Classical Sociological Perspectives of Education Sept 18 th, 2006.
Sociological Perspectives of marketing
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Transcript of Sociological Perspectives of marketing
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SociologicalPerspectivesof
Marketing
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When & How
(Emergence of relationship in
marketing)
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Marketing focuses on the exchange
process, making it relational, by definition Relationship marketing is a dominant
exmple of marketing practice(Dwyer, Schurr and Oh 1987; Morgan and Hunt 1994)
It emerged in the B2B arena because the number ofrelationships managed were smaller (e.g. B2B sales)
Is now dominant in the B2C arena via due to technology-ladenconcepts such as CRM and One-to-One Marketing
Marketing researchers and practitionersseek to understand relational behavior:o Between firms and customers/consumers (traditional)o Among customers/Among business partners (emerging work
in customer collaboration, customer/professional
communities/knowledge networks)
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The fundamental ground of this talk
Because marketing is relational, socialnetwork theory (SNT) helps to advance
marketing theory and practice.
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Social Network Theory(SNT)
Social network theory views socialrelationships in terms of nodes and ties
Nodes are the individual actors within thenetworks
Ties are the relationships between the actors.
A social network is a map of all of the relevant tiesbetween the nodes
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A Historical Perspective
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Marketers use basic SNT concepts, but
questions and methods differ.Points of Alignment: Networks are socially connected actors (more than 2) Resources (e.g. information) are transferred among actors in
a network
There is a flow of resources within the network
Points of Difference: SN theorist (and early marketing researchers) seek to
describe individual actors and their relations/patterns of
connections
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Application of SNT in Marketing
Social Network Theorists Between-ness
o The frequency with whichan actor is intermediary to
other nodes and controlsthe flow of resources
Degreeo The number of actors with
whom an individual has adirect connection
Marketing Applications Word of Mouth
o Actors: opinion leaders,gatekeepers, and followers Those who are likely to influence others Those who know and provide
information but have no influence Those who are likely to be influenced
via passive or active solicitation of infoo Profile of actors
Knowledgeable, involved, confident,
active
Diffusion of Innovations & Newproduct adoption
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Finally, marketers tend to take arelational perspective of networks
(exception: Hopkins, Henderson and Iacobucci 1995)
Relational Perspective focuses on the extent to which all actors are
interconnectedo Relations (strands):content, direction and and strengtho Ties:
Weak/Strong based on frequency of social contact, importance ofrelation
o Multiplexitythe number of relations in a tie
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How has SNT advancedrelationship marketing thought andpractice?
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The Most Popular SNT perspectivesused in Marketing
The Structural Perspective The Socio-Economic Perspective The Socio-Cognitive Perspective
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The Structural Perspective
The structure of relations drives
marketing outcomes
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Findings based on the Structural Perspective
Brand Similarity exists within social circleso even for privately consumed products(Reingen et
al 1984) Strong ties and Weak ties affect marketing
outcomeso Strong ties are more likely to be activate as a referral sourceso but consumers also actively seek information from weak ties in
situational conversation(Reingen and Kernan 1986; Brown andReingen 1987)
Individual influence in the buying systems in
a B2B context(Ronchetto, Hutt and Reingen 1989)
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The Socio-Economic Perspective
Utility maximization is enhancedby social ties
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Findings based on the Socio-EconomicPerspective
Social tie strength increases likelihood oftransactions between buyer and seller
(Frenzen and Davis 1990)o This effect is moderated by perceptions about
potential opportunism in WOM information exchanges(e.g. non-reciprocating behavior)
o (Frenzen and Nakamoto 1990) Weak ties are quite weak in B2B
o The more valuable the info, the less powerful is the
weak tie(Frenzen and Nakamoto 1990)
o Weak ties among horizontal partners are less
powerful than among vertical alliance partners.(Reindfleisch and Moorman 2001)
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The Socio-Cognitive Perspective
Cognition intervene the effects of
social relations.(Bansal and Voyer 2000, Gilly et al 1991, Houston et al. 2001, Wardand Reingen 1996)
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The Socio-Cognitive Perspective
(contd)
The socio-cognitive perspective inserts cognitioninto the structural perspective, to better explain
outcomes
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