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Reference Groups 1

The document discusses reference groups, which are groups that influence an individual's attitudes or behaviors. There are two types of reference groups: membership groups that an individual belongs to, and symbolic groups where membership is not actual. Reference group influence depends on factors like the group's cohesiveness and the product's visibility. Highly exclusive and visible luxury products have strong reference group influence, while less visible necessities have weaker influence.

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Nupur Saurabh Arora
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935 views16 pages

Reference Groups 1

The document discusses reference groups, which are groups that influence an individual's attitudes or behaviors. There are two types of reference groups: membership groups that an individual belongs to, and symbolic groups where membership is not actual. Reference group influence depends on factors like the group's cohesiveness and the product's visibility. Highly exclusive and visible luxury products have strong reference group influence, while less visible necessities have weaker influence.

Uploaded by

Nupur Saurabh Arora
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Two or more people who interact to accomplish either individual or mutual goals A membership group is one to which a person

either belongs or would qualify for membership A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

Content or function
Membership group Symbolic group

Degree of personal involvement


Primary Secondary

Degree of organization
Formal Informal

Normative Reference Groups Comparative Reference Groups

Friendship groups Shopping groups Work groups Virtual groups or communities Consumer-action groups

Wild Planet Video

Individuals or groups with whom a person identifies but does not have direct face-to face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

How much a reference group influences depends on two characteristics of a product:


Conspicuousness
How visible the product is to people Public vs. private

Exclusivity
How exclusively the product is owned Necessity vs. luxury

Low exclusivity

High exclusivity

Private necessities
Reference group influence: Weak for product ownership and weak for brand choice. Examples: Mattress Floor lamp refrigerator Public necessities Reference group influence: Weak for product ownership But strong for brand choice. Examples: Car Computer Clothes

Private luxuries
Reference group influence: Strong for product ownership but weak for brand choice. Examples: Theater sound system Pool table Trash compactor Public Luxuries Reference group influence: Strong for product ownership and strong for brand choice. Examples: Golf clubs Sail boat Snowboard

Low visibility

High visibility

Group Characteristics Attractiveness Expertise Credibility Past Success Clarity of Group Goals

Personal Characteristics Tendency to Conform Need for Affiliation Need to be Liked Desire for Control Fear of Negative Evaluation

1.

ATTITUDE TOWARDS THE GROUP


VIEWS THE REFERENCE GROUP AS A CREDIBLE SOURCE OF INFORMATION VALUES THE VIEWS AND REACTIONS ACCEPTS THE REWARDS AND SANCTIONS

NATURE OF THE GROUP

COHESIVE FREQUENTLY INTERACTING DISTINCTIVE AND EXCLUSIVE

NATURE OF THE PRODUCT


VISIBLE EXCLUSIVE

A Reference Group Must ... Inform or make the individual aware of a specific product or brand Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group

Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group Legitimize the decision to use the same products as the group

Celebrities The expert The common man The executive and Employee spokesperson Trade or spokes characters Other reference group appeals

SITUATION
A FRIEND MENTIONS THAT STORE X HAS A GOOD COLLECTION OF SUITS

Behavioral

Type of influence

response
NEEDING A NEW SUIT A DECIDES TO VISIT THE STORE INFORMATIONAL

AN AD STRESSES THAT EVEN YOUR FRIENDS WONT TELL YOU IF YOU HAVE BAD BREATH-THEY WILL IGNORE YOU

A BUYS THE RECOMMENDED MOUTHWASH

NORMATIVE

OVER TIME.A NOTICES THAT SUCCESSFUL EXECUTIVES DRESS CONSERVATIVELY

A DEVELOPS A CONSEVATIVE WARDROBE

IDENTIFICATION

Visible usage High relevance of product to group

Low individual purchase confidence


Strong individual commitment to group Nonnecessary item

HIGH DEGREE OF REFERENCE GROUP INFLUENCE

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