referrence groups (2)

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    What is a Reference Group?

    Reference Group:

    Is a Group whose presumed perspective or values are

    being used by an individual as the basis for his current

    behavior.

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    Factors that affect Reference Group influence

    REFERENCE GROUPS

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    Types of Reference Groups

    Normative Reference Group:

    Reference group that generate values or behavior of a person.

    Those groups are with whom the person gets into contact directly

    very often.

    Permanent.

    Example : College students

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    Types of Reference Groups

    Comparative Reference Group:

    Reference group that serve as benchmarks for specific narrowly

    defined attitudes or behavior.

    Temporary.

    Example : Friends Family

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    Types of Reference Groups

    Membership No Membership

    Positive Influence

    Negative Influence

    Contactual RG

    Disclaimant RG

    Aspirational RG

    Avoidance RG

    Membership to the Reference Group is Dynamic and Changes with Time andExternal Influences

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    Types of Reference Groups

    IN TERMS OF MEMBERSHIP

    Contactual / Membership Reference Group:

    Individual holds membership of this group

    Regular face-to-face contact with the members of the group

    Approves of the values, attitudes and standards

    Aspirational Reference Group:

    Individual does not hold membership

    No face-to-face contact with the members of the group

    Provide positive influence on attitudes, values and behaviors

    Membe rship

    NoMembersh ip

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    Types of Reference Groups

    IN TERMS OF MEMBERSHIPDisclaimant Reference Group:

    Individual holds membership of this group

    Regular face-to-face contact with the members of the group

    Does not approves of the values, attitudes and standards

    Avoidance / Dissociative Reference Group

    Individual does not hold membershipNo face-to-face contact with the members of the group

    Individual avoids / has opposite attitudes and values

    Membe rship

    NoMembersh ip

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    Factors affecting Reference Group Influence

    1.Information and Experience High for consumers less likely to be

    influenced by reference groups

    1.Credibility , Attractiveness and Power of the

    Reference Group

    2.Conspicuousness of the Product Verbally conspicuous product easily

    explained to others higher influence by the

    reference group

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    Factors affecting Reference Group Influence

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    Other Reference Group Influences

    Informational Influence

    Occurs when an Individual uses the behaviors and opinions of the

    reference group members as potentially useful information

    Influence is based on similarity to group members / expertise of the

    influencing member E.g.: Purchasing a NOKIA cell phone because my friends have one

    Identification Influence

    Occurs when the individual has internalized the groups values and norms

    E.g.: Purchase of health foods because I belong to a fitness group

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    Reference Group Influences

    Public Luxuries

    Golf ClubsSnow Skis

    Private Luxuries

    TV Video GamesIce Makers

    Public NecessitiesWrist WatchDress Clothes

    Private NecessitiesMattressesFloor Lamps

    Strong Weak

    Strong

    Weak

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    Celebrity Appeal

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    Applications of reference group influences

    1. Use of Celebrities for Product endorsements

    2. Use of Experts for Product endorsements

    3. Use of Spokespersons for Product endorsements