Consumer decision making process

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The power of the reference group

The influence that a group has on an individual is closely related to the group’s power. There exist several different kinds of power that has been identified as affecting consumers buying behaviour. Three aspects are particularly relevant for marketing strategy: expert power, referent power, and reinforcement power. An individual who exerts expert power need experience and knowledge in the certain subject in order to affect the consumers. The consumers need the person with expert power to have credibility and to be more knowledgeable or experienced with the product. The identification with members of the group is the base for referent power. When consumers have a close similarity in terms of social situation, beliefs and attitudes to the members of the group, the group can affect consumers with referent power. The person is either a member of a group or may aspire to belong to the group. This desire to belong make the consumers eager to adapt to the norms and values provided by the group (Assael, 1992).
The third aspect of influence that has a major impact on consumer’s decision making is reinforcement power. Kohli (1989) discuss that reinforcement power is the ability to mediate positive and negative reinforcements. It consists of reward and coercive power. Assael (1992) discuss that this phenomenon is based on the group’s ability to confirm the individual’s purchase. Social groups can confirm the purchase both through rewarding (reward power) or criticising (coercive power). Compliments on purchased products provided by a relevant group member reinforce the consumer’s choice and is thus an example of reward power. Groups that have reward power may also have coercive power over the individual.
Coercive power is a negative confirmation of the consumer’s purchase. This means that the group disapproves with the individual’s choice, and thus encourage him/her to reconsider their purchase. The greater the value of the group, the greater is its power to express dissatisfaction and even criticize.

Types of reference groups

There are many different kinds of social groups. As stated above, it is possible for a consumer to belong to several groups and also to turn to different group depending on the situation. Here below is a short description of some general features for reference groups.
According to Antonides and van Raaij (1998) a comparative group is a group that the consumer does not belong to. This group is according to Blackwell et al (2001) just another source of information in the consumer’s decision making.
The normative groups are according to Antonides and van Raaij (1998) much stronger in their ability to affect consumers; they provide norms and values that set the standard in behaviour and ownership. The normative influence can, according to Blackwell et al (2001) be seen as more binding and more severe then the comparative groups. The normative members are more affected of products beliefs, taste and preferences and have a more direct influence on consumer decision making. Previous research has shown that the outcome of this is that these groups are more likely to buy the same brands (Assael 1992). However, more recent research (Blackwell et al 2001) suggests that the normative pressure is declining in the western world since the new generation is putting their own needs before the group, thus prioritizing themselves.

Virtual group

Virtual groups are based on online encounters, and are thus not necessarily based on geographical proximity. They are normally also based on similar interests, and serve as an online meeting point where people can meet and discuss their main interest. Blackwell et al (2001) also argues that the information flow amongst the group members are often less inhibited, as people dare to be more honest when not meeting face-to-face. Also they argue that the subject can span over a very large width, including all possible subjects. The tools used to communicate for these virtual groups can in many cases be a collaborative blog.

Previous research

Bickart & Schindler (2001) investigated the WOM in online forums on the Internet. They assigned students to look at either corporate web pages or consumer forums about specific products. They found that after one semester, there was a higher interest in the product category for those who used the online discussion forum. They then suggested that a reason for this was because the content posts in the online discussion forums are thought to be more credible and more relevant but also having more empathy among its readers.
Bickart & Schindler (2005) also did another study in which they sought to explore the consumer use of online WOM. They found three motives for using online WOM. The interviewees used it to gain information in purchase decisions, in which consumer reviews and negative information was of most interest. Another motive was to get support from decision already made in which positive was used most for confirmation of that the right choice have been made. The third motive was purely for entertainment purpose where information was searched for fun. Another theme they discovered was the evaluation of the content of information in online WOM. Their interviewees were concerned if information would be biased or untrustworthy. The interviewees questioned information from corporate web pages. Independent web pages free from corporate marketing, in which detailed information and authentic first person experience was viewed more credible and reliable. A consensus of agreement among consumers in the online WOM also tended to increase the credibility. Finally, they found the use of WOM online to be spread through all the stages in the consumer decision-making process. During the need recognition, when product was mentioned, it sometimes stimulated interest or problem recognition for the consumer.
Other consumers sometimes provide ideas that lead for alternative product to be included, or removed, in the consumer consideration set. Online WOM also suggested important attributes that could influence the criteria of which alternatives are compared. Information from consumers on how alternative rate on those criteria was also of importance when comparing alternatives. After purchase was done, online WOM information could increase the consumer’s satisfaction of the purchase through positive information. They also discovered that their informants were selective in their information gathering process. This was done to simplify the information but also to help them absorb the information with minimal effort. This selectivity they discuss is necessary as the Internet contained a vast amount of consumer information about a large area of different products. They continue and suggest that future research should look deeper into what characterise the content in
those online WOM consumers choose to read.

1 Introduction 
1.1 Problem Background
1.2 Problem Discussion
1.3 Purpose.
2 Definitions.
3 Theoretical framework
3.1 Blogs
3.2 Communication
3.3 Consumer decision making .
3.4 Previous research
3.5 Summary of theoretical framework and research questions
4 Method 
4.1 Research approach.
4.2 Research Strateg
4.3 Qualitative vs. Quantitative
4.4 Data collection.
4.5 Credibility, transferability, dependability and conformability .
4.6 Data presentation and analysis
5 Empirical findings
5.1 Interview with Anna
5.2 Interview with Anders
5.3 Interview with Jim
5.4 Interview with Josefin
5.5 Interview with Peter .
5.6 Interview with Michae
5.7 Interview with Mar
5.8 Interview with Eric
5.9 Interview with Magnus
6 Analysis
6.1 Consumer decision making process
6.2 Group influence in the blogosphere.
6.3 Characteristics of influential individuals in the blogosphere
6.4 Characteristics of information in blog posts
7 Conclusion
8 Discussion 
Reference list

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Blog Marketing A consumer perspective Bachelor