Reference Groups

Two or more people who interact to accomplish either individual or mutual goals

A membership group is one to which a person either belongs or would qualify for membership

A symbolic group is one in which an individual is not likely to receive membership despite acting like a member

What Is a Group?

Content or function◦ Membership group◦ Symbolic group

Degree of personal involvement◦ Primary ◦ Secondary

Degree of organization◦ Formal◦ Informal

Classification of Groups

Major Consumer Reference Groups

• Normative Reference Groups• Comparative Reference Groups

Broad Categories of Reference Groups

Friendship groups Shopping groups Work groups Virtual groups or communities Consumer-action groups

Selected Consumer-Related Reference Groups

Wild Planet Video

Individuals or groups with whom a person identifies but does not have direct face-to face contact, such as movie stars, sports heroes, political leaders, or TV personalities.

Indirect Reference Groups

Product Conspicuousness and Exclusivity How much a reference group influences

depends on two characteristics of a product:◦ Conspicuousness

How visible the product is to people Public vs. private

◦ Exclusivity How exclusively the product is owned Necessity vs. luxury

“Private necessities”

Reference group influence:Weak for product ownership and weak for brand choice.

Examples:MattressFloor lamprefrigerator

“Public Luxuries”

Reference group influence:Strong for product ownership and strong for brand choice.

Examples:Golf clubsSail boatSnowboard

“Private luxuries”

Reference group influence:Strong for product ownershipbut weak for brand choice.

Examples:Theater sound systemPool tableTrash compactor

“Public necessities”

Reference group influence:Weak for product ownershipBut strong for brand choice.

Examples:CarComputerClothes

Low exclusivity High exclusivity

Lowvisibility

High visibility

Positive Influences on Conformity

Group Characteristics

Attractiveness Expertise Credibility Past Success Clarity of Group

Goals

Personal Characteristics

Tendency to Conform Need for Affiliation Need to be Liked Desire for Control Fear of Negative

Evaluation

GROUP EXERT INFLUENCES

1. ATTITUDE TOWARDS THE GROUP VIEWS THE REFERENCE GROUP AS A CREDIBLE SOURCE OF

INFORMATION VALUES THE VIEWS AND REACTIONS ACCEPTS THE REWARDS AND SANCTIONS

2 NATURE OF THE GROUP COHESIVE FREQUENTLY INTERACTING DISTINCTIVE AND EXCLUSIVE

3 NATURE OF THE PRODUCT VISIBLE EXCLUSIVE

Factors Encouraging ConformityA 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

Reference Group Appeals

• Celebrities• The expert• The “common man”• The executive and Employee spokesperson• Trade or spokes characters• Other reference group appeals

Spokes Character

A FRIEND MENTIONS THAT STORE XHAS A GOOD COLLECTION OF SUITS

A DEVELOPS A CONSEVATIVE

WARDROBE

A BUYS THE RECOMMENDED

MOUTHWASH

NEEDING A NEW SUIT A DECIDES

TO VISIT THE STORE

NORMATIVE

IDENTIFICATION

AN AD STRESSES THAT”EVEN YOUR FRIENDS WON’T TELL YOU IF YOU HAVE BAD BREATH-THEY WILL IGNORE YOU

INFORMATIONAL

Behavioral

responseSITUATION

Type of influence

OVER TIME.A NOTICES THAT SUCCESSFUL EXECUTIVES DRESSCONSERVATIVELY

•Visible usage

•High relevance of product to group

•Low individual purchase •confidence

•Strong individual commitment to group

•Nonnecessary item

HIGH DEGREE OF

REFERENCE GROUP

INFLUENCE