CHAPTER 9
Reference Groups and Communities, Opinion Leaders, and Word-of-Mouth
LEARNING OBJECTIVES
9.2 To understand the persuasive power of spokespersons, endorsers, celebrities, salespersons,
vendors, and media.
9.4 To understand word-of-mouth’s online prevalence, strategic applications, and perils.
9.5 To understand how consumers adopt innovations over time.
CHAPTER SUMMARY
Learning Objective 9.1: To understand the credibility and influence of reference groups.
Within any setting, including consumer behavior, people are strongly influenced by how others
think and behave. Reference groups are groups that serve as sources of comparison, influence,
and norms for people’s opinions, values, and behaviors. Word-of-mouth consists of
communications where satisfied customers tell other people how much they like a business,
product, service, or event, although word-of-mouth can also be negative.
Sociocultural groups that determine people’s behavior, norms, morals, and consumption patterns
include family, social class, culture, subculture, and (for global consumers) cross-culture. Groups
influencing consumption are friends, fellow shoppers, and virtual communities.
Learning Objective 9.2: To understand the persuasive power of spokespersons, endorsers,
celebrities, salespersons, vendors, and media.
Many marketers had terminated their associations with celebs who have been the center of public
controversies, mostly following their inappropriate conducts and racism.
Companies also convey their credibility through solid past performance, good reputation, high
product quality, and good service. Their perceived credibility is also a function of the image and
reputation of the retailers that carry their offerings and the media where they advertise.
Learning Objective 9.3: To understand the dynamics of opinion leadership and word-of–mouth.
Opinion leadership is the process by which one person—the opinion leader—informally
influences others, who might be either opinion seekers or recipients. This influence occurs
between two or more people, neither of whom represents a commercial seller nor would gain
Learning Objective 9.4: To understand word-of-mouth’s online prevalence, strategic
applications, and perils.
Electronic word-of-mouth takes place online and occurs in social networks, brand communities,
blogs, chat rooms, and tweets. Marketers hire buzz agents and initiate viral marketing to
stimulate word-of-mouth in cyberspace. Buzz agents are consumers who promote products
clandestinely and generally receive free product samples but not monetary payments. Viral
Learning Objective 9.5: To understand how consumers adopt innovations over time.
Over time, positive word-of-mouth leads to the widespread adoption of products. However, not
all consumers adopt new products or new versions of existing products simultaneously.
Sociologists who studied how innovations are adopted within societies identified five adopter
categories of adopters: innovators, early adopters, early majority, late majority, and laggards.
CHAPTER OUTLINE
Introduction
1. Reference groups serve as sources of comparison, influence and norms for peoples’
opinions, values, and behaviors.
2. Word-of-mouth represents communications where, when positive, satisfied customers tell
other people how much they like a business, product, service or event.
a. Word-of-mouth is one of the most credible forms of buying-related information because
the communicators don’t stand to gain personally by promoting it.
b. Reference groups, such as friends, neighbors, relatives, and other consumers from online
networks and contact, strongly influence consumption behavior.
*****Use Key Terms reference group, consumer socialization, word-of-mouth Here; Use
Figure #9.1 Here *****
The Credibility and Persuasive Power of Reference Groups
2. When the source of communications about a product is well respected and highly thought of
by the intended audience, the message is much more likely to be believed.
a. A formal source is either a person or medium providing consumption-related
information and hired and paid by an organization.
b. An informal source is a person whom the message receiver knows personally,
such as a parent or friend who gives product information or advice, or an
individual met and respected online.
*****Use Learning Objective 9.1 Here; Use Key Terms source credibility, formal source,
informal source Here; Use Review and Discussion Question #9.8 Here*****
3. There are two types of influence from reference groups: normative and comparative.
a. Normative influence is learning and adopting a group’s norms, values, and behaviors.
b. Comparative influence occurs when people compare themselves to others whom they
d. There are groups in which an individual is not likely to receive membership, despite
acting like a member by adopting the group’s values, attitudes, and behavior. This is
called a symbolic group.
*****Use Key Learning terms reference groups, normative influence, comparative
influence, membership group, and symbolic group Here; Use Review and Discussion
Questions #9.1 and #9.2 Here ****
4. The consumption-related groups that influence consumers’ attitudes and behavior include
friendship groups, shopping groups, virtual communities, and advocacy groups.
a. Friends fulfill a wide range of needs: They provide companionship, security, and
opportunities to discuss problems that an individual may be reluctant to discuss with
family members. They may be a credible source of information about purchases.
b. Fellow shoppers: People may shop together just to enjoy shopping or to reduce their
perceived risk – to gain expertise or to feel more confident with a collective decision —
related to a concept known as “social proof.”
c. Virtual communities: Many websites encourage consumers to leave comments and have
others respond to them.
i. Most young adults have extensive “buddy lists” and regularly communicate with
people whom they have met online but never in person.
