Chapter 3
3.1 Information Sources
A reference group is any person or group of people who significantly influences an indi-vidual’s behavior (Bearden and Etzel, 1982). From this definition you can say that reference groups can be individuals like family members, colleagues, sportsmen, stars, and political or religious leaders. Of course, reference groups can also be groups of individuals, such as classmates, online communities, rock bands, or professional associations. Usually, reference groups are classified in primary versus secondary groups, formal versus informal groups, and aspirational versus dissociative groups (Blackwell et al., 2001).
In general, primary reference groups have most influence. Participation in such groups is integrated and motivated, and based on unrestricted face-to-face communication, for example, a family. Members tend to exhibit a high degree of similarity in beliefs and behavior (Witt and Bruce, 1972). Secondary reference groups also have face-to-face interaction, but it is not occurring regularly, less comprehensive, and less influential (i.e., an local orchestra) (Ward and Reingen, 1990). Formal reference groups are characterized by a defined structure and needs for membership. Informal reference groups have less structure and tend to be based on friendship or shared interests (Blackwell et al., 2001). An example can be a record label versus a fanclub of a particular artist. Aspirational reference group influence comes from a desire to take on the norms and values of others who one wants to be like. The desire to belong to the group can be realistic (membership is expected), or it can be entirely symbolic (membership is not expected). In contrast, dissociative reference groups are groups from which one tries to avoid any contact (Blackwell et al., 2001).
Besides the classification of reference groups, there are also three forms of reference group influence. In the first place, normative influence occurs when people alter their beliefs or behaviors to meet the expectations of others. Usually, the reference group puts its pressure to use to conform to group norms (i.e., in terms of dress). Normative influence can result in adoption of group beliefs and behaviors, but the result can also be in conformity with group norms without adopting all its beliefs and behaviors (Homans, 1961). Second, value-expressive influence occurs when a need for psychological association with a group causes acceptance of its norms, values, attitudes and behaviors (Bearden et al., 1982). In this case, there is no group pressure. The underlying motivation is an increased image in the eyes of others, or identification with people that one admires or respects (Blackwell et al., 2001). Third, informational influence occurs when people accept the opinions of others as evidence about reality. This is most likely to happen in situations in which people have difficulty appraising product characteristics by own observation. As a result, recommendations or usage by other individuals are perceived as thoughtful and valid (Burnkrant and Cousineau, 1975; Calder and Burnkrant, 1977).
Reference groups affect consumers in multiple ways and to different degrees depending on consumer and product characteristics. In general, reference group influence tends to be higher in cases where there is (Blackwell et al., 2001):
- a high desire for social acceptance;
- little experience in the situation or with the decision;
- public conspicuousness of purchase and use;
- complex products or luxury items.
A key theoretical concept underlying reference groups is the idea that “behavior is affected more by the kinds of ties and networks in which people are involved than by the norms and attributes that individuals possess” (Haythornthwaite and Wellman, 1998, p.1102). These communication ties provide the routes for information exchange. Weenig and Midden (1991) came to a conclusion that the ties between individuals and groups are of importance. They state:
“The number of existing ties within a communication network indicates the availability of routes for information diffusion and hence the probability that the information reaches a random network member; after all, the larger the number of ties in a network, the more alternative routes will be available for information diffusion (p. 735).”
Figure 3.1: Example of a Network and its ties
Granovetter (1973) gives the "strength" of a tie the following definition: “the strength of a tie is a (probably linear) combination of the amount of time, the emotional intensity, the intimacy (mutual confiding), and the reciprocal services which characterize the tie.” Each of these is somewhat independent of the other, though the set is obviously highly intracorrelated (Granovetter, 1973). The strength of a tie is defined by Weenig and Midden (1991) as “the quality of interaction between two individuals” (p. 735).
Granovetter's (1973) theory on "the strength of weak ties" provides an explanation of the process by which eWOM behavior at the micro level is linked to macro-level. A consumer's social relations with other relevant actors typically include a broad range of ties ranging from strong primary (i.e., such as close friends) to weak secondary (i.e., such as acquaintances).
Granovetter (1982, p. 113) acknowledges in his revisions of the theory "that strong ties can also have some value". Brown and Reingen (1987, p. 353) show that "...strong ties play a more significant role in several aspects of micro-level referral behavior...". They propose five points:
| Tie Activation: | If you look at Figure 3.1 then you can imagine that it is possible for consumer C to try to talk with A or B. It is unlikely that C will try to talk to both but choose for one of them. The one consumer C will pick to talk with (social interaction), will be the one C has the strongest tie with. A variable affecting tie activation is strength of tie. |
| Information Seeking: | Activating a tie for information flow may be due to several reasons, including actively soliciting information from a source or flows induced by situational or environmental cues (Belk, 1971). Strong-tie consumers will probably know much more about each other than do weak-tie ones, including how relevant they are to each other as sources of information about consumer goods. This should facilitate active information search behaviour among consumers in strong-tie relations. |
| Perceived Influence: | Activated ties for the flow of information can also vary in the degree of influence as perceived by receivers. Therefore, it is useful to distinguish between flows of information and perceived influence. Lin (1971) made the observation that the literature on interpersonal communication has often failed to differentiate between these types of flow. |
| Subgroups: | Granovetter (1973) argues that strong-tie networks exhibit a tendency toward transitivity. This tendency facilitates the emergence of subgroups of referral actors. Subgroups of this kind have an emergent character, and they tend to be informally structured (Reingen and Kernan 1986). Nevertheless, the subgroups have members who have strong ties with each other and have repeated interactions (Granovet-ter's 1973, 1982). |
| Overlap: | Strong ties can play an important role in the extent to which consumers rely upon the same members of the information flow network for one good for obtaining information about a related good. Feldman and Spencer (1965) suggest such overlap in information flow networks. |
For eWOM referrals, this "strength of weak ties" comes from their bridging function that allows information to travel from one point of social structure composed of referral actors (A, B, C in Figure 3.1) to another more cohesive point of the broader referral system (E, F, G, in Figure 3.1) through a weak tie (B and E). If weak ties did not exist, a system would consist of disassociated subgroups, each subgroup consisting out of (their own) information. Weak ties are important to see how these ties grow to form a large-scale pattern. Granovetter does not argue that all or even most weak ties serve as bridges linking closely knit network segments: "The importance of weak ties is asserted to be that they are disproportionately likely to be bridges, as compared to strong ties, which should be underrepresented in that role" (Granovetter, 1982, p. 130).
For eWOM to be effective as decision-making guide, the consumer must trust the sender (weak or strong tie). Online retailers such as eBay have tried to cover the issue of trust and credibility of senders by offering rating systems in which consumers provide feedback about the quality of information provided by the sender in the past. This suggests that information about the sender may provide information to consumers in deciding whether to accept their advice. Information in about the senders may be especially important in online environments where, no credible, meaningful relationships with others, consumers may rely on information in profiles to develop trust.
Duhan et al. (1997) found that perceived tie strength influenced the selection of sources sought for eWOM. However, in the scope of online shopping, consumers often communicate with strangers with whom they have “weak-tie” sources. They may still choose to communicate with these unknown individuals, using whatever information they have to make trust inferences (McKnight et al., 2002).
As consumers seek to take advantage of all of the heuristics available within online environments, identification with the sender on a personal level could compensate for some of the ambiguity that typically characterizes the online experience.