types of reference group in consumer behaviourtypes of reference group in consumer behaviour

An information technology (IT) specialist with a great deal of knowledge about computer brands is another example of an opinion leader. For instance, when you purchase a refrigerator brand suggested by your family member without choosing the one of your choice, the influence is called as Utilitarian. Doctors, for example, will conform more to the norms of their professional associations. Then, reference groups influence the type of product purchased and the brand name selected. Here people deny of becoming or getting connected to a particular group. You look to others to guide or reinforce your basic beliefs and attitudes about ethics, morality, politics, and general behavior. You look to others for guidance on dressing, speaking, working, and spending your leisure time. In a typical consumer scenario, being one of the members of the group, people tend to go in for the brands and products when the same is suggested by another group member. Introduction to Consumer Behaviour by Andrea Niosi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Aspirational group is the one to which a person may want to become part of. Reference group influence has long been studied in the setting of product purchase. Secondary reference groups are usually formal and they speak less frequently. Since good word-of-mouth communication is a valuable marketing asset, marketers attempt to identify or create opinion leaders in reference groups that affect members within-group information acquisition. The expertise power rules over. Harvard Business Review. A consumer is influenced to conform to the norms and behaviour of a particular reference group if (1) the reference group in subject gives significant rewards for conforming to the practices of the group and provides significant punishment as well for non-compliance and (2) the members of the reference group see the person's behaviour in conform. If an individual is found to be ambiguous on different stimuli, he will, without a doubt, conform to group norms regarding those stimuli. Since the husbands interests vary in two situations, he will likely play different roles. These groups were held together not by formal rules but by the members informal understandings. An individual can neither easily cease his relationship with a primary group member nor develop a primary relationship with someone easily and quickly. The four categories are Normative Groups, Comparative Reference Groups, Status Reference Groups and Dissociative Groups. These peoples purchases often lie at the forefront of leading trends. Marketers use reference group influence in ads, suggesting a specific group buys a product. We make purchase to get compliments and try that others should not think less of us. They set the levels of lifestyle, purchasing patterns, etc. Personality and Social Psychology Bulletin, 35(3), 309-320. Psychological Science, 19(5), 439440. Almost everyone belongs to groups of some kind, large or small, informal or formal, temporary or permanent. lessons in math, English, science, history, and more. Reference groups influence more in the purchase decisions of those products that are visible to the group. It may not be possible for an individual to ascertain the precise influence of his reference groups. The researchers interpreted this as a kind of spontaneous conformity a tendency to follow the behaviour of others, often entirely out of our awareness. She does things differently than all the other artists and she isnt afraid to take creative risks or create enemies. For example, the members of the militant white supremacist organization, the Ku Klux Klan, wear white robes and hats when they meet and when they engage in violent racist behaviour. Many a times, consumers are threatened to go in for certain brands or to avoid a particular brand. Internalization The involvement levels of people who fall in this category are very high. A group refers to two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behavior is interdependent. The influences exerted by such group members on consumers make them join many groups every now and then. Advances in Consumer Research, Vol. - Definition & Examples, Capital Lease vs. Operating Lease in Accounting, Debt Financing: Definition, Types, Advantages & Disadvantages, Continuous Auditing: Advantages & Disadvantages, Standard Cost Accounting System: Benefits & Limitations, Avoidable Costs in Accounting: Definition & Examples, Inheritance Tax: Definition, State & Federal, Working Scholars Bringing Tuition-Free College to the Community. A reference group is a category of people with shared traits that companies use to hone their business strategy. (2)Primary and Secondary Groups Primary Groups are basically ones whose members are closely knit. Opinion Leader Overview & Marketing | What is an Opinion Leader? during all occasions. In our daily lives, we all get influenced by a variety of people while making our purchase decisions. However, the Tulsa event tells us otherwise: a brand community exists to serve its people (Fournier & Lee, 2009) and participation in that community isnt just about the brand itself. Society looks to these groups to help form. Increased and frequent exposure to a product may result