other people influence our purchasing decisions? If so, who influences us?
that influencing person or group need to be in our presence to influence
us? Why are some people more influential?
How do marketers enlist those influential people to attract attention?
an actual or imaginary individual or group that has a
significant effect upon an individual's evaluations, aspirations or
behaviour; forms of reference groups: informational influence, utilitarian
influence,value-expressive influence (range from known person to unknown
famous person or character)
individual seeks information about brands from professional/independent
group of experts; people who work with product; from friends,family,associated;seal
of approval?; observation of what experts do or use
influence from consumer's own preference; preferences
of social circle,family; to satisfy expectation others have of her/him
individual feels the brand will enhance image others have
of her/him;individual feels those who purchase or use brand possess
characteristics she/he wants; individual feels it would be nice to be
like person in ad; purchasing product would make individual respected,or
what they would like to be
the process where a reference group helps to set and enforce
fundamental standards of conduct; parents as an example
the process where a reference group influences decisions
about specific brands or activities; a group you belong to for example
Aspirational Reference Groups
composed of idealized figures such as successful people,athletes,
performers -see more celebrity
endorsements (inside link)
For many companies the celebrity endorsement is a two edged sword. A celebrity can one day be great and the next day toxic.
In 1987 Anheuser-Busch in their "Night Belongs to Michelob" campaign recruited Eric Clapton for their commercial http://www.youtube.com/watch?v=I3pW2REprYE The problem was that as the commercial was released Clapton admitted to drug and alcohol addiction and admitted himself into a detox clinic.
Jared Fogel lost 200 pounds eating only Subway sandwiches and then became their spokesperson, but in 2015 he was found guilty of distrivuting child pornography. His name and likeness was immediately removed from any Subway materials. No wonder many companies select animated characters as spokespeople. Read about more celebrity endorsements gone bad in Market Watch Subway's Jared
group can be large and formal or small and informal. Marketers more successful
to influence small informal group; survey said 34% teens spending influenced
by friends; 25% admitted advertising had impact. Larger groups tend to
be product or activity specific and are high in Comparative Influence.
Some reference groups
consist of widely admired person, or ordinary person like you or me; effected by
distance-those close to you, people we are merely exposed to;
Group cohesion- There is a loyalty to the group especially when membership is exclusive->cohesiveness- they stick together.
Reference group can be
positive or negative influence; there may be avoidance groups who individual
looks at and ensures he/she is not like them
group can be virtual: a virtual community of consumption where
people share enthusiasm for specific product, activity: rooms, rings, blogs, lists,
bulletin boards; community created by web pages, and social networking sites like Instagram, Facebook, Pinterest, Twitter, YouTube, and Linkedin
What you say about yourself online may not always be true, but what you write about yourself may reflect your "ideal" self. As we mentioned before, the more different your real self is from your "ideal" self makes you a target for fantasy appeals.
Search engines and social networking sites can create
detailed profiles of consumer's interests; these can be used to behaviourally target individuals. Cookies track the things you look at and are interested in. Your behaviour online is being watched. Virtual community depends
on how central the activity is to self-concept and the intensity of social
Types of virtual community
Tourists-have passive interest;
social ties but not that interested in central consumption; Devotees-strong
interest in activity, but few social attachments;
strong social and strong interest in activity
Devotees and Insiders
are target of marketer as heavy user; reinforcing can upgrade participants
At one time Devotees of the Band Kiss could purchase A Kiss Casket for $4700' they said on their website that it could also be used as a cooler. See story of Elvis impersonators http://www.youtube.com/watch?v=zuZsiXrOu2w
Reference groups are
not equally powerful for all products/activities; low risk product not
are less susceptible to reference influence; impact of reference group can
vary at times; consider these factors--is the product used privately or publicly? is it luxury
Today sites like YouTube provide a platform for the young to promote their own brand. Billboards promote the new YouTube stars. These young stars have built loyal communities and marketers are paying close attention. See a list of the 30 Top YouTube influencers according to The Hollywood Reporter NextGen 2015: YouTube's Top Influencers
the capacity of one person to alter the actions or outcome
if person is admired, consumer may try to imitate; prominent
people can influence others. Britney was anointed the voice of a new generation in Pepsi commercials. When not in the commercials, she was consistently filmed drinking Coke. The Kardashian's have this kind of power.
A person can be an influence because they have information or knowledge; For example an editor decides the story you read or see.
Today sites like facebook have become sources of news for many people and many get their political news from satirical shows like Saturday Night Live, the former Jon Stewart's Daily Show and now Trevor Noah's Daily Show, Last Week Tonight with John Oliver.
