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Roger D. Blackwell Paul W. Miniard James F. Engel
Consumer Behavior
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Group and Personal Influence
CHAPTER 13
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Group and Personal Influences on Individuals
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Group and Personal Influences on IndividualsOther people, whether as individuals or groups, exert enormous influence on consumers
Belonging to groups, trying to “fit in,” and striving to please others affects every stage in the decision process
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Group and Personal Influences on IndividualsReference group: any person or group of people who significantly influences an individual’s behavior
May be individuals (celebrities, athletes, or political leaders) or groups of individuals with similarities (musical groups or sports teams)
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Types of Types of InfluenceInfluenceNormativeNormative
Value ExpressiveValue ExpressiveInformationalInformational
TransmissionTransmission
Personal Personal Influences: Influences: ••Groups Groups
••IndividualsIndividuals
Lifestyles Behaviors Purchases
Consumption
Low Degree of Influence
High Degree of Influence
Personal and Group Influence on Individuals
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Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
Personal and Group Influence on Individuals
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Types of Reference GroupsPrimary Groups: a social aggregation that is sufficiently intimate to permit and facilitate unrestricted direct interaction (e.g., family)
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Types of Reference GroupsSecondary Groups: also have direct interaction, but it is more sporadic, less comprehensive, and less influential in shaping thought and behavior (e.g., professional associations or community organizations)
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Types of Reference GroupsFormal Groups: characterized by a defined structure (often written) and a known list of members and requirements for membership
Informal Groups: have less structure than formal groups and are likely to be based on friendship or interests
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Types of Reference GroupsMembership: when individuals are recognized as members of a group, they have achieved formal acceptance status in the group
Aspirational Groups: exhibit a desire to adopt the norms, values, and behaviors of others with whom the individuals aspire to associate
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Types of Reference GroupsDissociative Groups: groups from which an individual tries to avoid association
Virtual Groups: groups that are based on virtual communities rather than geographic ones
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Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
Personal and Group Influence on Individuals
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Types of Types of InfluenceInfluenceNormativeNormative
Value ExpressiveValue ExpressiveInformationalInformational
Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
Personal and Group Influence on Individuals
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Types of Group InfluenceNormative: when individuals alter their behaviors or beliefs to meet the expectations of a particular group
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Types of Group InfluenceNormative: when individuals alter their behaviors or beliefs to meet the expectations of a particular group
Value-expressive: when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviors
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Types of Group InfluenceNormative: when individuals alter their behaviors or beliefs to meet the expectations of a particular groupValue-expressive: when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviorsInformational: when people have difficulty assessing product or brand characteristics by their own observations or contact
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Personal and Group Influence on Individuals
Types of Types of InfluenceInfluenceNormativeNormative
Value ExpressiveValue ExpressiveInformationalInformational
Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
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Personal and Group Influence on Individuals
TransmissionTransmission
Types of Types of InfluenceInfluenceNormativeNormative
Value ExpressiveValue ExpressiveInformationalInformational
Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
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TransmissionTransmission
Lifestyles Behaviors Purchases
Consumption
Low Degree of Influence
High Degree of Influence
Personal and Group Influence on Individuals
Types of Types of InfluenceInfluenceNormativeNormative
Value ExpressiveValue ExpressiveInformationalInformational
Personal Personal Influences: Influences:
••Groups Groups ••IndividualsIndividuals
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How Reference Groups Influence Individuals
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How Reference Groups Influence Individuals
Socialization: permits an individual to know what behavior is likely to result in stability both for the individual and the group
Company manual may explain the dress code in the workplace
Informal groups may tell them what styles are most comfortable and easiest to maintain
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How Reference Groups Influence Individuals
Self-concept: people protect and modify their self-concept by their interactions with group members
People can maintain self-concept by conforming to learned roles
Testimonial advertising is effective when the self projected in the ad is consistent with the idealized self of the target consumer
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Reference Groups Help Define Self-Concept
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How Reference Groups Influence Individuals
Social comparison: individuals often evaluate themselves by comparing themselves to others
Consumers often use reference groups as benchmarks to measure their own behaviors, opinions, abilities, and possessions
Advertising or television can be sources of social comparison
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How Reference Groups Influence Individuals
Conformity: a change in beliefs or actions based on real or perceived group pressures
Compliance: when an individual conforms to the wishes of the group without accepting all its beliefs or behaviors
Acceptance: when an individual actually changes his or her beliefs and values to those of the group
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How Reference Groups Influence Individuals
Factors affecting how likely people are to conform to group norms:
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How Reference Groups Influence Individuals
When are people more likely to conform to norms?
