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Chapter 10
Reference Groups and Family Influences
©2000 Prentice Hall
What is a Group?
• 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
©2000 Prentice Hall
Reference Reference GroupGroup
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.
©2000 Prentice Hall
Broad Categories of Reference Groups
• Normative Reference Groups
• Comparative Reference Groups
©2000 Prentice Hall
Normative Normative Reference Reference
GroupGroup
A group that influences the general values or behavior of
an individual.
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Comparative Comparative Reference Reference
GroupsGroups
A group whose norms serve as a benchmark for highly
specific or narrowly defined types of behavior.
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Indirect Indirect Reference Reference
GroupsGroups
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.
©2000 Prentice Hall
Figure 10.1 Major
Consumer Reference
Groups
Reference Groups
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Factors That Affect Reference Group Influence
• Information and experience• Credibility, attractiveness, and power o the
reference group• Conspicuousness of the product
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Factors Encouraging Conformity:A 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
©2000 Prentice Hall
Selected Consumer-Related Reference Groups
• Friendship groups• Shopping groups• Work groups• Virtual groups or
communities• Consumer-action groups
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Informal Informal GroupsGroups
A group of people who see each other frequently on an
informal basis, such as weekly poker players or
social acquaintances.
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Shopping Shopping GroupGroup
Two or more people who shop together.
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Reference Group Appeals
• Celebrities• The expert• The “common man”• The executive and employee
spokesperson• Trade or spokes-characters• Other reference group appeals
©2000 Prentice Hall
TestimonialTestimonial
A promotional technique in which a celebrity that has used a product or service
speaks highly of its benefits in order to influence consumers to buy.
©2000 Prentice Hall
EndorsementEndorsement
Celebrities who may or may not be users of a particular
product or service may lend their names to
advertisements for such products or services for a
fee.
©2000 Prentice Hall
SpokespersonSpokesperson
A celebrity or company executive who represents a product, brand, or company over an extended period o
time, often in print, on television, and in personal
appearances.
©2000 Prentice Hall
Table 10.1 Types of Celebrity Appeals
TYPETYPE DEFINITIONDEFINITION EXAMPLEEXAMPLE
Testimonial Based on personal usage, a celebrity attests to the quality of the product or service
Pat Riley or 1-Day Accuvue® disposable contact lenses
Endorsement Celebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert
Senior pro golfer Larry Laoretti for TE-AMO cigars
Actor Celebrity presents a product or service as part of a character endorsement
Jason Alexader for Rold Gold pretzels
Spokesperson Celebrity represents the brand or company over an extended period of time
Lee Trevino for Motorola telecommunications products
©2000 Prentice Hall
Table 10.2 Popular Celebrities and Their Products/Services
CELEBRITYCELEBRITY
June AllysonPierce BrosnanBill CosbyCindy CrawfordKareem Abdul-JabbarMichael JordanLorenzo LamasHeather LocklearRosie O’Donnell & Penny MarshallPaul ReiserJerry SeinfeldJaclyn SmithJonathan Winters
PRODUCT/SERVICEPRODUCT/SERVICE
DependsOmega WatchesJell-ORevlon, Omega WatchesPepperidge Farm Goldfish crackersMcDonalds, NikeElizabeth Taylor’s White DiamondsL’OrealKmartAT&TAmerican ExpressKmartChoice Hotels
©2000 Prentice Hall
FamilyFamily
Two or more persons related by blood, marriage, or adoption who reside
together.
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Nuclear Nuclear FamilyFamily
A household consisting of a husband and wife and at
least one offspring.
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Extended Extended FamilyFamily
A household consisting of a husband, wife, offspring,
and at least one other blood relative.
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Single-Parent Single-Parent FamilyFamily
Households consisting of one parent and at least one child, because of divorce,
separation, and out-of-wedlock births.
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Consumer Consumer SocializationSocialization
The process by which children acquire the skills, knowledge, and attitudes necessary to function as
consumers.