in our developing a preference for the product that we wouldn't otherwise have. Examples of Consumer Buying Behaviour 3. Perhaps you learned to like jazz or rap music because your roommate was playing a lot of it. Influence also sometimes occurs because we believe that other people have valid knowledge about an opinion or issue, and we use that information to help us make good decisions. Alluding to reference groups in persuasive atempts to market products and brands demonstrates the belief that reference groups expose people to behavior and lifestyles, influence self-concept development, contribute to the for- Commentdocument.getElementById("comment").setAttribute( "id", "a4a435dfe2bb47a72b1782d834554215" );document.getElementById("e589d73e35").setAttribute( "id", "comment" ); Save my name, email, and website in this browser for the next time I comment. Product Disposal and Disposal Options, 31. Individuals use reference groups as a way to assess their own success and status within society. Many a times, people wish to and dissociate themselves from a group which they consider as a not suitable one for themselves. Whos taken Marketing and which instructor should I get? An understanding of how groups function is, therefore, essential to an understanding of consumer behavior. He may then decide to try that brand simply because there is some evidence that it may be a better brand. Soon, the message spread like a wildfire on Tiktokgo online, reserve a ticket, dont show up, share with others, delete the evidence. This term best describes situations in which we express opinions or take on behaviours that enable us to be accepted by others and avoid rejection or social isolation. Emotional convergence between people over time. Consumer Behaviour, Reference Groups, Singl etons, SUSCEP-scale. And when you start working at a new job you may copy the behaviour of your new colleagues because you want them to like you as well as because you assume they know how things should be done. Just by seeing the items more often consumers grew to like them enough to buy them. You will not wear, for example, shorts when you go to the mosque to conform to a religious group. https://www.nytimes.com/2020/06/21/style/tiktok-trump-rally-tulsa.html. The human choice: Individuation, reason and order versus deindividuation impulse and chaos. Your reference group determines much about how this role is to be performed. It can operate in various ways and can be effective on brands, services, and products. The term consumer buying refers to the process of selecting, buying and consuming products for the satisfaction of a customer's wants. substantial use of potential reference group influence on consumer behavior in the development of their communi-cations. In this article we will discuss about Consumer Behaviour: 1. 2884). Both social comparison and informational social influence often lead to conformity, which is a long-lasting change in beliefs, opinions, and behaviours that are consistent with the people around us. The researchers reviewed literature available in. 2) Utilitarian Influence (normative) 3)Value Expressive Influence (Identification) What is . Reference Group Construct: The various types of reference group include primary groups, secondary groups, formal groups, informal groups, membership, aspirational groups and the. They help to develop and evaluate ones self-image. What is an opinion leader? Free Press. Consumer Buying Process 4. Muniz Jr., A. and OGuinn, T.C. In pop media we see examples of non-conformists all the time: Lady Gaga is a perfect example of someone who wears their difference with pride. The term describes the extent to which someone or something else is near to us. Group influence is strongest when the individual consumer has little or no knowledge about a products attributes. Agree Marketers need to understand which groups/leaders influence their target segments and who those groups or individuals are. Reference Groups are basically small in size and differ from one individual to another. A housewifes reference groups, for example, include her family, circle of friends, neighbors, and clubs. These are socially accepted beliefs about what we do or should do in particular social contexts. Journal of Abnormal and Social Psychology, 47, 382389. Reference groups are groups of people that can influence others in many different ways. (1990). We base our beliefs on those presented to us by reporters, scientists, doctors, and lawyers because we believe they have more expertise in certain fields than we have. They can be our parents or siblings too who can in any form provide us the information about the product. These groups of people are not known to consumers personally, but instead represent a set of ideals that others admire usually because of their popularity and celebrity status. A reference group helps shape a persons attitudes and behaviours. The typical outcome of social influence is that our beliefs and behaviours become more similar to those of others around us. Its like a teacher waved a magic wand and did the work for me. View the full answer. Your email address will not be published. If you have ever dreamed of being a professional player of basketball or another sport, you have an aspirational reference group. When you are actively involved