Group Influences on

Consumer Behavior
1
Learning Objectives
Explain reference groups and the criteria used to classify them.
Discuss consumption subcultures, including brand and online
communities and their importance for marketing.
Summarize the types and degree of reference group influence
Discuss within-group communications and the importance of
word-of-mouth communications to marketers.
Understand opinion leaders (both online and offline) and their
importance to marketers.
Discuss innovation diffusion and use an innovation analysis to
develop marketing strategy.
2
Group
• Two or more individuals who share a set of norms,
values, or beliefs and have certain implicitly or explicitly
defined relationships to one another such that their
behaviors are interdependent.
• A reference group is a group whose presumed
perspectives or values are being used by an individual as
the basis for his or her current behavior.
Thus, a reference group is simply a group that an individual uses as a guide for
behavior in a specific situation.
3
Social Identity Theory
 Social identity is a person’s sense of who they are based
on their group membership(s).
 Groups (e.g. social class, family, football team etc.)
which people belonged to were an important source of
pride and self-esteem
 We divided the world into “them” and “us” based
through a process of social categorization (i.e. we put
people into social groups).
4
5
Variety of Reference Groups
Most of us belong to a number of different groups and perhaps would like to belong
to several others. When we are actively involved with a particular group, it generally
functions as a reference group. As the situation changes, we may base our behavior
on an entirely different group, which then becomes our reference group. We may
belong to many groups simultaneously, but we generally use only one group as our
primary point of reference in any given situation
6
Group Classification Criteria
Four Criteria:
• Membership
• Either/Or
• Degree of Commitment
• Attraction
• Dissociative Reference Groups
• Aspiration Reference Groups
• Type of Contact
• Primary Groups
• Secondary Groups
Strength of Social Ties
Primary Groups
Secondary Groups
7
Membership
• Either one is a member of a particular
group or one is not a member of that
group.
• Some members are more secure in their
membership than others are; that is,
some members feel they really belong
to a group, while others lack this
confidence.
8
Strength of social tie
 closeness and intimacy of the group linkages
Primary groups

•family and friends, involve strong ties

and frequent interaction
•wield considerable influence
Secondary groups

•professional and neighborhood

associations, involve weaker ties
and less-frequent interaction
9
Type of contact
 the interaction is direct (face-toface interaction) or indirect
 The Internet has increased the
importance of indirect reference
groups in the form of online
communities,
10
Attraction
refers to the desirability that membership in a given
group has for the individual
can range from negative to positive
dissociative reference groups

•Groups with negative desirability

•teenagers tend to avoid clothing styles

associated with older

consumers
aspiration reference groups

Nonmembership groups with a positive

•

attraction
aspiration reference groups—also exert a strong influence. Individuals frequently
purchase products thought to be used by a desired
group in order to achieve actual or symbolic membership in the group
11

Types of Groups
Uncategorized Membership Attraction Contact
Purchas
ers
(parent
s)
Frequent
(primary associative)
Limited
(secondary associative)
Frequent
(primary dissociative)
Limited
(secondary dissociative)
Desired
(aspiration)
Avoided
(dissociative)
Positive
(associa
tive
)

Negativ
e
dissocia
tive
)

Positive
(aspirat
ion)

Negativ
e
dissocia
tive
)

