This document discusses reference groups, which are groups that individuals use as a point of comparison to help shape their own values, attitudes, and behaviors. There are two main types of reference groups: normative groups, which set general standards, and comparative groups, which individuals compare themselves to. Some key reference groups that marketers appeal to include friendship groups, work groups, brand communities, and celebrities. Reference groups influence consumers through informational, normative, and identification pressures.
This document discusses reference groups, which are groups that individuals use as a point of comparison to help shape their own values, attitudes, and behaviors. There are two main types of reference groups: normative groups, which set general standards, and comparative groups, which individuals compare themselves to. Some key reference groups that marketers appeal to include friendship groups, work groups, brand communities, and celebrities. Reference groups influence consumers through informational, normative, and identification pressures.
This document discusses reference groups, which are groups that individuals use as a point of comparison to help shape their own values, attitudes, and behaviors. There are two main types of reference groups: normative groups, which set general standards, and comparative groups, which individuals compare themselves to. Some key reference groups that marketers appeal to include friendship groups, work groups, brand communities, and celebrities. Reference groups influence consumers through informational, normative, and identification pressures.
This document discusses reference groups, which are groups that individuals use as a point of comparison to help shape their own values, attitudes, and behaviors. There are two main types of reference groups: normative groups, which set general standards, and comparative groups, which individuals compare themselves to. Some key reference groups that marketers appeal to include friendship groups, work groups, brand communities, and celebrities. Reference groups influence consumers through informational, normative, and identification pressures.
• A group may be defined as two or more people who interact to accomplish either individual or mutual goals.
Primary Group & Secondary Group
• A Primary Group is characteristically small with members who share tight-knit and lasting relationships such those experienced in marriage, close friendships, and families. Shapes one’s identity.
• A Secondary Group is characteristically larger with impersonal and objective-driven
relationships. The interactions are often short-term as they are less personal and eventually drift away after the goals have been met.
Reference Group
• Reference groups are people (or groups) used by individuals as a yardstick for self-assessment or as a model of personal taste, standards, attitudes, or behaviors.
• A Reference Group is any person or group that serves as point of comparison (or reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior.
From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions.
Reference groups become strong reference points because of their credibility in terms of knowledge and experience, attractiveness and the power they wield.
Reference groups that influence general or broadly defined values or behavior are called Normative Reference Groups (e.g. A child’s Normative Reference Group is the immediate family).
Reference Groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called Comparative Reference Groups (A Comparative Reference Groups might be neighboring family whose lifestyle appears to be admirable and worthy of imitation).
Factors that Affect Reference Group Influence
Normative vs. Comparative Reference Groups
• Normative Reference Groups - A group in which individuals are motivated to gain or maintain acceptance. To promote this acceptance, individuals hold their attitudes in conformity with what they perceive to be the consensus of opinion (norms) among the group members. Examples of your normative reference groups include your parents, siblings, teachers, peers, associates and friends.
• Comparative Reference Groups - A group which individuals use as a standard or point of
reference in making evaluations or comparisons of themselves and of other individuals or groups.
A comparative reference group is a group of individuals whom you compare yourself against and may strive to be like.
Types of Reference Groups
Classified by:
◦ Membership
Qualified Membership versus Symbolic
◦ Extent of Interaction
Direct versus Indirect
◦ Nature of Attraction
Aspirational versus Dissociative
◦ Degree of Formality
Formal versus Informal
Groups based on Membership
• Classification of Groups by membership status
Membership Group: A group to which a person either belongs or would qualify for membership in. For example, college alumni association, association of doctors, tennis club, etc.
Explanation of Some Terms
Symbolic Group: A group in which an individual is not likely to receive membership, despite acting like a member by adopting the group’s values, attitudes, and behavior.
A symbolic reference group is one which an individual aspires to belong to, but is not likely to be received as a member even if he/ she acts like a member by adopting that group's values, behavior and attitude.
e.g. For youngsters’ cricketers like Sachin Tendulkar, Sourav Ganguly etc. may constitute a symbolic group.