with a particular group, it is probably functioning as a reference group. The Tulsa Fire Department reported after the event that the fire marshal counted 6,200 scanned tickets in attendance (Lorenz et al., 2020) and the outdoor overflow area remained empty. A consumer gets influenced by his family members as well as friends. Reference groups play an important role in influencing consumer behavior, impacting the products and brands consumers choose. All Rights Reserved. Wheres your favourite place to go for Pho? June 19th marks a special day for Black Americans: it commemorates the 1865 emancipation of enslaved people in the United States. Get unlimited access to over 88,000 lessons. Group communications through opinion leaders: As consumers, we are often seeking out the advice of knowledgeable friends or acquaintances who can provide information, give advice, or actually make the decision for us. Lorenz, T., Browning, K., and Frenkel, S. (2020, November 6). 1) Informational influence. Word-of-mouth (WOM) influence: Do you have a good dentist? Who We Are (n.d.) Bear Clan Patrol Inc. Retrieved March 1, 2021, from https://bearclanpatrol.org. Principles of Social Psychology1st International Edition, Dr. Rajiv Jhangiani and Dr. Hammond Tarry. By using this website, you agree with our Cookies Policy. Thus, it can be said that a consumer's reference groups are those groups, which may have a direct or indirect influence on one's attitude or behavior. Such groups tend to develop norms about what the group members should do and are expected to do under given circumstances. Reference groups may be classified according to several types. Informational social influenceis often the end result of social comparison, the process of comparing our opinions with those of others to gain an accurate appraisal of the validity of an opinion or behaviour (Festinger, Schachter, & Back, 1950; Hardin & Higgins, 1996; Turner, 1991). An individual actively participates with such a group of close associates. Almost everyone belongs to groups of some kind, large or small, informal or formal, temporary or permanent. They currently are not part of that group but wish to become and get with that group. Reference Groups AND Consumer Behaviour - REFERENCE GROUPS AND CONSUMER BEHAVIOUR: Topic notes - Studocu reference groups and consumer behaviour: topic notes textbook groups: two or more people who interact to accomplish either individual or mutual goals group is Skip to document Ask an Expert Sign inRegister Sign inRegister Home These are people who have the ability to influence others; they often set trends and norms that others conform to. To see this page as it is meant to appear, please enable your Javascript! A group consists of two or more individuals who share a set of norms, values or beliefs and have a defined relationship such that their behaviour is interdependent. When soldiers obey their commanding officers, they probably do it both because others are doing it (normative conformity) and because they think it is the right thing to do (informational conformity). Many studies have studied how reference groups affect consumers buying behavior. The early founders of Bean Clan expressed a desire to assume their traditional responsibility to provide care and support to members of their community through culturally-specific approaches to security, safety, and check-ins. Anyone with such high levels of involvement in groups will go in for recommendations from other in the group with respect to their purchase decisions. This group is also called as Aspiration Group since anyone who wants to exert influence being a member of this group may do so based on his status. Common organizations like Colleges, Schools, Police Academies and membership firms also fall under Reference Group. Everyone associates with different groups to gain something financial or social/psychological. Festinger, L., Pepitone, A., & Newcomb, B. New York Times. Groups basically affect consumer behavior through the development and enforcement of norms. Those groups characterized by limited interaction among members are referred to as secondary groups. The loss of individual self-awareness and accountability when an individual is absorbed into a larger group. Meaning and Nature: "Reference Group is a group that serves as a reference point for an individual in the formation of his/her beliefs, attitudes and behaviour." Marketers frequently advertise their products in a group setting- the family eating breakfast cereals, the neighbor admiring the paint of the house. ADVERTISEMENTS: Read this article to learn around the meaning, types, factors and appeal von refer bands. At some length, you have been given the idea of self-image or self-concept in the earlier lesson. They become one with the group. If an individual interacts only occasionally with others or does not consider their opinions particularly important, they make up a second group. (4)Referent Power A person tries to copy the behaviour of another person whom he takes as an idol and wants to be identified as him. Fans of Korean pop music are called K-Pop Stans and like their TikTok allies, they know a thing or two about working with different platforms algorithms to boost exposure of their videos. The need for uniqueness is a is seen as a trait or