REFERENCE GROUP

Definition: People whose attitudes, behavior, beliefs, opinions, preferences, and values are used by an individual as the basis for his or her judgment

TYPES OF REFERENCE GROUPSNormative reference groupComparative reference groupIndirect reference groupContactual groupAspirational group Disclamant group Avoidance group

TYPES OF REFERENCE GROUPS Normative Reference Group: Reference Groups that directly

influence general or broadly defined values or behaviour are usually called Normative.

Ex: Insurance companies

TYPES OF REFERENCE GROUPS

Comparative Reference Group: This Group will serve as a

benchmark for certain specific or narrowly defined attitudes are called Comparative.

Ex: Cricket team

TYPES OF REFERENCE GROUPS Indirect Reference Group: These are in the form of movie

stars ,sports personalities etc..though there is no face to face contact or interaction b/w the fan and respective star, they are able to influence their fans.

Ex: Scahin Tendulkar promoting Action shoes, Adidas

Asin communicates about HUL’s LUX soap.

TYPES OF REFERENCE GROUPS Contactual Reference Group: This group will be in terms of a

persons membership or degree of involvement with the in terms of the positive/negative influence they are able to evolve on the persons attitude ,behavior and values.

Ex: clubs

TYPES OF REFERENCE GROUPS Aspirational Reference Group: Is one to which the individual

wishes or aspires to belong .An individual may not have direct contact but he inspires to be a member.

Ex: IBM employee

TYPES OF REFERENCE GROUPS Disclamant Reference Group: This is a group whose values or

behaviors does not appeal to the individual. Avoidance Reference Group: Here the person will tend to

avoid the group and will adopt values, attitudes and behaviors which will be in opposite to that of group.

Ex: Andhra & Telangana issue

Influencing Factors of Reference Groups

Information and Experience Credibility , Attractiveness & power of the

reference group Conspicuous of the product

Reference Group & consumer conformity1.Explore

consumption habits & identify common

needs.

2. Inform the individual about the

product.

3.Provide opportunity for comparison of

individual thinking with group thinking

4. Attract customer /individual by

highlighting or associating brand of the product with conformity

to group norms.

Reference Group

Benefits of Reference Group Better communication and increased brand

awareness. Reduces perceived risk.

Better communication & increased brand awareness:-

Reference group acts as the source of learning through observation & hearing others experience and also with more data & information available from others group members.

The individual customer is able to communicate & interact with the group.

This constant interactions b/w the individual & group, influence his buying behavior and consequently increases his awareness of the brand.

Benefits of Reference Group

Benefits of Reference Group Reduces perceived risk:- This risk is reduced with customers association

with the reference group. The group provides & shares the information

about the product with the members in an open environment.

More over past experience of other members with the usage of the product brand are also revealed.

All these will remove the doubts of individual has about the product.