Explanation of Some Terms
Disassociative: A group with whom an individual does not wish to be associated; a group whose use of a product will deter other buyers.
e.g. The so-called ''nerds'' or politically left- or right-leaning folks, Lady Gaga
Formal and Informal Reference Groups
Formal vs Informal:
• Membership groups like Rotary, Lions are some of the well–known social reference groups in our society. These are formal membership social groups. These group memberships are by “Invitations Only.”
• Labor unions, social clubs and societies are other types of formal reference groups to which individuals may belong. A formal reference group has a highly defined structure, specific roles and authority positions and specific goals.
• In contrast, an informal reference group is loosely defined and may have no specified roles and goals. Meeting your neighbors over lunch once a month for friendly exchange of news is an instance of an informal reference group.
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 behaviors.
Identification Influence:
People comply with identification groups’ standards for the sake of belonging—for example, a member of a religious group may wear a symbol even outside the house of worship because the religion is a part of the person’s identity.
Factors Encouraging Conformity
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
Selected Consumer-Related Reference Groups
• Friendship groups • Shopping groups
• Work groups
• Virtual groups or Communities
• Consumer-action Groups
Types of Reference Groups
• Friendship Groups – Most likely to influence after the family
• Shopping Groups – 2 or more people who shop together
• Work Groups – Who work together as a part of a work team
• Virtual Groups/ Communities
• Brand Communities
• Consumer–Action Groups – Who are dedicated in providing assistance to consumers in order to
make correct purchase decisions
• Celebrities
Friendship Groups
• Friendship groups are typically classified as informal groups because they are usually unstructured and lack specific authority levels.
• In terms of relative influence, after an individual’s family, his or her friends are most likely to influence the individual’s purchase decisions. Seeking and maintaining friendships is a basic drive of most people.
• Friends fill a wide range of needs: They provide companionship, security, and opportunities to discuss problems that an individual may be reluctant to discuss with family members.
• Marketers of products such as brand-name clothing, fine jewelry, snack foods, and alcoholic beverages recognize the power of peer group influence and frequently depict friendship situations in their advertisements.
Shopping Groups
Two or more people who shop together, whether for food, for clothing, or simply to pass the time, can be called a shopping group.
Such groups are often offshoots of family or friendship groups and
therefore, they function as what has been referred to as purchase pal.
The motivation for shopping with a purchase pal range from a primarily social motive to helping reduce the risk when making an important decision.
A special type of shopping group is the in-home shopping party, which
typically consists of a group that gathers together in the same home of a
friend to attend a “party” devoted to demonstrating and evaluating a
specific line of products.
Brand Community
A brand community is a community formed on the basis of attachment to a product.
Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture. Among the concepts developed to explain the behavior of consumers, the concept of a brand community focuses on the connections between consumers.
A brand community can be defined as an enduring self-selected group of actors sharing a system of values, standards and representations (a culture) and recognizing bonds of membership with each other and with the whole.
Brand communities are characterized in shared consciousness, rituals and traditions, and a sense of moral responsibility.
Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture.
Among the concepts developed to explain the behavior of consumers, the concept of a brand community focuses on the connections between consumers.
A brand community can be defined as an enduring self-selected group of actors sharing a system of values, standards and representations (a culture) and recognizing bonds of membership with each other and with the whole.
Brand communities are characterized in shared consciousness, rituals and traditions, and a sense of moral responsibility.
Many brands provide examples of brand communities. In computers and electronics: Apple Inc. (Macintosh, iPod, iPhone), and Palm, and Pocket PC.
In vehicles: Ford Bronco, Jeep, automobiles, and Royal Enfield and Harley-Davidson motorcycles. In toys: Barbie and Lego.
Reference Group Appeals
• Celebrities
• Experts
• Common Man (someone just like them uses it)
• The Executive/ Employee Spokesperson
• Trade/ Spokes Characters or Familiar Cartoon Characters
• Respected Retailers
• Editorial content of Special –interest Magazines
• Seals of Approval
• High Rating in Consumer Reports
Celebrities
A celebrity is a person who has a prominent profile and commands a great degree of public fascination and influence in day-to-day media.
The term is often synonymous with wealth (commonly denoted as a person with fame and fortune), implied with great popular appeal, prominence in a particular field, and is easily recognized by the general public.