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How Reference Groups Influence Individuals
Factors affecting how likely people are to conform to group norms:
Desire for social acceptance
Degree of experience in situation or with decision
Conspicuousness
Complex product or luxury item
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PRIVATE LUXURIESPRIVATE LUXURIES
Influence: Strong Influence: Strong product & weak brandproduct & weak brand
(TV, icemaker)(TV, icemaker)
PRIVATE NECESSITIESPRIVATE NECESSITIES
Influence: Weak Influence: Weak product & weak brandproduct & weak brand
(mattress, refrigerator)(mattress, refrigerator)
PUBLIC LUXURIESPUBLIC LUXURIES
Influence: Strong Influence: Strong product & strong brandproduct & strong brand
(golf clubs, skis, boat)(golf clubs, skis, boat)
PUBLIC NECESSITIESPUBLIC NECESSITIES
Influence: Weak Influence: Weak product & strong brandproduct & strong brand
(watch, autos, suits)(watch, autos, suits)
Strong Reference Group Influence
Stro
ng G
roup
In
fluen
ces
(+)
Weak Reference Group Influence
Wea
k G
roup
In
fluen
ces
(-)
PRODUCTB
RA
ND
Reference Group Influence on Product and Brand Purchase Decisions
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How Reference Groups Influence Individuals
Profits of conformityMore likely to occur when the rewards of compliance exceeds its costs
The degree of influence on final outcome is determined by an individual’s perception of the “profit” inherent in the transaction
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How Reference Groups Influence Individuals
ConspicuousnessConformity pressures are not sufficient to induce behavior unless the product or service is publicly conspicuous in its purchase and use
Because other will see the product, many consumers will conform rather than risk embarrassment or ridicule
Peers send clear signals about product alternatives
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Appealing to Normative Influence in Marketing Strategy
Normative compliance may be less important in industrialized nations as many consumers are putting personal needs ahead of group loyalty
Extended families have less face-to-face contact and people are more socially isolated than in the past
Television and mass media expand people’s horizons beyond social circles
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A weakened respect for social norms (anomie) leads some consumers to desire expression of individuality more than group affiliation
Appealing to Normative Influence in Marketing Strategy
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High Product Visibility Raises Reference Group Influence
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Self-Expression Outside of Social Norms
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Celebrity and Other Reference Group Appeals in Advertising
Testimonials: celebrities tout products based on personal usage
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Celebrity and Other Reference Group Appeals in Advertising
Testimonials: celebrities tout products based on personal usage
Endorsements: celebrities lend their name or likeness to a product without necessarily being an expert in the area
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Celebrity and Other Reference Group Appeals in Advertising
Actor or Spokesperson: someone who represents a brand or company for an extended time period
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Celebrity and Other Reference Group Appeals in Advertising
Expert appeal: appeal from a person possessing unique information or skills that can help consumers make better purchase decisions than other types of spokespersons
Common-man appeal: testimonials from “regular” consumers with whom most consumers can relate
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Transmission of Influence Through Dyadic Exchanges
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Transmission of Influence Through Dyadic Exchanges
Exchange between two individuals that influence these individual’s behaviors or beliefs
Dyadic exchange requires the exchange of resources (opinions and comments)
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Dyadic ExchangesWord-of-mouth Communication
Service Encounters
Opinion Leadership
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Word-of-Mouth CommunicationWord-of-mouth communication: informal transmission of ideas, comments, opinions, and information between two people, neither one of which is a marketer
The receiver gains information about behaviors and choices, which is valuable to the receiver in the decision process
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Word-of-Mouth CommunicationThe sender increases their confidence in the personal product or behavior choice by persuading others to do the same
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Benefits of Word-of-Mouth
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Opinion LeadershipOpinion leadership: the sender of information is often considered an opinion leader—a person who influences the decisions of others
Opinion leaders might be experts in one area but not in others
The greater the perceived knowledge of a category, the more likely that person’s opinions are to influence others’ decisions
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Opinion LeadershipPersonal influence in the form of opinion leadership is likely to occur when:
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Opinion LeadershipPersonal influence in the form of opinion leadership is likely to occur when:
An individual has limited knowledge of a product or brand
The person lacks the ability to evaluate the product or service
The consumer does not trust advertising and other sources of information
Other information sources have low credibility with the consumer
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Opinion LeadershipThe individual has a high need for social approval
Strong social ties exist between sender and receiver
The product is complex
The product is difficult to test against objective criterion
The product is highly visible to others
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Characteristics of Opinion Leaders Opinion leaders and receivers often share similar demographic characteristics and lifestyles, yet they may have greater social status within the same group as followers
