CH-11 Social Influences on Consumer Behavior – Consumer Behavior : Book Guide

Chapter 11 Social Influences on Consumer Behavior CHAPTER SUMMARY Reference groups are part of a general set of influence sources—those that are marketer dominated and nonmarketer dominated and those that are delivered through the mass media and personally. Nonmarketer-dominated sources are regarded as more credible than marketer-dominated sources, and personally delivered information generally involves less reach, but more capacity for two-way communication than mass-media sources. Opinion leaders and market mavens represent special sources of influence. Opinion leaders are experts in a product category; market mavens are individuals involved in the marketplace in general. Given their potential to serve as brokers of information, marketers may target these individuals explicitly or simulate opinion leaders in marketing communications. Consumers are members of groups, and these groups can have tremendous influence on consumer behaviors. Reference groups are sets of people with whom individuals compare themselves to guide their attitudes, knowledge, and/or behaviors. We have aspirational, associative, and dissociative reference groups, which can be described according to their degree of contact, formality, homophily, density, degree of identification, and tie-strength. Reference groups may play a powerful socializing role, influencing key actions, values, and behaviors of consumers. Marketers can take advantage of reference-group types, characteristics, and socializing influences by associating products with aspirational reference groups, accurately representing associative reference groups, targeting formal reference groups, targeting dense networks, and making use of weak ties to build customer networks. Sources of influence can create normative and/or informational influence. Normative influence may create effects like brand-choice congruence, conformity, compliance, and reactance. Normative influence tends to be greater for products that are publicly consumed, considered luxuries, or regarded as a significant aspect of group membership. Normative influence is also strong for individuals who tend to pay attention to social information. Strong ties and the extent to which consumers identify with the group also increase the likelihood that consumers will succumb to normative influences. Finally, normative influence is greater when groups are large and cohesive, when members are similar and/or experts, and when the group has the power to deliver rewards and sanctions. Informational influence operates when individuals affect others by providing information. Such information, in turn, may greatly affect consumers’ search and decision-making. Consumers are more likely to seek and follow informational influence when products are complex, when product purchase or use is regarded as risky, and when brands are distinctive. The more the influencer is regarded as an expert, the less the consumer’s knowledge and confidence, and the more consumers are predisposed to listen to information from others, the greater the informational influence. Informational influence is also greater when groups are cohesive. Social influence, whether normative or informational, varies in valence (whether information is positive or negative) and modality (whether information is communicated verbally or non-verbally). Negative information should be avoided as much as possible because it is communicated to more people and given greater weight in decision making than positive information. Marketers are particularly interested in word-of-mouth (WOM) information—both positive and negative. Strategies may be designed to identify, target, and reward individuals who serve as positive WOM referral sources. Sources of negative information, such as rumors, might also be targeted. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 1. Explain how social influence can come from marketing or nonmarketing sources and can be mass-media or personally delivered. 2. Discuss why marketers must pay particular attention to the influence of opinion leaders, both online and offline, and to the effects of social media. 3. Highlight the types and characteristics of reference groups and show how each can affect consumer behavior. 4. Distinguish between normative and informational influence, and explain how marketers can use their knowledge of these types of influence for more effective marketing. CHAPTER OUTLINE I. Sources of Influence A. Marketing and Nonmarketing Sources 1. Marketing Sources Delivered via Mass Media a) Include advertising, sales promotions, publicity, and special events 2. Marketing Sources Delivered Personally a) Include salespeople, service representatives, and customer service agents 3. Nonmarketing Sources Delivered via Social Media a) Facebook, Twitter, YouTube, Pintrest have a personal feel 4. Nonmarketing Sources Delivered via Mass Media a) Can also yield great influence, may have less bias, example- consumer blog 5. Nonmarketing Sources Delivered Personally a) Word-of-mouth communications from friends, family, neighbors, casual acquaintances, and even strangers 6. Marketing and Nonmarketing Sources Delivered via Social Media a) Social media have a mass reach but more personal feel B. How Do These General Sources Differ? 1. Reach a) Number of consumers exposed to the message 2. Capacity for Two-Way Communication a) Personally, delivered sources of influence provide a two-way flow of information and are more vivid and thus persuasive. 3. Credibility a) Information delivered through marketing sources tends to be perceived as less credible, more biased, and manipulative. b) Nonmarketing sources appear more credible because they are not perceived as having a vested interest in our decisions to acquire, use, or dispose of an offering. 