Reference Groups and Family

What is a Group?
 Two or more people who interact to
accomplish either individual or mutual
goals
 Reference Group

 A person or group that serves as a point of

comparison (or reference) for an individual
in the formation of either general or specific
values, attitudes, or behaviour.
 Types of Reference Groups
 Classified by:
– Membership
• Symbolic
– Extent of interaction
• Direct versus indirect
– Nature of attraction
• Aspirational versus dissociative
– Degree of formality
• Formal versus informal
 Types of Reference Group
Influence
 Informational Influence
– When a member of reference group provides
information used to make purchase decisions
 Normative Influence
– When we conform to group norms in order to
belong to that group
 Identification Influence
– When we identify with, and internalize, a group’s
values and behaviours
 Factors Encouraging Conformity:
A Reference Group Must ...
 conformity, the process whereby people change their beliefs, attitudes, actions, or perceptions
to more closely match those held by groups to which they belong or want to belong or by
groups whose approval they desire. Conformity has important social implications and
continues to be actively researched.

 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 behaviour of the group
 Influence the individual to adopt attitudes and
behaviour that are consistent with the norms of
the group
 Legitimize the decision to use the same products
as the group
 Selected Consumer-Related
Reference Groups
 Friendship groups
 Shopping groups
 Work groups
 Virtual groups or communities
 Brand communities
 Consumer-action groups
 celebrities
Reference Groups and Marketing
Strategy
 Recognize the extent of reference group
influence in a situation
 Identify the most effective type of reference
group influence
 Identify possible reference group members
to use in promotions
 Attempt to increase reference group
influence
 Households

Family Households:
Married couple,
Nuclear family,
Extended family
Households

Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
 The Family Life Cycle

 Traditional Family Life Cycle

– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
– Stage IV: Post-parenthood
– Stage V: Dissolution
 Modifications - the Nontraditional FLC
Noteworthy Nontraditional FLC Stages

Alternative FLC Stages Definition/Commentary

Family Households
Childless couples
It is increasingly acceptable for married couples to
elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.

Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or occurrence of couples living together. Likely to have
later) fewer or even no children.

Couples who have first child Likely to have fewer children. Stress quality
later in life (in their late 30s lifestyle: “Only the best is good enough”
or later)
 (continued)
Alternative FLC Stages Definition/Commentary
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more children
out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while establishing
their careers. Divorced daughter or son and
grandchild(ren) return home to parents. Frail elderly
parents who move in with children. Newlyweds
living with in-laws.
 (continued)
Alternative FLC Stages Definition/Commentary
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.

Divorced persons (no High divorce rate contributes to dissolution of

children) households before children are born.

Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.

Widowed persons (most are Longer life expectancy, especially for women;
elderly) means more over-75 single-person households.
 Dynamics of Husband-Wife
Decision Making
 Husband-Dominated
 Wife-Dominated
 Joint
– Equal
 Autonomic
– Solitary
– Unilateral
 Consumer Socialization

 The process by which children acquire the

skills, knowledge, and attitudes necessary to
function as consumers.
 Other Functions of the Family

 Economic well-being
 Emotional support
 Suitable family lifestyles
Family and Marketing Strategy
 Use the FLC for segmentation and positioning
 Recognize the diverse consumption roles within
the family
 Understand and use the dynamics of husband-wife
decision making
 Understand and use the consumer socialization
role played by the family
 Recognize the changing nature of Indian families.