5. The degree of influence that a reference group exerts on an individual’s behavior depends on
the individual, product, and social factors. These factors include conformity, the group’s
power and expertise, the individual’s experience and personality, and the conspicuousness of
the product.
a. Conformity: to influence its members, a reference group must
i. Inform or make members aware that the brand or product exists.
ii. Provide the individual with the opportunity to compare his or her own thinking
with the attitudes and behavior of the group.
iii. Influence the individual to adopt attitudes and behavior that are consistent with
the group’s norms.
iv. Legitimize the member’s decision to use the same products as other members.
c. Product expertise: people with firsthand experience or who can obtain detailed
information about a product are less likely to be influenced by the advice of example of
Endorsers and Spokespersons
1. Source credibility is the believability of the endorser, spokesperson, or individual in an
advertisement.
2. Consumers recognize that the intentions of commercial entities (e.g., manufacturers, service
companies, financial institutions, retailers) are to generate profits and view marketers as less
credible than informal reference groups.
a. Companies can convey their credibility through solid past performance, good reputation,
product quality, and good service.
b. Their perceived credibility is also a function of the image and attractiveness of their
spokespersons, the reputation of the retailers that carry their offerings, and the media
where they advertise.
c. Marketers also use institutional advertising, which consists of promoting a company’s
image without referring to any of its specific offerings.
d. The greater the fit between the celebrity and the product endorsed, the higher the
persuasiveness of the message.
e. Endorsers whose demographic characteristics (e.g., age and ethnicity) are similar to those
of the target audiences are viewed as more credible and persuasive than those whose
characteristics are not.
i. Although consumers may like an ad featuring a famous endorser, they will
buy the product advertised only if they trust the marketer as well.
ii. Marketers who use celebrities in testimonials or endorsements must ensure
that the message contents are congruent with spokespersons’ qualifications.
iii. Marketers must ensure that there is a synergy among the celebrity’s
trustworthiness, expertise, physical attractiveness, and the product or brand
endorsed.
iv. They must also take into account the celebrity’s number of prior
endorsements, because consumers perceive celebrities who appear in
commercials too often as less credible than celebs with lesser commercial
exposure.
f. Celebrities, particularly movie stars, TV personalities, popular entertainers, and sports
icons, are a symbolic reference group because they are liked, admired, and often have a
high degree of perceived credibility.
trustworthiness (how honest the celebrity is about what he or she says about the product).
3. Marketers employ celebrities in promotion in the following ways:
a. Celebrity testimonial—Based on personal usage, the celebrity attests to the
product’s quality.
b. Celebrity endorsement—Celebrities appear on behalf of products, with which they
may or may not have direct experience or familiarity, for extended periods.
c. Celebrity actor—The celebrity plays a part in a commercial for the product.
4. Salespeople who engender confidence and who give the impression of honesty and integrity
are most persuasive.
5. The reputation of the retailer (vendor) who sells the product has a major influence on
message credibility.
6. The reputation of the medium that carries the advertisement also enhances the credibility of
the message.
a. Most consumers believe that a respectable medium would only advertise products
that it “knows” to be of good quality.
b. Because specialization in an area implies knowledge and expertise, consumers regard
Opinion Leaders and Word-of-Mouth
1. Opinion leadership is the process by which one person—the opinion leader—informally
influences others, who might be either opinion seekers or recipients, occurs between two or
more people, neither of whom is or represents a commercial seller or would gain directly
from providing advice or information.
a) The information that opinion leaders transmit includes advice on selecting the best
brands, using the products correctly, where to buy the products, and other aspects.
*****Use Learning Objective 9.3 Here; Key Term opinion leadership Here; Use Table 9.3
Here*****
2. Characteristics of opinion leaders include:
a) Opinion leaders are highly knowledgeable regarding a particular product category, follow
new products that come into the markets, and are often consumer innovators in their area
of expertise.
b) Opinion leaders are self-confident, outgoing, and sociable.
c) Opinion leaders read special-interest publications and regularly visit websites devoted to
*****Use Figure 9.4 Here*****
3. Consumer researchers can measure the degree of opinion leadership and its impact on
consumption behavior by using one of the following methods:
a) The self-designating method employs a self-administered questionnaire that requires
respondents to evaluate the extent to which they have provided others with information
about a product category or specific brand or have otherwise influenced the purchase
decisions of others.
b) The sociometric method measures the person-to-person communications about a product
or brand among members of a community where most people know each other by name
(e.g., a college dormitory or sorority). Respondents are asked to identify:
c. Researchers can also study opinion leadership by using a key informant, that is, a person
who is keenly knowledgeable about the nature of social communications among members
of a specific group.
d. Klout scores measure people’s degree of influence online.
