Influence of reference groups on consumer behaviour

BuyerBuyer

Psychological

Personal

Social

Culture

Groups Membership Reference Opinion Leaders

Family Many influencers

Roles and Status

5 - 3

CulturalSocialPersonalPsychological

Key FactorsKey Factors

Types ofReference

Groups

a. Direct

b. Indirect

STUDENTSTUDENT

CLUBSCLUBS

(1)Primary: Daily

(2)Secondary:

(1) Aspirational (+ve)“Want-to-Be”

(2) Non-inspirational (-ve)“DON’T Want to Be”

IDOLSIDOLS

MICHEAL JACKSONMICHEAL JACKSON

Normative vs. Comparative Reference Groups

Normative Reference Groups - A group in which individuals are motivated to gain or maintain acceptance. To promote this acceptance, individuals hold their attitudes in conformity with what they perceive to be the consensus of opinion (norms) among the group members.

Comparative Reference Groups - A group which individuals use as a standard or point of reference in making evaluations or comparisons of themselves and of other individuals or groups

Friendship Groups – Most likely to influence after the family

Shopping Groups – 2 or more people who shop together

Work Groups – Who work together as a part of a work team

Virtual Groups/ Communities

Consumer–Action Groups – Who are dedicated in providing assistance to consumers in order to make correct purchase decisions

1. Celebrities

2. Experts

3. Common Man (someone just like them uses it)

4. The Executive/ Employee Spokesperson

5. Trade/ Spokes Characters or Familiar Cartoon Characters

6. Respected Retailers

7. Editorial content of Special –interest Magazines

8. Seals of Approval

9. High Rating in Consumer Reports

1. Information and Experience

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

2. Credibility, Attractiveness and Power of the Reference

Group

3. Conspicuousness of the Product

• Verbally conspicuous product – easily explained to others – higher influence by the reference group

Public LuxuriesGolf ClubsSnow SkisSail Boat

Private LuxuriesTV Video GamesIce MakersTrash Compactors

Public NecessitiesWrist Watch AutomobilesDress Clothes

Private NecessitiesMattressesFloor LampsRefrigerators

Strong Weak

Strong

Weak

Brand Choice

Prod

uct C

hoice

Decision-making unit of a buying organization is called its buying center.

Not a fixed and formally identified unit.

Membership will vary for different products and buying situations.

Buying Center Members: Users Buyers Deciders Gatekeepers Influencers Initiators