Himanshu Aggarwal Sahil Khanna

A reference group is any person or group that serves as a point of comparison for an individual on forming either general or a specific guide for behaviour.

Basically there are following types of reference groups we are going to discuss here: Normative

Reference groups Comparative Reference groups Indirect Reference Groups

The degree of influence that a reference group exerts on a person usually depend on the nature of the individual and the product and specific factors : Information

and experience Credibility, Attractiveness and power of the Reference group Conspicuousness of the product

To be able to change consumer attitudes and behaviour by encouraging conformity, a reference group must accomplish the following :

Inform or make individual aware of the product. Provide individual with an opportunity to compare his own thinking with the attitudes of the group. Influence the individual to adopt the attitudes and behaviour that are consistent with the group. Legitimize the decision to use the same product as the group.

We are going to study 5 basic types of consumerrelated reference groups today: Friendship

Groups Shopping groups Work Groups Virtual Groups or Communities Consumer action Groups

Appeals by celebrities and other similar reference groups are used very effectively by advertisers to communicate with their markets. Five major reference group appeals: Celebrity Appeals Expert Appeals Common Man Appeals Executive and employee appeals Trade and spokes character appeals