Yes
(membership)
No
(nonmembers
hip)
12
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
•You would probably not be surprised to learn that things like fashion and
music spread through social networks. But what about things like obesity,
happiness, altruism, or smoking? Research suggests these too are
influenced via social networks. Take weight. Research shows that people
with similar body mass indices are friends. There are a number of
reasonable explanations. One is similarity—people choose others who are
like them (be it weight, height, etc.). Another is that social networks
establish norms of behavior. The evidence supports norms as a primary
explanation for why people of similar weight are friends (part of the same
social network or group). Slowly over time, what is considered normal
weight within a group or network increases, establishing a “new normal.”
13
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
• Seeding can be an effective way of marketing using the influence of
group and opinion leaders within groups.
• Product seeding” refers to any campaign that allows a
brand to quickly reach a wide, targeted audience of
potential consumers by gifting product to influencers
without any payment to post
14
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
A religious book
•For example, Rick Warren’s The Purpose Driven Life is the best-selling
hardcover book in U.S. history that has been translated into 85
languages. It is a book with Christian topics, relevant to individuals of
that faith, but not so much for others who don’t share that faith. It is a
niche book that spread rapidly and in record numbers to evangelicals
for whom the book was relevant but remained relatively unknown to
people outside of this social network. The Purpose Driven Life was
launched using “seeding,” whereby free samples are given away to
influential members of existing social networks. Rick Warren nurtured
a group of some 1,200 pastors, provided them a free copy of the book,
and encouraged them to lead their congregations through the 40-day
program.
15
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
Beats Headphones
•Example 2: The phenomenal ability of Beats headphones to grow
fivefold and reach $1 billion between 2010 and 2012, despite negative
press reviews that suggested Beats headphones were overpriced and
underperforming, can be explained in part by seeding Beats
headphones to celebrity influentials—locker room photos of Beats
around the neck of NBA player LeBron James, Beats popping up in
Lady Gaga’s video “Poker Face,” and rapper Lil Wayne wearing $1
million diamond-studded Beats headphones at an NBA game.
16
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
•The spread of contagion through social networks is difficult to track
and measure in the physical world, but data mining of consumer
activity on the Internet provides estimations of the spread and impact
of contagion.
•The firm Lotame, for example, can identify influencers in social
networks possessing the desired demographics (e.g., women 25–30
years of age) and behavior (e.g., uploaded a video of their child(ren) in
the last four hours), send them the contagion (e.g., a movie trailer),
and count and track the behaviors and demographics of the people
connected to the influencer (e.g., people who viewed the trailer
partially or in its entirety).
17
CONSUMER INSIGHT 7-1
Groups, Social Networks, and Seeding
•The downside to contagion, particularly in today’s open social media
environment, is that it can be difficult to control what is “put out
there” and linked to a specific brand and company.
•Employees who engage in such negative behaviors (e.g., prank and
negatively toned videos involving a restaurant’s products and/or
facilities) can be dismissed, but correcting the damage done can be
much more difficult and time-consuming.
18
Consumption Subcultures
•They are a distinctive subgroup of society that self-selects on the basis of a
shared commitment to a particular product class, brand, or consumption
activity.
•Consumption Subculture Characteristics:

•Identifiable, hierarchical social structure

•Set of shared beliefs or values

•Unique jargon, rituals, and modes of

symbolic expression
• https://www.racked.com/2018/1/17/16897160/lines-waiting-history
Thus, they are reference groups for their members as well as those who aspire to join
or avoid them
Note that not all, or even most, product owners or participants in an activity become
members of the consumption subculture associated with it. For example, one can
enjoy the Star Trek TV shows without becoming a member of the associated
subculture. Self-selecting into a consumption subculture requires commitment,
acquisition of the group’s beliefs and values, participation in its activities, and use of
its jargon and rituals
19
20
Ertugrul in Pakistan
• https://www.facebook.com/ErtugrulFans-Pakistan-110695620623914/
• https://propakistani.pk/lens/turkishtourism-to-increase-following-popularityof-
shows/
21
Marketing and Consumption Subcultures
•Clothing initially worn by a consumption
subculture may emerge as a style for much larger
group
E.g The sneaker cultures
Marketers can and should attempt to use the most
respected members of a consumption subculture
as a means for identifying trends and influencing
consumers in the mass market
22
Consumer Insight 7-1
• Can meaningful communities exist on the Internet?
• What are the implications for society of the emergence of Internetbased
communities?
• What are the ethics of marketers monitoring Internet interest groups
for product and advertising insights?
• What are the ethics of marketers participating in Internet interest
groups without revealing their identity or purpose?
23
Brand Communities
• A nongeographical bound community, based on a structured set
of social relationships among owners of a brand and the
psychological relationship they have with the brand itself, the
product use, and the firm.
• Nature of Brand Communities:

