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Chapter 8
Group and Interpersonal Influence
Learning Objectives
After studying this chapter, the student should be able to accomplish the following objectives.
8-1 Understand the different types of reference groups that influence consumers and how
reference groups influence value perceptions.
8-2 Describe the various types of social power that reference groups exert on members.
8-4 Understand social media’s role in consumer behavior.
8-6 Comprehend the role of household influence in consumer behavior.
Lecture Example
Put simply, word-of-mouth (WOM) communication is friendly banter. Its power to shape public
opinion can hardly be overstated. In WOM communication, it is the customers who do the
marketing, i.e., talk about products and services on behalf of the marketers. These customers are
mostly loyalists and enthusiasts who help provide compelling reasons to other potential buyers to
buy a particular product or avail themselves of a specific service. If a customer is happy with a
product or service, positive WOM is more likely. However, marketers must be wary of negative
WOM, as it can prove to be substantially damaging to both the reputation and future prospects of
a company.
Lecture Outline with PowerPoint® Slides
LO: 8-1: Understand the different types of reference groups that influence consumers and
how reference groups influence value perceptions.
I. Reference Groups [Instructor PPT Slide 4]
A reference group is a group of individuals who have significant relevance for a consumer and
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who have an impact on the consumer’s evaluations, aspirations, and behavior. This influence
affects the ways that consumers seek and receive value from consumption. Social media has
greatly impacted interpersonal influence.
Q: Students could be asked if they have any reference groups. How important are these
reference groups to them?
A. Group Influence [Instructor PPT Slide 4]
Group influence refers to the ways in which group members influence the attitudes, opinions,
and behaviors of others within the group. Consider the following aspects of group life:
• Group members share common goals and interests.
• Group members communicate with and influence one another.
Q: Are you a member of a formal group? What are the goals, interests, and rules of that
group? As a member, what does the group expect from you?
In sociological terms, consumers think in terms of ingroups and outgroups. From a social
identity perspective, an ingroup is a group that a person identifies with as a member. An
outgroup is a group with which a person does not identify. Members of an ingroup are
generally viewed as having cohesion and exhibiting similar attitudes and behavior.
Primary/Secondary Groups [Instructor PPT Slide 5]
A primary group is a group that includes members who have frequent, direct contact with
one another. Primary reference groups generally have the most influence on their members,
and social ties for these groups are very strong. An example of a primary reference group
is the family unit.
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group. Professional organizations and social clubs are examples of secondary groups. One
special type of secondary group is a brand community. Brand communities are groups of
consumers who develop relationships based on shared interests or product usage. A
popular example of a brand community is the KISS Army.
Formal/Informal Groups [Instructor PPT Slide 6]
A formal group is a group in which a consumer formally becomes a member. For
example, a consumer becomes a formal member of a church congregation. Formal groups
generally have a set of stated rules, accepted values, and codes of conduct that members
are expected to adhere to.
Aspirational/Dissociative Groups [Instructor PPT Slide 7]
An aspirational group is a group in which a consumer desires to become a member.
Aspirational group membership often appeals to the consumer’s ideal self. The ideal self is
an important part of the consumer’s self-concept, and consumers often visualize
themselves as belonging to certain groups.
B. Conformity and Authority [Instructor PPT Slide 8]
Two important topics in the study of group and interpersonal influence are conformity and
authority. Conformity occurs when an individual yields to the attitudes and behaviors of
other consumers.
Peer Pressure [Instructor PPT Slide 8]
Peer pressure, the pressure an individual feels to behave in accordance with group
expectations, can greatly influence behavior. In fact, peer pressure is often the strongest
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type of influence a consumer experiences in daily life. Consumers of all ages feel peer
pressure. In fact, very young children often desire to wear the types of clothing and brands
that will allow them to feel accepted.
With peer pressure, there is usually some type of sanction that is threatened if the
consumer does not go along with the group. With conformity, behavioral choices are
generally more strongly based on internal desires to belong, even when the threat of
sanction is not present.
