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Topic 7 Reference Group and Word-Of-Mouth

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Khang Nguyen Duy
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68 views20 pages

Topic 7 Reference Group and Word-Of-Mouth

Uploaded by

Khang Nguyen Duy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall


Family = Most Important Reference Group

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 2 of 27


e d
fi n
e
D Source Credibility
A source’s persuasive impact,
stemming from its perceived
expertise, trustworthiness, and
believability.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 3 of 27


Reference Group Influence

• Normative influence
• Comparative influence

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 4 of 27


Consumption-Related Reference Groups

• Friendship groups
• Shopping groups
• Virtual communities
• Advocacy groups

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 5 of 27


Factors Affecting Reference Group Influence

Conformity
To influence its members, a
reference group must:
•Inform members that the brand or
product exists.
•Provide opportunity to compare
thinking with the attitudes/behavior
of the group.
•Influence individual to adopt
attitudes and behavior that are
consistent with the group’s norms.
•Legitimize the member’s decision
to use the same products as other
members.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 6 of 27


Factors Affecting Reference Group Influence

• Group power and expertise


• Relevant information and experiences
• Product conspicuousness

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 7 of 27


Discussion Question

Which personality
traits affect reference
group influence?

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 8 of 27


Conveying Company Credibility

• Past performance • Reputation of


• Good Reputation retailers that carry
• offerings
Product Quality
• • Media where they
Good Service
advertise
• Image and
• Institutional
attractiveness of
spokespersons advertising

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 9 of 27


Endorsers and Spokespersons

• Synergy between endorser and type of


product/service advertised important
• Endorsers with demographics similar to
target audience more credible & persuasive
• Consumers must trust the marketer (even if
they like the endorser)
• Message contents must be congruent with
spokesperson’s qualifications

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 10 of 27


Celebrity Uses in Advertisements

• Celebrity testimonials
• Celebrity
endorsements
• Celebrity actors
• Celebrity
spokespersons

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 11 of 27


Other Sources Credibility

• Salesperson credibility
• Vendor credibility
• Message credibility (previous experience)
• Medium credibility

How does time affect the influence of source


credibility on message persuasiveness?

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 12 of 27


Opinion Leaders

• Information provided
– Best brands
– Use of brands
– Where to buy
• Important for services
• Category specific
• Motivations

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 13 of 27


Characteristics of Opinion Leaders

• Knowledgeable in
product category
• Self-confident,
outgoing, sociable
• Read special-interest
publications and
websites
• Often same
socioeconomic & age
group as receivers

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 14 of 27


Measuring Opinion Leadership

• Self-designating
method
• Sociometric
method
• Key informant
• Klout score

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 15 of 27


E-WOM

• Factors affecting engagement


• Social networks
• Brand communities
• Blogs and microblogs

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 16 of 27


Stimulating Word of Mouth

• Viral marketing
• Motivations for passing along emails
• Buzz agents

Discussion Question:
Why do consumer share negative rumors
about companies and their
products/services?
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 17 of 27
Adopter Categories

• Innovators • Late Majority


• Early Adopters • Laggards
• Early Majority

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 18 of 27


Innovators

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 19 of 27


Adopter Categories – Non-Innovators

• Early adopters
• Early majority
• Late majority
• Laggards

• Prospective adopters
• Persistent non-adopters

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 20 of 27

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