• Consciousness of Kind
• Rituals and Traditions
• Moral Responsibility
24
Marketing and Brand Communities
Brand communities can add value to the ownership of the product
and build intense loyalty
building a brand community involves establishing relationships with
the owner and helping owners establish relationships with each other

•E.g. gatherings of owners and others for

the purposes of interacting with one
another in the context of learning about
and using the brand
25
26
Online Communities and Social Networks
An online community is a community that
interacts over time around a topic of interest on
the Internet.
•online message boards and discussion groups,
blogs, as well as corporate and nonprofit
websites.
Research indicates that online communities exist for many participants and that there
is often a sense of community online, which moves beyond mere interactions to
include an affective or emotional attachment to the online group. Studies have found
ongoing communications among subsets of these interest groups. In addition, the
patterns of communication indicate a group structure, with the more experienced
members serving as experts and leaders and the newer members seeking advice and
information. These groups develop unique vocabularies, netiquette, and means for
dealing with behaviors deemed inappropriate.
27
28
online social network site
Friendship

•Facebook, Instagram
•Media Sharing

•Youtube, Vimeo
•Corporate/Brand

•LEGO ideas
•Business Networking

•LinkedIn
•Micro-blogging

•Twitter
online social network site is a web-based service that allows individuals to (1)
construct a public or semipublic profile within a bounded system, (2) articulate a list
of other users with whom they share a connection, and (3) view and traverse their list
of connections and those made by others within the system
29
Social Network Statistics
3.81 billion people use social media worldwide in 2020, up almost double
from 2.07 billion in 2015 (49% of 7.7b total population)
Out of 3.81 billion social media users, 98.68% access the websites or apps
through a mobile device
In 2020, the average time spent on social media per day is 2 hours 24
minutes globally for users aged 16 to 64 on any device
the average number of social media accounts a person has is 8.6
worldwide,
social media growth in 2019-2020 is led by Asia: +16.98%,
Africa +13.92%, South America +8.00%, North America +6.96%,
Europe +4.32%, and Australasia +4.9%
people that use social media for work is 43% of all internet users
the country with the most significant social media growth in 2019-2020 was
India, with 130 million new users joining platforms
Since its inception in 1996, social media has managed to infiltrate half of the 7.7
billion people in the world. Social network platforms almost tripled their total user
base in the last decade, from 970 million in 2010 to the number passing 3.81 billion
users in 2020.
The spectacular year-on-year adoption of new users on the platforms is, however,
slowing down. It now relies on the continuous growth in the number of people with
internet access and smartphones, particularly in developing regions.
https://backlinko.com/social-media-users
https://www.hubspot.com/marketing-statistics
30
Marketing and Online Communities and
Social Network
More and more consumers are using social media websites to
discuss and review their products/brands
A large number of firms indicate that they acquired customers
through social media (51% twitter, 68% FB)
2/3 of consumers who interact with brands via social media are
more likely to recall the brand, share information about the
brand, feel connected and purchase
Online communities and social networks are attractive for a number of reasons,
However, consumers don’t just want entertainment or marketing; they want content
that is relevant and useful to them. Research found that more than three-fourths of
those polled prefer social media to provide incentives such as free products and
coupons, and close to half want social media to provide information or solutions to
their problems
31
Guiding principles for online marketing
1. Transparency

•E.g. Sony’s PSP “Flog” was registered

to a marketing company
2. be a part of the community

•Although companies are more skewed to

promotion on SM, better
companies engage in customer service
and service-failure recovery efforts
3. take advantage of the unique capabilities of each venue.