Word-of-Mouth’s Strategic Applications
1. In marketing, word-of-mouth consists of transmitting advice and other types of information
about products, brands, and shopping experiences.
2. Word-of-mouth occurs in social networks, brand communities, blogs, chat rooms, and tweets.
***** Use Learning Objective #9.4 Here *****
3. Online, social networks are virtual communities where people share information about
4. Three dimensions factor into consumers’ engagement in electronic word-of-mouth:
a. Tie strength—the degree of intimacy and frequency of contacts between the
5. Negative reviews of hedonic (i.e., products used mainly for pleasure) products were
6. Involved consumers transfer and receive more rational product information than information
appealing to emotions.
8. A blog is a discussion or informational site published on the Internet and consists of discrete
entries (“posts”).
9. A microblog has less content than the traditional blog and allow users to exchange small
elements of content, such as short sentences, individual images, and video links, mostly via
Twitter.
*****Use Key Terms social networks, brand community, blog, Twitter Here; Use Learning
11. Marketers try to stimulate word-of-mouth.
a. Many firms enlist typical consumers to serve as their buzz agents—consumers
12. Viral advertising uses social networks and other technology to encourage consumers to
13. Online media made it easier for consumers to spread negative word-of-mouth.
a. One study discovered that some consumers who posted unfavorable information
Innovations’ Adopters as Reference Groups
1. Groups greatly affect diffusion of innovations.
2. The time it takes for an innovation to spread is affected by:
a. Nature of the group involved
b. Type of innovation decision required
3. Adopter categories is a classification that depicts where consumers stand in relation to other
5. The number of people belonging to each category was calculated in a manner resembling a
statistical normal distribution: innovators— the first 2.5% to adopt; early adopters—the next
13.5%; early majority—the next 34%; late majority—the following 34%; and the laggards—
the last 15%.
***** Use Learning Objective #9.5 Here; Use Review and Discussion Question #9.4 Here
*****
6. The innovators are the earliest consumers to buy new products.
a. They are prepared to take the risk that the product will not work well, become
unavailable, or be quickly replaced by an improved model (i.e., they are broad
categorizers).
b. They are often willing to pay somewhat higher prices for newly introduced products,
because they enjoy being the first to own gadgets and show them off.
***** Use Figure #9.7 Here *****
7. The early adopters are consumers who buy new products within a relatively short period
8. The early majority consists of consumers who buy innovations after the early adopters have
done so.
a. This segment is larger than the preceding two groups combined.
b. Risk aversion is defined as the reluctance to take risks and low tolerance of ambiguous
situations.
*****Use Key Terms innovators, early adopters, early majority, and risk aversion Here;
Use Figure #9.8 Here *****
10. The laggards are the very last consumers to adopt innovations.
11. Marketers often “write off” non-adopters, but not all non-adopters are the same, and
understanding nonusers is important.
*****Use Key Terms late majority, laggards Here *****
REVIEW AND DISCUSSION QUESTIONS
9.1. What are reference groups? List and discuss at least four groups that influence your
purchases. For each group, indicate whether its influence is comparative, normative, or
both, and explain your answers.
Reference groups serve as comparative and normative frames of reference for a person’s
values and behaviors. Responses about the four reference groups will vary. Normative
9.2. What is the difference between membership groups and symbolic groups? List one
membership group and one symbolic group that influence your purchases. Explain
which group influences you more and why.
A group to which a person either belongs or would qualify for membership is called a
membership group. There are groups in which an individual is not likely to receive
9.3. List and discuss the factors that affect the credibility of formal communications
sources of product information. What factors influence the perceived credibility of
informal communications sources?
Informal sources such as friends, neighbors, and relatives have a strong influence on
receiver’s behavior because they are perceived as having nothing to gain from a product
9.4. Why is an opinion leader a more credible source of product information than an
advertisement for the product? Are there any circumstances in which information from
advertisements is likely to be more influential than word-of-mouth?
Communication with an opinion leader is interpersonal, informal and takes place between
two or more people. Feedback is part of the communication process. The opinion leader does
not represent a commercial selling source and therefore does not gain directly from the sale
9.5. How can companies strategically use buzz agents and viral marketing? Illustrate with
examples.
Buzz agents are enlisted to share products with their friends/family and/or to use products in
public. These “agents” typically do not receive payment but are motivated by being called
9.6. Compare the advantages and disadvantages of the methods of measuring opinion
leadership.
