Referrence Groups

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What is a Reference Group?

 Reference Group:

 Is a Group whose presumed perspective or values are

being used by an individual as the basis for his current

behavior.
Factors that affect Reference Group influence

REFERENCE GROUPS
Types of Reference Groups

 Normative Reference Group:

 Reference group that generate values or behavior of a person.

 Those groups are with whom the person gets into contact directly

very often.

 Permanent.

 Example : College students


Types of Reference Groups

 Comparative Reference Group:

 Reference group that serve as benchmarks for specific narrowly

defined attitudes or behavior.

 Temporary.

 Example : Friend’s Family


Types of Reference Groups
Membership No Membership

Positive Influence Contactual RG Aspirational RG

Negative Influence Disclaimant RG Avoidance RG

Membership to the Reference Group is Dynamic and Changes with Time and
External Influences
Types of Reference Groups
IN TERMS OF MEMBERSHIP

Contactual / Membership Reference Group:

Membership

 Individual holds membership of this group


 Regular face-to-face contact with the members of the group
 Approves of the values, attitudes and standards

 Aspirational Reference Group:

No Membership
 Individual does not hold membership
 No face-to-face contact with the members of the group
 Provide positive influence on attitudes, values and behaviors
Types of Reference Groups

IN TERMS OF MEMBERSHIP

Membership
 Disclaimant Reference Group:
 Individual holds membership of this group
 Regular face-to-face contact with the members of the group
 Does not approves of the values, attitudes and standards

No Membership
 Avoidance / Dissociative Reference Group
 Individual does not hold membership
 No face-to-face contact with the members of the group
 Individual avoids / has opposite attitudes and values
Factors affecting Reference Group Influence

1.Information and Experience


• High for consumers – less likely to be
influenced by reference groups

1.Credibility, Attractiveness and Power of the


Reference Group

2.Conspicuousness of the Product


• Verbally conspicuous product – easily
explained to others – higher influence by the
reference group
Factors affecting Reference Group Influence
Other Reference Group Influences
 Informational Influence
 Occurs when an Individual uses the behaviors and opinions of the
reference group members as potentially useful information
 Influence is based on similarity to group members / expertise of the
influencing member
 E.g.: Purchasing a NOKIA cell phone because my friends have one

 Identification Influence
 Occurs when the individual has internalized the groups values and norms
 E.g.: Purchase of health foods because I belong to a fitness group
Other Reference Group Influences

 Normative Influence
 Occurs when an individual fulfills group expectation to gain a direct
reward or to avoid a sanction
 Influence is based on strong ties to the group and the product involved
is socially conspicuous
 E.g.: Purchasing Close-Up toothpaste to avoid bad breath
Reference Group Influences

Strong Weak
Public Luxuries Private Luxuries
Strong Golf Clubs TV Video Games
Snow Skis Ice Makers

Public Necessities Private Necessities


Wrist Watch Mattresses
Weak
Dress Clothes Floor Lamps
Celebrity Appeal
Applications of reference group influences

1. Use of Celebrities for Product endorsements

2. Use of Experts for Product endorsements

3. Use of Spokespersons for Product endorsements

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