Chapter 10: Situational Factors

Question 1

• Reference groups

Answer 1

o those individuals or groups that have a significant effect on our evaluations, aspirations, or behaviours

Question 2

referent power

Answer 2

o Referent power: admiration, the person will try to imitate those qualities by copying the referents behaviors as a guide to forming consumption preferences.

Question 3

information power

Answer 3

o Information, expert power: very knowledgeable in a particular subject are able to influence people

Question 4

Legitimate power

Answer 4

o Legitimate power: an example could be a police or doctor (marketers may produce an ad featuring a white doctors coat to add legitimate power)

Question 5

o Expert power

Answer 5

: derived from possession a specific knowledge or skill

Question 6

• Conformity:

Answer 6

• Conformity: a change in beliefs or actions based on real or imagined group pressure/expectations

when we give into pressure

Question 7

• Reactance:

Answer 7

a boomerang effect sometimes occurs when consumers are threatened with a loss of freedom of choice; they respond by doing the opposite of the behaviour advocated in a persuasive message

Question 8

Likelihood you want to enter a group and befriend them

Answer 8

2 ideas behind this

Propinquity and more exposure
* Group of individuals are physically near you
* Likelihood you encounter them again and again is enough to make you start liking them

Group cohesiveness
* If a group is a cohesive group they are laughing having fun I want ot]f be apart of that
* If I see a group fighting and am seeing negative energy why would I want to be apart of that?

Question 9

How entering a group changes an individual behaviour

Answer 9

• Once decide to enter group do you change?

Deindividuation
 Your personal taste goes away and you start taking on the identity of this group
 Ex: Cults you enter into and need to give up individuality and become this person

Polarization
 Polarization of opinions where your beliefs become stronger you enter a group
 Ex: social issue such as War and a person is against war when they become part of a group I argue for it trying to convince them but also convince myself more

Risky shift
 As people enter groups they are more risky
 If did it as an individual its all on me but in a group it is on everyone if it goes bad
 More comfort in taking risk

Social loafing
 Individuals put in less effort when put in group based situation
 Ex: Tipping auto grad on large parties

Question 10

Why do people engage in WOM

Answer 10

High involvement with product
* They are very passionate about activity

Ego enhancement
* Showing off not because they care about you but because they want to show off their own
* Should not trust

Genuine concern for others
* Should trust them

Resolving cognitive dissonance
* Say good things about what I bought as I want to convince myself it was a good purchase

Question 11

WOM

Answer 11

Information transmitted by individuals on an informal basis

Question 12

Negative WOM vs a rumour

Answer 12

Negative word of mouth vs rumour

Negative
 Some truth to it
 You experienced it

Rumour
 Something that was made up
o Distortion of reality

Question 13

• Characteristics of rumours

Answer 13

o Serial reproduction
 As story is retold takes on a weird format

Question 14

• Identifying opinion leaders methods

Answer 14

Self-designation
 Weakest method
 Come to all people and ask if that persons opinion matters to their friends

Key informants are
 Better
 Go into group and ask key informants who they think key informants are

Sociometric
 Strongest
 Observational
 I come in I stand back and do not ask anyone anything
 Observe the class and see if one person talks do people listen or not
 If person gets lots of likes on Instagram and people listen to them

Question 15

opinion leader

Answer 15

• People that influence others attitudes or behaviours