Influence of Reference Groups on Consumers
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ScribdTranslationsInfluence of Reference Groups on Consumers
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ScribdTranslationsCHAPTER 9: Reference Groups and Personal Recommendations
- Reference groups: serve as sources of comparison, influence, and normativity of opinions,
values and the behaviors of people
oFamily: provides skills, knowledge, attitudes, and experiences in a process called
consumer socialization. Social class, culture, and subculture
1. Credibility of the source and reference groups
- Degree of credibility of the source: persuasive impact of the source, reliability, and plausibility.
- The formal source is a person or a medium that provides information related to consumption and has been
contrasted and paid for by an organization.
- The informal source is an individual whom the message recipient knows personally, such as a family member or a
friend or someone online you trust
a. Influence of the reference group
- People tend to adhere to social norms. They serve as reference frameworks.
comparative
- The normative influence: learning and the adoption of norms, values, behaviors of a
group. The most relevant influence is the one exerted by the groups to which we belong in a...
natural (family, friends, community).
- Comparative influence: people compare themselves to other individuals to whom
they respect and admire you and then adopt some values or imitate your behavior
b. Types of reference groups
- Belonging group: any group to which a person belongs
- Symbolic group: one that an individual is unlikely to belong to, but adopts.
their values and behaviors
c. Reference group related to consumption
i. Group of friends: friends provide companionship, security, and opportunities to discuss
problems. Sign of maturity and independence.
ii. Buying group: they go together for the implicit enjoyment of the activity or because they want to reduce
your risk perception (purchase recommendations). Experience of sharing in a line
[Link] communities: web friend lists, the anonymity of the online environment allows for
freedom for people to express their viewpoints and benefit from the opinions of others
others
iv. Defense groups: the objective is to support consumer decision-making and protect
their rights. 2 types -> entities that are organized to correct a specific abuse to
consumer and then they disintegrate; groups whose purpose is to deal with a bigger problem
wide and widespread and that operate for a longer time
d. Factors that affect the influence of reference groups (degree of influence depends on
personal, social, and product factors
i. Compliance: the objective of market leaders is to increase consumer compliance.
To influence, they must: inform/raise awareness among their members about a product, provide
the individual the opportunity to compare their point of view, influence to adopt attitudes with
the group norms and legitimize the member's decision to use the same products as the
others
ii. Power and expertise of groups: they could exert influence on beliefs, attitudes and
behaviors of individuals. Those who want to achieve the approval of others. The
Power groups motivate behaviors, but not changes in attitude.
iii. Relevant information and experiences: those with direct experience are less prone
a verse influenced by the experience of another. In contrast, those who do not have will seek advice from
another
iv. Notoriety of the product: a notorious product is one that stands out among the others and has more
probabilities of being acquired considering consumer reaction.
non-notorious products are used according to someone's advice. Technology has affected
v. Personality characteristics: they affect the degree of influence that the reference group has.
about its members. Opinions, guides, etc.
2. Credibility of spokespersons, endorsements, and other formal sources
- The credibility of the source refers to the degree of plausibility we assign to the endorsement or spokesperson. It can be a
real clients, models, celebrities -> have more credibility as they are informal reference groups.
- Institutional advertising consists of promoting the overall image of the company without making reference to
specific products
a. Endorsements and spokespersons:
i. Relationship between message effectiveness and endorsements: the synergy between the endorsement and the type of
product is important, endorsements with similar demographic characteristics + credibility, only
They will buy the advertised product if they also trust the manufacturer, the content of the message.
It must be consistent with the skills of the spokespersons.
[Link]:
They constitute a symbolic reference group with a high degree of perceived credibility.
They represent an idealization of life that almost everyone would like to live. It has to do with
with the public's perception as well as the knowledge and reliability of the product.
They use them according to: testimonials (personal use, endorsement of a celebrity (speaking in favor of a
product), celebrity as an actor and celebrity as a spokesperson (brand representative).
c. Seller credibility: They generate trust and give the impression of honesty, resulting in more
persuasive if they show integrity
d. Supplier credibility: The reputation of the retailer selling the product influences the
credibility of the message. The products sold by recognized and quality stores carry
I get the aggregated endorsement from the store itself. The consumer's prior experience has an impact.
e. Credibility of the medium: the reputation of the medium where the advertisement is presented enhances credibility.
from the message
f. Effects of time on the credibility of the source: information transfers to the short-term storage of the
cerebral cortex, over time it separates from the context in which it was learned -> sleeper effect.
Differential deterioration -> negative signals deteriorate faster than the message itself
3. Personal recommendations and opinion leadership
- Opinion leadership: a process by which a person informally influences others, who
they could be seekers or receivers of opinions. It occurs between 2 people, neither is a seller nor gains a
direct benefit from providing information, but they do it anyway by categories, they become receivers of
opinions if they are unaware of one
a. Characteristics of opinion leaders: well-informed about the articles that confirm a
category, they have self-confidence, they read specialized publications on specific interests,
They visit websites, belonging to the same socioeconomic groups and age.
b. Measurement of opinion leadership: measure the degree with 3 methods
i. Self-designation method: self-administered questionnaire where subjects are asked to
evaluate the extent to which you have provided others with information regarding a product or
mark in which they have influenced the purchasing decisions of other people
ii. Sociometric method: measures personal communications regarding a product or brand,
what happens among the members of a community where almost everyone knows each other by name
specific individuals who provide advice and specific individuals who have
provided advice
iii. Key informant method: a person well-versed in the nature of communications
social interactions that occur among members of a specific group. It is difficult to find a single
person who can objectively identify the opinion leaders within a group
consumers
iv. Klout score: measures the influence a person has in the online context, based on
in their abilities to generate commitment and obtain feedback towards their
publications.
