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Powerpoint Templates

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Advertising Sales promotion

Publicity

Special Events

Mail

News Blogs

Clubs

Cultural heroes

Critiques

Sales People

Service representative

Customer Service Agents

Family

Friends

Neighbors

Classmates

Coworkers

Sources ofInfluence

REACH

Two-WayCo

mmunication

Credibility

LOW HIGH

LOWHIGH

Non- Market dominated

SourceMarket dominated Source

PersonallyDelivered

MassMedia

Delivered

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Reference Groups

Defined as groups that a person refers to

and identifies with, to the extent that the

group becomes a norm, standard or a

point of reference,

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When do groups exert influence

Attitude towards groupView group as a credible source

Values views and reaction of group members

Accepts the rewards and sanctions by the group for proper and improper behavior

Nature of group

Cohesive

Interactive

Distinctive & Exclusive

Nature of Product

Visible

Exclusive

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Types of Reference Group

PositiveMembership

group

AspirationalGroup

Disclaimantgroup

Dissociativegroup

Positive Attitude

Negative Attitude

Membership Non-Membership

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Types of Membership Group

Family/Peergroups

Schoolgroups,

Business

groups

Sports

groups,Kitty party

Teachersassociation,

CAassociation

Primary

Secondary

Informal Formal

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Types of Aspiration Group

Contact Anticipatory

NoContact

Symbolic

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Consumer Relevant Group

Family FriendsFormalSocialgroups

ShoppingGroup

Consumer

ActionGroup

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Types of reference group influence

Public

Necessity

Public

Luxury

PrivateNecessity

PrivateLuxury

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How reference group influence consumption

Defines lifestyle

Bring about attitudinal change

Set aspirational levels

Create conformity pressures

Exercise social powers

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The Family Life Cycle

Traditional Family Life Cycle

Stage I: Bachelorhood

Stage II: Honeymooners

Stage III: Parenthood Stage IV: Post-parenthood

Stage V: Dissolution

Modifications - the Nontraditional FLC

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Nontraditional FLC Stages

Family Households

Childless couples It is increasingly acceptable for married couples to

elect not to have children. Contributing forces are

more career-oriented married women and delayed

marriages.

Couples who marry later in

life (in their late 30s or later)

More career-oriented men and women and greater

occurrence of couples living together. Likely to have

fewer or even no children.

Couples who have first child

later in life (in their late 30s

or later)

Likely to have fewer children. Stress quality lifestyle:

Only the best is good enough

Alternative FLC Stages Definition/Commentary

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Dynamics of Husband-Wife

Decision Making

Husband-Dominated

Wife-Dominated

Joint

Equal

Syncretic

Autonomic

Solitary Unilateral

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Powerpoint Templates Page 22

Family and Marketing Strategy

Use the FLC for segmentation and positioning

Recognize the diverse consumption roles withinthe family

Understand and use the dynamics of husband-wife decision making

Understand and use the consumer socializationrole played by the family

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OPINION LEADERSHIP

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The process by which one person (the opinion leader) informally

influences the consumption actions or attitudes of others who maybe opinion seekers oropinion recipients

Opinioncreator

Opinionseeker

OpinionLeadership

OpinionReceiver

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Motivations Behind Opinion Leadership

To obtain new product or new usageinformation

To reduce their risk by getting knowledge

To reduce search time

To receive the approval of the opinionleader

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The Interpersonal Flow ofCommunication Two-Step Flow

A communication model that portrays opinion leaders as

direct receivers of information from mass media sources who,in turn, interpret and transmit this information.

Multi-step Flow

A revision of the traditional two-step theory that showsmultiple communication flows

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Identifying Opinion Leaders

Self-Designating Method

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Identifying Opinion Leaders

Sociometric Method

Referral Behavior

Network Analysis

Referral Network

Tie Strength

Bridging Function

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Measuring Opinion Leadership -

continued

OPINION LEADERSHIP

MEASUREMENT

METHOD

SAMPLE QUESTIONS

ASKEDDESCRIPTION OF METHOD

KEY INFORMANT

METHODWho are the most

influential people in

the group?

Carefully selected key informants in a

social system are asked to designate

opinion leaders.

Artificially places individuals in a

position to act as opinion leaders and

measures results of their efforts.

Have you tried the

product?

OBJECTIVE METHOD

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Opinion Leadership and MarketingStrategy

Identify and provide samples to opinion leaders

Design programs to stimulate opinion leadership

Develop ads simulating opinion leadership

Create opinion leaders

Control negative word-of-mouth communication

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Adoption Process

The stages through which an individual consumer passes

in arriving at a decision to try (or not to try), to continue

using (or discontinue using) a new product.

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Time and Diffusion

Purchase Time

Adopter Categories

Rate of Adoption

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Late Majority: Description

34% of population

Skeptical Adopt new ideas just after the average time

Adopting may be both an economic necessity and

a reaction to peer pressures

Innovations approached cautiously

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