Thought of the Day

You can not judge a person¶s intelligence only by his answers but by Questions also.

Social/Reference Groups

What is a group?
‡ Two or people who interact with each other to accomplish either individual or mutual goals.

Types of groups
‡ Primary Vs. Secondary group ‡ Formal Vs. Informal Group ‡ Membership Vs. Symbolic group

Consumer Related Groups
‡ ‡ ‡ ‡ ‡ ‡ Family Friends Shopping groups Consumer action groups Work groups Formal social groups

Reference groups
‡ A group that serves as frame of reference for individuals in their purchase or consumption behavior.

Reference Groups

Individual Family Friends Social Class Selected Subcultures One¶s own culture Others culture

Types of reference groups
Membership Group Non Membership Group

Positive Influence

Contactual Group

Aspirational Group

Negative Influence

Disclaimant Group

Avoidance Group

Factors affecting the Reference Group Influence
‡ Information and experience ‡ Credibility, power and attractiveness ‡ Conspicuousness of the Product

Applicability of the Reference Group Concept
‡ Celebrities

Applicability of the Reference Group Concept
‡ Celebrities
± How celebrities are used
‡ ‡ ‡ ‡ Testimonials Endorsement Actor Spokesperson

± Credibility ± Who the celebrity is

Top 10 Deals in 2003-04
‡ ‡ ‡ ‡ ‡ David Beckham Searena Williams David Beckham Tiger Woods Andre Agassi Gillette Nike Pepsi Accenture 24Hour fitness $68 $60 $25.5 $18 $15

Use of Reference group as:‡ The expert ‡ The common man ‡ The executive and employee spokesperson ‡ Trade or spokes character ‡ Other reference Groups

Benefits of reference group appeal
‡ Increased brand awareness ‡ Reduced perceived risk

Thank you.

Expert

Promoter in Ad

Employees as endorsers

Employees as endorsers

Trade character

Seals of Approval

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