Welcome to the PresentationWelcome to the Presentation

Reference Groups & Reference Groups & Family InfluencesFamily Influences

Almost all individuals regularly interact Almost all individuals regularly interact with other people who directly or with other people who directly or indirectly influence their purchase indirectly influence their purchase decisions.decisions.

At a GlanceAt a Glance 1. What is a group?1. What is a group? 2. Understanding the power of reference groups2. Understanding the power of reference groups 3. Selected consumer related reference groups3. Selected consumer related reference groups 4. Reference group appeals4. Reference group appeals 5. The concept of family5. The concept of family 6. Socialization of family members6. Socialization of family members 7. Functions of family7. Functions of family 8. Family decision & consumption related roles8. Family decision & consumption related roles 9. The family life cycle9. The family life cycle

PreamblePreamble

This presentation begins with the basic This presentation begins with the basic concepts of group dynamics & how concepts of group dynamics & how reference groups both directly & reference groups both directly & indirectly influence consumer indirectly influence consumer behaviour.behaviour.

It also discusses in two parts.It also discusses in two parts.

1)1) Group involvements & influence.Group involvements & influence.

2)2) Family influencesFamily influences

1. What is a group?1. What is a group?

A Group may be defined as two or A Group may be defined as two or more people who interact to more people who interact to accomplish either individual or mutual accomplish either individual or mutual goals. goals.

Group sometime considered as Group sometime considered as a a MembershipMembership & sometime as & sometime as a a Symbolic Group.Symbolic Group.

2. Understanding the power of 2. Understanding the power of reference groupsreference groups

A reference group is any person or A reference group is any person or group that serves as a point of group that serves as a point of comparison for an individual in forming comparison for an individual in forming either general or either general or specific valuesspecific values, , attitudesattitudes or or aa specific guidespecific guide for for behaviour.behaviour.

2.1. Classification2.1. Classification

Normative Reference Groups.Normative Reference Groups.

Comparative Reference Comparative Reference Groups.Groups.

Indirect Reference GroupIndirect Reference Group

2.2. Factors (Influence Groups)2.2. Factors (Influence Groups)

Other Culture

Selected Subculture

Social Class

One’s Own Culture

Friends

Family

Individuals

2.3 Factors influences consumer 2.3 Factors influences consumer behaviourbehaviour

Information & experienceInformation & experience Credibility, attractiveness & Credibility, attractiveness &

power of the reference grouppower of the reference group Conspicuousness of the Conspicuousness of the

productproduct Consumer conformityConsumer conformity

3. Selected consumer related reference 3. Selected consumer related reference groupsgroups

Friendship groupsFriendship groups Shopping groupsShopping groups Work groupsWork groups Virtual groups or communitiesVirtual groups or communities Consumer-action groupsConsumer-action groups

4. Reference group appeals4. Reference group appeals

Appeals by celebrities & other similar Appeals by celebrities & other similar reference groups are used very reference groups are used very effectively by advertisers to effectively by advertisers to communicate with their markets. communicate with their markets.

4.1. Major Types4.1. Major Types

CelebritiesCelebrities The expertThe expert The The common mancommon man The executive & employee The executive & employee

spokespersonspokesperson Trade or spokes-charactersTrade or spokes-characters OthersOthers

5. The concept of family5. The concept of family

In a dynamic sense the individuals In a dynamic sense the individuals who constitute a family might be who constitute a family might be describes as members of the most describes as members of the most basic social group who live together basic social group who live together & interact to satisfy their personal & & interact to satisfy their personal & mutual needs.mutual needs.

5.1. Types of family5.1. Types of family

The married coupleThe married couple The nuclear familyThe nuclear family The extended familyThe extended family

6. Socialization of family members6. Socialization of family members

The Socialization of family members ranging from young children to adults, is a central family function.

6.1. A simple model of the 6.1. A simple model of the socialization processsocialization process

Young Person

Other Family Members Friends

Preadolescent Adolescent Teenager Older

Influence More Basic Values/Behaviour

Influence More Expressive Attitudes/Behaviour

7. Functions of family7. Functions of family

Economic Well-beingEconomic Well-being Emotional SupportEmotional Support Suitable Family LifestyleSuitable Family Lifestyle

8. Family decision & 8. Family decision & consumption related rolesconsumption related roles

For a family function is a For a family function is a cohesive unit.cohesive unit.

In a dynamic society family In a dynamic society family related duties are constantly related duties are constantly changingchanging

8.1. The Eight Roles in the Family Decision Making Process

InfluencersInfluencers GatekeepersGatekeepers DecidersDeciders BuyersBuyers PreparersPreparers UsersUsers MaintainersMaintainers DisposersDisposers

9. The family life cycle9. The family life cycle

The traditional family life cycle is a The traditional family life cycle is a progressing of stages through which progressing of stages through which many families pass starting with many families pass starting with bachelorhood, moving on to bachelorhood, moving on to marriage, then to family growth, to marriage, then to family growth, to family construction & ending with the family construction & ending with the dissolution of the basic unit.dissolution of the basic unit.

9.1. FLC stages

Stage 1) BachelorhoodStage 1) Bachelorhood Stage 2) HoneymoonersStage 2) Honeymooners Stage 3) ParenthoodStage 3) Parenthood Stage 4) Post ParenthoodStage 4) Post Parenthood Stage 5) DissolutionStage 5) Dissolution

Conclusion

The study of groups & their The study of groups & their impact on the individual is of impact on the individual is of grate importance to marketers grate importance to marketers concerned with influencing concerned with influencing consumer behaviour.consumer behaviour.

Reference

Chapter TenChapter Ten Reference Groups & Family Reference Groups & Family

InfluencesInfluences Book: Consumer BehaviourBook: Consumer Behaviour

# Ninth Edition# Ninth Edition

By- Leon G. Schiffman & Leslie By- Leon G. Schiffman & Leslie Lazar KanukLazar Kanuk

Page: 330 to 372Page: 330 to 372

The EndThe End