Group decisions

Question 1

What is socialisation?

Answer 1

Socialisation = Process by which an individual learns the group’s norms and role expectations

Question 2

What is consumer socialisation?

Answer 2

The process by which young people develop consumer-related skills, knowledge, and attitudes. Consumer socialisation has 3 major sources of adolescent influences. These are peers, parents and the media (Mascarenhas and Higby, 1993).

Question 3

What is Social learning theory?

Answer 3

Bandura (1977) believed Social learning theory is the idea that people learn by observing others, imitating them, and modelling their behaviour. It’s based on the idea that social contexts and behaviours are important in learning. Albert Bandura’s social learning theory suggests that people learn new behaviours by observing and imitating others.

Question 4

What is vicarious reinforcement?

Answer 4

• People are more likely to copy behaviour if they see someone being rewarded for it, but they tend to avoid behaviours that lead to negative consequences. This is called vicarious reinforcement. For example, if a student notices a classmate receiving praise for asking questions, they may be encouraged to do the same. The way role models achieve success also matters. People are more influenced by those whose success comes from effort and hard work rather than natural talent, as effort is something they can control (Weiner, 1979, 1985).
• (McLeod, 2025) from simply psychology

Question 5

What is Banduras Bobo Doll study (1961) and how can it link to consumer behaviour?

Answer 5

The study demonstrated how behaviour is learned through observation and imitation—a core principle of Social Learning Theory (SLT).
- Bandura had children observe an adult interacting with an inflatable Bobo doll.
- When left alone with the doll, children who saw aggressive behaviour were more likely to imitate it, while those who saw calm behaviour were less aggressive.
- This proved that people (especially children) learn behaviours by observing others—even without direct reinforcement.
- Just as children copied aggression, consumers copy brand behaviours they see in influencers, celebrities, or peers.
- SLT explains why influencer marketing is so effective—consumers model their behaviour after people they admire.
- Just as aggression was copied, consumer actions (boycotts, brand loyalty, viral trends) are also learned behaviours.

Question 6

What are the components of Social learning theory?

Answer 6

Social structural variables:
- Social settings
- Demographics
Socialisation agents:
- Parents, mass media, and Peers:
- Government, schools, and workplace
Outcomes:
- Consumer skills

Question 7

What are examples of social structural variables - Antecedents?

Answer 7

• Age
• Lifecycle position
• Gender
• Mother’s education
• Father’s education
• Family structure
• Occupation / income
• Race/Ethnicity

Question 8

What are examples of socialisation agents - Socialisation process?

Answer 8

• Parental communication
• Social utility of ads
• Television viewing
• Peer communications
• Education (school/
  government)

Question 9

How do parents influence adolescents behaviour and consumption methods?

Answer 9

Evidence suggests that parental guidance helps adolescents learn rational consumer behaviours such as managing money and comparative shopping, and assessing price-quality relationships (Ward and Wackman 1973). Most family influences continue well into adulthood. Also 32% of US children are overweight or obese because they haven’t been socialised to eat healthy foods.

Question 10

What research links to schoolchildren and food consumption patterns?

Answer 10

• In a qualitative study involving English schoolchildren aged 7 to 14, Roper and La Niece (2009) discovered that brands like Cadbury’s, Walkers, and KitKat were viewed as expensive and prestigious, making them appealing to their peers. Additionally, research indicates that selecting and consuming food can be a collective activity through which young people demonstrate their connection to favoured peer groups. For instance, Wills (2005) highlights how individuals aged 16 to 24 developed specific eating habits after leaving school as a means of integrating into new social circles and cultural environments
• (Stead et al, 2011) overall author.

Question 11

What are examples of knowledge, attitudes & behaviour - outcomes?

Answer 11

• Consumer Decision - Making Styles

Question 12

What is social influence?

Answer 12

Influences from individuals, groups, and the mass media—both direct and indirect—can shape how a person acts.

Question 13

What are reference groups?

Answer 13

• Social influences – reference group influences.
• Reference groups – groups that we want to be part of and be associated with.
• Reference groups can influence individual decision making.
• Reference groups provide points of comparison used in evaluation of attitudes and behaviour.
• Different types of groups with different levels of influence.

Question 14

What are types of reference groups?

Answer 14

• Classification of positive membership groups.
• “Significant others”.
• Primary
• Secondary
• Informal
• Formal

Question 15

What are reference group influences on consumers

Answer 15

• Theory of interpersonal susceptibility: There are different types of interpersonal influences that impact how one socialises and learns from the environment.
• Informational influence: Consumers rely on advice from personal and ‘credible’ sources.
• Comparative influence: Involve, “a tendency to learn about products and brands by observing others and seeking information from others”.
• Normative influence: Involve a desire to conform to the expectations of the people in the group.

