Dacko S.G. The Advanced Dictionary of Marketing Putting Theory to Use
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small group theory 480
small group theory
DESCRIPTION
Theoryor theories aimedatunderstanding,explaining, and/or predictingsmall
group behavior.
KEY INSIGHTS
Small group theory is concerned with the study of small groups of psycho-
logically interrelated individuals. Such groups are considered to consist
of interdependent relationships among individuals in terms of beliefs,
attitudes, and behaviors. The many conceptualizations and hypotheses
comprising the theory provide a basis for small group evaluations.
KEY WORDS Small groups, behavior
IMPLICATIONS
Marketers seeking to understand better the small group behavior of
consumers may potentially obtain insights into such behaviors through
greater knowledge of small group theory. Whether in exploratory mar-
keting research or the development of marketing models aimed at
explaining and predicting small group consumer behavior, the concepts
contained within small group theory can assist the marketing researcher
in systematically examining a range of small group phenomena associ-
ated with the evaluation, purchase, and repeat purchase of a marketer’s
offerings.
APPLICATION AREAS AND FURTHER READINGS
Consumer Behavior
Rudd, Joel, and Kohout, Frank J. (1983). ‘Individual and Group Consumer Informa-
tion Acquisition in Brand Choice Situations,’ Journal of Consumer Research, 10(3),
December, 303–309.
Marketing Modeling
Lilien, Gary L., Rao, Ambar G., and Kalish, Shlomo (1981). ‘Bayesian Estimation
and Control of Detailing Effort in a Repeat Purchase Diffusion Environment,’
Management Science, 27(5), May, 493–506.
BIBLIOGRAPHY
Davis, Harry L., and Silk, Alvin J. (1971). Small Group Theory and Marketing Research.
Cambridge, Mass.: MIT Press.
SMS marketing see mobile marketing
snob effect
DESCRIPTION
Buying behavior characterized by the desire to own goods which are uncom-
mon, where consumers’ preference for buying such goods increases as their
exclusivity increases and for which consumers’ preference for buying them
decreases as their exclusivity diminishes.
481 snowball effect
KEY INSIGHTS
The snob effect is a phenomenon observable with certain products and
services among certain groups of consumers. For example, when a new
night club strictly limits who can get in, its exclusivity will have a strong
appeal to certain individuals, but if the same night club were to suddenly
throw its doors open to the general public, the night club would be
completely unappealing to the same individuals.
KEY WORDS Exclusive offerings, prestige, luxury goods
IMPLICATIONS
Marketers should seek to understand carefully consumer buying behavior
for their offerings, which may include the snob effect phenomenon. For
some offerings, the prevalence of the snob effect may mean that limit-
ing an offering’s availability may increase its desirability among certain
consumers and vice versa.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Mason, R.(1998). The Economics of Conspicuous Consumption. Northampton, Mass.:
Edward Elgar.
Consumer Behavior
Vigneron, F., and Johnson, L. W. (1999). ‘A Review and a Conceptual Framework of
Prestige-Seeking Consumer Behavior,’ Academy of Marketing Science Review, 1999(1),
1–15.
Mason, R. (1981). Conspicuous Consumption: A Study of Exceptional Consumer Behavior.
Farnborough: Gower.
BIBLIOGRAPHY
Leibenstein, Harvey (1950). ‘Bandwagon, Snob, and Veblen Effects in the Theory of
Conspicuous Demand,’ Quarterly Journal of Economics, 64, 183–207.
snowball effect
DESCRIPTION
Any accumulating effect originating from an action of smaller relative signifi-
cance.
KEY INSIGHTS
While the snowball effect term is figurative and based on the analogy of
a rolling snowball picking up more snow and thereby increasing in size,
mass, and momentum, the term nevertheless captures the notion that
some processes starting from small states of significance can build upon
themselves to ultimately produce highly significant outcomes, where
such outcomes may be either beneficial or detrimental.
KEY WORDS Effect, significance
IMPLICATIONS
Marketers considering particular marketing strategies to achieve a set of
objectives, such as awareness of a new product in the market, should
consider to what extent particular strategies exhibit properties charac-
teristic of snowball effects. Word-of-mouth communication, for example,
snowballing 482
has significant potential to build upon itself in establishing further word-
of-mouth communication.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Helm, S. (2000). ‘Viral Marketing: Establishing Customer Relationships by “Word-
of-mouse,” ’ Electronic Markets, 10(3), 158–161.
Hellofs, L. L., and Jacobson, R. (1999). ‘Market Share and Customers’ Perceptions
of Quality: When Can Firms Grow their Way to Higher Versus Lower Quality,’
Journal of Marketing, 63(1), 16–25.