The information now is not strictly from news organizations.
power granted by social arrangement; a uniform, or actor wearing
"In the 1880s, Pope Leo XIII, Queen Victoria and Pope Saint Pius X praised Vin Mariani, a popular drink made from Bordeaux wine laced with cocaine from coca leaves! Pope Leo XIII even awarded a gold medal to the drink and appeared in a poster endorsing it" (source http://www.oddee.com/item_96843.aspx)
derived from having specific knowledge or skill
when person has power to reinforce real or approval
evident in fear appeal; often effective in short term
People tend to follow
society's expectation especially in the presence of others.
refers to change in beliefs or actions as
a reaction to real or imagined group pressure
the informal rules that govern what is right and wrong; helps
society function; example changes in attitude to smoking
Normative Social Influence
the conformity that occurs when people alters
their behaviour to meet the expectations of a person or group
Informational Social Influence
the conformity that occurs because the group's
behaviour is taken as evidence about reality
Factors Affecting Conformity
cultural pressure, fear of deviance (I won't fit
in"),Commitment (more dedicated to group more will follow), Group unanimity,size
and expertise; gender differences, susceptibility to interpersonal influence
(need to identify or enhance image
Sometimes we look to
the behaviour of others to check reality
Theory says people compare their outcomes with others
to increase stability of self-evaluation especially when physical evidence
is unavailable- example; choice of music appears to be personal yet people
believe some choices are "better" or "more correct"; people
are selective about who is the benchmark
How can marketer increase
likelihood others will comply?
a small request
first is granted first; then comes the next
Low ball technique
asked a small favor and then
informed of high cost
person asked to
do something extreme (usually refused) and then asked to do something smaller
GROUP EFFECTS ON INDIVIDUAL
More people in group
means lower likelihood any member singled out; people behave wilder in
Deindividuation is submerging
of identity within the group; sometimes group will take more risks; perhaps
individual within group is less accountable
Decision polarization occurs when after group discussion members become more extreme (group
Social loafing occurs
when in large group individuals devote less effort, Example; large group
to tip less
will go out of their way not to buy what is "in" this is anti conformity.
Independence is when person is oblivious to what is expected. This is different from anti-conformity. People need to preserve
freedom of choice Reactance is a boomerang
effect that sometimes occurs when consumers are threatened with a loss of
freedom of choice; they respond by doing the opposite of message Example:
censored item increased desire. For more information
on anticonformity see Adbusters
Oct. 20, Yegor Sak walked into the Apple store in Yorkdale Mall, bought
an iPod, took it out of the box, and smashed it on the ground....Sak rankled
legions of iPod devotees when he launched smashmyipod.com on
Oct. 4.The website invited people to donate to a fund set up to purchase
a $380 iPod for the express purpose of destroying it."
See the video at http://www.youtube.com/watch?v=fI63kBfxugI
There's an evangelical
mission afoot- It's the Reverend Billy's Unholy War on Consumption -known
for his Retail Interventions...''We must exorcise this cash register,''
'We are drowning in a sea of identical details!'' his Church of Stop Shopping
and their performance art -guerilla marketing activism may be coming to
a Starbucks or Walmart near you. See more on Rev Billy's website at http://www.revbilly.com/
Altoids became successful
by word of mouth, information transmitted by individual to individuals; we
tend to believe from those we know
Marketers are more aware
of WOM but more and more try to promote and control it
Studies show information
from impersonal source can create brand awareness, but word of mouth is relied
on in later stage of evaluation
In 2004 in recognition of the importance of Word of Mouth an organization was formed-WOMMA is an
industry group dedicated to building a strong discipline around Word-of-Mouth
Marketing. A core goal of WOMMA is to help grow the acceptance and legitimacy
of word-of-mouth as part of the broader marketing mix. For more info see
their site http://womma.org/ (outside
In 2007 WOM was the fastest-growing slice of the $254-billion (U.S.) marketing industry
Using high-profile entertainment or news to get people to talk about your brand.
Creating entertaining or informative messages that are designed to be passed along in an exponential fashion, often electronically or by email.
Forming or supporting niche communities that are likely to share interests about the brand (such as user groups, fan clubs, and discussion forums); providing tools, content, and information to support those communities.
Organizing and motivating volunteers to engage in personal or local outreach.
Cultivating evangelists, advocates, or volunteers who are encouraged to take a leadership role in actively spreading the word on your behalf.
Placing the right product into the right hands at the right time, providing information or samples to influential individuals.
Identifying key communities and opinion leaders who are likely to talk about products and have the ability to influence the opinions of others.
Supporting social causes to earn respect and support from people who feel strongly about the cause.
Interesting or fun advertising, emails, catch phrases, entertainment, or promotions designed to start word of mouth activity.
Creating blogs and participating in the blogosphere, in the spirit of open, transparent communications; sharing information of value that the blog community may talk about.