Negative Peer Pressure
Consumers sometimes succumb to group pressures that subtly or not so subtly encourage
counter-productive or unethical—perhaps illegal—behaviors. The media direct a lot of
attention to peer pressure and illegal alcohol or tobacco consumption. Adolescents are
particularly susceptible to peer pressure and are often compelled to rebel against their
families in favor of behaviors that win acceptance from their peers. Teens commonly go
against family expectations and parental rules.
Q: Ask students to narrate an occasion in which they experienced peer pressure.
LO: 8-2. Describe the various types of social power that reference groups exert on
members.
II. Social Power [Instructor PPT Slides 9]
Social power refers to the ability of an individual or a group to alter the actions of others.
Consumers often believe that others hold a great deal of power over their own behavior.
A. Types of Social Power
Social power can be classified into five categories. These categories include referent power,
legitimate power, expert power, reward power, and coercive power. These forms of power
can be exerted both by referent groups and by other individuals. These power bases are
presented in Exhibit 8.1 and then discussed in more detail.
Referent Power
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Consumers often imitate the behaviors and attitudes of groups as a means of identifying
with the group. For example, a new resident of a city might desire to join the local Rotary
Club, or perhaps a country club. Belonging to such groups often allows consumers to feel
as though they are fitting in.
Legitimate Power
In many situations, social arrangements dictate that differing levels of power are dependent
upon one’s position in a group. Legitimate power is used to describe this type of power,
and it is associated with authority. For example, bosses have legitimate power and
authority over their employees, including the authority to fire their employees.
Expert Power
Expert power refers to the ability of a group or individual to influence a consumer due to
the group’s or individual’s knowledge of, or experience with, a specific subject matter. For
example, consumers often find advice on health issues by consulting groups such as the
American Heart Association or American Diabetes Association.
Reward Power
Groups frequently have the power to reward members for compliance with expectations.
For example, at season’s end, sports teams often distribute “most valuable player” awards
based on performance.
Coercive Power
When consumers fail to give in to group expectations or rules, disapproval can be harsh
and may even result in loss of membership. For example, college athletes can be kicked off
sports teams for using illegal substances like steroids.
Social power depends upon a member’s agreement to, or acceptance of, the fact that the
power bases do indeed exist. That is, members must (a) be aware that the power base
exists and (b) desire to maintain or establish membership in the group in order for the
power base to be effective.
In sociological terms, this is where deviance might begin. If someone doesn’t value the
rules of society they may begin to act out with defiance or deviance.
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LO: 8-3. Comprehend the difference between informational, utilitarian, and value-
expressive reference group influence.
III. Reference Group Influence [Instructor PPT Slides 10 and 11]
Reference group influence generally falls into one of three categories: informational influence,
utilitarian influence, and value-expressive influence.
A. Informational Influence
The informational influence of groups refers to the ways in which consumers use the
behaviors and attitudes of reference groups as information for making their own decisions.
Informational influence can be a result of explicit searching behavior. Informational influence
is also present even when the consumer is not explicitly searching for product-related
information, but rather observing others’ behaviors. Informational influence helps to explain
why word-of-mouth communication is so persuasive. The informational influence of a group
is particularly strong if the group is seen as being credible.
B. Utilitarian Influence
The utilitarian influence occurs when consumers conform to group expectations to receive a
reward or avoid punishment (this is sometimes referred to as “normative” influence).
Utilitarian influence is related to reward power.
C. Value-expressive Influence
The value-expressive influence of groups refers to the ways in which consumers internalize a
group’s values or the extent to which consumers join groups to express their own closely held
values and beliefs. This influence is related to referent power. Consumers may use group
membership as a way to project their own self-image.
D. Value and Reference Groups
External influences have a direct impact on the value of many activities. Reference groups
and value are related in various ways.
