A group is defined as two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent.

A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior.

Types ofReference

Groups

a. Direct

b. Indirect

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(1)Primary: Daily

(2)Secondary:

(1) Aspirational (+ve)“Want-to-Be”

(2) Non-inspirational (-ve)“DON’T Want to Be”

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Reference Groups

Reference Groups

Normative vs. Comparative Reference Groups

Normative Reference Groups - A group in which individuals are motivated to gain or maintain acceptance. To promote this acceptance, individuals hold their attitudes in conformity with what they perceive to be the consensus of opinion (norms) among the group members.

Comparative Reference Groups - A group which individuals use as a standard or point of reference in making evaluations or comparisons of themselves and of other individuals or groups

Types of Reference Groups

Friendship Groups – Most likely to influence after the family

Shopping Groups – 2 or more people who shop together

Work Groups – Who work together as a part of a work team

Virtual Groups/ Communities

Consumer–Action Groups – Who are dedicated in providing assistance to consumers in order to make correct purchase decisions

Reference Group Appeals

1. Celebrities

2. Experts

3. Common Man (someone just like them uses it)

4. The Executive/ Employee Spokesperson

5. Trade/ Spokes Characters or Familiar Cartoon Characters

6. Respected Retailers

7. Editorial content of Special –interest Magazines

8. Seals of Approval

9. High Rating in Consumer Reports

Factors that affect Reference Group Influence

1. Information and Experience

• High for consumers – less likely to be influenced by reference groups

2. Credibility, Attractiveness and Power of the Reference

Group

3. Conspicuousness of the Product

• Verbally conspicuous product – easily explained to others – higher influence by the reference group

WOM

Opinion Leaders

Market Mavens, Influentials, and e-fluentials

Marketing and Online Strategies

Communications within Groups and Opinion Leadership

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Communications within Groups and Opinion LeadershipWOM Versus Advertising(% who put people vs. advertising as best source)

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Communications within Groups and Opinion LeadershipOpinion Leaders

An opinion leader is the “go to person” for specific types of information. This person filters, interprets, and passes along information.

Opinion leaders possess enduring involvement for specific product categories. This leads to greater knowledge and expertise.

Opinion leadership is category specific – an opinion leader in one product category is often an opinion seeker in others.

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Communications within Groups and Opinion Leadership

Mass Communication Information Flows

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Communications within Groups and Opinion Leadership

1. Individual seeks information from another or

2. Individual volunteers information

Situations in Which WOM and Opinion Leadership Occur

The exchange of advice and information between group members can occur directly via WOM in the following situations:

Likelihood of Seeking an Opinion Leader

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Communications within Groups and Opinion Leadership

Mavens, Influentials, and e-fluentials

1. A market maven is a generalized market influencer who provides significant amounts of information about various products, places to shop, and so on.

2. Roper Starch identifies a group similar to market mavens called influentials. Influentials are 10% of population but use broad social networks to influence the other 90%!

3. Roper Starch identifies a group similar to internet market mavens called e-fluentials. They wield significant online and offline influence.

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Communications within Groups and Opinion LeadershipMarketing Strategy, WOM, and Opinion Leadership

Marketers are increasingly relying on WOM and influential consumers as part of their marketing strategies. Strategies designed to generate WOM and encourage opinion leadership include:

1. Advertising

2. Product Sampling

3. Retailing/Personal Selling

4. Creating Buzz

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Applications in Consumer Behavior

Marketing Strategy, WOM, and Opinion Leadership

Advertising can stimulate and simulate WOM and opinion leadership.

This ad would likely stimulate WOM via interest and excitement

© Christopher Kerrigan

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Communications within Groups and Opinion LeadershipOnline Strategies to Leverage Buzz and WOM

Viral marketing is an online “pass-it-along” strategy, utilizing electronic communication to trigger brand messages (often via email) throughout a widespread network of buyers.”

Consumer review sites provide consumer product and service reviews in a host of different formats.

Blogs are personalized journals where people and organizations can keep a running dialogue.

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