Question 16

What are examples of reference group influences on consumers

Answer 16

Informational influence:
- E.g. for high-tech products, insurance, medication.
- Adverts using testimonials & the “professional/expert” (e.g. Nike, Colgate).
Comparative influence:
- Related to self-expression.
- E.g. clothes, cosmetics, food.
- Adverts using the “typical consumer” (e.g. Dove, Iceland).
Normative influence “Keeping up with the Kardashians”:
- E.g. eco products; expensive cars.
- Adverts signalling approval (from certain groups/ communities).

Question 17

What is normative social influence?

Answer 17

A type of social influence where individuals conform to group norms and behaviours to be liked and accepted, driven by a desire to avoid social rejection or disapproval. E.g peer pressure, fashion trends. Link to Asch’s line study 1951. In the experiment, participants were shown a target line and asked to select the line (out of three options) that matched its length. Each group was mostly comprised of confederates of the experimenter who intentionally selected the wrong line. The actual participant was placed last or near the end in the order of responses. Despite the obvious answer, Asch found many participants conformed to the incorrect majority answer.

Question 18

What is informational social influence?

Answer 18

Leads people to conform, believing the group possesses competent and correct information, especially in ambiguous situations or tasks. E.g Ambiguous, emergency situations. Link to Jennes’s bean jar. Jenness (1932) conducted a study on conformity where participants were asked to estimate the number of beans in a jar. Initially, each participant made an individual estimate, and then, they estimated it as a group. His findings indicated that when the task was performed within a social group, participants’ estimates converged to a similar value, despite their initial individual estimates varying significantly.

Question 19

What are brand communities?

Answer 19

• Brand community is a form of reference groups.
• Brand community = a specialised, non geographically bound community, based on a structured set of social relationships among admirers of a brand.
  1. Nutella virtual brand community
  2. Saab & Mini brand communities
• Brand communities represent an important source of information for consumers whether face-to-face or using online communications.

Question 20

What can brand communities affect?

Answer 20

• The perceived quality (e.g. via feedback)
• Brand loyalty
• Brand awareness
• Brand associations

Question 21

Who are key players in relationship marketing?

Answer 21

• Companies are concerned with long-term customer relationships rather than one-off individual transactions
• E.g. communities put pressure on members to remain loyal.

Question 22

What are types of communities on the web?

Answer 22

• Communities of transaction (e.g. ASOS “My marketplace”).
• Communities of interest (e.g. “Myfootballclub”).
• Communities of fantasies (e.g. Marvel community).
• Communities of relationship (e.g. British Lung Foundation).

Question 23

What are examples of social conformity in consumption?

Answer 23

• Shein
• Buying umbrellas
• Zara
• PLT

Question 24

What is an examples of reference groups that links to branding, marketing comms or marketing strategies etc?

Answer 24

Athlete role models significantly influence teenagers’ materialism. While several factors affect teens’ materialistic attitudes, research shows that those who admire athletes tend to value material possessions more. These teens are also more social, interact frequently with peers, and watch a lot of TV. Marketers should consider using athletes in ads targeting teenagers. Brands like Nike, Pepsi (Shaquille O’Neal), Gatorade (Michael Jordan), Wheaties (Tiger Woods), Sprite (Grant Hill), and Adidas (Kobe Bryant) have successfully featured athlete role models in their commercials. Since teenagers are greatly influenced by reference groups, athletes can be very effective spokespersons in marketing campaigns aimed at this age group.
- Marketing comms: Using athletes in advertising effectively taps into the influence of reference groups. Advertisements featuring popular athletes resonate with teenagers, as they see these figures as relatable and trustworthy (Clark et al)
- Branding: Athletes enhance brand identity by associating products with their success and lifestyle. Brands that partner with athletes benefit from their status and popularity, which can elevate the brand’s image among teens.

Question 25

How do consumer boycotting link to reference groups and social influence?

Answer 25

- In 1995, Shell planned to sink its Brent Spar oil platform in the North Atlantic, but Greenpeace led a significant protest against it. Activists occupied the platform, threatened over 200 Shell gas stations in Germany, and organised a widespread boycott. - The boycott was effective because switching to another gas station was easy and costless for consumers. Additionally, Shell estimated it would cost £11.8 million to sink the platform but £46 million to recycle it. As a large global company, Shell faced significant public pressure to reconsider its decision. - Ultimately, Shell canceled its plan to sink the platform and opted for recycling instead, making this case a well-known example of a successful consumer boycott. - The Shell boycott illustrates how consumer activism can effectively influence corporate decisions, especially when alternatives are readily available and the company is vulnerable to public pressure. It highlights the power of collective consumer action to drive change in business practices, particularly regarding environmental concerns. (Paolo and Piazzuola, 2006)

Question 26

How does Herd behaviour link to social influence?

