BU432 Lecture Notes - Lecture 7: Iphone 6, Gift Registry, Nuclear Family
BU432
Group Influences
Word-of-Mouth Communication
• Product info transmitted by individuals to individuals
o More reliable and trustworthy than formal marketing channels
o Often accompanied by pressure to conform
o Influences 2/3 of all sales
o Influences later stages of decision making
o Powerful for unfamiliar product categories
o Negative WOM is weighed more than positive WOM
What Makes Things Go Viral?
• Messages that are simple to spread
• Easy to copy
• Understandable or relatable
• Boosts esteem or ego
• Funny and universal
• Short
• Different or novel
• Touching content
Opinion Leaders
• Roles
o Filter, interpret, or provide information for individuals within groups
o Absorb risk for others
o Information leaders
• Traits
o Innovative, technically competent users of a product
o Willing to collect and share information
o Self-confident
o Outgoing, attention seeking, and connected
• Often early adopters
Identifying Opinion Leaders
• Self-designating method
o Most common, easy to implement method
o Often results in inflation or unawareness of own importance/influence
o Survey people to tap into their level of influence
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• Sociometric method
o Systematic map of group interactions
o Precise, but difficult/expensive to implement
o Network analysis
▪ Referral behaviour/network, tie strength
▪ Bridging function, strength of weak ties
o Track or observe social networks
Family Life Cycle
• Describes relatively homogenous household segments
• Each stage is fairly predictable and has distinct consumption patterns
• 4 relevant criteria:
o Age of main earner(s)
o Relationship status
o Presence of children
o Age of children (if applicable)
Family Life Cycle Stages
FLC Stages
• Porshe add ith 2 seater ar The ore kids you hae, the ore pratial it eoes
o Either full or empty nest with kids who are independent
• Home Depot gift registry add with cake topper
o New homes need maintenance
Changes in Canadian Households
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Group influences: product info transmitted by individuals to individuals, more reliable and trustworthy than formal marketing channels, often accompanied by pressure to conform. Influences later stages of decision making: powerful for unfamiliar product categories, negative wom is weighed more than positive wom. What makes things go viral: messages that are simple to spread, easy to copy, understandable or relatable, boosts esteem or ego, funny and universal, short, different or novel, touching content. Opinion leaders: roles, filter, interpret, or provide information for individuals within groups, absorb risk for others, traits. Innovative, technically competent users of a product: willing to collect and share information, self-confident, outgoing, attention seeking, and connected, often early adopters. Family life cycle: describes relatively homogenous household segments, each stage is fairly predictable and has distinct consumption patterns, 4 relevant criteria, age of main earner(s, relationship status, presence of children, age of children (if applicable)
