CONSUMER BEHAVIOUR

AND INSIGHTS

CIA – 3: PURCHASE OF HYBRID CARS

SUBMITTED TO:
Dr. Raja Sankaran

SUBMITTED BY:
Sl No. Name USN
1. Chiranth S 22MBAR0074
2. Veena Premi T 22MBAR0144
3. Niran T 22MBAR0719
4. Khusboo Sethia 22MBAR0244
5. Rohit Kumar Roy 22MBAR0390
 PURCHASE OF HYBRID CARS

1) Describe the most relevant reference groups and indicate the probable degree of
influence on decisions of purchasing hybrid cars.

Solution: The most relevant reference groups that can influence purchasing decisions for
hybrid cars are:

• Family and Friends: This reference group includes close family members and friends
who may have purchased hybrid cars or have expressed positive opinions about them.
The degree of influence can be high, as people tend to trust the recommendations and
experiences of their close social circle.
• Colleagues and Peers: This reference group includes coworkers, acquaintances, and
peers who may own hybrid cars or discuss their benefits. The degree of influence can
be moderate, as people may seek opinions from colleagues and peers but may not
always follow their recommendations blindly.
• Environmental and Green Advocacy Groups: This reference group includes
organizations that promote environmental causes and advocate for the use of hybrid
cars as a more eco-friendly option. The degree of influence can be high, as people
who are environmentally conscious may be more likely to be swayed by the messages
and recommendations of these groups.
• Online Communities and Forums: This reference group includes online communities,
forums, and social media groups where individuals interested in hybrid cars share
their experiences, opinions, and recommendations. The degree of influence can vary,
as people may consider the opinions of online communities but also take them with a
grain of salt due to potential biases and lack of personal connections.
• Automobile Experts and Influencers: This reference group includes automobile
experts, bloggers, and influencers who provide reviews and recommendations on
hybrid cars. The degree of influence can be moderate to high, as people may value the
expertise and opinions of these influencers in the automobile industry.
• Government and Policy Makers: This reference group includes government entities
and policy makers who promote or incentivize the use of hybrid cars through policies,
regulations, and subsidies. The degree of influence can be high, as government
policies and incentives can significantly impact purchasing decisions for hybrid cars.
Overall, the degree of influence of reference groups on purchasing decisions for hybrid cars
can vary depending on individual preferences, beliefs, and circumstances. However,
reference groups such as close family and friends, environmental advocacy groups, and
government policies are likely to have a higher influence compared to online communities
and acquaintances.

2) How important are reference groups to the purchase of the above-mentioned

products or activities?

Solution: Reference groups are an important factor in consumer behaviour and can play a
significant role in the purchase of a hybrid car. A reference group is a group of individuals
that an individual looks to for guidance in their own behaviour, including purchase decisions.
These groups can be categorized into three main types: primary, secondary, and aspirational.

Primary reference groups are made up of people with whom an individual has frequent and
direct contact, such as family, close friends, and colleagues. Secondary reference groups are
made up of people with whom an individual has less frequent contact, such as social or
professional associations. Aspirational reference groups are those that an individual aspires to
belong to, such as a celebrity or a community of people with a certain lifestyle.

In the case of hybrid cars, reference groups can influence an individual's perception of them.
Positive reference groups, such as family and friends who own hybrid cars, can increase an
individual's likelihood of purchasing one. On the other hand, negative reference groups, such
as those who hold a negative view of hybrid cars, can decrease an individual's likelihood of
purchasing one.

Reference groups can shape the beliefs and attitudes of individuals towards hybrid cars. For
example, if an individual's reference group is focused on sustainability and environmental
consciousness, they may view hybrid cars more positively and be more likely to purchase
one. In contrast, if an individual's reference group prioritizes performance and speed, they
may view hybrid cars as less desirable and be less likely to purchase one.

The influence of reference groups on the purchase of a hybrid car may vary depending on the
demographics, social status, and lifestyle of the individual. For instance, younger individuals
may be more influenced by aspirational reference groups such as celebrities, while older
individuals may be more influenced by primary reference groups such as family and close
friends. Additionally, the intended use of the hybrid car may also influence the influence of
reference groups. For example, an individual who plans to use their hybrid car primarily for
commuting to work may be more influenced by the opinions of their colleagues, while an
individual who plans to use their hybrid car for outdoor activities may be more influenced by
the opinions of a secondary reference group, such as an online community or forum.

In conclusion, reference groups are an important factor to consider when analyzing the
purchase decision of a hybrid car. Positive reference groups can increase the likelihood of
purchasing a hybrid car, while negative reference groups can decrease it. The influence of
reference groups may vary depending on demographic, social status, lifestyle, and the
intended use of the hybrid car.

3) Would their influence also affect the brand or model?