Answer 26

Herd behaviour, as discussed by Banerjee (1992) and Bikhchandani et al. (1998), happens when people make decisions by watching what others do. Instead of relying on their own knowledge, they copy others' actions, assuming the group has better information. This often occurs because analysing all available choices can be difficult and time-consuming. As a result, people may rationally choose to follow the crowd, believing others have made informed decisions (Celem & Kariv, 2004). This is especially relevant when buying sustainable products, as most consumers do not make such purchases regularly. - (Salazar, et al, 2013)

Question 27

What is an example of Social learning theory that links to branding, marketing comms or marketing strategies etc?

Answer 27

- Coca-Cola understands that teachers influence teenagers' choices. To take advantage of this, they created a free educational website for teachers, linking Coca-Cola brands to lesson plans in the National Curriculum. This resource is available to schools that sell Coca-Cola products and aims to boost brand awareness, increase sales, and build loyalty. By using these materials, teachers indirectly promote Coca-Cola to students. Coca-Cola show that companies targeting teenagers can benefit from reaching them through influential adults, like teachers. - Social Learning Theory suggests people learn by observing and imitating role models (Clark et al) - Branding: Coca-Cola strengthens its brand by embedding its products within an educational context. By associating its name with learning, the company cultivates a positive image, making students more familiar with and trusting of the brand. - Marketing communications: Rather than traditional advertising, Coca-Cola uses a subtle, indirect marketing strategy by integrating its branding into classroom materials. This method functions as a form of content marketing—providing useful educational resources while simultaneously reinforcing Coca-Cola’s brand presence. - Decision making: Social Learning Theory plays a crucial role in consumer decision-making. Students, influenced by authority figures like teachers, are more likely to associate Coca-Cola with positive experiences.

Question 28

What is an example of brand communities and how it links to consumption and decision making?

Answer 28

- LEGO Ideas is a co-creation platform that started in 2008 as LEGO Cuusoo and was relaunched in 2014. This platform allows LEGO enthusiasts to propose their creative ideas, support submissions from others, and engage with the brand. LEGO has effectively created a positive and friendly atmosphere on the site, ensuring that guidelines are followed to maintain a constructive community. - With LEGO’s extensive consumer base, the platform received a highly favourable response. It allows LEGO to harness a vast array of creative ideas while also cutting product development time by as much as four times. - LEGO Ideas exemplifies a brand community by bringing fans together to share ideas and collaborate. This sense of belonging encourages loyalty and engagement, influencing consumers' purchasing decisions as they feel more connected to the brand and its products. By involving the community in the creative process, LEGO enhances customer satisfaction and builds a stronger emotional bond with its audience. - (Panda, 2020)

Question 29

What are the strengths and weaknesses of the SLT?

Answer 29

+ Observational learning is explained through consumers learning behaviours from influencers, celebrities and peers + Its emphasis on reinforcement and reward, which helps shape purchasing decisions and brand loyalty. - Doesn't take into account cultural differences and assumes we all universally model from our role models. - Context-Dependent Influence: SLT is More Effective for Low-Involvement Products.

Question 30

Observational learning is explained through consumers learning behaviours from influencers, celebrities and peers:

Answer 30

Pepsi set itself apart from Coke by embracing pop culture and celebrity endorsements to connect with younger, trend-focused audiences (Angelico, 1998). The brand featured major stars in its marketing, including Michael Jackson, whose groundbreaking music and style captivated fans worldwide. Supermodel Cindy Crawford also became a recognisable face of Pepsi, reinforcing its youthful and stylish image (Webb, Angelico, & Neidik, 1998). This approach aligns with modelling, a form of cognitive learning where consumers imitate celebrities, leading many young people to prefer Pepsi over Coke (Dahl, White, & Solomon, 2015). This supports SLT’s concept of vicarious reinforcement, where individuals learn by observing others being rewarded (e.g., celebrities enjoying and endorsing Pepsi). Shows how brands can shape consumer preferences without direct experience, reinforcing SLT’s real-world relevance in marketing (Sacher, 2019)

Question 31

Its emphasis on reinforcement and reward, which helps shape purchasing decisions and brand loyalty.

Answer 31

- Starbucks Rewards is a points-based program where customers earn Stars for every purchase. The app is extremely popular, with nearly half of restaurant app users using Starbucks Rewards. Since most people prefer mobile-friendly programs, this makes it easy for customers to stay engaged and return often. The system is simple and effective—earning points is easy, the app is user-friendly, and rewards have an expiration date that keeps people motivated without being frustrating. - This program ties into SLT because customers learn through direct rewards (earning free drinks) and vicarious reinforcement (seeing others benefit from the program). Watching friends or influencers enjoy perks makes people more likely to join, encouraging repeat spending.