BIBLIOGRAPHY
Krishna, K. (1999). ‘Auctions with Endogenous Valuations: The Snowball Effect
Revisited,’ Economic Theory, 13(2), 377–392.
snowballing
DESCRIPTION
A technique for sample identification in research which involves identifying
subjects through a referral system whereby existing subjects suggest others
for interviewing or responding to surveys.
KEY INSIGHTS
The snowballing technique is one way of conducting convenience sam-
pling, where the sample selected is not random. After administering the
research on a set of subjects, the subjects are then asked to refer others
who would be willing and interested to also take part in the research.
KEY WORDS Research sampling, referrals
IMPLICATIONS
Snowballing has the advantage of convenience and low cost as a sampling
technique. However, the risk that the selected convenience sample is not
representative of the population of concern is high. Researchers using
this technique have to be careful about the limitations it poses on their
findings.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Menon, Ajay, and Menon, Anil (1997). ‘Enviropreneurial Marketing Strategy: The
Emergence of Corporate Environmentalism as Market Strategy,’ Journal of Mar-
keting, 61(1), January, 51–67.
Marketing Management
Phillips, Lynn W. (1982). ‘Explaining Control Losses in Corporate Marketing Chan-
nels: An Organizational Analysis,’ Journal of Marketing Research, 19(4), Special Issue
on Causal Modeling, November, 525–549.
Online Marketing
Bradley, N. (1999). ‘Sampling for Internet Surveys: An Examination of Respondent
Selection for Internet Research,’ Journal of the Market Research Society, 41(4), 387–
395.
Marketing Research
Helsen, Kristiaan, and Schmittlein, David C. (1993). ‘Analyzing Duration Times
in Marketing: Evidence for the Effectiveness of Hazard Rate Models,’ Marketing
Science, 12(4), Autumn, 395–414.
483 social cognitive theory
Gummesson, Evert (2001). ‘Are Current Research Approaches in Marketing
Leading Us Astray?’ Marketing Theory, 1(1), 27–48.
BIBLIOGRAPHY
Moriarty, Rowland T., and Bateson, John E. G. (1982). ‘Exploring Complex Decision
Making Units: A New Approach,’ Journal of Marketing Research, 19(2), May, 182–191.
social cause marketing see cause-related marketing; social marketing
social cognitive theory
DESCRIPTION
Apsychologicaltheoryofsociallearningthatviewsindividualbehaviorinterms
of dynamic and reciprocal interactions between environment, behavior, and
personal factors including cognitive, affective, and biological events.
KEY INSIGHTS
Social cognitive theory, developed by Bandura (1986), views individ-
ual behavior as something that is learned, regulated, and changing
with time. In addition, vicarious learning is considered to be a key
means of learning a behavior. In the theory, behaviors are under-
stood and explained through interactions of person–behavior, person–
environment, and behavior–environment. As such, the theory provides
a means for understanding and predicting individual as well as group
behavior. Its theoretical and conceptual basis further provides a means
for identifying methods for changing or modifying behaviors. The theory
is considered to be an advancement to social learning theory (see social
learning theory).
KEY WORDS Behavior, social learning, cognition
IMPLICATIONS
Marketers seeking to understand, explain, predict, or influence consumer
behavior to a greater extent may obtain potentially valuable insights as
a result of examining behavioral, environmental, and personal interac-
tions from the perspective of social cognitive theory. In particular, the
theory has been found to be of significant benefit in health promotion
development and in explaining health-related consumer behaviors.
APPLICATION AREAS AND FURTHER READINGS
Marketing Communications
Bandura, A. (2001). ‘Social Cognitive Theory of Mass Communication,’ Media Psy-
chology, 3(3), 265–298.
Bandura, A. (1998). ‘Health Promotion from the Perspective of Social Cognitive
Theory,’ Psychology and Health, 13(4), 623–650.
Consumer Behavior
Sheeshka, J. D., Woolcott, D. M., and MacKinnon, N. J. (1993). ‘Social Cognitive The-
ory as a Framework to Explain Intentions to Practice Healthy Eating Behaviors,’
Journal of Applied Social Psychology, 23(19), 1547–1573.
social exchange theory 484
BIBLIOGRAPHY
Bandura, Albert (1986). Social Foundations of Thought and Action: A Social Cognitive
Theory. Englewood Cliffs, NJ: Prentice-Hall.
social environment see macro environment
social exchange theory
(also called exchange theory)
DESCRIPTION
A theory of human relationships and social interaction based on the view
that individuals expect equity in the costs and benefits associated with social
exchanges.