Solution: Yes, reference groups can also influence the brand or model of hybrid cars that
individuals choose to purchase. Reference groups can shape perceptions and opinions about
different brands and models through their recommendations, experiences, and advocacy. For
example:

• Family and Friends: If close family members or friends have positive experiences
with a particular brand or model of hybrid car, it may influence an individual's
decision to consider the same brand or model
• Automobile Experts and Influencers: Automobile experts, bloggers, and influencers
often provide reviews and recommendations about specific brands and models of
hybrid cars. Their opinions can influence potential buyers' perceptions and
preferences towards certain brands or models.
• Government and Policy Makers: Government policies and incentives may be specific
to certain brands or models of hybrid cars, such as offering subsidies or tax credits for
purchasing certain brands or models. This can influence individuals to consider those
brands or models that are eligible for such incentives.
• Online Communities and Forums: Online communities and forums where individuals
discuss their experiences with different brands and models of hybrid cars can also
influence purchasing decisions. Positive or negative reviews about specific brands or
models can shape perceptions and preferences.
• Environmental and Green Advocacy Groups: Environmental advocacy groups may
endorse specific brands or models of hybrid cars that align with their eco-friendly
 goals. This can influence individuals who are environmentally conscious to consider
those recommended brands or models.

Overall, reference groups can play a significant role in shaping perceptions, preferences, and
purchase decisions regarding the brand or model of hybrid cars. The degree of influence may
vary depending on the credibility, expertise, and relevance of the reference group to the
individual.

4) Would their influence be informational, normative, or identification? Justify your

answers.

Solution: The influence of reference groups on purchasing decisions for hybrid cars can be
categorized into different types: informational, normative, and identification.

• Informational Influence: Reference groups can provide informational influence by

sharing knowledge, information, and expertise about different brands or models of
hybrid cars. For example, close family members or friends who have owned a hybrid
car can provide information about their experiences, performance, and reliability of a
particular brand or model. Similarly, automobile experts, influencers, and online
communities can share information through reviews, testimonials, and discussions
about different hybrid car brands and models. This informational influence can help
individuals make more informed decisions about which brand or model of hybrid car
to purchase.
• Normative Influence: Reference groups can also exert normative influence by setting
social norms, expectations, and standards regarding the purchase of hybrid cars. For
example, if a person's close family, friends, or colleagues all own or advocate for a
particular brand or model of hybrid car, it may create a social norm or expectation for
the individual to follow suit. Similarly, environmental advocacy groups or
government policies may promote specific brands or models of hybrid cars as socially
responsible choices, which can create normative influence on individuals to conform
to those choices to be socially accepted or recognized.
• Identification Influence: Reference groups can also influence purchasing decisions for
hybrid cars through identification influence, where individuals seek to identify with a
particular group or lifestyle associated with a certain brand or model. For instance, if
an individual identifies with a particular environmental or green advocacy group that
endorses a specific brand or model of hybrid car, they may be motivated to align their
 purchasing decision with that group to reinforce their identity and values. Similarly, if
an individual identifies with a certain social group or community that promotes a
particular brand or model of hybrid car, they may feel a sense of belonging and
loyalty towards that group, leading them to choose the same brand or model.

In summary, the influence of reference groups on purchasing decisions for hybrid cars can be
informational, normative, and identification in nature, depending on the type of information,
social norms, and group identification that individuals seek or perceive from their reference
groups.

5) What reference groups would be relevant to the decision to purchase the product
or activity?

Solution: Reference groups can be particularly influential in the purchase of hybrid cars.

• Information and Expertise: Hybrid cars are relatively new and complex products that
may require additional information and expertise for consumers to make informed
decisions. Reference groups such as professional or expert groups, online
communities, and forums dedicated to hybrid cars can provide valuable information,
reviews, and recommendations. This information can significantly influence
consumers' perception and preference towards hybrid cars, and may even impact their
decision to purchase a hybrid car.
• Social Norms and Expectations: Hybrid cars are often associated with environmental
awareness, sustainability, and "green" living. Reference groups, including family,
friends, and peers, who are environmentally conscious or advocate for sustainability,
may create social norms and expectations around the purchase of hybrid cars. This
can influence individuals to align their choices with the preferences of their reference
group, and may even lead to a sense of social pressure to choose a hybrid car over a
conventional gasoline-powered car.
• Group Identification: Hybrid cars are sometimes associated with a particular lifestyle
or values, such as being environmentally conscious or progressive. Reference groups
or communities that an individual identifies with and shares similar values may
influence their decision to purchase a hybrid car to align with that group's values and
identity. This can be particularly relevant for individuals who strongly identify with
environmental causes or sustainability movements.
 • Emotional Connection: Reference groups, including family, friends, and influencers,
can create emotional connections and influence purchasing decisions. If an individual
has close relationships with individuals who already own a hybrid car or are
advocates of hybrid cars, their opinions and recommendations may carry emotional
weight and influence the individual's decision to purchase a hybrid car.
• Word-of-Mouth and Social Media: Word-of-mouth and social media also play a
significant role in influencing purchasing decisions for hybrid cars. Reference groups,
including family, friends, and social media communities, can share their positive
experiences, testimonials, and reviews about hybrid cars, which can shape the
perceptions and preferences of potential buyers.

Overall, reference groups can play an important role in influencing the purchase of hybrid
cars by providing information, creating social norms and expectations, fostering group
identification, and establishing emotional connections. However, it's important to note that
the degree of influence may vary for different individuals and situations, and other factors
such as personal preferences, budget, and individual autonomy in decision-making may also
come into play.