Reference Group

• What is a reference group?

  An individual or group influencing evaluations
• What are the three types of reference groups?

  Informational, utilitarian, value-expressive
• What are the types of reference groups?

  Primary, secondary, formal, informal
• What is an identificational group?

  A group one identifies with or aspires to
• What factors contribute to identificational groups?

  Propinquity, mere exposure, group cohesiveness
• What is group cohesiveness?

  The degree to which group members bond
• What are the types of power in reference groups?

  Referent, informational, legitimate, expert
• What does conformity mean in social contexts?

  A change in beliefs due to group pressure
• What is a brand community?

  A non-geographically bound community of brand admirers
• How do brand community members create value?

  By sharing experiences and coaching each other
• What is collective value creation in brand communities?

  Members benefit from shared knowledge and experiences
• What are the characteristics of online communities?

  Conversations, presence, collective interest, democracy
• What is the role of democracy in online communities?

  Leaders emerge based on reputation among members
• Why are standards of behavior important in virtual communities?

  They govern behavior for effective operation
• How does crowd power change marketing relationships?

  Companies market with customers, not to them
• What is word-of-mouth communication (WOM)?

  Informal communication influencing buying decisions
• How much do recommendations influence buying decisions?

  80% of decisions are influenced by recommendations
• What is the two-step model of communication in WOM?

  Opinion leaders influence recipients through media

  
• What are characteristics of opinion leaders?

  Knowledgeable, credible, socially active, early adopters
• What is a market maven?

  An unpaid enthusiast who shares information
• What types of mavens exist?

  Neighborhood, professional, fanatical, celebrity mavens
• How do strong and weak ties influence WOM trends?

  Weak ties can spread information more widely
• What factors influence social epidemics in WOM?

  Network effect, message content, context
• What is a social network?

  A set of socially relevant nodes connected by relations
• What are nodes in a social network?

  Members connected by relationships
• What are flows in social networks?

  Exchanges of resources, information, or influence
• What is media multiplexity?

  Communication flows in many directions simultaneously
• What defines online influencers?

  Individuals with significant social influence online
• How are influencers categorized?

  By follower size and content type
• What is the megaphone effect?

  Too much information reduces trust and intent
• What mediates the impact of self-disclosure?

  Appropriateness of the context of the post
• What are the five potential gratifications of participating in virtual communities?

  • Social interaction
  • Information sharing
  • Emotional support
  • Entertainment
  • Sense of belonging
• What is the significance of established norms in conformity?

  They guide behavior in social situations
• How do online communities thrive?

  Through communication and active participation
• What is the role of opinion seekers in WOM communication?

  They actively seek guidance from opinion leaders
• What is the impact of social media on consumer behavior?

  It changes how companies interact with consumers
• What is the importance of participation in online communities?

  It ensures the community remains active and engaging
• How do social networks influence individual behavior?

  Through relationships and shared experiences
• What is the significance of the context of a post in self-disclosure?

  It influences trust and purchase intent