Consumer Behaviour (704003)

CHAPTER 10: GROUP INFLUENCE,

COMMUNICATION AND SOCIAL
STRATIFICATION
 Contents

• 10.1. Types of groups

• 10.2. Reference-group influences on the
consumption process
• 10.3. Marketing strategies based on
reference-group influences
• 10.4. Consumption subcultures
• 10.5. Marketing and consumption
communities

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 Contents

• 10.6. Communication within groups

• 10.7. The concept of social class
• 10.8. Social class structure
• 10.9. Differences in patterns of
consumption between groups
• 10.10. Social class and marketing strategy

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 Learning objectives

• Understand how groups function and how

they can be classified
• Understand the impact of reference groups
on consumption process
• Be aware of the marketing strategies
based on reference-group influences

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 Learning objectives

• Understand the communication within

groups
• Understand the consumption subcultures
• Understand the marketing and
consumption communities

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 Learning objectives

• Understand the concept of social class

• Understand the social class structure
• Be aware of the differences in patterns of
consumption between groups
• Be aware of the social class and marketing
strategy

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 10.1. Types of groups

• Group influences

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 458
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 10.1. Types of groups

• Group:
• Reference group:
– ‘A group whose presumed perspectives or
values are being used by an individual as the
basis for his or her current behaviour’

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 10.1. Types of groups

• Membership
– Either yes or no
• Degree of contact
• Attraction
– Desirability of being member
– Either positive or negative

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 Changes in reference groups
as the situation changes

Source: Quester et al., (2014),

Consumer Behaviour: implications
for marketing strategy 7th ed,
McGraw-Hill Education, page 458
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 10.1. Types of groups

• Aspirational reference groups

– Non-membership groups
– Positive attraction
– Exert a strong influence on some products

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 10.1. Types of groups

Source: Quester et al., (2014),

Consumer Behaviour: implications
for marketing strategy 7th ed,
McGraw-Hill Education, page 461
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 10.2. Reference-group influences
on the consumption process

• Conformity
– Makes groups influential
– Is the tendency to want to be like ‘relevant and
significant others’
– Generally makes life more pleasant

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 10.2. Reference-group influences
on the consumption process

• Norms
– Are general expectations about behaviours that
are deemed appropriate for all persons in a social
context, regardless of the position they hold
– Are often communicated non-verbally

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 10.2. Reference-group influences
on the consumption process

• The nature of reference-group influence

– Conformity is not a uni-dimensional concept
– Information influence
– Normative influence (utilitarian influence)
– Identification influence (value-expressive
influence)

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 10.2. Reference-group influences
on the consumption process

• Consumption situations and reference-

group influence

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 463

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 Consumption situations and
reference-group influence (cont.)

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 463

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 Consumption situations and
reference-group influence (cont.)

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 463

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 Determinants of the degree of
reference-group influence

• R-Group influence is strongest when use of

the product or brand is visible and relevant
• R-group influence increases as necessity
of an item decreases
• Individual’s confidence with purchase: low
confidence, then higher influence

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 Product characteristics and
type of reference-group influence

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 463

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 10.3. Marketing strategies based
on reference-group influences

• Personal sales strategies

• Advertising strategies

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 Consumption-situation determinants of
reference-group influence

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 466
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 10.3. Marketing strategies based
on reference-group influences

• Personal sales strategies

– Asch phenomenon
• Advertising strategies
– All three types of reference groups are used
by advertisers:

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 10.4. Consumption subcultures

• Examples: Product: Harley-Davidson

Activities: Body building, golf

A consumption subculture is a distinctive subgroup of society

that self-selects on the basis of a shared commitment to a
particular product class, brand or consumption activity

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 10.5. Marketing
and consumption communities

• Consumption in online environments

– (social networking sites, websites, blogs and
other online sites become the new
marketplace),
– green and ethical consumption.
– Anti-Consumption and Consumption
Communities: The Football Clubs and its Fans

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 10.6. Communication
within groups

• The power of word-of-mouth

communication
• People learn about new products from
friends and reference groups by:
– Observing or participating with them as they
use the product, or
– By seeking and receiving advice or information
from them

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 10.6. Communication
within groups

• Opinion leadership
– Opinion leaders filter, interpret or provide
information for individuals within groups
– Situations in which opinion leadership occurs:
• one individual exchanges information with another
• one individual volunteers information
• as a by-product of normal group interaction

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 10.6. Communication
within groups

• Mass communication information flows

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 473

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 Likelihood of seeking
an opinion leader

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 473

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 10.6. Communication
within groups

• Marketing strategy and opinion leadership

– Identifying opinion leaders
– Targeting for marketing research
– Product sampling
– Retailing/personal selling
– Advertising attempts to encourage and
simulate opinion leadership

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 10.7. The concept of social class

• Social class and consumption

• Social class
• Social class and consumption differences
– Global similarities
– Segmenting the affluent
• Status symbols

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 10.7. The concept of social class

• Social standing and behaviour

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 500

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 10.7. The concept of social class

• Traditional viewpoint assumes that social

classes must meet the following criteria:
– Bounded
– Ordered
– Mutually exclusive
– Exhaustive
– Influential

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 Not all behaviours are unique

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 500

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 10.7. The concept of social class

• Behaviour and social class

– Unique behaviours
• Product: fine china
• Situation: entertainment
– Not all behaviours are unique:
– Shared behaviours : Situation: entertainment

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 10.7. The concept of social class

• The concept of social class

– Status crystallization
• Status crystallization is low in Australasia

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 10.7. The concept of social class

• The concept of social class

– Status crystallization
• Degree of consistency on status dimensions
– Occupation
– Education
– Income
– Ownership

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 10.8. Social class structure

• The function approach

• The reputation approach

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 10.8. Social class structure

• Positioning within social class

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 506

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 10.8. Social class structure

• Upward-pull strategy targeted at the middle

class

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 506

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 10.9. Differences in patterns of
consumption between groups

• Uses:
– Differences in product consumption
• instant coffee
• snack foods
• imported wine

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 10.10. Social class
and marketing strategy

• Relate status variables to product

consumption
• Target social status
– Actual lifestyle, desired lifestyle, media, etc.
• Develop product position
• Marketing mix decisions
– Develop mix

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 Topics covered in this lecture

• Types of groups
• Reference-group influences on the
consumption process
• Marketing strategies based on reference-
group influences
• Consumption subcultures
• Marketing and consumption communities

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 Topics covered in this lecture

• The concept of social class

• Social class structure
• Differences in patterns of consumption
between groups
• Social class and marketing strategy

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