temporary motivation resulting from situational triggers. These events help owners to bond with fellow enthusiasts and strengthen their identification with the product as well as with others they meet who share their passion. The Bean Clan patrol groups demonstrate how when a group of like-minded individuals come together to address common concerns, their camaraderie provides a stronger sense of purpose and energy, possibly more so than when individuals act alone. Norms force consumers to go in for certain options as a part of their adherence process. Such groups include a variety of roles and interests for each individual in the relationship. New York, NY: Guilford; Hollenbeck, C.R., and Zinkhan, G.M. Trends Impacting Individual Consumer Decision Making, Key Influences on Consumer Decision Making. Social psychologists are interested in studying self-awareness because it has such an important influence on behaviour. They might be professionals, your collogues, your seniors at work or your acquaintance at club, etc. Since childhood the culture which he follows or the rituals which he observes and the moral values and the religious principles he usually receives them from his family. Muniz Jr. and OGuinn (2001) define a brand community as, a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.. A primary group exerts the greatest and most widespread impact on consumer buying behavior. Consumer Attitudes: Overview & Behaviors | What are Consumer Attitudes? A reference group is any person or group that serves as a point of comparison (or reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Reference groups can influence an individual's cognitions, affective responses, and behaviors. Plus, get practice tests, quizzes, and personalized coaching to help you Reference Groups Influencing Consumer Behavior Topic: Business Words: 2022 Pages: 8 Nov 15th, 2020 Introduction For several decades, the dynamics in the marketing environment have shifted from predictable consumer trends to those that are complex and almost unpredictable. Again he will play a different role while interacting with his wife as he expects a sacrifice from his wife. Hardin, C., & Higgins, T. (1996). Family of a consumer plays an important role in the decision making process. Types of reference groups and their influence on consumer behaviour A reference group is a social construct that allows us to un. Marketers are particularly interested in groups because they help managers understand how consumer behavior develops and take appropriate marketing actions. For example, a local high school teacher may be an opinion leader for parents in selecting colleges for their children. Research found that reference groups are very important for marketers. In the months leading up to the Vancouver Winter Olympics in 2010, apparel such as hoodies, toques, and mittens were widely available but hardly seen on the streets. In a typical family environment, each family member plays a different role like gatekeeper, initiator, decision maker, influencer and many more. Reference groups are used in social comparison theory. This term describes situations where an individual (or group of individuals) reject or fail to go along with the rules, laws, and social norms of a larger group or society. Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, Introduction to Psychology1st Canadian Edition. Thus marketers need to understand the likes and dislikes of the consumers and also the groups to which they belong. Consumers are found to conform to those groups norms whose members have similarities in terms of occupation. Consumer Involvement 1 Aditya008 90K views Chapter 6 Consumer Perception Avinash Kumar 76.2K views Consumer decision making process Dr. Poonamjot Kaur Sidhu 64.6K views Brand Loyalty (Consumer Behaviour) Mohit Sarohi 9.4K views Buyer Behaviour Dhanalakshmi Chandran 32K views Consumer Attitude Formation and change & Berinato, 2010). They may be memberships in clubs where the meeting may happen only once a while. After the complete the research they may decide to purchase the particular or dispose it. For example, a person may stop buying one brand of paracetamol and switch to another on the reference groups advice. The purpose of this study is to provide an overview of existing knowledge on the role of a reference group on consumer purchasing behaviour. All other trademarks and copyrights are the property of their respective owners. There is a lack of consensus about what an influencer is. Where can we find examples of non-conformity in marketing? These social powers can influence the consumer behavior in buying certain products and brands. These people from primary groups may have a direct and strong impact in your lives and your buying decisions since they are very significant to you. One situation that triggers this is when you feel too similar to others making the major position undesirable. These people set the trend and others conform to the expressed behaviour. The first are primary and secondary reference groups. Such a group consists of small individuals who have intimate relationships and communicate with each other directly and regularly. In other words, a group is defined as two or more people with related status and roles who interact based on shared expectations about each others