4. Marketing Implications a) To the extent possible, it is helpful to have nonmarketing sources promote the marketer’s offering in order to enhance credibility. b) Marketing efforts may be more effective when personal information sources are used to enhance two-way communication. c) A mix of complementary sources of influence can enhance impact. C. Opinion Leaders 1. What are the characteristics of opinion leaders? a) Tend to learn a lot about products b) Heavy users of media like newspapers, TV, radio, and magazines c) Tend to buy new product variants when they are first introduced to the marketplace d) Found to be self-confident, gregarious, and willing to share product-relevant information. e) Opinion leaders are part of the general category of gatekeepers, people who have influence on what information is disseminated. 2. Why do people become opinion leaders? a) They have an intrinsic interest in and enjoyment of products b) May share information because it puts them in a position of power c) May believe their actions will help people 3. Why do opinion leaders have influence? a) Generally have no vested interest in whether consumers actually heed their opinions, therefore opinions regarded as unbiased and credible b) Regarded as having knowledge relevant to consumers’ acquisition, usage, and disposition options 4. Market mavens a) Individuals who have information about many products, places to shop, and other facets of the marketplace, and initiate discussions with consumers and respond to requests from consumers for market information b) Tend to have general information about the marketplace, to be aware of new products early on, and to be heavy users of a wide range of media. D. Marketing Implications 1. Because of the impact opinion leaders have, one marketing implication is to target them directly. 2. Opinion leaders may be used in marketing communications. 3. Marketers can target consumers and ask them to refer to a knowledgeable opinion leader. II. Reference Groups as Sources of Influence A. Types of Reference Groups 1. Aspirational reference groups a) Groups that we admire and wish to be like but are not currently a member of 2. Associative reference groups a) Groups we do belong to 3. Dissociative reference groups a) Groups whose attitudes, values, and behaviors we disapprove of and that we do not wish to emulate (Jersey Shore for example) 4. Marketing Implications a) If marketers know their target consumers’ aspirational reference groups, they can associate their product with that group and/or use spokespeople who represent it. b) Marketers need to accurately represent associative reference groups in their ads by reflecting the clothing, hairstyles, accessories, and general demeanor of the groups. c) Marketers can create a brand community which is a social group sharing a specialized interest in the product. d) Dissociative reference groups should be avoided in marketing communications. B. Characteristics of Reference Groups 1. Degree of Contact a) Reference groups with whom we have a great deal of contact tend to exert the greatest influence. b) Primary reference groups are those groups with whom we have face-to-face interaction. c) Secondary reference groups are those with whom we do not have direct contact but whose behavior may still influence us. 2. Formality a) Formally, structured groups have rules outlining criteria for membership and the expected behavior of members. 3. Homophily: The Similarity Among Group Members a) When reference groups are homophilous, reference-group influence tends to be strong. 4. Group Attractiveness a) The more attractive a group is to one, the stronger the intention to conform 5. Density a) The degree to which all members know each other 6. Degree of Identification a) The degree to which an individual feels he or she belongs in a group 7. Tie-Strength a) The strength of the relationship connecting members within a group 8. Marketing Implications a) Marketers must understand how information is transmitted among and between groups of consumers. b) Formal reference groups provide marketers with clear targets for marketing efforts. c) Homophilous consumers are targeted with information about similar products. d) Sometimes it makes sense to target the network itself as opposed to individual consumers. e) Weak ties can serve as “bridges” by transporting information between groups. (1). An embedded market is a market in which the social relationships among buyers and sellers change the way the market operates. C. Reference Groups Affect Consumer Socialization 1. Consumer socialization refers to the process by which we learn to become consumers. 2. People as Socializing Agents a) The impact of reference groups as socializing agents can change over time. 3. The Media and the Marketplace as Socializing Agents a) Media communications and consumer goods can be seen as contributing in positive or negative ways to consumer socialization. III. Normative Influence A. How Normative Influence Can Affect Consumer Behavior 1. Brand-Choice Congruence and Conformity a) Brand-choice congruence is the likelihood that consumers will buy what others in their group buy. b) Conformity is the tendency for an individual to behave as the group behaves. 2. Compliance versus Reactance a) Compliance involves doing what someone asks us to do. b) Reactance is doing the opposite of what the individual or group wants us to do. c) The boomerang effect occurs when we believe our freedom is being threatened. 3. Social-Relational Theory B. What Affects Normative Influence Strength 1. Product Characteristics a) A reference group affects whether we buy a product and what brand we buy. b) Reference groups have little influence on whether we buy necessity items, but may have an effect on whether we buy a luxury item. c) Products consumed in public give others the opportunity to observe what brand we have purchased. d) Normative influence is affected by the significance of the product to the group. 