•Other than banners, pop-up ads,

companies can also maintain their
own channels, pages.
it is critical that companies identify themselves and any posted content as such.
Marketers who fail to do so risk being found out and subject to
massive criticism from the community.
The second principle is to be a part of the community. Online communities often
expect that the company will be part of the community and not just market to it
The third principle is to take advantage of the unique capabilities of each venue.
Many of the social network sites have special areas for corporate advertising and
activities that extend beyond traditional banner and pop-up ads. For example,
companies can have their own channel on YouTube, which they manage, monitor, and
facilitate, as Jeep does. An additional example is the “like” component of Facebook.
Oreo, for instance, has accumulated over 43 million likes of the cookie company’s
Facebook page due to its specialized, creative, and high-quality content. The company
recently ran a “playwithoreo” promotion, inspiring consumers to post pictures or
videos of their favorite way to eat an Oreo.25 Caution should be heeded, though.
Companies need to be aware of the limitations of Facebook and social media in
altering a consumer’s behavior.
Recent research has shown that liking a company’s
Facebook page does not lead to increased purchasing:
32
32
Remember!!!!
• liking a company’s Facebook page does not lead to increased
purchasing
• Nevertheless, many companies like Oreo have managed Facebook in
such a way that it is meaningful and engaging to customers and thus
creates real value, in the form of new product ideas, for the firm.
33

REFERENCE GROUP
INFLUENCES ON THE
CONSUMPTION PROCESS
34
The Nature of Reference Group Influence
• Informational: when an individual uses behavior and opinions of
reference group members as potentially useful bits of information
• Normative: when an individual fulfills group expectations to gain a
direct reward or to avoid a sanction
• normative influence is strongest when individuals have strong ties
to the group and the product involved is socially conspicuous
• Identification: when individuals have internalized the group’s values
and norms
• value-expressive influence
Informational
This influence is based on either the similarity of the group’s members to the
individual or the expertise of the influencing group member.27 Thus, a person may
notice that runners on the track team use a specific brand of nutrition bar. He or she
then may decide to try that brand because these healthy and active runners use it.
Use by the track team members thus provides information about the brand.
Normative
Ads that promise social acceptance or approval if a product is used are relying on
normative influence. Likewise, ads that suggest group disapproval if a product is not
used, such as a
mouthwash or deodorant, are based on normative influence.
Identification
This influence is based on either the similarity of the group’s members to the
individual or the expertise of the influencing group member. Thus, a person may
notice that runners on the track team use a specific brand of nutrition bar. He or she
then may decide to try that brand because these healthy and active runners use it.
Use by the track team members thus provides information about the brand.
35
Situations and Influence
36
Consumption Situations and Influence
Group influence is strongest when the use of product or brand is visible to the
group. Products such as running shoes are highly visible. Products such as vitamins
are generally not. Reference group influence typically affects only those aspects (e.g.,
category or brand) that are visible to the group
Reference group influence is higher the less of a necessity an item is. Thus, reference
groups have strong influence on the ownership of products such as designer clothes
but
much less influence on necessities such as a washing machine.
37
Determinants of Reference Group Influence
1. Group influence is strongest when the use of product or brand is visible to the
group. Products such as running shoes are highly visible. Products such as vitamins
are generally not. Reference group influence typically affects only those aspects (e.g.,
category or brand) that are visible to the group
2. Reference group influence is higher the less of a necessity an item is. Thus,
reference groups have strong influence on the ownership of products such as
designer clothes but much less influence on necessities such as a washing machine.
3. the individual’s confidence in the purchase situation. This can happen even if the
product is not visible or important to group functioning as a result of the importance
of the decision and a lack of personal decision confidence. Individual personality
traits can influence confidence and thus be susceptible to reference group influence
4. In general, the more commitment an individual feels to a group, the more the
individual will conform to the group norms
5. The more relevant a particular activity is to the group’s functioning, the stronger
the pressure to conform to the group norms concerning that activity. Thus, style of
dress may be important to a social group that frequently eats dinner together at nice
restaurants and unimportant to a group that meets for basketball on Thursday nights
Group Influences on
Consumer Behavior II
1

