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Group Influence

and

onsumer Reference Groups



WH T IS GROUP?

TWO OR MORE PEOPLE WHO INTERACT

INTERDEPENDENT PEOPLE

SHARE EXPLICIT PSYCOLOGY WITH EACHOTHER

SOURCE OF INFLUENCE

INDIVIDUALS WHO SHARE AN IDEOLOGY



COLLEAGUES AT WORK

PEOPLE AT A RAILWAY STATION

PEOPLE PRAYING

TOGETHER

IDENTIFY THE GROUPS



TYPES OF GROUPS

SYMBOLIC GROUP

MEMBERSHIP GROUP

FORMAL GROUP

SECONDARY

GROUP

PRIMARY GROUP

INFORMAL GROUP



CONSUMER

RELEV NT

GROUPS

FAMILY

FRIENDS

FORMAL SOCIAL GROUP

INFORMAL WORK GROUPS

SHOPPING GROUPS





CONFORMITY

TO THE

GROUP

An indivdual has to followcertain norms of the group

PEER

PRESSURE

SANCTIONS

GOSSIP APPROVALS



REFERENCEGROUP

POINT OF COMPARISION

FRAME OF REFERENCE

PERCEPTION

VALUES AND BELIEFS OR

OTHER INDIVIDUALS

FOLLOWING IDOLS



BRO D C TEGORIES OF

REFERENCE GROUPSNORMATIVE REFERENCE

GROUPS

COMPARATIVE REFERENCEGROUPS



NORM TIVE

REFERENCE

GROUP

A group that influences the

general values or behavior of

an individual.



COMP R TIVE

REFERENCE

GROUPS

A group whose norms serve

as a benchmark for highlyspecific or narrowly defined

types of behavior.



INDIRECT

REFERENCE

GROUPS

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.





ASPIRATIONAL

GROUP

CONTRACTUAL

GROUP

DISCLAIMANT

GROUP

AVOIDANCE

GROUP

POSITIVE

REFERENCEGROUPS

NEG TIVEREFERENCE

GROUPS



Information and experience

Credibility, attractiveness, and power of thereference group

Conspicuousness of the product

F CTORS FFECTING REFERENCE

GROUP INFLUENCE



Inform or make the individual aware of aspecific product or brand

Provide the individual with the opportunity tocompare his or her own thinking with theattitudes and behavior of the group

Influence the individual to adopt attitudes andbehavior that are consistent with the norms of

the groupLegitimize the decision to use the same

products as the group

F CTORS ENCOUR GING CONFORMITY



REFERENCE GROUP PPE LSCelebrities

The expert

The “common man”

The executive and employeespokesperson

Trade or spokes-characters

Other reference group appeals



T

E

S

T

I

M

O

N

I

L

A promotional technique in

which a celebrity who has

used a product or servicespeaks highly of its benefits

in order to influence

consumers to buy.



E

N

D

O

R

S

E

M

E

N

T

Celebrities who may or maynot be users of a particular

product or service may lend

their names toadvertisements for such

products or services for a

fee.



S

P

OK

E

SP

E

RS

O

N

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.





E

X

P

E

R

T

S

An expert has some special training or

is highly experienced or is an

outstanding professional



C

OM

M

ON

M

N

A common man endorses a product with

which he is satisfied.dove and ariel uses

this approach.



E

XE

C

UT

I

VE

S

Top executives are well known. Theycan be effective influences. Vijay Mallya

is used in an add where he advises moderation

in drinking.



OTHER

REFERENCE

POINTS

Media

Reputed store

Cartoon characters

Seals of approval

Objective product ratings.



MERITS OF

REFERENCEGROUP

PPE L

INCREASES AWARENESS OF

THE BRAND

REDUCES PERCEIVED RISK IN

PURCHASING A SPECIFIC

PRODUCT





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