4. Strategic applications of personal recommendations: transmission of advice about products/services and brands
a. Social networks: viral communities where people share information about them
with other individuals of similar interests -> 3 dimensions of commitment: strengthening of ties,
credibility of the source. Negative criticism of hedonistic products, utilitarian products
they provided rational and emotional information
b. Brand communities: specialized community without geographical limits, formed from the
linkage with a product or brand.
c. Weblogs: information on the topic of interest quickly. Blogs have posts, microblogs are
sites with less content and allow for sharing and exchanging information. They are the most sources
important consumer information
d. Promotion of personal recommendations (WOM): they are more effective when told to
your friends, through the use of language, essence
i. Viral marketing: a marketing technique that uses existing social networks and others.
technologies to increase brand awareness or achieve other marketing objectives at
encouraging individuals to pay attention to email messages. Motivations to share
They are known to not forward boring content, they forward what helps enjoyment. Sometimes
it is problematic
ii. Clandestine agents: they hire typical consumers to act as agents, such as
undercover promoters of their products in exchange for services receive free samples, but
no monetary payments. They want to be opinion leaders
e. Handling negative rumors: impossible to control personal recommendations
5. Diffusion of innovations: segmentation by adopter categories
- Positive personal recommendations result in the widespread adoption of products that
they satisfy needs, work well, differentiate, and generate value. The category of adopters refers to
a classification that indicates the position of a consumer in relation to others.
a. Innovators: early adopters, take risks and replace products, pay higher prices +
high
b. Early adopters: they buy new products shortly after, daring, they help the
others
c. Early majority: they buy innovation after the adopters do. Combination of the 2
other groups. Risk aversion -> resistance to taking risks and tolerance. Regular aversion
d. Late majority: high risk aversion to adopting innovations, they acquire products that are not very recent.
low prices can turn into early majority if they feel satisfied.
e. Laggards: last consumers to adopt innovation, high risk
fN
. on-adopters: they limit ignoring these, two segments: future adopters and non-adopters.
persistent
Common questions
Powered by AINormative influence operates by teaching and encouraging the adoption of norms, values, and behaviors within a group. When applied to personal recommendations and opinion leadership, it urges individuals to conform to group expectations or standards. Opinion leaders play a crucial role by providing information and examples that reinforce group norms, thereby affecting the purchasing behavior of other group members .
The credibility of a reference group affects consumer behavior through its persuasive impact, reliability, and plausibility. Individuals are more likely to follow the opinions and behaviors suggested by credible sources—whether formal, such as those endorsed by organizations, or informal, such as family or friends. The credibility determines the confidence one might have in the information provided, thus influencing their decision-making process significantly .
Different adopter categories—such as innovators, early adopters, the early and late majority, and laggards—influence the diffusion process through their unique characteristics. Innovators are risks takers who influence early adopters, who are quick to embrace new products. The early majority evaluates the benefits before adoption, creating a bridge to the late majority who adopt out of necessity or pressure. Laggards are the last to adopt, driven more by necessity than enthusiasm. Non-adopters typically resist change. Each group's interaction with the innovation process helps determine the overall diffusion speed and pattern .
Opinion leadership is measured using several methodologies, each with distinct challenges. The self-designation method, which involves self-reported influences, faces potential biases due to over- or underestimation by respondents. The sociometric method, which tracks actual communications within a community, is limited by the need for comprehensive data within small communities where everyone knows each other. The key informant method, using knowledgeable individuals, suffers from subjectivity and may not capture the broader group dynamics. Finally, the Klout score measures online influence but relies heavily on social media metrics, which may not accurately reflect offline leadership .
Over time, source credibility can be affected by phenomena like the sleeper effect, where the impact of a source's credibility diminishes, and the message itself becomes more emphasized. Additionally, differential deterioration suggests that negative signals associated with a message deteriorate faster than the message's content, potentially leaving the core message intact and influential in the long term. These effects highlight the importance of a credible initial impression, though they also suggest that messages can gain momentum independently of initial credibility over time .
Organizations can enhance endorsements and spokesperson credibility by aligning spokesperson characteristics with the target audience, ensuring demographic and value congruence. Maintaining consistency between the spokesperson's image and the product message is also crucial. Additionally, leveraging celebrities or real users who embody the brand's ethos can strengthen message plausibility. Institutional advertising that builds the company's overall image rather than focusing on specific products further supports credibility .
Social networks and brand communities amplify personal recommendations by creating platforms for shared interests and experiences, thus fostering an environment for viral marketing and information exchange. Marketers can leverage these platforms to encourage engagement, build credibility, and enhance brand awareness. The implications include the necessity for marketers to monitor and participate in these discussions, manage brand perception actively, and harness negative and positive feedback to adjust marketing strategies accordingly .
The power and expertise of a reference group contribute by exerting influence on individual beliefs, attitudes, and behaviors. When an individual sees a reference group as having expertise, they are more likely to trust the group's advice and recommendations related to consumer products. Groups with perceived power and expertise can motivate behavioral compliance even without altering personal attitudes, as individuals seek approval or validation from those they regard highly .
Informal reference groups like family and friends exert a stronger influence on consumer behavior due to their close personal connections and trust levels. The non-commercial nature of recommendations coming from someone familiar or esteemed in one's social circle often results in higher perceived sincerity and relevance. The personal nature of these relationships allows for direct, tangible sharing of experiences and opinions that are highly impactful .
Symbolic groups serve as reference frameworks by providing aspirational values and behaviors that individuals admire and wish to emulate, even though they may not belong to these groups. The significance lies in their ability to guide consumer behavior through symbolic influence, such as celebrities or lifestyle icons, encouraging the adoption of products and lifestyles associated with these groups. This concept allows consumers to express individual identity and social aspirations through consumption patterns .