Question 32

Doesn't take into account cultural differences and assumes we all universally model from our role models.

Answer 32

- Advertising often treats the world as a single market, but critics argue that ads should be culture-specific. Ads reflect cultural values, particularly individualism and collectivism. Collectivist cultures (e.g., Korea, China) emphasise harmony, unity, and social approval, with ads focusing on respect for elders and group values. In contrast, individualist cultures (e.g., the U.S.) prioritise independence, competition, and self-expression, using direct, hard-sell tactics. Studies by Cho et al. (1999) and Lin (2001) highlight these differences, showing the importance of adapting ads to cultural values for greater effectiveness. - This shows we should use Hofstede’s theory as its more effective for global business strategies, marketing, and cross cultural communication, as it provides insights that go beyond individual learning and consider the collective mindset of different societies. (Tam, 2022)

Question 33

Context-Dependent Influence: SLT is More Effective for Low Involvement Products:

Answer 33

A weakness of Social Learning Theory (SLT) is its context-dependent nature, particularly between low-involvement and high-involvement products. SLT is more effective for low-involvement items, like snacks, where consumers quickly imitate others without much thought. In contrast, high-involvement products, such as cars, require more research and personal evaluation, making social influences less impactful. This suggests that SLT may not fully account for the complexities of consumer behaviour when deeper cognitive effort is involved.

Question 34

What theory is a good comparison to highlight the theories issues or strengths?

Answer 34

- Hofstede’s Cultural Dimensions Theory (1980) is a framework that helps explain cultural differences between countries and how these differences influence business practices. It identifies key aspects of culture that impact etiquette, communication, and interactions in areas like business and diplomacy. The study analysed data from over 100,000 employees across 50 countries and three regions. - This theory improves cultural awareness by helping people understand and appreciate different cultures. It also encourages global cooperation by guiding the management of diverse teams, reducing conflicts, and improving communication. - Unlike Social Learning Theory, which focuses on how individuals learn from their environment, Hofstede’s framework provides a broader, more systematic approach to understanding cultural influences on consumer behaviour and decision-making. (Wale, 2023) - This makes Hofstede’s theory more effective for global business strategies, marketing, and cross-cultural communication, as it provides insights that go beyond individual learning and consider the collective mindset of different societies.

Question 35

What are the strengths and weaknesses of Social influence?

Answer 35

+ Practical application e.g consumer boycotts and brand communities. + It supports social proof and online reviews - Cultural differences - Economic factors in Social Influence Theory ignored

Question 36

It supports social proof and online reviews:

Answer 36

- Consumers frequently rely on online reviews to guide their purchasing decisions, with over half considering them essential 94%. The similarity between the reviewer and the consumer increases trust and conformity to the review. Marketing strategies that utilise social norms, such as online reviews, significantly impact consumer behaviour through informational and normative influence. Consumers with an interdependent self-view value in-group opinions more, making peer reviews more persuasive. This reliance on online reviews exemplifies social influence, as it demonstrates how consumers are swayed by the opinions of reference groups, which significantly shapes their purchasing decisions (Ahn and Lee, 2024) - BUT negative reviews cause harm for organisations and can be seen as a threat.

Question 37

Cultural differences:

Answer 37

Advertising often treats the world as a single market, but critics argue that ads should be culture-specific. Ads reflect cultural values, particularly individualism and collectivism. Collectivist cultures (e.g., Korea, China) emphasise harmony, unity, and social approval, with ads focusing on respect for elders and group values. In contrast, individualist cultures (e.g., the U.S.) prioritise independence, competition, and self-expression, using direct, hard-sell tactics. Studies by Cho et al. (1999) and Lin (2001) highlight these differences, showing the importance of adapting ads to cultural values to help develop brand communities and connections - This shows we should use Hofstede’s theory as its more effective for global business strategies, marketing, and cross cultural communication, as it provides insights that go beyond individual learning and consider the collective mindset of different societies. (Tam, 2022)

Question 38

Economic factors in Social Influence Theory ignored:

Answer 38

Social influence has only considered social factors but ignores economic factors which play just as important role. The pandemic caused a significant decline in global consumption, and while spending has mostly bounced back, it remains below pre-pandemic levels due to rising inflation, which has particularly impacted lower-income households. Some physical goods that saw a surge in demand during the pandemic continue to perform well, but overall, spending has shifted from goods to services, with different effects in various economies. This situation highlights a weakness in Social Influence Theory, which often overlooks important economic factors affecting consumer behaviour. For instance, inflation and changes in income directly influence purchasing decisions, showing that a full understanding of consumer behaviour needs to consider both social influences and economic realities. (Smith, 2023)