KEY INSIGHTS
Pioneered by Homans (1950, 1961) and developed further by subsequent
researchers, social exchange theory considers the notion of equity to be
central in human relationships and social interactions. Equity in costs and
benefits leads to stability in such relationships, whereas mismatches lead
to instabilities. The theory therefore predicts that an individual would
choose to discontinue a social relationship where subjective costs exceed
subjective benefits or rewards.
KEY WORDS Social interaction, relationships, equity, cost(s), benefits
IMPLICATIONS
As social exchange theory is concerned with explaining and predicting
stability in social relationships, marketers seeking to establish and main-
tain strong relationships should consider carefully the nature and full
extent of relationship costs and benefits from the other party’s perspec-
tive. Whether the relationship is a buyer–seller relationship or a relation-
ship among firms jointly seeking to meet customer needs, satisfaction
with the relationship and its stability may ultimately hinge upon the
balance of costs and benefits.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Luo, Xueming (2002). ‘Trust Production and Privacy Concerns on the Internet:
A Framework Based on Relationship Marketing and Social Exchange Theory,’
Industrial Marketing Management, 31, 111–118.
Young-Ybarra, Candace, and Wiersema, Margarethe (1999). ‘Strategic Flexibility in
Information Technology Alliances: The Influence of Transaction Cost Economics
and Social Exchange Theory,’ Organization Science, 10(4), July–August, 439–459.
BIBLIOGRAPHY
Homans, George (1950). The Human Group. London: Routledge & Kegan Paul Ltd.
Homans, George (1961). Social Behavior: Its Elementary Forms. London: Routledge &
Kegan Paul Ltd.
social idea marketing see social marketing
485 social identity theory
social identity theory
DESCRIPTION
A psychological theory of social categorization, identification, and comparison
based on individual self-concept derived from group membership.
KEY INSIGHTS
Developed by Tajfel (1978) and Tajfel and Turner (1986), social identity
theory is concerned with understanding and explaining the cognitive and
motivational bases for intergroup differentiation. Originally developed
to understand the psychological bases for intergroup discrimination, the
theory has since developed to encompass broader issues related to social
identity. The major elements of the theory consist of social categoriza-
tions or labels, social identification and its relationship to self-esteem, and
social comparisons including favorability biases to one’s own group. The
theory suggests, for example, that social categories provide individuals
with a sense of identity, that social identities involve prescriptions of
appropriate behaviors, and that group memberships provide bases for
behavioral evaluations.
KEY WORDS Social categorizations, social identification, social comparison
IMPLICATIONS
Marketers seeking to understand better how consumers’ social identities
are related to their identifications with group memberships, categoriza-
tions of group memberships, and comparisons of groups may benefit
from understanding the principles and concepts of social identity theory.
Such understandings may enable marketers to develop offerings of a
social nature which resonate more strongly with consumers. Similarly,
marketing managers concerned with developing effective organizations
may benefit from an understanding of the theory’s concepts in terms of
the social identities of their employees.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Ashforth, Blake E., and Mael, Fred (1989). ‘Social Identity Theory and the Organi-
zation,’ Academy of Management Review, 14(1), January, 20–39.
Hatch, M. J., and Schultz, M. (1997). ‘Relations between Organizational Culture,
Identity and Image,’ European Journal of Marketing, 31(5–6), 356–365.
Madrigal, R. (2001). ‘Social Identity Effects in a Belief–Attitude–Intentions Hier-
archy: Implications for Corporate Sponsorship,’ Psychology and Marketing , 18(2),
145–166.
Consumer Behavior
Kleine, Robert E., III, Kleine, Susan Schultz, and Kernan, Jerome B. (1993). ‘Mun-
dane Consumption and the Self: A Social-Identity Perspective,’ Journal of Consumer
Psychology, 2(3), 209–235.
BIBLIOGRAPHY
Tajfel, H. (1978). ‘Social Categorization, Social Identity, and Social Comparison,’ in
H. Tajfel (ed.), Differentiation between Social Groups: Studies in the Social Psychology of
Intergroup Relations. London: Academic Press.
Tajfel, H., and Turner, J. C. (1986). ‘The Social Identity Theory of Inter-group
Behavior,’ in S. Worchel and L. W. Austin (eds.), Psychology of Intergroup Relations.
Chicago: Nelson-Hall.
social learning theory 486
social learning theory
DESCRIPTION
A psychological theory concerned with the study of individual learning in a
social context, where behaviors are learned by individuals through observa-
tion, imitation, and/or modeling of others’ behaviors.