The most common characteristic is that opinion leaders are involved with a particular product category
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Product innovators: similar to opinion leaders, these individuals are the first to try new products
Opinion Leadership
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Overlapping Opinion LeadershipMarket mavens: gather much of their information from shopping experiences, openness to information and general market awareness, making them more aware of new products than other people
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Overlapping Opinion LeadershipSurrogate consumers (shoppers): an individual who acts as an agent to guide, direct, and conduct activities in the marketplace
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Service EncountersService encounters: occurs when there is personal communication between a consumer and a marketer
May be a consumption experience within a store—the various trans-actions and services that occur during a retail purchase
May be an experience consuming the specific service a consumer purchases
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Service EncountersService providers must understand the needs of different customers and match the appropriate sales associate or sales approach to each individual customer
Which customers desire a great deal of assistance and which ones prefer little interaction
Salespeople foster a relationship between buyer and seller
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Service EncountersCustomer intimacy: detailed understanding and focus on customers’ needs lifestyles and behaviors in an effort to create a deep cultural connections with the customers
Reverse customer intimacy: how well marketers facilitate customers knowing the marketer
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How Personal Influences Are Transmitted
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Trickle-down: alleges that lower classes often emulate the behavior of their higher-class counterparts
Influence is transmitted vertically through social classes, when higher classes express wealth through conspicuous consumption, and lower classes copy their behavior
How Personal Influences Are Transmitted
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Today, trends are transmitted through mass media and there is very little direct, personal contact between social classes
How Personal Influences Are Transmitted
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Two-step Flow
Opinion leaders are the direct receivers of information from advertisements and they interpret and transmit the information to others through word-of-mouth
How Personal Influences Are Transmitted
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Two-step Flow
Opinion Opinion LeaderLeader
Opinion Opinion SeekersSeekers
Mass Mass MediaMedia
Information and InfluenceInformation
How Personal Influences Are Transmitted
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Multistep Flow
Information can flow directly to different types of consumers, including opinion leaders, gatekeepers, and opinion seekers and receivers
How Personal Influences Are Transmitted
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Multistep Flow
Opinion Opinion LeaderLeader
Opinion Opinion SeekersSeekers
Mass Mass MediaMedia
How Personal Influences Are Transmitted
Gatekeepers
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WOM and Opinion Leaders in Advertising and Marketing Strategy
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WOM and Opinion Leaders in Advertising and Marketing Strategy
WOM and personal communication can have a more decisive role in influencing behavior than advertising and other marketer-dominated sources
Viewed as a more trustworthy and credible source of information than salespeople or paid advertising
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WOM and Opinion Leaders in Advertising and Marketing Strategy
Advertising can provide information to consumers about products they might seek from other sources and which may be discussed in WOM
However, consumers don’t always trust that the advertiser has their best interests in mind
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WOM and Opinion Leaders in Advertising and Marketing Strategy
Advertising influences the effectiveness of WOM and vice versa
Advertising can provide information about products consumers might not seek from other sources
Advertising can create WOM among consumers and peer groups
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For some occasions, companies rely on WOM as a substitute for advertising
Primary Reliance on Word-Of-Mouth
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For some occasions, companies rely on WOM as a substitute for advertising
Retailers such as Wal*Mart and Victoria’s Secret have demonstrated that advertising can be sharply reduced when word-of-mouth is strong
Primary Reliance on Word-Of-Mouth
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Targeting Opinion Leaders
Firms can market to opinion leaders as a distinct segment (once they can be identified)
Mass media can be used to target leadership roles and responsibilities with other options such as association memberships, direct mail, and trade or special interest magazines
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Stimulating Word-Of-Mouth
Firms may stimulate WOM by giving away or loaning products to opinion leaders to display and use
Organizations may induce opinion leaders to influence consumers
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Creating Opinion Leaders
Firms can create opinion leaders by providing incentives for new customers to attract others to the store
Companies can activate search through advertising that encourages consumers to “ask a person who owns one” or “share the experience with a friend”
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Creating Opinion Leaders
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Managing Negative WOMJust as positive word-of-mouth can be a great asset to marketers, the opposite can be true when the content in negative