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enjoying group meetings and activities. Here, value is an end in itself. Reference group
influences affect value perceptions in other ways. Because consumers learn about products
and services from referent others, the information that is obtained from groups directly affects
consumer expectations about product benefits such as quality and convenience.
E. Reference Group Influence on Product Selection
A number of things affect how much influence reference groups have on product selection.
First, the situation in which the product is consumed must be considered. “Public” products (for
example, a watch) are easily seen by others. “Private” products (for example, socks) usually are
LO: 8-4. Understand social media’s role in consumer behavior.
IV. Social Media’s Role in Group and Interpersonal Influence
Social media and social networking now play big roles in consumer behavior. Consumers get both
hedonic and utilitarian value from interacting through social networking. Even when the physical
proximity of other people is close, many consumers choose to connect through social media rather
than face to face.
A. Social Media and Consumer Behavior [Instructor PPT Slides 12]
It is important to distinguish among several concepts that pertain to social media and online
behavior.
The majority of social media and Internet usage now originates from mobile devices instead of
other types of devices.
Popularity of Social Networking Websites and Apps [Instructor PPT Slides 12]
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Two websites in particular highlight the role that the social media plays in consumer
behavior: Facebook and Twitter. It is important to emphasize that the motivation to join
social networking groups goes beyond a simple need to communicate. For many consumers,
Value and Social Media
Consumers derive both utilitarian and hedonic value from group membership. Here are a few
examples:
• Stylehive.com: Stylehive is a social shopping community where people share fashion
ideas and products.
Social Buying and Couponing
Social buying refers to consumer buying behavior that takes place on social networking
sites. Social couponing is a closely related topic. Social couponing refers to a type of
buying where consumers receive a coupon, or deal, by joining a special social networking
website.
B. Individual Differences in Susceptibility to Group Influence [Instructor PPT Slide 13]
Although group influence plays an important role in influencing consumer behavior, not all
consumers conform to group expectations equally. Individual difference variables play an
important role in the extent to which consumers conform to the expectations of others. Three
important variables are susceptibility to interpersonal influence, attention to social comparison
information, and separateness–connectedness.
Susceptibility to Interpersonal Influence
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One individual difference variable, susceptibility to interpersonal influence, assesses an
individual’s need to enhance the image others hold of the individual by acquiring and using
products, conforming to the expectations of others, and learning about products by
observing others.
Attention to Social Comparison Information [Instructor PPT Slide 13]
Another individual difference variable that affects consumer behavior related to group
influence is attention to social comparison information (ATSCI). Consumers who score
high on this measure are concerned about how other people react to their behavior. Sample
Separateness–Connectedness [Instructor PPT Slide 14]
Consumers differ in their feelings of “connectedness” to other consumers. A consumer
with a separated self-schema perceives himself as distinct and separate from others, while
a consumer with a connected self-schema sees herself as an integral part of a group.
Culture plays an important role in how separated or connected consumers feel.
Social Presence and Embarrassment
In some cases, the presence of others in a specific situation (referred to as social presence)
can make one feel uncomfortable. This is especially the case when consumers are
consuming or buying personal products.
Q: Do you shop on social networking sites? If yes, how often do you shop online? Why
do you shop online? Do you receive any extra benefits as compared to shopping in
stores?
LO: 8-5. Understand the importance of word-of-mouth in influencing consumer behavior.
V. Word-of-Mouth and Consumer Behavior [Instructor PPT Slide 15]
Word-of-mouth (WOM) is information about products, services, and experiences that is
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transmitted from consumer to consumer. Two types of WOM influences can be distinguished:
organic and amplified.
• According to the Word of Mouth Marketing Association (WOMMA), organic WOM
occurs naturally when consumers truly enjoy a product or service and they want to share
their experiences with others.
A. Positive and Negative WOM [Instructor PPT Slides 15 and 16]
The more satisfied consumers are with a company or product, the more likely they are to
spread positive WOM. Terms such as brand advocate or brand ambassador describe
consumers who believe strongly in a brand and tell others about it. Marketers realize that
Q: Do you think negative word-of-mouth can damage a company’s reputation? Ask
students to provide examples of companies whose reputation was damaged by negative
word-of-mouth.
