Page 196 - DMGT506_CONSUMER_BEHAVIOUR

Unit 14: Opinion Leadership and Diffusion of Innovation

Notes

Task Interview five of your classmates/friends and find out who would they go
for information for the products mentioned below, and also indicate why do you view
her/him as the source of information and advice?
(a) Cell phones, (b) Latest fashion clothes, (c) College for management education,
(d) Holiday resort, and (e) Computer notebook.

Caselet Why is Opinion Leadership Topical?

he proliferation of brands, the clutter of brand communication, the emergence of
sub-cultures and a shift from mass media (especially for brands not addressing the
Tmass market) are some of the reasons why opinion leadership is becoming a high
priority strategy for brands. Buzz or word-of-mouth consumer referrals and viral marketing
(word-of-mouth through digital media) are some of the strategies strongly linked to
opinion leadership.

With, consumer awareness and consumer confusion on the rise (awareness due to exposure
to information and confusion due to exposure to brand claims and advertising clutter),
consumers require an information source with credibility.
Opinion leadership provides the credibility that reinforces consumer confidence in brands.
Opinion leadership involves the informal communication of one consumer (leader) to
another consumer (opinion seeker). This informal communication could be with regard
to product and service categories, retail outlets and features and benefits associated with
brands.
Opinion leaders, though traditionally considered as consumers providing marketing
related information to fellow consumers, can in today's context double up as trend-setters
in categories such as fashion, music, entertainment and symbolic categories such as watches
and mobiles. This is because the underlying consumer behaviour related to opinion
leadership provides a perception to the information received by the consumer in a variety
of product categories. For example:
Louis Philippe Vs Arrow, Van Heusen or Park Avenue (branded apparel)
Samsung Vs LG, Philips or Sony (TVs)
Canon Vs Sony, Kodak or Pentax (digital cameras)

A Swatch watch bought impulsively by a trendy urban consumer simply because it was
suggested by a friend as a fashion accessory. In the Indian market the watch is priced in the
range of around $100 as against its cheapest version abroad in the price range of $10-$20.
Motorola's colourful mobiles at around 4,000 are a symbol of fun and fashion among
consumers. These examples reflect the popularity and power of opinion leadership in
India, with several product categories recording steady market growth in recent times.
Source: www.thehindubudinessline.com

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