GROUP INFLUENCES AND CONSUMER BEHAVIOR

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GROUP INFLUENCES AND CONSUMER BEHAVIOR af Mind Map: GROUP INFLUENCES AND CONSUMER BEHAVIOR

1. Group is defined as two or more individuals who share a set of norms, values, beliefs and have a defined relationship to one another.

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

1.1.1. Groups may be classified to four criteria: Membership, strength of social tie, type of contact, and attraction.

1.1.1.1. Membership criterion is dichotomous: Either one is a member of a group or one is not a member of that group.

1.1.1.2. Strength of social tie refers to the closeness and intimacy of the group linkages.

1.1.1.3. Type of contact refers to whether the interaction is direct or indirect.

1.1.1.4. Attraction refers to the desirability that membership in a given group has for the individual.

1.2. Brand community is a nongeographically community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand, the product and firm.

1.2.1. A community is characterized by consciousness of kind, shared rituals and traditions, and a sense of moral responsibility.

2. Communications within groups and opinion leadership

2.1. WOM (word-of-mouth) communications

2.2. Open Leadership

2.2.1. Market Maven

2.3. Marketing Strategy

2.3.1. Advertising

2.3.2. Product Sampling

2.3.3. Retailing/Personal Selling

2.3.4. Creating Buzz

2.4. Mass Communication Information Flows

2.4.1. Direct flow

2.4.2. Multistep flow

3. Group Influences on Consumer Behavior

3.1. NORMATIVE INFLUENCE OR UTILITARIAN INFLUENCE

3.1.1. Opinions

3.1.2. Behaviors

3.2. INFORMATIONAL INFLUENCE

3.2.1. Expectation

3.2.1.1. to avoid a sanction

3.2.1.2. to gain reward

3.3. IDENTIFICATION INFLUENCE or VALUE- EXPENSIVE INFLUENCE

3.3.1. Values

3.3.2. Norms

4. Diffusion of Innovations

4.1. Categories of Innovation

4.1.1. Continuous Innovation

4.1.1.1. Minor changes in behavior or changes in behaviors that are unimportant to the consumer

4.1.2. Dynamically Continuous Innovation

4.1.2.1. Moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.

4.1.3. Discontinuous Innovation

4.1.3.1. Requires major changes in behavior of significant importance to the individual or group.

4.1.3.2. When Purchasing

4.1.3.2.1. Purchasing an innovation

4.1.3.2.2. Steps in extended decision making

4.2. Diffusion Process

4.2.1. The manner in which innovations spread throughout a market. The term spread refers to purchase behavior in which the product is purchased with some degree of regularity.

4.2.1.1. Factors Affecting the Spread of Innovation

4.2.1.1.1. Type of Group

4.2.1.1.2. Type of Decision

4.2.1.1.3. Marketing effort

4.2.1.1.4. Fulfillment of felt need

4.2.1.1.5. Compatibility

4.2.1.1.6. Relative advantage

4.2.1.1.7. Complexity

4.2.1.1.8. Observability

4.2.1.1.9. Trialability

4.2.1.1.10. Perceived risk

4.2.1.2. Charaxteristics of Individuals Who Adopt an Innovations at Varying Points in Time

4.2.1.2.1. Early Adopters.- Tend to be opinon leaders, like market mavens, in local reference groups.

4.2.1.2.2. Early majority.- Consumers tend to be cautioous about innovations

4.2.1.2.3. Late Majority.- Members are skeptical about innovations.

4.2.1.2.4. Laggards.- Are locally oriented and engage in limited social interaction

4.3. Innovators.- They make extensive use of commercial media, slaes personnel and professional sources in learning of new products

4.4. Marketing Strategies and the Diffusion Process

4.4.1. Market Segmentation

4.4.1.1. After selecting a general target market, the firm initially should focus on those individuals within the target market most likely to be innovators and early adopters.

4.4.2. Diffusion Enhancement Strategies

4.4.2.1. Provides a framework for developing strategies to enhance the market acceptance of an innovation.

4.4.2.1.1. The critical aspect of this process is to analyze the innovation from the target market's perspective, including their resistance to it. This analysis will indicate potential obstacles diffusion inhibitors to rapid market acceptance. The manager's task is then to overcome these inhibitors with diffusion enhancement strategies.

4.4.2.2. Factors that determine the success of innovations

4.4.2.2.1. Nature of group

4.4.2.2.2. Type of decision

4.4.2.2.3. Marketing effort

4.4.2.2.4. Felt need

4.4.2.2.5. Compatibility

4.4.2.2.6. Relative advantage

4.4.2.2.7. Complexity

4.4.2.2.8. Observability

4.4.2.2.9. Trialability

4.4.2.2.10. Perceived risk

5. Marketing Strategies Based on Reference Group Influences

5.1. Personal Sales Strategies

5.1.1. Asch Phenomenon

5.1.1.1. Pressure between friends or groups

5.2. Advertising Strategies

5.2.1. Identification Influence

5.2.1.1. Product is consistent with the group

5.2.1.1.1. Ex: Religion Symbol

5.2.2. Informational Influence

5.2.2.1. Doctors, Dentist and teachers

5.2.3. Normative Group Influence

5.2.3.1. Brand makes you belong in a group

5.2.3.1.1. Ex: Apple Brand