Consumer Groups & Reference

Groups (Part 1)

Consumer Behaviour
MFM Semester 2

Dr. Rajdeep Singh Khanuja

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

R.M. Williams (1951) “A social group is a

given aggregate of people playing inter-
related roles and recognised by themselves or
other as a unit of interaction.”
Generally we use the term ‘group’ keeping in mind three
main points:

 where a number of persons are sitting or working

together.

 where persons are classified as belonging to an

association.

 where persons belong to an organisation.

IMPORTANT FEATURES OF GROUP
 One or more individuals come together and influence each other.
 There are social interactions and relationships amongst the individual members of a
group.
 There exists some common motives, drives, interests, emotions etc. amongst group
members.
 There is communication among group members, both verbal and or non-verbal.
 The group members have some common object of attention and group members stimulate
each other.
 They have common loyalty and participate in similar activities.
 There exits feeling of unity in the group. Group members treat each other with respect and
regard.
 The action of the members is controlled by the group.
 There are some customs, norms and procedures which are acceptable to everyone but if
exception happens, then the particular member will be ostracised from the group.
CHARACTERISTICS OF A GROUP
 A sense of we-feeling
 Common interest
 A feeling of unity
 Related to each other
 Affected by group characteristics
 Common values
 Control of group
 Obligation
 Expectations
GROUP FORMATION

There are mainly five stages of group

development, viz., forming, storming, norming,
performing and adjourning.
Types of Groups

 Primary Group and Secondary Group

 Formal Group and Informal Group

 Membership Group and Symbolic Group

Consumer Relevant Groups

 The Family
 Friendship Groups
 Formal social Groups
 Shopping Groups
 Consumer-Action Groups
 Work Groups
Group Decision-Making : Advantages

 More information
 Diversity of views
 Greater acceptability
 Expert opinions
 Degree of involvement
 Encourages people’s participation
Group Decision-Making : Dis-advantages

 Time-consuming
 Lack of onus
 Individual domination
 Compromise decisions
 Expensive
 Groupism
Queries/Discussions !