Negative WOM is usually given high priority and weighs heavily in decision making
The dissatisfied buyer is more motivated to share information
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Monitoring the Content of WOMFirms can monitor the presence and impact of WOM—what dissatisfied consumers are saying about the product or company
Monitoring rumors which do not always appear in customer complaint reports
Creating a strategy to respond to rumors and negative WOM
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Curbing Negative WOMWhen something goes terribly wrong, denying the problem is not the answer
The best strategy is immediate acknowledgement by a credible company spokesperson as negative WOM rarely goes away by itself
Make sure you have all your facts straight and tell the truth
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Diffusion of Innovations
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Diffusion of InnovationsInnovation: any idea or product perceived by the potential adopter to be new
Product innovation: any new product recently introduced to the market or perceived to be new when compared to existing products
Consumers can view innovations subjectively or objectively
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Diffusion of InnovationsSubjective Innovation: a definition derived from the thought structure of a particular individual or entity
Objective innovation: based on external criteria; innovations are ideas, behaviors, or things that are qualitatively different from existing forms
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Innovations and New ProductsMarketers often use the word “new” to call attention to products recently introduced to the marketplace
The use of the word “new” in advertising is limited to products available for less than six months
New products can change the way consumers live and how society is organized
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Types of Innovations
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Types of Innovations
Classified based on the impact of the innovation on behavior in the social structure
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Types of Innovations
Classified based on the impact of the innovation on behavior in the social structureContinuous innovation
Dynamically continuous innovation
Discontinuous innovation
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Continuous InnovationThe modification of an existing product rather than the establishment of a totally new product
Modification may be in the taste, appearance, performance, or reliability of the existing product
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Continuous Innovation
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Dynamically Continuous Innovation
May involve either the creation of a new product or a significant alteration of an existing one
Does not generally alter established purchase or usage patterns
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Dynamically Continuous Innovation
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Discontinuous InnovationInvolves the introduction of an entirely new product that significantly alters consumers’ behavior patterns and lifestyles
Examples include automobiles, televisions, videocassette recorders, and computers
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Types of Innovations
While innovations are usually considered in terms of new products, they might also be usage based—finding new uses for old products
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Why Some Innovations Succeed and Others Don’t
Successful products are those that become culturally anchored—so inextricably a part of a consumer’s life and sociocultural surroundings that the person-product interface is an important part of the individual’s self-concept
Imagine being without personal computers or microwave ovens
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Relative Advantage
Compatibility
Complexity
Trialability
Observability
Why Some Innovations Succeed and Others Don’t
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Relative AdvantageThe degree to which consumers may perceive the innovation to offer substantially greater benefits than the product they currently use
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Relative AdvantageThe degree to which consumers may perceive the innovation to offer substantially greater benefits than the product they currently use
To what degree will the new product be a substitute for existing ones or complement those already in consumers’ inventories?
New products most likely to succeed appeal strongly to felt consumer needs
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CompatibilityThe degree to which a new product is consistent with an individual’s existing practices, values, needs, and past experiences of the potential adopters
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CompatibilityThe degree to which a new product is consistent with an individual’s existing practices, values, needs, and past experiences of the potential adopters
How does the innovation blend with products consumers might own?Will it replace other products or will it become a part of an existing system?How does the innovation fit current purchase or consumption behaviors?
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ComplexityThe degree to which an innovation is perceived as difficult to understand and use
The more complex, the more difficult it will be to gain acceptance
Complexity is a deterrent of trying new technology
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ComplexityHow difficult is the innovation to understand?How easy is it to explain to consumers in written form and oral communication?How frustrating will it be to consumers when evaluating products or learning how to use new innovation?How much time will consumers have to devote to learning how to use and care for the product?
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TrialabilityNew products are more apt to succeed when consumers can experiment with or try the idea on a limited basis, with limited financial risk
How can a company encourage consumers to try a new product?
Where will consumers be able to try the innovation and how will they receive answers to their questions?
