Buyer Behavior Exam 3

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Social Influence
When one's emotions, opinions, or behaviors are affected by others
Drivers of Social Influence
Our need to be right (informational social influence or social proof)

Our need to be liked (normative social influence
Reference Groups
An actual (or even imaginary) person or group that influences another individual's evaluations, aspirations, or behavior
Why use reference groups
Used to compare or make point of reference in forming affective and cognitive responses, as well as performing behaviors
Cultural Groups
members share certain common cultural meanings
Positive and Negative Effects of Reference Groups
Associative reference groups
Dissociative reference groups
Types of Reference Groups
Formal/Informal
Primary/Secondary
Membership
Aspirational
Dissociative
Characteristics of Reference Groups
Degree of contact (propinquity) (Primary vs Secondary)
Formality
Homophily
Attractiveness
Density
Tie-Strength (cohesiveness)
Opinion Leaders
Knowledgeable about products
Heavy users of mass media
Buy new products when introduced
Perceived as credible
Marketing implications of opinion leaders
Target
Use in marketing communications
Refer consumers
Types of Influencers
Connectors
Mavens
Salesmen
Connectors
Know people across social, cultural, professional and economic circles
Mavens
Information specialists (broker) we rely on to connect us with new information
Salesmen
Charismatic people with strong negotiation skills (aka "the persuaders"
Importance of Reference Groups
Informational
Utilitarian
Value-expressive
Degree of Influence of Reference Groups
Degree to which the product or brand is a necessity of luxury.
Degree to which the product or brand is conspicuous or known by other people
Marketing implications of Reference Groups
Peer group influence as a major asset of firms that sell in-home to groups

Describing similarities between previous consumers and potential ones

Using salespersons as reference groups

Soliciting experts to aid in the direct sale of products
Compliance
Do what someone asks us to do
Reactance
Do the opposite of what someone asks us to do
Boomerang effect
Confirmation Bias
Selectively gathering evidence to secure your point
Ingroup Bias
Your behaviors are similar to the those of other people in your group
Gambler's fallacy
Mistaken belief that infrequent events are interrelated
post-purchase rationalization
Convince yourself to like something after you purchase even if you don't so you don't have to pay for it again / redo it.
neglecting probability
Tendency to disregard facts of something happening
status quo bias
...
negativity bias
Even when everything is equal, ads etc with negative nature have more impact on consumers
projection bias
Presumption that preferences they have now won't change in the future
current moment bias
Different decisions will be made if its for the future vs the present
anchoring effect
Rely heavily on one aspect of information, usually the first info given, when making decision
Status Quo Bias
Preference for the current state of affairs (change from baseline is considered a loss)
Culture
Shared meaning by most people in a shared group
Cultural Meanings Include
Common affective reactions
Typical cognitions
Characteristic patterns of behavior
Culture Includes
Beliefs, attitudes, goals, & values held by most people in a society.
Meaning of characteristic behaviors, customs, & norms most people follow.
Meaning of significant aspects of the social and physical environment.
Levels of Cultural meanings
Macro
Subcultures
Social classes
Reference groups
Family influences
Acculturation Processes
Adapting to different subcultural meanings
Four Stages of Acclturation
Honeymoon
Rejection
Tolerance
Integration
Subcultures
Geography
Age
Ethnicity
Gender
Income
Social Class
Applied Research
Answers questions specific to a given product, market, etc.
Basic Research
Answers questions independent of product specifics
Examples of Basic Research
What affects your perception of taste?
What makes a spokesperson credible?
How can attitudes be changed?
How do peer groups exert influence?
Where is applied research conducted
In-house
External research firm
Watchdog agencies
Where is basic research conducted
Universities
Government agencies
"Think-Tanks"
Advantages of Secondary Data
Time savings, Low costs
Disadvantages of secondary data
May be out of date
Definitions or categories might not be what you're looking for
Might not be specific enough for your project
Types of Qualitative Primary Research
Introspection
Observation
Depth Interviews
Focus Groups
Observation
Watching how people interact with some aspect of their environment (e.g., your product).
Interview
Conversation between equals rather than Q&A
Focus Groups
A group gathers, led by a trained moderator, to discuss your product (or your ad, etc.)
Types of Quantitative Primary research
Surveys
Panels
Experiments (Field or Lab)
Surveys
Each person responds to a pre-set list of questions.
Structure of Survey
Objective
Introduction
General Questions
Key Questions
Open-ended questions
Segment related questions
Words of Caution with Primary Research
Introspection cannot always tell us "why."
Memory is error-prone.
Causation
One variable causes another
Correlation
Relationship between two variables.
The degree to which changes in one variable are associated with changes in another.
Correlational Research
The researcher observes and measures the IV and looks for a relationship with the DV.
Changes in the independent variable (IV) are not under the researcher's control
Experiments
Looks at effect of IV on DV.
Help you isolate the cause of a change in behavior.
Requirements of Experiments
The researcher controls (or "manipulates") the independent variable.
The researcher "randomly assigns" participants to different levels or versions of the IV.
Confounds
things not controlled by researcher that make groups differ and therefore might cause differences in how they act.
Advantages of Experimentation
Only way to establish the cause of a change in behavior.
Answers basic and applied questions.
Can be done on a small scale (in the lab) or on a larger scale (in the field).
Disadvantages of Experimentation
Sometimes experimentation (namely, random assignment) isn't possible.
Ex: Can't assign people to ages, genders, etc.
Ex: Can't assign people to smoke or not.
Ethics in Research
Need to protect participants
Obtain informed consent
May pose a dilemma - how much to tell?
Protect privacy

"Mere-measurement" effect: Innocuous questions may themselves shape behavior!
Things to watch out for with Research
The temptation to resist search results
Must be critical of search results as well
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