2. Consumer Characteristics a) Some consumers have personalities that make them more susceptible to the influence of others. b) Attention to social comparison information is related to normative influence. c) Tie-strength affects the degree of normative influence. d) Normative influence is also affected by a consumer’s identification with a group. 3. Group Characteristics a) Coercive power is the degree to which a group has the capacity to deliver rewards and sanctions. b) Group cohesiveness and similarity also affect the degree of normative influence by allowing for communication and interaction on a regular basis. c) Normative influence tends to be greater when groups are large and when group members are experts. C. Marketing Implications 1. It may be possible to create normative influence by using advertising to demonstrate rewards or sanctions that can follow from product use or nonuse. 2. Marketing organizations may create groups whose norms guide consumers’ behaviors. 3. Companies can use normative influences to encourage referrals from current customers. 4. Marketers may attempt to create conformity pressures. 5. Marketers use compliance techniques. a) The foot-in-the-door technique suggests that compliance is enhanced by getting an individual to agree first to a small favor, then a larger one, then an even larger one. b) With the door-in-the-face technique, the consumer is first asked to comply with a very large and possible outrageous request, followed by a smaller and more reasonable request. c) With the even-a-penny-will-help technique, individuals are asked to provide a very small favor; because the people would look foolish denying the request, they usually comply and give an amount appropriate for the situation. 6. Asking consumers to predict their behavior increases the likelihood that they will actually behave in the stated manner. 7. Marketers need to make sure consumers believe they have freedom of choice. 8. Use expert service providers who are similar to target consumers. IV. Informational Influence A. How informational influence can affect consumer behavior 1. Can affect how much time and effort consumers devote to information search and decision-making 2. It is important for marketers to increase the likelihood that consumers engage in information search, especially if the product is new and superior. B. Factors Affecting Informational Influence Strength 1. Product Characteristics a) Consumers tend to be susceptible to informational influence when the product is complex. b) Informational influence is likely to be high when product purchase and/or usage are perceived to be risky. c) Informational influence is also likely to be high when brands on the market are very different from one another. 2. Consumer and Influencer Characteristics a) Informational influence is greater when the source communicating the information is regarded as an expert. b) Personality traits, such as consumers’ susceptibility to reference-group influence and attention to social comparison information, influence the extent to which consumers look to others for cues on product characteristics. c) Informational influence is also affected by tie-strength and culture. 3. Group Characteristics a) Group cohesiveness affects informational influence, with cohesive groups having greater opportunity and motivation to share information. C. Marketing Implications 1. Since source expertise and credibility affect informational influence, marketers can use sources regarded as experts and/or those regarded as credible for a given product category. 2. Informational influence may be enhanced if marketers can create a context for informational influence to occur. 3. Marketing efforts may be most successful when both normative and informational influences are used. D. Descriptive Dimensions of Information 1. Valence: Is Information Positive or Negative? a) Valence describes whether the information is positive or negative. b) Negative information is more likely than positive information to be communicated. c) People may pay more attention to negative information and give it more weight. 2. Modality: Does Information Come from Verbal or Nonverbal Channels? a) Modality describes whether information is communicated verbally or nonverbally. b) Informational influence can be delivered verbally or nonverbally. A. The Pervasive and Persuasive Influence of Word of Mouth 1. Word of mouth is pervasive and refers to information about products or services that is communicated verbally. 2. More persuasive than written information and more effective than other media 3. Online Word of Mouth a) Online forums, review sites, websites, and email magnify the effect of word of mouth 4. Social Media Word of Mouth a) Disseminates word of mouth through public messages and through messages visibly only to friends 5. Marketing Implications a) Word of mouth can have a dramatic positive or negative effect on consumers’ product perceptions and an offering’s marketplace performance. b) Viral marketing is rapid spread of brand/product information a) Engineering favorable word of mouth (1). Targeting opinion leaders (2). Using networking opportunities at trade shows, conferences, and public events. d) Preventing and responding to negative word of mouth. (1). Preventing negative word of mouth can be best accomplished by providing quality products and service. (2). Rectifying negative word of mouth can be accomplished by dealing with consumers’ dissatisfaction before more negative word of mouth occurs. e) Dealing with rumors and scandals (e.g., on social media) (1). One strategy is to do nothing as consumers may learn more about the rumor by hearing marketers’ attempts to correct it. (2). A local strategy can be adopted, such that rumors are addressed on a case-by-case basis. (3). Something can be done discreetly. (4). Another strategy is to do something big using all the media resources at one’s disposal. b) Tracking Word of Mouth (1). Word of mouth can be tracked through network analysis. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. How do sources of influence differ in terms of marketer domination and delivery? Answer: The sources of influence differ in terms of their reach, capacity for two-way communication, and credibility. Sources can be marketer-dominated, such as advertising, sales promotions, publicity, special events, and salespeople or nonmarketer-dominated like family, friends, acquaintances, news reports, and professional reviews. 2. How are social media sites affecting social influence? Answer: Social media create networks, with network implications of tie strength, and consumer connections to other consumers, and to brands and organizations. Social media may spread positive or negative eWOM about a company or brand. Marketers may buy ad space on social media sites to target lifestyle or life stage groups (e.g., brides, newlyweds, tennis players, etc.). Social media makes these consumer networks more apparent as to who are opinion leaders and who are influential individuals. 3. Why do companies sometimes target opinion leaders for marketing attention? Answer: Opinion leaders have less bias than traditional advertising, because often they are a part of a consumer’s reference group. Opinion leaders exert influence often because they are highly involved in the product category, or are popular. For instance, Serena Williams is an opinion leader in tennis; as a pro athlete, consumers care more about what brands she uses and likes (and dislikes) more so than an average person. Targeting such influential people (celebs or others) is a smart marketing strategy. 4. What are the three types of reference groups, and how can these groups be described? Answer: Reference groups include aspirational, associative, and dissociative. Aspirational reference groups are groups that we admire and desire to be like. Associative reference groups are groups to which we currently belong. Dissociative groups are groups that we do not want to emulate. 5. How might consumers respond to normative influence? Answer: Normative influence is social pressure designed to encourage conformity to the expectations of others. This type of influence implies that we will be punished if we do not follow the norms set by others and will be rewarded for performing the expected behaviors. 6. What three techniques can marketers use to encourage consumer compliance? Answer: To encourage compliance, marketers attempt to use techniques such as the foot-in-the-door, the door-in-the-face, and the even-a-penny-will-help approach. The foot-in-the-door technique suggests that by getting a consumer to agree first to a small purchase, they are more likely to agree to a larger purchase. The door-in-the-face approach asks the consumer to comply with a very large or unreasonable request, and then presents a smaller and more reasonable request. The even-a-penny-will-help approach asks for a very small favor, one that is extremely difficult to turn away to gain an audience. 7. Differentiate between information valence and modality. Answer: Information valence is whether information about something is good (positive valence) or bad (negative valence). Modality is the method in which the message is delivered, either verbally or nonverbally. 8. Why is word of mouth so important for marketers? Answer: Word of mouth, exemplified online as viral marketing where consumer-to-consumer communication takes place regarding a specific product, is important to marketers because it can have a dramatic effect on consumers’ product perceptions. Many small businesses cannot afford to advertise and rely almost exclusively on word of mouth. CONSUMER BEHAVIOR CASE Big Buying on Black Friday and Cyber Monday Black Friday has long been a U.S. shopping tradition. It’s named for the day after Thanksgiving (fourth Thursday in November), when retail businesses move from the “red” into the “black”—become profitable—as consumers start buying for Christmas, Hanukkah, or Kwanzaa. Over the years, retailers and product marketers have shaped shoppers’ expectations and stimulated word of mouth by offering deep discounts on desirable gift items such as televisions, but in limited quantities. Because consumers have learned that they must arrive early to take advantage of special pricing, many talk about their plans in advance and arrange to shop together, braving lines and crowds to get bargains they’ll brag about later on. Media coverage of Black Friday has magnified the focus on bargain hunting and generated even more word of mouth excitement in recent years. Not all of the news has been positive: Reports include incidents of violence, long lines at some stores, and complaints from shoppers unable to buy what they wanted. Meanwhile, in the weeks leading up to Black Friday, brand and retail marketers spotlight special pricing and early opening hours in commercials, print ads, radio, and via social media such as Facebook and Twitter. In 2011, the news that some stores and malls would open at midnight or earlier on the night of Thanksgiving touched off a firestorm of online and offline comments, some in support and some in opposition. When the gigantic Mall of America in Minnesota opened at midnight on Thanksgiving, 15,000 shoppers rushed in, including many Gen Y consumers who said told reporters that they preferred late-night shopping to the usual early-morning shopping of Black Friday. By the end of the day, more than 200,000 shoppers had visited the mall, part of the record 86 million U.S. consumers who shopped in stores on that day. Nearly 25 percent of Black Friday shoppers arrived at stores on midnight or earlier, for the few stores that were open. Millions of consumers logged onto retail websites or used their smartphones or tablet computers to shop before or on Black Friday, because many retailers offered special deals in advance. Cyber Monday, the Monday after Black Friday, is an online shopping “tradition” started by a retail association in 2005. It quickly turned into the busiest