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ObservabilityThe degree to which results from using a new product are visible to friends and neighbors
If consumers can see others benefiting from the use of a new product, that innovation is more likely to be successful and diffuse faster
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The Diffusion Process
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The Diffusion ProcessDiffusion: the process by which an innovation (new idea) is communicated through certain channels over time among the members of a social system
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The Diffusion ProcessDiffusion: the process by which an innovation (new idea) is communicated through certain channels over time among the members of a social system
Includes:Diffusion of information and communicationConsumer decision processDiffusion or demise of innovation
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The Diffusion Process
InfluencerInfluencer
CCoonnssuumme e rr
Organi-Organi-zationzation
RejectReject
AcceptAccept
Demise Demise of of
InnovationInnovation
Diffusion Diffusion of of
InnovationInnovation
Consumer decision process
Diffusion of Information and Communication
(X number of people)
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Factors Affecting Diffusion
Communication (how consumers learn about new products)
Time (how long it takes for a person to move from product awareness to product purchase or rejection)
Social system (groups or segments to which individuals belong affect adoption or rejection)
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Speed of Diffusion
Diffusion will be faster if:
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Speed of Diffusion
Diffusion will be faster if:Supplier is intensely competitive
Supplier’s reputation is good
Standardized technology is used
Vertical coordination among channel members exists
Resource commitments are significant
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Consumer Decision Process for Innovations
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Knowledge: begins when the consumer receives physical or social stimuli that gives exposure and attention to the new product and how it works
How a person receives and interprets the knowledge is affected by their personal characteristics
Rogers Model of Innovation Decision Process
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Rogers Model of Innovation Decision Process
KnowledgeKnowledge
Characteristics of the Decision Making Unit
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Rogers Model of Innovation Decision Process
Persuasion: refers to the formation of favorable or unfavorable attitudes towards the innovation
Persuasiveness is related to the perceived risks and consequences of adopting and using the new product
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Rogers Model of Innovation Decision Process
KnowledgeKnowledge PersuasionPersuasion
Perceived Characteristics of the Innovation
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Rogers Model of Innovation Decision Process
Decision: involves a choice between adopting and rejecting the innovation
Adoptors are people who have made a decision to use a new product whereas other are nonadoptors
Rejection may be active or passive
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Rogers Model of Innovation Decision Process
DecisionDecisionKnowledgeKnowledge PersuasionPersuasion
Adoption
Rejection
Continued adoption
Later adoption
Discontinuance
Continued Rejection
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Rogers Model of Innovation Decision Process
Implementation: occurs when the consumer puts an innovation to use
The process has been a mental exercise until this point where it requires a behavioral change
The strength of the marketing plan may be the critical determinant in a sale resulting
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Rogers Model of Innovation Decision Process
Implemen-Implemen-tationtation DecisionDecisionKnowledgeKnowledge PersuasionPersuasion
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Rogers Model of Innovation Decision Process
Confirmation: during this stage, consumer seek reinforcement for their innovation decision
Consumer may reverse previous decision due to conflicting messages resulting in dissonance
Discontinuance is a serious concern to marketers who strive for continued acceptance
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Rogers Model of Innovation Decision Process
Implemen-Implemen-tationtation DecisionDecisionKnowledgeKnowledge ConfirmationConfirmation PersuasionPersuasion
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Rogers Model of Innovation Decision Process
Implemen-Implemen-tationtation DecisionDecisionKnowledgeKnowledge ConfirmationConfirmation PersuasionPersuasion
Communication Channels
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Consumer Most Likely to Buy New Products
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Consumer Most Likely to Buy New Products
Marketers need to determine who is most likely to buy the new product while in the development processDeterminants include individual’s personalities, social status, education level, and aversion to or acceptance of risk
Different adoptor classifications behave differently during the decision process
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A B C D E
A= Innovators (2.5%)B= Early Adopters (13.5%)C= Early Majority (34%)D= Late Majority (34%)E= Laggards (16%)
Adopter Classes
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Consumers Likely to Buy New Products
Innovators: the first consumer group to adopt productsEarly adopters: opinion leaders and role models for others, with good social skills and respect within larger social systemsEarly majority: consumers who deliberate extensively before buying new products, yet adopt them just before the average time it takes the target population as a whole
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Consumers Likely to Buy New Products
Late majority: tends to be cautious when evaluating innovations, taking more time than average to adopt them, and often at the pressure of peers
Laggards: the last groups that tend to be anchored in the past, are suspicious of the new, and exhibit the lowest level of innovativeness among adopters
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Consumers Likely to Buy New Products
Innovativeness: the degree to which an individual adopts an innovation earlier than other members of a social systemCognitive innovators: have a strong preference for new mental experiences
Sensory innovators: have a strong preference for new sensory experiences
Advertising and other communications can be targeted accordingly
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Managerial Perspectives on Adoption and Diffusion of Innovation
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Managerial Perspectives on Adoption and Diffusion of Innovation
New products for the profitability and long-term financial success of firms
While development groups are produc-ing line and brand extensions, breakthroughs are needed to fuel growth and profits
New product development requires the coordination of marketing, engineering, research and other parts of the firm
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Managerial Perspectives on Adoption and Diffusion of Innovation
Consumer insight helps create products that consumers are likely to adopt
Intuition and information (often gained from consumers through research) leads to the formation of an insight
Insights drive the creation of a new or adaptation of an existing product
Research is important to the innovation development process
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Positioning New Products on Insight