KEY INSIGHTS
Social learning theory recognizes that individuals can learn from one
another and views learning as something that can occur without a change
in an individual’s behavior. The social learning perspective as developed
by Bandura (1977) focuses on how and why individuals can learn from
others through means including observation of other people’s behaviors,
imitation of others’ behaviors, and modeling their own behavior after
the behavior of others. Concepts within the theory such as attention,
retention, and motivation further explain the conditions under which
effective social learning occurs.
KEY WORDS Individual learning, social context, observation, imitation,
behavioral modeling
IMPLICATIONS
Marketers concerned with understanding and explaining how
individuals—whether consumers or employees in one’s organization—
can learn either desirable or undesirable behaviors in a social context
may benefit from a greater knowledge of social learning theory. Such
knowledge may ultimately enable marketers to increase both the
effectiveness and efficiency associated with individual learning in
support of accomplishing organizational and marketing objectives which
may include social marketing objectives. To the extent a marketer’s
actions are aimed at influencing individual learning through social
settings, marketers should therefore strive to create and responsibly
manage the conditions supporting the learning of desirable behaviors
and discouraging undesirable behaviors, such as by making more evident
the consequences of both types of behaviors.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Ginter, Peter M., and White, Donald D. (1982). ‘A Social Learning Approach to
Strategic Management: Toward a Theoretical Foundation,’ Academy of Management
Review, 7(2), April, 253–261.
Marketing Management
McKee, Daryl O., Conant, Jeffery S., Varadarajan, R. Rajan, and Mokwa, Michael
R. (1992). ‘Success-Producer and Failure-Preventer Marketing Skills: A Social
Learning Theory Interpretation,’ Journal of the Academy of Marketing Science, 20(1),
17–26.
Social Marketing
Andreasen, A. R. (2002). ‘Marketing Social Marketing in the Social Change Market-
place,’ Journal of Public Policy and Marketing, 21(1), 3–13.
BIBLIOGRAPHY
Bandura, Albert (1977). Social Learning Theory. Englewood Cliffs, NJ: Prentice Hall.
487 social loafing
Ormrod, J. E. (1999). Human Learning, 3rd edn. Upper Saddle River, NJ: Prentice-
Hall.
social loafing
(also called the Ringelmann effect)
DESCRIPTION
The phenomenon where individuals are observed to exert less effort when
working cooperatively within a group than when working individually.
KEY INSIGHTS
Based on pioneering research by Ringelmann (1913) and by subsequent
researchers including Latane (Latane, Williams, and Harkins 1979), social
loafing is an observable phenomenon under a range of tasks. Experiments
examining the phenomenon have found that individuals engaged in
group tasks tend to exert less effort (e.g. physically, mentally) on average
in contributing to group outcomes than when the same individuals are
sole contributors to task outcomes. Social loafing tends to occur under
conditions where individuals contribute in a group setting to produce
a group product, as opposed to conditions where individuals contribute
in a group setting to produce individual products. Social loafing as a
phenomenon can be reduced when individual contributions in a group
setting are made easily identifiable.
KEY WORDS Cooperative work, cooperative effort, individual behavior
IMPLICATIONS
Marketing managers and educators concerned with the possibility of
social loafing in group settings should seek to implement means where
individual contributions are more easily identifiable. Explicit discussions
of the phenomenon may also contribute to its reduction to the extent it
encourages individuals to reflect on its individual and collective implica-
tions. Understanding the extent to which the phenomenon varies across
cultures may also be of benefit to marketers involved in effective interna-
tional marketing management.
APPLICATION AREAS AND FURTHER READINGS
Marketing Management
Harkins, Stephen G., and Jackson, Jeffrey M. (1985). ‘The Role of Evaluation in
Eliminating Social Loafing,’ Personality and Social Psychology Bulletin, 11(4), 457–465.
Marketing Education
McCorkle, D. E., Reardon, J., Alexander, J. F., Kling, N. D., Harris, R. C., and Vish-
wanathan Iyer, R. (1999). ‘Undergraduate Marketing Students, Group Projects,
and Teamwork: The Good, the Bad, and the Ugly?’ Journal of Marketing Education,
21(2), 106–117.
Pfaff, E., and Huddleston, P. (2003). ‘Does It Matter if I Hate Teamwork? What
Impacts Student Attitudes toward Teamwork,’ Journal of Marketing Education, 25(1),
37–45.
social marketing 488
International Marketing
Gabrenya, William K., Jr., Latane, Bibb, and Wang, Yue-Eng (1983). ‘Social Loafing in
Cross-cultural Perspective: Chinese on Taiwan,’ Journal of Cross-cultural Psychology,
14(3), 368–384.
