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Chapter 15

Consumer Behavior,Consumer Behavior,Eighth EditionEighth Edition

SCHIFFMAN & KANUK

The Consumer’s Decision-Making Process

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Opinion Leadership

The process by which one person (the opinion leader)

informally influences the consumption

actions or attitudes of others who may be opinion seekers or opinion recipients.

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What is Opinion Leadership?

Opinion Leader

Opinion Receiver

Opinion Seeker

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Examples of Opinion Leadership

• During a coffee break, a co-worker talks about the movie he saw last night and recommends seeing it.

• A person shows a friend photographs of his recent Australian Outback vacation and the friend suggests that using a polarizing filter might produce better pictures.

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Special Issues• Opinion leaders are four times more likely to be

asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants

• Information seekers seek a “strong-tie” source when they know little about a topic, and “weak-tie” sources when they have some knowledge

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Chat Rooms and Opinion Leadership

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Reasons for the Effectiveness of Opinion Leadership

• Credibility• Positive and Negative Product

Information• Information and Advice• Opinion Leadership Is Category-

Specific• Opinion Leadership Is a Two-way

Street

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Viral Marketing• Buzz Marketing

• Wildfire Marketing

• Avalanche Marketing

These terms describe any strategy that encourages individuals to pass on a

marketing message to others;The marriage of email and word-of-mouth

communication

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Yahoo’s Buzz Index

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Figure 15.1 Factors Leading to Negative Word-of-Mouth Behavior

Individual Factors

Product Involvement

Situational Factors

Attitudinal Factors

NegativeWOM

Likelihoodof

Repurchase-

+

+

+

+

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Figure 15.2 Word-of-Mouth in Action

0% 20% 40% 60% 80%

Restaurants

Computer

Consumer Electronics

Travel

Automotive

Financial Services% of respondentsthat used a referral to make oneof these purchases over the past year

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Motivations Behind Opinion Leadership

• The Needs of Opinion Leaders

• The Needs of Opinion Receivers

• Purchase Pals

• Surrogate Buyers versus Opinion Leaders

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The Needs of Opinion Leaders

• Self involvement• Social involvement• Product involvement• Message involvement

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The Needs of Opinion Receivers

• New-product or new usage information• Reduction of perceived risk• Reduction of search time• Receiving the approval of the opinion

leader

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Table 15.3 A Comparison of Motivations(Excerpts)

OPINION LEADERS OPINION RECEIVERS

SELF-IMPROVEMENT MOTIVATIONS

• Reduce post-purchase uncertainty or dissonance

• Gain attention or status• Assert superiority and expertise• Feel like an adventurer

• Reduce the risk of making a purchase commitment

• Reduce search time

PRODUCT-INVOLVEMENT MOTIVATIONS

• Express satisfaction or dissatisfaction with a product or service

• Learn what products are new in the marketplace

• Learn how to use or consume a product

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Table 15.4 Key Differences Between Opinion Leaders and Surrogate Buyers

OPINION LEADER 1. Informal relationship with end-users 2. Information exchange occurs in the context of a casual interaction 3. Homophilous (to a certain extent) to end-users 4. Does not get paid for advice 5. Usually socially more active than end-users 6. Accountability limited regarding the outcome of advice 7. As accountability limited, rigor in search and screening of alternatives

low 8. Likely to have used the product personally 9. More than one can be consulted before making a final decision10. Same person can be an opinion leader for a variety of related product

categories

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Table 15.4 Key DifferencesSURROGATE BUYER 1. Formal relationship; occupation-related status 2. Information exchange in the form of formal instructions/advice 3. Heterophilus to end users (that is, is the source of power) 4. Usually hired, therefore gets paid 5. Not necessarily socially more active than end-users 6. High level of accountability 7. Search and screening of alternatives more rigorous 8. May not have used the product for personal consumption 9. Second opinion taken on rare occasions10. Usually specializes for a specific product/service category

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Measurement of Opinion Leadership

• Self-Designating Method

• Sociometric Method• Key Informant Method• Objective Method

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Table 15.5 Measuring Opinion Leadership

SELF-DESIGNATING METHOD

“Do you influence other people in their selection of products?”

Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader.

OPINION LEADERSHIP OPINION LEADERSHIP MEASUREMENT MEASUREMENT METHODMETHOD

SAMPLE SAMPLE QUESTIONS ASKEDQUESTIONS ASKED

DESCRIPTION OF METHODDESCRIPTION OF METHOD

SOCIOMETRIC METHOD

Members of a social system are asked to identify to whom they give advice and to whom they go for advice.

“Whom do you ask?”“Who asks you for info about that product category?”

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Table 15.5 continued

OPINION OPINION LEADERSHIP LEADERSHIP MEASUREMENT MEASUREMENT METHODMETHOD

SAMPLE SAMPLE QUESTIONS QUESTIONS

ASKEDASKEDDESCRIPTION OF METHODDESCRIPTION OF METHOD

KEY INFORMANT METHOD

“Who are the most influential people in the group?”

Carefully selected key informants in a social system are asked to designate opinion leaders.

Artificially places individuals in a position to act as opinion leaders and measures results of their efforts.

“Have you tried the product?

OBJECTIVE METHOD

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Table 15.6 Profile of Opinion Leaders

GENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIES

CATEGORY-SPECIFIC ATTRIBUTES

InnovativenessWillingness to talkSelf-confidenceGregariousnessCognitive differentiation

InterestKnowledgeSpecial-interest media exposureSame ageSame social statusSocial exposure outside group

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Market Market MavenMaven

Individuals whose influence stems from a general knowledge or market expertise that

leads to an early awareness of new

products and services.

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The Interpersonal Flow of Communication

• Two-Step Flow– A communication model that portrays opinion

leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.

• Multistep Flow– A revision of the traditional two-step theory

that shows multiple communication flows

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Figure 15.4 Two-Step Flow of Communication Theory

Mass MediaMass Media Opinion Leaders

Opinion Leaders

Opinion Receivers

(the masses)

Opinion Receivers

(the masses)

Step 1 Step 2

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Figure 15.5 Multistep Flow of Communication Theory

Mass MediaMass Media

Information Receivers

Information Receivers

Opinion Receivers/

Seekers

Opinion Receivers/

Seekers

Opinion Leaders

Opinion Leaders

Step 1a

Step 1b

Step 2

Step 3

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Issues In Opinion Leadership and Marketing Strategy

• Programs Designed to Stimulate Opinion Leadership

• Advertisements Stimulating Opinion Leadership

• Word of Mouth May Be Uncontrollable• Creation of Opinion Leaders

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Diffusion Diffusion ProcessProcess

The process by which the acceptance of an

innovation is spread by communication to members of social

system over a period of time.

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Adoption Adoption ProcessProcess

The stages through which an individual consumer passes in

arriving at a decision to try (or not to try), to continue using (or

discontinue using) a new product.

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Elements of the Diffusion Process

• The Innovation• The Channels of Communication• The Social System• Time

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Defining Innovations

• Firm-oriented definitions• Product-oriented definitions• Market-oriented definitions• Consumer-oriented definitions

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Product-Oriented Definitions

Continuous Innovation

Dynamically Continuous Innovation

Discontinuous Innovation

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Figure 15.6 Continuous Innovation

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Figure 15.7 Telephone Innovations

Telephone

Cell Phone

Fax Machine

Telephone answering machinesCall forwardingCall waitingCaller IDBanking by telephoneCall-prompting systems

Hold buttonLine-in-use indicatorRedial buttonAuto dialing featureTouch-tone service800 Numbers900 Numbers

Ability to send/receive emailIncorporate PDA functionsCalendar/PhonebookVoice-activated dialing

Switch from analog to digital

Include cameraRinger stylesPlay games

Fax modemMobile fax machinesHome office systems

(combined fax, copier, computer printer)

Plain paper faxSpeed dial buttonsDelayed sendCopy functionPaper cutter

Discontinuous Innovations

Dynamically ContinuousInnovations

ContinuousInnovations

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Product Characteristics That Influence Diffusion

• Relative Advantage• Compatibility• Complexity• Trialability• Observability

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Figure 15.8 Ad Stressing Ease of Use

and

Convenience

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Table 15.7 Characteristics That Influence Diffusion

CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES

Relative Advantage

Air travel over train travel, cordless phones over corded telephones

Compatibility

Gillette MACH3 over disposable razors, digital telephone answering machines over machines using tape

ComplexityElectric shavers, instant puddings

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Table 15.7 continued

CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES

Trialability

Trial size jars and bottles of new products, free trials of software, free samples, cents-off coupons

Observability

Clothing, such as a new Tommy Hilfiger jacket, a car, wristwatches, eyeglasses

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Time and Diffusion

• Purchase Time• Adopter Categories• Rate of Adoption

See Table 15.8

Time Line for Selecting a New

Automobile

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Adopter Adopter CategoriesCategories

A sequence of categories that

describes how early (or late) a consumer

adopts a new product in relation to other

adopters.

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Figure 15.9 Adopter Categories

Innovators2.5%

EarlyAdopters

13.5%

Laggards

16%

Percentage of Adopters by Category Sequence

EarlyMajority

34%

LateMajority

34%

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Innovators: Description

• 2.5% of population• Venturesome• Very eager to try new ideas• Acceptable if risk is daring• More cosmopolite social relationships• Communicates with other innovators

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Early Adopters: Description

• 13.5% of population• Respected• More integrated into the local social system• The persons to check with before adopting a

new idea• Category contains greatest number of

opinion leaders• Are role models

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Early Majority: Description

• 34% of population• Deliberate• Adopt new ideas just prior to the average

time• Seldom hold leadership positions• Deliberate for some time before adopting

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Late Majority: Description

• 34% of population• Skeptical• Adopt new ideas just after the average

time• Adopting may be both an economic

necessity and a reaction to peer pressures• Innovations approached cautiously

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Laggards: Description

• 16% of population• Traditional• The last people to adopt an innovation• Most “localite” in outlook• Oriented to the past• Suspicious of the new

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Table 15.11 Stages in Adoption Process

NAME OF STAGE

WHAT HAPPENS DURING THIS

STAGEEXAMPLE

AwarenessConsumer is first exposed to the product innovation.

Janet sees an ad for a new MP3 player in the magazine she is reading.

Interest

Consumer is interested in the product and searches for additional information.

Janet reads about the MP3 player on the manufacturer’s Web site and then goes to an electronics store near her apartment and has a salesperson show her a unit.

Evaluation

Consumer decides whether or not to believe that this product or service will satisfy the need--a kind of “mental trial.”

After talking to a knowledgeable friend, Janet decides that this MP3 player will allow her to easily download the MP3 files that she has on her computer. She also feels that the unit’s size is small enough to easily fit into her beltpack.

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Table 15.11 Stages in Adoption Process

Trial

Consumer uses the product on a limited basis

Since an MP3 player cannot be “tried” like a small tube of toothpaste, Janet buys the MP3 player online from Amazon.com, which offers a 30-day full refund policy.

Adoption (Rejection)

If trial is favorable, consumer decides to use the product on a full, rather than a limited basis--if unfavorable, the consumer decides to reject it.

Janet finds that the MP3 player is easy to use and that the sound quality is excellent. She keeps the MP3 player.

NAME OF STAGE

WHAT HAPPENS DURING THIS

STAGEEXAMPLE

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Figure 15.11 An Enhanced Adoption Process Model

Pre-existing problem or

NeedAwareness Interest Evaluation Trial

Adoption or

Rejection

Postadoption or Postpurchase

Evaluation

Evaluation

Adoption or Rejection

Discontinuation

Discontinuation or Rejection

Rejection

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Figure 15.12 The Relative Importance of Different Types of Information Sources in the

Adoption Process

Importance

High

Low

Aw

aren

ess

Ad

opti

on

Tri

al

Eva

luat

ion

Inte

rest

Personal and interpersonal sources

Impersonal mass-media sources

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Issues in Profiling Consumer Innovators

• Defining the Consumer Innovator• Interest in the Product Category• The Innovator Is an Opinion Leader• Personality Traits• Media Habits• Social Characteristics• Demographic Characteristics• Are There Generalized Consumer Innovators?

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Figure 15.13 Ad Appeals to Fashion Innovators