Creating tools that enable satisfied customers to refer their friends.
Guerrilla marketing is building buzz for a brand with low cost innovative, unconventional techniques. Examples include street teams pushing an idea, postering an area or creating an event. The technique started in the 1970s. It includes unconventional locations and word-of-mouth. Information can be from a chat room infiltrated by "actors" creating buzz or live events creating talk about the event and product. Usually it is done on streets or public areas to get a large audience.
Guerrilla marketing can include ambient marketing, ambush marketing, stealth marketing, viral, wild posting, astroturfing, and street marketing.
Events sponsored by brands that unfold in real time in
real life and are intended to surround or enfold prospective customers-
mobs. Rather than one-way communication, from advertiser to the
try to engage
the consumer in two-way communication.
Fake Marathons to promote Kellogg's Nutri-Grain Granola
Viral marketing is a strategy of getting
customers to sell a product on behalf of company that creates it. Examples:
RocketTalk-lets you record audio message and e-mail to friend, friend
is invited to site to record reply
61 percent of the consumers polled agreed that
advertising is ''out of control,'' and 60 percent said they feel
''much more'' negative about it than they a few years ago; yet,
215 million tuned into Burger Kings to give orders to the subservient chicken. The site was passed
widely by friends on the internet.
According to AdWeeks Blog AdFreak Old Spice's Campaign achieved the following
"Old Spice accounted for 75 percent of conversations in the category in the first three months of 2010.
• Half the conversations came from women.
• The YouTube/Twitter social media response campaign was "the fastest-growing and most popular interactive campaign in history."
• More people watched its videos in 24 hours than those who watched Obama's presidential victory speech. (Which most of us can agree is kinda sad.)
• Total video views reached 40 million in a week.
• Campaign impressions: 1.4 billion.
• Since the campaign launched, Old Spice Bodywash sales are up 27 percent; in the last three months up. 55 percent; and in the last month up 107 percent. "
Factors encouraging Word-of-Mouth:
effective when consumer is unfamiliar with product category; buzz can be created;
person highly involved takes pleasure in talking; sharing of knowledge; concern
for another; talking about product gives support
A New York
agency affixed 50,000 stickers to US dollars to promote an upcoming miniseries.
They hoped to create buzz through WOM -
concept called "roach marketing" or "undercover marketing" utilizes
word of mouth- roach marketing is when marketers or companies try to disguise
their come-ons as spontaneous interactions in a bid to give products credibility-
an example of this is the case of-Raging Cow-click to find out how things can go wrong!
to read more about word
of mouth see the book The Tipping Point by Malcolm Gladwell
NEGATIVE WOM (WORD-OF-MOUTH)
Negative WOM is weighted
more heavily than positive; 90% of unhappy customers will not
with company again; these people share the grievance with 9 people--13% will
Negative WOM easier to
spread online.web sites to complain about products. in 30s professional rumour
mongers promoted their clients and criticized competition/See urban legends site
for interesting true and false stories Urban Legends Reference Pages
Opinion leaders may be
people knowledgeable about products and who have the power to influence
technically competent; experts in an area.
followers of the latest developments or have inside information on a subject
without special interest (not paid);
actively connected to others and have something in common with others,
the first to buy in a product
category- an "early adopter"
Selina Gomez, a queen of social branding, " D'Marie has estimated Gomez's social media posts are worth $550,000 when they appear across Twitter, Instagram and Facebook.., according to Adweek. " She has more than 90 million followers on Instagram.
Generally an opinion leader is not an opinion leader in all areas, usually specific to one area
Opinion leader may or may
not be a purchaser of product
Opinion leader likely to
be opinion seeker
Today marketers look to this new demographic: Tech-fluentials- these are
the hyper-connected and powerful opinion leaders that can make or break
your product or service by quickly spreading positive or negative buzz,
sway stakeholders, and establish trends.
According to a Burson-Marsteller study, 86 % of
tech-fluentials were sought for opinions that helped influence technology
buying decisions. The opportunity for marketers is to engage in one-on-one
conversation and take cues from tech-fluentials' suggestions on new
product design, media plans, and social responsibility programs.
Selina Gomez instagram post features Coca Cola has over 4 million likes
a person who
often is a source of information about marketplace activities
Surrogate consumer is
professional retained to evaluate or make purchase; examples: interior decorator, stockbroker,
consultant. Many ads are intended
to reach opinion leader especially if ad has technical information; one method
to find opinion leader is to ask people if they are opinion leaders-results
are techniques for measuring group dynamics that involve the tracking of communication
patterns in and among groups
References as noted above and: Solomon, Michael R., Zaichkowsky, Judith and Rosemary Polegato. Consumer Behaviour: Buying, Having, Being. Fifrth Canadian Edition. Toronto: Pearson Education Canada