BIBLIOGRAPHY
Ringelmann, M. (1913). ‘Recherches sur les moteurs animés: travail de l’homme,’
Annales de l’Institut National Argonomique, 2nd ser., 12, 1–40.
Latane, B., Williams, K., and Harkins, S. (1979). ‘Many Hands Make Light the Work:
The Causes and Consequences of Social Loafing,’ Journal of Personality and Social
Psychology, 37, 822–832.
Karau, S. J., and Williams, K. D. (1993). ‘Social Loafing: A Meta-analytic Review and
Theoretical Integration,’ Journal of Personality and Social Psychology, 65, 681–706.
social marketing
(also called idea marketing, responsible marketing, social idea marketing,
social cause marketing, or socially responsible marketing)
DESCRIPTION
Marketing concerned with influence on the voluntary behavior of individuals
and the promotion of personal and societal welfare.
KEY INSIGHTS
Social marketing is characterized by having a customer orientation
where the marketing principles are drawn upon to design behavior
change interventions. Critical to the success of social marketing efforts
is research into the desires and needs of the target market segment. At
the same time, social marketing also involves recognizing competitive
influences and ensuring continuous monitoring and revision of market-
ing programs and tactics in order to achieve desired outcomes.
KEY WORDS Voluntary behaviour, societal welfare, personal welfare
IMPLICATIONS
Social marketing places consumers in the centre of the exchange process,
where consumers act primarily out of self-interest. In commercial pro-
grams, firms design marketing messages to promote a social concern or
idea as well as the ‘product,’ where the focus is on the behavior associated
with such a product.
In pursuing a social marketing approach, marketers must therefore
take an active interest in people’s aspirations and desires in addition to
their social and commercial needs.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Kotler, Philip, and Zaltman, Gerald (1971). ‘Social Marketing: An Approach to
Planned Social Change,’ Journal of Marketing, 35(3), July, 3–12.
Robin, Donald P., and Reidenbach, R. Eric (1987). ‘Social Responsibility, Ethics, and
Marketing Strategy: Closing the Gap between Concept and Application,’ Journal
of Marketing, 51(1), January, 44–58.
Abratt, Russell, and Sacks, Diane (1988). ‘The Marketing Challenge: Towards Being
Profitable and Socially Responsible,’ Journal of Business Ethics, 7(7), July, 497–507.
489 societal classification of products
Menon, Ajay, and Menon, Anil (1997). ‘Enviropreneurial Marketing Strategy: The
Emergence of Corporate Environmentalism as Market Strategy,’ Journal of Mar-
keting, 61(1), January, 51–67.
Goolsby, Jerry R., and Hunt, Shelby D. (1992). ‘Cognitive Moral Development and
Marketing,’ Journal of Marketing, 56(1), January, 55–68.
Marketing Management
Bloom, Paul N., and Novelli, William D. (1981). ‘Problems and Challenges in Social
Marketing,’ Journal of Marketing, 45(2), Spring, 79–88.
McKenzie-Mohr, Doug (2000). ‘New Ways to Promote Proenvironmental Behavior:
Promoting Sustainable Behavior: An Introduction to Community-Based Social
Marketing,’ Journal of Social Issues, 56(3), 543–554.
BIBLIOGRAPHY
Kotler, P., Roberto, N., and Lee, N. (2002). Social Marketing: Improving the Quality of Life,
2nd edn. Thousand Oaks, Calif.: Sage.
Kotler, P. (1972). ‘What Consumerism Means for Marketers,’ Harvard Business Review,
50, 48–57.
Bagozzi, Richard P. (1975). ‘Marketing as Exchange,’ Journal of Marketing, 39(4),
October, 32–39.
socially responsible marketing see social marketing
societal classification of products
DESCRIPTION
The grouping of products according to the extent that they provide consumers
with certain short-term and long-term benefits.
KEY INSIGHTS
The societal classification of products is based on two dimensions, one of
which addresses immediate satisfaction and the other long-run consumer
benefit (Kotler 1972). Deficient products offer neither short nor long-term
benefits; desirable products combine immediate satisfaction with long-run
benefit; salutary products have low immediate appeal but offer long-term
consumer benefits; and pleasing products have a high immediate appeal
but can cause long-term harm to consumers.
KEY WORDS Short-term benefits, long-term benefits
IMPLICATIONS
The societal marketing concept suggests that firms should identify the
current classification of their products and examine how to modify their
products, if any, if they are to apply the societal marketing concept
to their businesses. For example, in applying the societal marketing
concept, deficient products should be deleted from product ranges and
salutary and pleasing products should have to undergo modifications
to upgrade them to the desirable products level, which should be the
ultimate goal of the marketer.