©2000 Prentice Hall
Figure 10.7 A Simple Model of the Socialization Process
Influence More BasicValues/Behavior
• Moral/religious principles• Interpersonal skills• Dress/grooming standards• Manners and speech• Educational motivation• Occupational career goals• Consumer behavior norms
Influence More BasicValues/Behavior
• Moral/religious principles• Interpersonal skills• Dress/grooming standards• Manners and speech• Educational motivation• Occupational career goals• Consumer behavior norms
Influence More ExpressiveAttitudes/Behavior
• Style• Fashion• Fads• “In/Out”• Acceptable consumer
behavior
Influence More ExpressiveAttitudes/Behavior
• Style• Fashion• Fads• “In/Out”• Acceptable consumer
behavior
Other Family Members
Other Family Members FriendsFriends
Young PersonYoung Person
Preadolescent Adolescent Teens Older
©2000 Prentice Hall
Other Functions of the Family
• Economic well-being• Emotional support• Suitable family lifestyles
©2000 Prentice Hall
Table 10.3 The Eight Roles in the Family Decision-Making Process
ROLEROLE DESCRIPTIONDESCRIPTIONInfluencers Family member(s) who provide information to other members
about a product or service
Gatekeepers Family member(s) who control the flow of information about a product or service into the family
Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consumer, or dispose of a specific product or service
Buyers Family member(s) who make the actual purchase of a particular product or service
Preparers Family member(s) who transform the product into a form suitable for consumption by other family members
Users Family member(s) who use or consume a particular product or service
Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service
©2000 Prentice Hall
Dynamics of Husband-Wife Decision Making
• Husband-Dominated• Wife-Dominated• Joint
– Equal– Syncratic
• Autonomic– Solitary– Unilateral
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Figure 10.10 Husband-Wife Influence in Financial Tasks and Decisions
0 10 20 30 40 50 60 70 80 90 100
Gifts to Charities
Monthly Expense Budget
Insurance for Wife
Financing of Large Purhcase
Allocation of Funds for Savings
Insurance for Husband
Down Payment on a Large Purchase
Choice of Institution for Cetificate of Deposit
Choice of Type of Investment
Husband-dominated Equal partnership Wife-dominated
©2000 Prentice Hall
The Family Life Cycle
• Traditional Family Life Cycle– Stage I: Bachelorhood– Stage II: Honeymooners– Stage III: Parenthood– Stage IV: Postparenthood– Stage V: Dissolution
• Modifications - the Nontraditional FLC
©2000 Prentice Hall
Figure 10.13 An Extended Family life CycleMiddle-Aged
Divorced without Children
Middle-AgedMarried without
Children
YoungDivorced without
Children
YoungSingle*
YoungMarried without
Children*
YoungMarried
with Children*
Middle-Aged
Married with
Children*
Middle-Aged
Married without
Dependent Children*
OlderMarried*
OlderUnmarried*
Middle-Aged
Divorced with
Children
Middle-Aged
Divorced without Children
YoungDivorced
with Children*
* Traditional Family FlowRecycled FlowUsual Flow
©2000 Prentice Hall
Table 10.4 Noteworthy Nontraditional FLC Stages
Family Households
Childless couples It is increasingly acceptable for married couples to elect not to have children. Contributing forces are more career-oriented married women and delayed marriages.
Couples who marry later in life (in their late 30s or later)
More career-oriented men and women and greater occurrence of couples living together. Likely to have fewer or even no children.
Couples who have first child later in life (in their late 30s or later)
Likely to have fewer children. Stress quality lifestyle: “Only the best is good enough”
Alternative FLC Stages Definition/Commentary
©2000 Prentice Hall
Table 10.4 continued
Family Households
Single parents II Young man or woman who has one or more children out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to avoid the expenses of living alone while establishing their careers. Divorced daughter or son and grandchild(ren) return home to parents. Frail elderly parents who move in with children. Newlyweds living with in-laws.
Alternative FLC Stages Definition/Commentary
Single parents I High divorce rates (about 50%) contribute to a portion of single-parent households
©2000 Prentice Hall
Table 10.4 continued
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and homosexual couples.
Divorced persons (no children)
High divorce rate contributes to dissolution of households before children are born.
Single persons (most are young)
Primarily a result of delaying first marriage; also, men and women who never marry.
Alternative FLC Stages Definition/Commentary
Widowed persons (most are elderly)
Longer life expectancy, especially for women; means more over-75 single-person households.
©2000 Prentice Hall
Table 10.5 Family and Nonfamily Households
ALL HOUSEHOLDS 101,018 100.0%
FAMILY HOUSEHOLDS 70,241
Married couples 53,604
with children under 18 25,083 24.8
without children under 18 28,521 28.2 53.1
Female-householder families 12,790
with children under 18 7,824 7.7
without children under 18 4,916 4.9 12.7
Male-householder families 3,847
with children under 18 1,709 1.7
without children under 18 2,139 2.1 3.8 6.95
Number of household by type in 1996
Distribution of Households by type
©2000 Prentice Hall
Table 10.5 continued
ALL HOUSEHOLDS 101,018 100.0%
NONFAMILY HOUSEHOLDS 30,777
Living alone 25402
Female householders 14,861 14.7
Male householders 10,442 10.3 25.1
Living with others 5,375
Female householders 2,110 2.1
Male householders 3,266 3.2 5.3 30.5
Number of household by type in 1996
Distribution of Households by type