THE NATURE OF REFERENCE GROUP

INFLUENCE
Informational: when an individual uses behavior and opinions of
reference group members as potentially useful bits of information
Normative: when an individual fulfills group expectations to gain a
direct reward or to avoid a sanction
normative influence is strongest when individuals have strong ties to
the group and the product involved is socially conspicuous
Identification: when individuals have internalized the group’s values
and norms
value-expressive influence
Informational
This influence is based on either the similarity of the group’s members to the
individual or the expertise of the influencing group member.27 Thus, a person may
notice that runners on the track team use a specific brand of nutrition bar. He or she
then may decide to try that brand because these healthy and active runners use it.
Use by the track team members thus provides information about the brand.
Normative
Ads that promise social acceptance or approval if a product is used are relying on
normative influence. Likewise, ads that suggest group disapproval if a product is not
used, such as a
mouthwash or deodorant, are based on normative influence.
Identification
This influence is based on either the similarity of the group’s members to the
individual or the expertise of the influencing group member. Thus, a person may
notice that runners on the track team use a specific brand of nutrition bar. He or she
then may decide to try that brand because these healthy and active runners use it.
Use by the track team members thus provides information about the brand.
2

MARKETING STRATEGIES BASED ON

REFERENCE GROUP INFLUENCES
3

PERSONAL SALES STRATEGIES

Asch phenomenon
social pressure from
a majority group
could affect a person
to conform.
A group of potential customers is brought together for a sales presentation. As each
design is presented, the salesperson scans the expressions of the people in the group,
looking for the one who shows approval (e.g., head nodding) of the design. The
salesperson then asks that person for an opinion because the opinion is certain to be
favorable. The person is asked to elaborate. Meanwhile, the salesperson scans the
faces of the other people, looking for more support, and then asks for an opinion of
the person now showing the most approval. The salesperson continues until the
person who initially showed the most disapproval is reached. In this way, by using the
first person as a model, and by social group pressure on the last person, the
salesperson gets all or most of the people in the group to make a positive public
statement about the design
4

ADVERTISING STRATEGIES
Marketers use all three types of reference group influence
when developing advertisements
Informational influence
ad uses an expert reference group (e.g., dentists, doctors,
and teachers) as the information agent
Normative group influence is not portrayed in ads as much
Identification influence:
socially active young singles or parents of young children
1. The message, generally unstated, is that “these types of people find this brand to
be the best; if you are like them, you will too.”
2. Normative group influence is not portrayed in ads as much as it once was. It
involves the explicit or implicit suggestion that using, or not using, the brand will
result in having members of a group you belong to or wish to join rewarding or
punishing you. One reason for the reduced use of this technique is the ethical
questions raised by implying that a person’s friends would base their reactions to
the individual according to his or her purchases. Ads showing a person’s friends
saying negative things about the person behind his or her back because that
person’s coffee was not great (yes, there was such an ad campaign) were
criticized for playing on people’s insecurities and fears
3. Identification influence is based on the fact that the individual has internalized
the group’s values and attitudes. The advertising task is to demonstrate that the
product is consistent with the group’s—and therefore the individual’s—beliefs.
This often involves showing the brand being used by a particular type of group,
such as socially active young singles or parents of young children
5

