individual’s need to be
liked Type of Decision
Social-Comparison Processes
The process by which people evaluate the “correctness” of their opinions, extent of their abilities, and appropriateness of their possessions.
Group Polarization Groups tend to select more extreme positions
than that of the average group member. Conservative as well as risky shifts are
possible.
Families and Households
Households are composed of all those people who occupy a living unit The Nuclear Family The Extended Family The Detached
Nuclear Family
The Demographics of Households
Two general types of households:
Families (70.6%)
Nonfamilies (29.4%)
e
Family Households:
Married couples Married with children at home Married with no children at home Single fathers Single mothers Other families
Nonfamily Households:
Men Living Alone
Women Living Alone
Other Nonfamilies
Some Household Trends
Childless couples 45-64 have the most buying power. Single parents/childless singles over 45 have the
least. 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.
Family Decision Making
As in organizational buying units, 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.
Relative Influence Of Decision Makers
Wife-Dominated Decisions
Husband-Dominated Decisions
Autonomic Decisions
Syncratic Decisions
Family Influence - Children
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.
Childhood Consumer Socialization
. . . refers to the processes by which young people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace.
Model of Consumer SocializationBackgroundFactors
SocializationAgents
LearningMechanisms
Outcomes
TheSocializedCustomer
SESSexAgeClassReligion
MediaFamilyPeersTeachers
ModelingReinforce-mentCognitivedevelop-ment
Organizational Buying Behavior
An organizational buying center is made up of those people in an organization who participate in the buying decision and who share the risks and goals of the decision.
Building Relationships in Organizational Buying
Relationship marketing refers to the overt attempt of exchange partners to build a long-term association characterized by purposeful cooperation and mutual dependence and development of social, as well as structural bonds.
Webster’s Marketing Relationships Continuum
Pure Transaction
Full Integration
1. Transaction
2. Repeated Transactions
3. Long-Term Relationship
4. Buyer-Seller Relationship
5. Strategic Alliance
6. Network Organization
7. Vertical IntegrationSource: Frederick E.Webster, “The ChangingRole of Marketing in the Corporation,” Journal of Marketing 56 (October 1992), pp. 1-17.
Dyadic Exchange . . .
. . . takes place when two individuals transfer resources between each other
Word-of-Mouth Communication
. . . refers to an exchange of comments, thoughts, or ideas between two or more consumers, none of whom is a marketing source.
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.
Opinion Leaders... Lead in a specific product category and
situation. Are usually involved with the product
category. May have higher social status than followers. May be more innovative in purchases than
followers. Are a bit similar to product innovators.
Types of Opinion Leaders Opinion Leader
Always involved in product category.
High status, socially active.
Product Innovator Purchases
innovative products Less integrated into
social groups.
Market Maven General market
knowledge Expertise not product
specific. Surrogate
Consumer Often professional:
tax consultant, wine steward, stock broker.
Service Encounters . . .
. . a personal interaction between a consumer and a marketer.
Service Encounters as Theater
Firm’s Backstage
Firm’s Front Region
Customer’s FrontRegion
Customer’s Backstage
Management Functions, Rehearsal
Management Functions, Rehearsal
Personal Front, etc.
Performance
Personal Front, etc.
Symmetrical Customer/ Employee Service Themes
Autonomy Mutual cooperation Total dependence
Indifference Cooperation Dominance
Diffusion . . .
. . . refers to the idea that substances and ideas can gradually spread through a medium of some type and reach a state of equilibrium.
. . . in the consumer behavior setting, refers to the process by which innovative ideas, products, and services spread through the consumer population.
Transmission Processes
Trickle-Down Theory
Multi-Step Flow Model
Multistep Flow Model...
Mass Media
Gatekeeper
Opinion Leaders
Follow-ers
MassMedia
MassMedia
G
O
O
F
F
F
Implications of Multistep Model
Mass communications can directly reach nearly everyone.
For some products, opinion leader/follower roles are reversed.
Gatekeepers can choose whether opinion leaders/followers get information.
Communication flows back and forth between all 3 groups.
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
Managerial Implications Positioning. New products should be
positioned to appeal to opinion leaders, then possibly repositioned to appeal to followers.
Environmental Scanning. Scanning can identify what present customers are saying to other customers or potential customers about the company or its products.
Market Research. Research can provide insight into the shape of the diffusion curve for a new product.
Implications continued... Marketing Mix. Promotions can be positioned
to appeal to children and thus utilize their influence in family decision makings.
Segmentation. Naturally existing groups of customers make outstanding target markets.