Week 8 - Reference group

Question 1

What are reference groups

Answer 1

an actual or imaginary individual or group that has a significant effect on an individuals evaluation aspirations or behaviour

Question 2

What is self identity theory

Answer 2

• each of us have several ‘selves’ that relate to groups
• we think of ourselves not just as ‘i’ but ‘we’

Question 3

What are in groups and out groups

Answer 3

• in groups discriminate against the out group to enhance their own self image

Question 4

What are the three types of reference groups

Answer 4

• membership
• aspirational
• dissociative

Question 5

What is the membership group

Answer 5

• ordinary people whoose consumption provides mutual interest
• formal group (rules of conduct)
• informal group e.g friends and family

Question 6

What is aspirational group

Answer 6

• high profile people that a consumer can identify with or admire from a distance
• groups we want to belong to

Question 7

What is the disassociative group

Answer 7

• groups the individual wants to avoid identifying with
• groups we want to distance ourselves from

Question 8

What are the two tyoes of influence in membersip groups

Answer 8

Comparitive influence and normative influence

Question 9

What is comparitive influence

Answer 9

• formal group
• affects decisions about specific brands or activities

Question 10

What is normative influence

Answer 10

informal group
- helps to set and enforce fundamental standards
- more powerful influence e.g family

Question 11

What is brand community

Answer 11

reference group built around shred usage or nterest in particular product, brand, activity

Question 12

What are the 3 ways reference groups influence consumers in 3 ways

Answer 12

• informational
• utilitarian
• value - expressive

Question 13

What is informational influence

Answer 13

• the grop enhances marketplace knowledge

Question 14

What is utilitarian (normative) influence

Answer 14

• the individual complies with group preferences

Question 15

What is value-expressive influence

Answer 15

• the reference group enhances the persons self-concept

Question 16

What do referference group influence depends on

Answer 16

• individuals strength of commitment group
• individuals confidence with purchase - low confidence then higher influence
• wheather the product purchase is consumed public or private

Question 17

What is conformity

Answer 17

• a change in beliefs or actions as a reaction to real or imagined group pressure

Question 18

What are factors influencing conformity

Answer 18

• cultural pressures
• fear of deviance
• commitment
• group unanimity size and expertise
• susceptibility

Question 19

What is social power

Answer 19

• capacity to influence others

Question 20

Referent power

Answer 20

• when a person admires a person or group and tries to imitate them

Question 21

What is information power

Answer 21

• power from merely possessing valuable information that others do not have access to

Question 22

What is expert power

Answer 22

• granted to people by virtue of social agreement

Question 23

What is reward power

Answer 23

• when a person or group has the means to provide positive reinforcement

Question 24

What is coercive power

Answer 24

• influence through social or physical intimidation

Question 25

What is opinion leadership

Answer 25

- people who are knowledgeable about products and who are able to influence others attitudes or behvaiours

Question 26

What are the four types of opinion leadership

Answer 26

- innovators - information and opinion seekers - market maven - surrogate consumer

Question 27

What are innovators

Answer 27

- also early purchasers

Question 28

What are information and opinion seekers

Answer 28

- involved in a product category and actively searching for information

Question 29

What are market maven

Answer 29

- actively involved in transmitting marketplace information of all types

Question 30

What are surrogate consumers

Answer 30

hired to provide input in purchase decisions

Question 31

What is WOM

Answer 31

- word of mouth communication - product information transmitted by indivuduals to individuals - trends of being more trustworthy not coming from advertising

Question 32

What are the negatives of WOM

Answer 32

- consumer weigh information from other consumers more heavily than they do positive comments - more WOM is given by negative customers than positive customers - negative WOM is very easy to spread online

Question 33

What are the two ways markets use WOM

Answer 33

- viral marketing - buzz agents

Question 34

What are buzz agents

Answer 34

- people who agree topromote products e.g take them to family gatherings - they are not celebrities

Question 35

What are the pros of viral marketing

Answer 35

- low cost of reaching the client - naturally targeted - can reach consumers immune to traditional messages - can be highly effective

Question 36

What are the cons of viral marketing

Answer 36

- uncontrolled spread of message - risk of brand reputation from message alteration - others take control of brand image - unlimited existence online