COMMUNICATIONS WITHIN GROUPS AND

OPINION LEADERSHIP
6

HOW DO YOU LEARN ABOUT NEW

PRODUCT
FROM FRIENDS AND REFERENCE
GROUP?
By observing or participating with them as they
use products and services
by seeking or receiving advice and information
from them in the form of word-of-mouth (WOM)
communications.
individuals sharing information with other
individuals in a verbal form, including face-toface, on the
phone, and over the Internet
7
WOM
Friends/family other group members more
effective than marketing communication
82 percent of consumer purchases are influenced
by WOM
the importance of WOM is generally high, and its
importance relative to advertising varies somewhat
across product types
Negative experiences are powerful motivators of
WOM
consistent product and service quality and quick,
positive responses to consumer complaints.
Consumers generally trust the opinions of people (family, friends, acquaintances)
more than marketing communications because, unlike marketing communications,
these personal sources have no reason not to express their true opinions and
feelings. As a consequence, WOM can have a critical influence on consumer decisions
and business success. It is estimated that 82 percent of consumer purchases are
influenced by WOM.32 This WOM can be more effective the more explicit it is.
Recent research shows that purchase intentions increase when a person
recommends, as opposed to likes, the product.33 Consumers put their faith in WOM
versus advertising across a number of products and services. The information
following shows the percentage of adults who put people (WOM from friends, family,
or other people), as compared with advertising, at the top of their list of best sources
for information.
Negative experiences are powerful motivators of WOM, a factor that must be
considered by marketers because negative WOM can strongly influence recipients’
attitudes and behaviors.35 Negative experiences, which are highly emotional and
memorable, motivate consumers to talk. While the number varies by situation and
product, it is not at all uncommon to find that dissatisfied consumers tell twice as
many people about their experience than do satisfied consumers.36 While merely
8
satisfying consumers (delivering what they expected) may not always motivate WOM,
going beyond satisfaction to deliver more than was expected also appears to have the
potential to generate substantial WOM. Thus, companies may consider strategies for
“delighting” consumers or otherwise creating positive emotional experiences that
consumers are motivated to pass along in the form of positive WOM
8
9
10
11
12
13
14
15

CHARACTERISTICS OF OPINION
LEADERS
Enduring Involvement
functions primarily through interpersonal
communications and observation
Have similar demographic characteristics as their
influencers
More gregarious
More exposure to the relevant media
The most salient characteristic of opinion leaders is greater long-term involvement
with the product category than the non–opinion leaders in the group. This is referred
to as enduring involvement, and it leads to enhanced knowledge about and
experience with the product category or activity. This knowledge and experience
make opinion leadership possible. Thus, an individual tends to be an opinion leader
only for a specific product or activity clusters.
16

OPINION LEADER
These individuals actively filter, interpret, or
provide product- and brand-relevant information to
their family, friends, and colleagues
two-step flow of communication
The process of one person’s receiving information
from the mass media or other sources and passing
it on to others
It is usually a multi-step flow of communication
17
MASS COMMUNICATION INFORMATION FLOWS

MASS COMMUNICATION INFORMATION

FLOWS
The multistep flow of communication involves opinion leaders for a particular
product area who actively seek relevant information from the mass media as well as
other sources. These opinion leaders process this information and transmit their
interpretations of it to some members of their groups. These group members also
receive information from the mass media as well as from group members who are
not opinion leaders. Figure 7–4 also indicates that these non–opinion leaders often
initiate requests for information and supply feedback to the opinion leaders. Likewise,
opinion leaders receive information from their followers as well as from other
opinion leaders. Note how social media facilitates this multistep flow process online.
18

SITUATIONS IN WHICH WOM AND

OPINION
LEADERSHIP OCCUR
The exchange of advice and information between
group members can occur directly in the form of
WOM when:
one individual seeks information from another
 one individual volunteers information
Indirectly through observation as a by-product of
normal group interaction.
19

LIKELIHOOD OF SEEKING AN OPINION

LEADER
Imagine that you are about to make a purchase in a product category with which you
are not very familiar. Further imagine that the purchase is important to you—perhaps
a new sound system, skis, or a bicycle. How would you go about deciding what type
and brand to buy? Chances are you would, among other things, ask someone you
know who you believe is knowledgeable about the product category
This person would be an opinion leader for you. Notice that we have described a
high-involvement purchase situation in which the purchaser has limited product
knowledge about an important decision
In addition to explicitly seeking or volunteering
information, group members provide information to
each other through observable behaviors