Value and Word-of-Mouth [Instructor PPT Slide 16]
Group influence processes are closely related to consumer perceptions of value. Similarly,
WOM is affected in large part by the perceived value that consumers receive from products
and services.
Word-of-Mouth, Social Media, and Social Media Marketing
Consumers seek out other online users for advice on all kinds of issues, ranging from what
types of products to buy, to input into health, personal, and financial decisions. Consumers
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Many companies actively encourage WOM by including discussion boards on their own
websites. This also allows companies to assist in the development and maintenance of
brand communities.
Measuring Online WOM
Given the importance of online WOM and how it influences CB, consumer researchers and
marketers alike must gather valid information on WOM statistics. Many services offer web
traffic analytic and effectiveness services, including Quantcast, Alexa, and Comscore.
Some web traffic services allow users to focus on specific topics or trends, as would be the
case with WOM.
B. Buzz Marketing [Instructor PPT Slide 17]
One marketing tactic that continues to evolve is called buzz marketing. Buzz marketing
includes marketing efforts that focus on generating excitement (or buzz) that is spread among
market segments. Buzz marketing is one form of what is called guerrilla marketing, or the
C. Stealth Marketing [Instructor PPT Slide 17]
Stealth marketing is a guerrilla marketing tactic that is similar to buzz marketing; however, a
key difference is that with stealth marketing consumers are completely unaware that they are
being marketed to (hence the term stealth). The use of stealth marketing techniques, though
growing, is considered questionable or unethical by many marketing professional
organizations such as WOMMA. The following tactics are generally viewed negatively by
many professionals in the industry:
Q: Have you ever experienced stealth marketing? Do you consider it ethical?
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marketing. Students’ answers will vary for the second part of the question.
D. Opinion Leaders [Instructor PPT Slide 18]
Opinion leaders are consumers who have great influence on the behavior of others relating to
product adoption and purchase. Opinion leaders are knowledgeable about specific products or
services and have a high level of involvement with those products. Characteristics of opinion
leaders depend largely on the type of product under consideration, but in general, opinion
leaders are socially active and self-confident.
Market Mavens and Surrogate Consumers
E. Diffusion Processes [Instructor PPT Slide 19]
The diffusion process refers to the way in which new products are adopted and spread
LO: 8-6. Comprehend the role of household influence in consumer behavior.
VI. Household Decision Making and Consumer Behavior [Instructor PPT Slide 20]
The family unit is an important primary reference group for consumers. Household decision
making is the process by which household units choose between alternative courses of action.
A. Traditional Family Structure
Traditionally, the family household has been viewed as at least two people who are related
by blood or marriage and who occupy a housing unit. Other traditional family definitions
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Emerging Trends in Family Structure
According to the most recent estimates, 34% of households are defined as nonfamily
households (that is, consumers sharing the same living quarters who are not related by
blood or marriage). It is widely quoted that nearly 50% of all marriages in the United
Finally, the meaning of the term nonfamily is open to debate and interpretation. Same-sex
marriages are becoming increasingly common. Despite widespread attention to
nontraditional households, census data reveal that the largest portion of American
consumers still live in something resembling a “traditional” household, consisting of a
B. Household Life Cycle
An important concept in the study of the family unit is the household life cycle (HLC). The
HLC represents a segmentation technique that acknowledges that changes in family
composition and income alter household demand for products and services. The traditional
HLC segments families into a number of groups based on the number of adults present and
the age of the head of household. This conceptualization is presented in Exhibit 8.6. Product
expenditures vary greatly by stage in the HLC, and at each stage, consumers often try to
obtain the most value that they can from their purchases.
Q: Students could be asked to explain how their family has an influence over their
attitudes, thoughts, and behaviors.
Boomerang Kids and the Sandwich Generation