online buying day of the year, with consumers clicking to buy from home or at work. Marketers have helped this Internet age tradition along by e-mailing discount offers, posting bargains on sites and Facebook, tweeting about hourly specials, and touting the convenience of buying with a click instead of crowding into stores. Reports in mainstream media, as well as comments on technology blogs and in social media, have also helped to popularize Cyber Monday as an online shopping day. Individual marketers are hoping to attract customers by advertising their own shopping days during this big buying weekend in November. The telecommunications firm T-Mobile USA recently promoted discounts on smartphones and tablet devices on “Magenta Saturday,” named for its brand color. Mattel has offered deep discounts on toys for “Pink Friday” and “Blue Friday,” which coincide with Black Friday. Deal-a-day websites such as Living Social and Groupon also offer Black Friday specials, targeting bargain seekers who receive offers by e-mail. Watch for even more marketing messages and nonmarketing conversations about these two shopping days as the next holiday buying season approaches. Extreme shopping days like Black Friday are common around the globe. For example, on December 27, millions of shoppers in Japan simultaneously shop to get ready for the New Year’s festivities. Case Questions 1. What role do you think normative influence and consumer socialization have played in the ongoing popularity of Black Friday and Cyber Monday? Answer: Black Friday has become a tradition for many consumers; the media contributes to the socialization by highlighting the masses of people standing in line, the number of deals purchased online, etc. These types of media stories and the masses of people who participate in both shopping days also act as normative influences when consumers see people similar to themselves involved. Often, if a consumer doesn’t take advantage of either Black Friday or Cyber Monday they may be sanctioned by the group as an unwise consumer. 2. What kinds of opinion leaders would you recommend that retailers target to influence consumers’ decisions about where and when to shop on Black Friday and Cyber Monday? Answer: Mommy bloggers have proven to be highly influential and could direct their followers to the best locations for deals. Also, coupon bloggers have emerged as popular opinion leaders regarding shipping and saving money, they would certainly be writing about their Black Friday/Cyber Monday plans to find the best deals. 3. How is the valence of information about Black Friday and Cyber Monday likely to influence consumers’ decisions about where and when to shop on those days? Answer: Every year there are news stories of negative events occurring on Black Friday, such as crowds trampling people, fights, or a store running out of a popular item. The negative valence of this information may impact whether or not consumers return to these stores. 4. What kind of shopping experiences and emotions do consumers feel when shopping together? Answer: They may experience a strong sense group membership, camaraderie (“we are all trying to get the best deal and make this the best holiday for our families”), and a sense of shared experience, which may lead to excitement and anticipation of experiencing these positive feelings again the next year. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Keep a word-of-mouth log for 24 hours. Document (a) what information you hear, (b) whether it is positive or negative, (c) what effect do you think it will have on your behavior, and (d) why. Think about what implications the entries in your log have for marketers. Answer: It is also important for students to consider the source of this word-of-mouth information. Was the other party part of an aspirational group? Associative reference group? Homophily and degree of contact may also significantly influence how quickly information is transmitted between consumers. (a) Info: Friend praised a new restaurant. • Positive • Effect: Likely to visit the restaurant. • Why: Trustworthy recommendations boost interest. (b) Info: Colleague criticized a smartphone’s battery life. • Negative • Effect: Avoid buying the smartphone. • Why: Negative feedback from known sources deters purchases. (c) Info: Family member recommended a fitness app. • Positive • Effect: Consider using the app. • Why: Positive endorsements from familiar people encourage trial. (d) Info: Online review mentioned high car repair costs. • Negative • Effect: Reconsider car purchase. • Why: Negative reviews highlight potential issues and impact decisions. Implications for Marketers: Positive word-of-mouth can drive interest, while negative feedback can deter customers. Address issues promptly and use satisfied customers for testimonials. 2. Take an entry in your word-of-mouth log (from Exercise #1) and try to track down the source of the information. Did the information flow within a relatively dense social network, or did it flow across social networks via weak ties? Try to diagram the nature of the information flow within and across various groups. Answer: Have students comment on tie-strength of the relationship. Referring to Exhibit 16.9, have students draw the network of word-of-mouth information, indicating tie-strength and social influence. Entry: Friend praised a new local restaurant. Source Tracking: • Original Source: Restaurant's marketing and early patrons. • Flow: Friend to me (direct connection). Diagram of Information Flow: 1. Restaurant’s Marketing → Early Patrons 2. Early Patrons → Friend 3. Friend → Me Network Analysis: • Dense Social Network: Friend and I are in a close, personal network. • Information Flow: Direct and dense, within a personal network. Conclusion: Information flowed within a dense social network, enhancing credibility and influence. 