chapter 8 dynamicsm
DESCRIPTION
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Chapter 8
Group Dynamics and Consumer Reference Groups
Shamshul Anaz Kassim
Senior Lecturer
Faculty of Business Management
UiTM Perlis
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 behavior.
Types of Group
A• PRIMARY VS SECONDARY GROUPS
B• FORMAL VS INFORMAL GROUPS
C• MEMBERSHIP VS SYMBOLIC GROUPS
PRIMARY VS SECONDARY GROUPS
• Primary Groups are those in which members usually interact regularly on a face to face basis and on intimate level
e.g: Families
• Secondary Groups are those in which members interact only occasionally with each other in a formalized manner
e.g: DBS Society
FORMAL VS INFORMAL GROUPS
• Formal Groups have highly defined structures and specific goals.
e.g: JPP
• Informal Groups are very loosely structured and lacking clearly defined goals or objectives. They are typically made up of a primary groups.
e.g: Family Gathering
MEMBERSHIP VS SYMBOLIC GROUPS
• A membership group is one to which a person either belongs or would qualify for membership
e.g: Alumni UiTM
• A symbolic group is one in which an individual is not likely to receive membership despite acting like a member
e.g: MU Fan Club
TYPES OF REFERENCE GROUP
Work Groups
Consumer-Action Groups
Shopping Groups
Formal Social Group
Friendship Group
Family
Virtual Groups or
Communities
1. Friendship groups are classified as informal because they are usually unstructured and lack specific authority levels.
2. Shopping groups are two or more people who shop together. The motivations range from primarily social to reducing risk.
3. Work groups - both the formal work group and the informal friendship/work group have potential for influencing consumer behavior.
4. Family – An individual’s family is significantly very influential in his or her consumption decisions.
5. Consumer-Action Groups – It can be divided into two categories: those who are organized to correct a specific consumer abuse and those who are organized to address broader issue and operate over an extended or indefinite period of time.
6. Formal Social Group – An individual may join a formal social group to fulfill specific goals such as making new friends, business networking or pursuing special interests.
7. Virtual Groups or Communities –Communicating over the internet permits people to explore the boundaries of their personalities.
Types of Celebrity Appeals
TYPE DEFINITION
Testimonial Based on personal usage, a celebrity attests to the quality of the product or service
Endorsement Celebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert
Actor Celebrity presents a product or service as part of a character endorsement
Spokesperson Celebrity represents the brand or company over an extended period of time
FACTORS THAT AFFECT REFERENCE GROUP INFLUENCE
Information and Experience
Credibility, Attractiveness and Power of the Reference Group
Conspicuousness of the Product