Group Influences on
Consumer Behavior
Part 2 of part 2
1

MARKET MAVENS
some individuals have information about many
different kinds of products, places to shop, and other
aspects of markets.
Are generalized market influencers (opinion leaders)
Provide information on product quality, sales, usual
prices, product availability, store personnel
characteristics, and other features of relevance to
consumers
Extensive users of Media
Opinion leaders are specialists. Their knowledge and involvement tend to be product
or activity specific. Therefore, while a person might be an opinion leader for
motorcycles, she or he is likely to be an opinion seeker for other products, such as
cell phones. However, some individuals have information about many different kinds
of products, places to shop, and other aspects of markets. They both initiate
discussions with others about products and shopping, and respond to requests for
market information. These generalized market influencers are market mavens. In
essence, then, market mavens are a special type of opinion leader. Market mavens
provide significant amounts of information to others across a wide array of products,
including durables and nondurables, services, and store types. They provide
information on product quality, sales, usual prices, product availability, store
personnel characteristics, and other features of relevance to consumers. Market
mavens are extensive users of media
2

YOUNGER MARKET MAVENS TENDS

TO
Seek out and write online reviews.
Compare prices.
Shop online
Purchase products that allow them to try new things.
Exhibit brand loyalty because of product quality
Use multiple media devices at the same time.
Their interests and influence extend beyond technology. More than half follow trends
in health and fitness, and almost half monitor trends in food and cooking, as well as
music.
A market maven’s reach cannot be ignored by marketers, as these influencers can
help a company attract new customers.
3

MARKETING STRATEGY, WOM, AND

OPINION LEADERSHIP
4

MARKETING STRATEGY, WOM, AND

OPINION
LEADERSHIP
Marketers are increasingly relying on WOM and
influential consumers as part of their marketing
strategies.
fragmented markets that are more difficult to reach
through traditional mass media
greater consumer skepticism toward advertising
opinion leaders and online creators and critics can
provide invaluable insights in the research and
development process
This is not to say that marketers have given up on traditional advertising and mass
media approaches. Instead, they realize that in many cases they could make their
traditional media spending go a lot further if they could tap into these influential
consumers who will spread the word either indirectly through observation or directly
through WOM.
We examine some marketing strategies designed to generate WOM and encourage
opinion leadership next.
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ADVERTISING
Advertising can stimulate and simulate WOM and
opinion leadership.
Stimulation can involve themes designed to encourage
current owners to talk about (tell a friend about) the
brand or prospective owners to ask current owners (ask
someone who owns one) for their impressions
Simulating opinion leadership involves having an
acknowledged opinion leader endorse a brand
Stimulation can involve themes designed to encourage current owners to talk about
(tell a friend about) the brand or prospective owners to ask current owners (ask
someone who owns one) for their impressions.48 Ads can attempt to stimulate WOM
by generating interest and excitement. Dove generated interest using a combination
of advertising and so-called pass-it-on tools to stimulate WOM. They ran an ad
offering two free bars of Dove to anyone who would recommend three friends, who
also got a free bar of soap that was gift-wrapped with the name of the initiating
friend on the outside. So instead of a sample from a giant company, it felt like a gift
from a friend
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PRODUCT SAMPLING
Sampling, sometimes called “seeding,” involves
getting a sample of a product into the hands of a
group of potential consumers.
potent WOM tool when it involves individuals
likely to be opinion leaders
Can serve as brand ambassadors
https://www.bzzagent.com/
In an attempt to increase the preference for Dockers among the key 24-to-35-yearold
urban market, Levi Strauss created the position of “urban networker” in key cities.
The networkers identified emerging trendsetters in their cities and tied them to
Dockers. This could involve noticing a new band that was beginning to catch on and
providing Dockers to the members. The objective was to be associated with emerging
urban “happenings” and young influentials as they evolved
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RETAILING/PERSONAL SELLING
opportunities exist for
retailers and sales personnel
to use opinion leadership
“fashion advisory boards”
can encourage their current
customers to pass along
information to potential new
customers
Clothing stores can create “fashion advisory boards” composed of likely style leaders
from their target market. An example would be a young woman in a sorority for a
store like Lilly Pulitzer, trying to attract the college-aged and older Millennial.
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CREATING BUZZ
the exponential expansion of WOM
“word spreads like wildfire”
E.g the harry potter books
Opinion leaders, celebrities, movies, event, restricting
supply, publicity, other means of generating excitement
and mystique
No large budgets
key aspect of guerrilla marketing – marketing with a
limited budget using nonconventional communications
strategies.
Marketers create buzz by providing opinion leaders advance information and product
samples, having celebrities use the product, placing the product in movies,
sponsoring “in” events tied to the product, restricting supply, courting publicity, and
otherwise generating excitement and mystique about the brand.
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OPINION LEADERSHIP AND OPINION