The self-designating method employs a self-administered questionnaire that requires
2. The specific individuals (if any) who provided them with advice or information about the
same product or brand. If respondents identify one or more individuals to whom they
have provided some form of product information and those individuals confirm this
attribution, the respondents receive “opinion leadership points.” On the basis of these
interviews, respondents receive “opinion receivership points.”
9.7. How can marketers use social networks, brand communities, and weblogs to locate new
customers and target them?
1. Tie strength—the degree of intimacy and frequency of contacts between the information
seeker and the source. 2. Similarity among the group’s members in terms of demographics
and lifestyles. 3. Source credibility—the information seeker’s perceptions of the source’s
expertise. Social networks are virtual communities where people share information about
themselves with others, generally with similar interests, with whom they have established
9.8. You are the marketing vice president of a large soft-drink company. Your company’s
advertising agency is in the process of negotiating a contract to employ a superstar
female singer to promote your product. Discuss the reference group factors that you
would consider before the celebrity is hired.
Reference groups can be classified by membership status. Celebrities often constitute a
symbolic group—a group in which an individual (consumer) is not likely to receive
membership, despite acting like a member by adopting the group’s values, attitudes, and
behavior.
When a firm considers employing a celebrity numerous issues should be explored. One issue
9.9. Amazon has introduced a new e-book reader that is more expensive than previous
models but has many more features. How can the company use the adopter categories
in marketing this product?
Adopter Category Promotional Appeal Distribution Pricing
Innovators Appeals that stress Selective Skimming
the product’s newness
and “snob appeal”
Early Adopters Factual appeals Selective Skimming
stressing the
HANDS-ON ASSIGNMENTS
9.10. With a paper and pencil, spend one hour watching a network television channel
during prime time. Record the total number of commercials that aired. For each
commercial that used a celebrity endorser, record the celebrity’s name, the product or
service advertised, and whether the celebrity was used in testimonial, as an endorser, as an
actor, or as a spokesperson.
This question pairs nicely with Review and Discussion Question 9.8 above. Ask students
which role (testimonial, endorser, actor or spokesperson) is more credible and why. How
persuasive is the endorser? How effective is the commercial? Would it be more or less
effective if an unknown actor was used? Given the topic, students will be engaged in a lively
9.11. Describe two situations in which you served as an opinion leader and two situations in
which you sought consumption-related advice or information from an opinion leader.
Indicate your relationship to the persons with whom you interacted. Are the circumstances
during which you engaged in word-of-mouth communications consistent with those
described in the text? Explain.
9.12. Find ads that encourage consumers to engage in word-of-mouth communications.
Instructor’s Discussion
Students will show a variety of ads. Ask them if the advertiser was successful in showing
personal, or face–to-face communication. Discuss how different media (television,
9.13. Prepare a list of negative rumors that you (or your friends) have heard recently about
a company or a product.
Instructor’s Discussion
When discussing negative rumors, ask the students if the rumor is true. Do they know? Can
they track how the rumor was started and spread? What role did the web play in spreading
9.14. Locate an online company that recruits buzz agents and register as one. Keep a diary
of all your contacts with the organization for about one month. Summarize the diary and
discuss whether the company was right to make you a buzz agent and explain why or why
not.
Instructor’s Discussion
Buzz agents agree to promote products by bringing them to family gatherings, read books
while riding on mass transit, etc. These “agents” typically do not receive payment but are
motivated by being called upon to serve as opinion leaders. So, one factor in the student’s
response may be whether s/he perceives her/himself as an opinion leader in the selected
S.T.A.R. Project
Buzz marketing is a way for a marketing message to spread exponentially throughout the
marketplace using e-mail or other Internet formats, such as chat rooms. After reading the
examples from the chapter, your assignment is to find what you perceive to be a viral or buzz
effort that has recently occurred. Analyze the effort for its marketing effectiveness and its
adherence to sound or good business ethics. Think about the effort carefully—was anyone
harmed? Was the truth told? Were facts accurate? Was this the most ethical way to transmit
information about the product or service? Write a short summary report about the viral or buzz
event, its impact, its effectiveness, and any ethical issues of note.
Instructor’s Discussion
Small Group Project
StumbleUpon calls itself a “discovery engine” because, at one time, 50.27% of all traffic from a
top 10 list of social sites came from StumbleUpon. Their relatively small group of users (15
million) often out-refers the larger user base from Facebook (over 1.15 billion). In fact, the
influential users of StumbleUpon generate 1 billion page referrals per month. Their users, called
“Stumblers”, introduce other Stumblers and non–users to web content, providing a “map to an
adventure you wouldn’t otherwise have found out about.” The influence of these Stumblers was
Instructor’s Discussion
This project asks students to review the concept of electronic word-of-mouth and opinion
leadership. Students should have individual observations as well as a comparison of their