3. Observe a salesperson trying to make a sale. Try to understand which aspects of his or her selling attempts represent informational influence and which represent normative influence. Was the salesperson successful in inducing a sale? Which concepts from this chapter may explain? Why, or why not? Answer: Informational influence is influence exerted by the salesperson that is affected by the characteristics of the product, the consumer and the influencer. Normative influence is thought of as social pressure designed to encourage conformity to the expectations of others. What would you recommend to improve selling? Again, some students may bring personal work experience examples that can be used in class to illustrate these concepts. Observation: Salesperson Attempt Informational Influence: Aspects: The salesperson highlighted the product’s features, benefits, and comparative advantages, providing data and demonstrations. Concept: Informational influence involves providing credible information that helps the customer make an informed decision. Normative Influence: Aspects: The salesperson used social proof (e.g., mentioning popular purchases by others) and created a sense of urgency or social pressure (e.g., limited-time offer). Concept: Normative influence relies on social norms and peer behaviors to persuade the customer. Success: Outcome: The salesperson successfully made the sale. Explanation: Concepts: Both informational and normative influences were effective. The combination of detailed information and social pressure aligned with customer needs and motivated the purchase. 4. As a marketing manager for a new brand of diet hot chocolate, you want to use an opinion leader to stimulate sales of the brand. How might you identify an opinion leader, and what strategies do you have for using an opinion leader in your marketing communications program? Answer: Again, referring to Exhibit 16.9, students might attempt to draw a social network to identify an opinion leader for this group. Using the class as an example, you might ask students to draw a network for the class to identify opinion leaders. Identifying an Opinion Leader: 1. Criteria: Influence: High social media following or community presence. Credibility: Expertise in health, fitness, or lifestyle. Engagement: Active and engaged with their audience. 2. Strategies: Collaborate: Partner with the opinion leader for product endorsements and reviews. Content Creation: Feature them in ads, blogs, or social media campaigns. Events: Host tasting events or webinars with the opinion leader to attract their followers. Using a well-chosen opinion leader leverages their credibility and reach to build trust and drive awareness for the new diet hot chocolate. 5. You have recently learned that a lot of positive and negative information is being communicated about the new brand of diet hot chocolate. Should your strategy be to try to bolster the positive information or to stop the negative information? Why? Answer: Marketers should obviously be concerned about preventing negative word of mouth and rectifying it once it occurs. Quality offerings are the best way to prevent negative word of mouth. To rectify negative word of mouth, firms can try to deal with consumers’ dissatisfaction before more negative word of mouth spreads. Companies may be able to bolster positive information while slowing down negative information at the same time by responding to consumer complaints. Offering free goods and going the extra mile in a service recovery situation should help reduce negative information and increase positive information flow regarding your product. Strategy: Focus on Bolstering Positive Information: Reason: Amplifying positive feedback enhances brand perception and credibility, which can overshadow negative information. Positive reinforcement helps build a strong, favorable image and encourages potential customers to try the product. Handling Negative Information: Addressing and resolving negative feedback is important but should be secondary to actively promoting the positive aspects to shift the overall narrative. Conclusion: Bolstering positive information helps establish a strong brand presence and can naturally mitigate the impact of negative information. SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS AIN’T IT COOL? No one knows a product category quite as well as an industry insider. That’s why many movie consumers go to Ain’t It Cool News (www.aintitcoolnews.com) for reviews by Harry Knowles, a quintessential Hollywood insider and self-appointed Movie Geek. Visit Harry’s website and check out the information provided there. Why is he regarded by many as an opinion leader? How well does Harry serve as an opinion leader for the average moviegoer? To what demographic group does Harry appeal most? Instructor Notes Harry Knowles is a self-described Movie Geek who is acquainted with the movers and shakers in the motion picture industry, yet is removed enough from these influential people to be able to write amusingly of both the fun and the foibles of Hollywood. Harry Knowles is an opinion leader concerning movies because of his enduring involvement with this entertainment product. He has seen and discussed more movies than most consumers will see in their lifetimes; his combination of expertise and informal prose provide a very different type of movie review than the visitor will find at other sources. Also, Harry’s reviews include links to comments about various movies submitted by average moviegoers; if the website visitor wants additional information from non-experts, he can find it at Ain’t It Cool News. The website’s graphics, use of color, choice of language, and encouragement of visitor participation appeal most strongly to younger visitors. Today’s Generation Y and Generation X members are heavier consumers of movies than any other age groups, and Ain’t It Cool News effectively targets this demographic. Additional Uses This exercise also relates to concepts in the following: • Chapter 4, Memory and Knowledge (schemas for movie reviews) • Chapter 6, Attitudes Based on Low Effort (impact of communication source characteristics and message characteristics on affective attitudes) • Chapter 7, Problem Recognition and Information Search (evoked set for movie information, use of Internet as a search tool) • Chapter 12, Consumer Diversity (characteristics of teens and Generation Xers) Discussion Idea Could a marketer deliberately manipulate a website like Ain’t It Cool News to generate favorable word of mouth? ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions that the students consider while reading the chapter or to test their understanding of the material after the reading and lecture are complete. 1. How is a group different from a reference group? Answer: A group is two or more people who have a shared set of experiences, beliefs, and/or values and whose relationship is interdependent. A reference group is a set of people with whom individuals compare themselves as a guide to developing their own attitudes, knowledge, and/or behavior. A reference group exerts social influence on the individual. Although a reference group is one type of group, not all groups are reference groups. 2. Define homophily and discuss its importance to understanding reference groups. Answer: Homophily is the amount of similarity among groups. The more similar the group members are, the more homophilous they are said to be. Homophilous individuals tend to interact frequently, have similar viewpoints, and develop strong ties. Homophily is one of the six characteristics that define a reference group, along with degree of contact, formality, density, degree of identification, and tie strength. Along with the other reference group characteristics, homophily can be targeted by marketers to influence consumers. ADDITIONAL QUESTIONS 1. We have considered several different kinds of reference groups. Develop a marketing-related example that illustrates the influence of dissociative, associated, and aspirational reference groups. Answer: Dissociative: Avoiding fast fashion to distance from its negative image. Associative: Joining a club that promotes a preferred eco-friendly brand. Aspirational: Using luxury items to align with successful professionals' image. 2. As college students, you are all members of many different groups. Work together to select two very different groups that a college student might belong to. Describe the degree of contact, formality, homophily, density, and tie-strength that characterizes each of these two groups. Answer: Study Group: Contact: Frequent, regular. Formality: Semi-formal. Homophily: High. Density: High. Tie-Strength: Strong. Campus Club: Contact: Less frequent. Formality: Varies. Homophily: Moderate. Density: Lower. Tie-Strength: Moderate. 3. Opinion leaders and market mavens are not the same thing. Discuss the differences between these two types of consumers. Give an example of how a marketer can develop efforts to target each type of person. Answer: Opinion Leaders: Experts influencing specific product areas (e.g., tech bloggers). Market Mavens: Broad knowledge sharers (e.g., general product reviewers). Marketing Efforts: Opinion Leaders: Provide product samples. Market Mavens: Offer detailed information and early access. 4. Discuss the differences between normative and informational influence. Create a matrix in which you give marketing examples under conditions in which (1) normative influence is high but informational influence is low, (2) normative influence is low but informational influence is high, (3) both are high, and (4) both are low. Answer: Normative High, Informational Low: Fashion trends from celebrities. Normative Low, Informational High: Tech gadgets based on reviews. Both High: Health trends influenced by experts and peers. Both Low: Generic product choices without specific influences. 5. As a group, discuss the differences between socialization and consumer socialization. Explain why knowing these differences can be helpful to marketers. Answer: Socialization: Learning societal norms. Consumer Socialization: Learning about products and purchasing. Importance: Helps tailor marketing strategies to consumer learning stages. 6. We have discussed the concept of socialization and consumer socialization. Discuss how these processes work. Discuss the role socializing agents play in this process. Give some examples of socializing agents. Suggest how marketers might influence the consumer socialization process. Answer: Socialization: Learning societal norms from family, peers, media. Consumer Socialization: Learning purchasing behaviors from similar sources. Socializing Agents: Family, friends, media. Marketers’ Role: Target socializing agents to influence consumer behavior. 7. Compliance, conformity, and reactance are all responses a consumer might have to marketing communications. Discuss what each of these responses is and create examples of each. Answer: Compliance: Agreeing to a small request (e.g., free trial). Conformity: Buying the same brand as friends. Reactance: Avoiding a product due to aggressive marketing. 8. Several methods have been suggested to induce compliance. Give examples of the foot-in-the-door, door-in-the-face, and even-a-penny-will-help techniques and explain why they work. Answer: Foot-in-the-Door: Small request followed by a larger one. Door-in-the-Face: Large request followed by a smaller one. Even-a-Penny-Will-Help: Minimal request to encourage larger contributions. Why They Work: Exploit commitment, reciprocity, and effort principles. 9. What are the advantages and disadvantages of viral marketing? Discuss how a company may try to encourage viral marketing. Answer: Advantages: Wide reach, cost-effective. Disadvantages: Unpredictable, hard to control. Encouragement: Create engaging content, use influencers, and leverage social media for sharing. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “Home Alone” Exercise Tell students to make a shopping list of items they would buy—food, decorations, gifts—if they were (1) planning an anniversary party for their parents, or (2) planning a birthday party for their roommate. 2. “Musical Chairs” Exercise This venerable birthday party game is a fun and simple way to demonstrate feelings of (literal!) displacement. Bring a CD player to class. Arrange “n” chairs back to back in a line. Ask for “n + 1” student volunteers. Tell students that while the music is playing, they should walk around the chairs in a circle, but that when the music stops, they should sit down as quickly as possible. The student without a chair is required to quit playing, but must continue to stand in front of the class. With each iteration, remove one chair. The game ends when one student is left standing, with another sitting in the last remaining chair. Talk to the students about how it felt to be left out, even if it’s only a silly children’s game. Make the point that our desire/need to belong and feel included drives much of our behavior. 3. Group Decision Making Exercises After dividing into small groups, ask each group to arrive at one consensus vote for different scenarios. In one scenario, suggest that your college/university is thinking of changing to a +/- grading system (i.e., a grade of a high B will now be a B+ (3.3 GPA) and a low B will be a B- (2.7 GPA)) from the straight A/B/C/D/F grading system currently in place (reverse this if your school already incorporates +/- into the grades). Remember, one vote per group. For another round of group decision-making, suggest a second scenario where your school is considering adding more sections of classes so students can graduate quicker. However, space is tight so, MWF classes would meet for 1 hour and 40 minutes for only 8 weeks (allowing you to take more classes), and TTh classes would meet for 50 minutes and 2 hours every other Saturday to help relieve classroom scheduling and add more class sections (adjust the days/times to reflect your curriculum). Of course, no one is likely to want to take Saturday classes. To this end, discreetly encourage one student per group to persuade their group to vote for the Saturday option. Have groups announce their votes (again, only one vote per group) to see if students were able to convince the rest of their group. CLASSROOM GROUP ACTIVITY Managing Targeted, Positive Word of Mouth: 10 Minutes I. Start up A. Purpose of the activity 1. This activity will give students an opportunity to consider how to encourage the use of targeted, positive word of mouth as a medium for promoting an offering. B. What the instructor will do 1. Select products that the students will discuss in their small groups. Depending on the instructor’s objectives, these can be either at the product category level (e.g., meat, milk, eggs) or at the brand level (e.g., Marriott, Howard Johnson’s, and Hilton). Each will generate different results. Giving some of each to groups throughout a classroom will allow for a discussion of the differences between product and brand-level marketing. 2. The instructor will divide people into small groups, assign them a product for analysis, and be available to coach and help the groups as needed. 3. Optionally, groups may be provided with clear overhead acetates and markers so they can summarize their discussions and make presentations after their analysis and discussion. C. What the participants will do 1. The participants will work in small groups to develop methods for encouraging consumers to engage in positive WOM about their offering. After a period of small-group discussion, they will make reports to the large group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Assign products. 1. Each group should be assigned a single product on which to focus. C. Specific actions for groups 1. The groups are responsible for (1) analyzing the offerings they have been assigned and (2) developing a list of possible ways to encourage positive WOM among particular consumer target markets. Students should be guided to state how each method they propose is designed to generate positive WOM in a particular target market. 2. Optionally, groups can summarize their discussions on clear overhead acetates to facilitate presentations after their analysis and discussion. 3. Questions to be answered by small groups a) Consider the product your group has been assigned. How might the product be marketed so that different segments of the market are encouraged to engage in positive WOM about the offering? State specifically the target market being considered, the methods suggested, and why these methods will influence positive WOM. 4. Large-group discussions a) Have each group present its ideas to the class in a round-robin format. III. Debrief and Unveil Concepts A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise? d) What will be different when they do this for their own brand? B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The role of specific marketing techniques to encourage consumers to engage in positive WOM 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships among their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Robert Hof, “Cyter Monday: Marketing Hype No More,” Forbes, November 28, 2011, www.forbes.com; Wendy Lee, “Bustling Midnight Openings Mean Empty Aisles Come Early Morning,” Star Tribune (Minneapolis), November 25, 2011, www.startribune.com; Richard H. Levey and Larry Riggs, “Black Friday Roundup,” Chief Marketer, November 30, 2011, www.chiefmarketer.com; “Cyber Monday, Green Tuesday . . . Black Friday Isn’t the Only Game in Town,” MSNBC, November 28, 2011, www.msnbc.com; Stuart Elliott, “For Some Marketers, Brand Investment Beats Black Friday,” New York Times, November 22, 2011, www.nytimes.com; and “Black Friday Weekend Shines as Shoppers Line Up for Deals,” National Retail Federation news release, November 27, 2011, www.nrf.com/holidays. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211