SEEKING
SCALES
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ONLINE BUZZ, WOM, AND

ASTROTURFING
As we’ve seen, the Internet continues to change the
nature of interpersonal communications. New
avenues are rapidly evolving, and the rewards can
be huge for companies that can harness the speed
and ease of interconnectivity that the Internet
allows. Here are a few examples:
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Viral marketing is an online “pass-it-along” strategy. It “uses
electronic communications to trigger brand messages throughout a
widespread network of buyers.” Viral marketing comes in many
forms but often involves social media. Worldwide Breast Cancer
started a Facebook campaign to create awareness of the signs and
risk factors of breast cancer as well as to raise funds for the
organization. The “Know Your Lemons” campaign gained over 7
million impressions on Facebook. The viral aspect kicked in when the
ad was shared over 40,000 times. In addition, the campaign also
raised more than $160 million for breast cancer research and
awareness. Nonprofits are not the only organizations using viral
techniques. Companies like Nike, Adidas, and Heineken also have
enjoyed successful viral campaigns recently
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Snapchat is a platform that allows users to message others
privately by sending pictures or short videos that uniquely
disappear a few seconds upon viewing the message. Snapchat
Stories are clips that can be viewed by all of the user’s Snapchat
friends. These news-like feeds stay posted for 24 hours before
disappearing. Snapchat is popular among Millennials, with 60
percent of users under the age of 24. Brands, especially those
targeting a younger demographic, are creatively using Snapchat
and its “stories” feature to connect with their customers. For
example, the candy brand Sour Patch Kids attracted over
100,000 new followers with its recent “Blue Kid” Snapchat story
campaign. Amazon also has used Snapchat to offer exclusive
promotional deals on Black Friday
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Twitter is a micro-blogging tool that allows users to communicate with
others through short messages. It limits posts to 280 (formerly 140)
characters. It has evolved quickly into one of the largest and fastest-growing
social media outlets. For marketers there are a number of uses for Twitter.
First, as we saw earlier, consumers can post complaints or information
requests to a brand’s Twitter account, to which companies can respond.
Second, companies can utilize a Twitter feature called Promoted Tweets. The
promotion indicator (like an advertisement) shows up on the Tweet and then
the Tweet itself comes up on the search results, even of those who aren’t the
brand’s followers on Twitter. Finally, companies like Sponsored Tweets and
Opendorse are connecting brands with influential tweeters. These tweeters,
often celebrities or athletes like LeBron James and Kim Kardashian who have
millions of followers, get paid for tweeting about specific brands. James was
recently paid $140,000 for a 140-character tweet, which amounted to
$1,000 per character! For a brand to be effective on this platform, full
disclosure is important.
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Customer reviews and review functionality on a website can be a critical
marketing tool. Amazon and others allow consumers to easily post reviews of
products on their sites. Given the power of WOM, this online version of WOM is
a powerful decision influencer. For example, restaurant revenues have been
found to increase between 5 and 9 percent if they increase their ranking on
Yelp by one star. However, there are at least two factors that marketers must be
concerned with regarding online reviews. First, because existing reviews are
“public information,” they tend to “sway” future reviews in that direction. So, if
reviews trend down, that likely feeds more downward bias than if reviews were
done independent of knowledge of prior reviews. Marketers can find themselves
in a battle against a misguided trend, and consumers likely are not getting the
best, most accurate advice. A second concern is fake reviews, where it is
estimated that one in seven reviews is fake. Astroturfing is the practice whereby
companies buy positive reviews of themselves and negative reviews for their
competitors. The “buying” of fake reviews by one company for another is akin to
false advertising. Samsung was recently fined for hiring people to criticize HTC
(a competitor) products.
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