behavior. The Influentials. If group members hold the same opinions on different aspects, they can expect more conformity to their members norms. Groups also put conformity pressures on their members. Factors Influencing Consumer Behaviour 5. Not all examples of deindividuation cause alarm or concern, however. In this case your assumption might be that they know where they are going and that following them will likely lead you to the baggage carousel. Primary reference groups help individuals develop their personalities to the fullest. Groups expect their members to conform to the norms set by the groups. Will there be an appetite for the AirBnb business model post-pandemic? Influence, Conformity, & Norms Informational social influence is the change in opinions or behaviour that occurs when we conform to people who we believe have accurate information. (1955). The antithesis of a brand community, writes Hollenbeck & Zinkhan (2006), is an anti-brand community. In secondary reference groups the power to influence people is quite less as compared to primary reference groups as people in these groups are not that comfortable in sharing their thoughts or views on the purchase. Consider the community-based solution to crime prevention, Bear Clan Patrol, which is a volunteer-run organization with membership in Winnipeg, Calgary, and Edmonton. The influence of reference groups depends upon . Husband and wife, for example, have a primary relationship between them. A person with knowledgeable and insightful views that we value as the basis of our own thinking and desires eg celebrities- Obama, Oprah. We base our beliefs on those presented to us by reporters, scientists, doctors, and lawyers because we believe they have more expertise in certain fields than we have. Updated: 01/31/2022 Reference Groups Reference groups are groups of people who serve as reference points for modeling and self-assessment. When we compare our opinions to those of the people around us, we are engaging in social comparisons. 33, eds. This study examines the significance of reference groups in the selection of services. First, reference groups determine the level of aspiration for an individual. They may also influence the selection of product type only or name only. Pacific Grove, CA: Brooks Cole. Influence exerted on the consumer by such Normative Groups is many a time subjective. Self-Concept & Consumer Behavior: Marketing Products to Enhance Self-Concept, Reference Groups: Meaning, Types, Primary & Secondary Reference Groups, Groups basically affect consumer behavior through the development and enforcement of norms, essential to an understanding of consumer behavior, group of people with whom the individual looks for, groups as they heavily influence consumer behavior, Groups that are efficient in making decisions can expect their members to conform more to the group norms. 1. Here, conformity is the result of information shared by the members of the group. The aspiration may become true once they are ready to join the group at the future point of time. (3)Status Reference Groups A group in which one refers to the position or status of the people in a group before making a purchase decision. uniqueness seeking blocks majority influence. Sumner, W. G. (1906). For, between infancy and death, much of our behavior is devoted to becoming identified with various groups. Reference groups do not always influence consumers product or brand usage decisions. Non-Membership group are general groups in which one associate them for keeping self updated about certain aspects of their interest. Second, reference groups tell the individual the items he should buy for his behavior to be considered acceptable to the groups. Now our reference could be very large or very small including few of our family members or few close friends. After the torch relay came to Vancouver, the infamous red mittens started making an appearance everywhere: eventually after seeing Olympic apparel more and more on TV and around time, consumers were buying anything Olympic that they could get their hands on. Robert Cialdini and his colleagues (Cialdini, Reno, & Kallgren, 1990) found that college students were more likely to throw litter on the ground when they had just seen another person throw some paper on the ground and were least likely to litter when they had just seen another person pick up and throw paper into a trash can. Stratification is thus leveraged to the marketing advantage of organizations which focuses on tapping the right set of customers for selling their products and services. Volunteer patrol teams head out into the dark, cold nights to help the most vulnerable living in the community. In the following section, we shall discuss the factors that determine the degree of conformity to group norms: Quite a few factors determine how much and how long one will conform to the norms established by his reference groups. Each of them plays different roles with each other while interacting. Proximity has its effect on liking through the principle of mere exposure, which is the tendency to prefer stimuli (including but not limited to people) that we have seen more frequently. Buyers Buyer is the one who actually makes the purchase of the product. https://hbr.org/2010/05/influence-and-twitter.html. Within hours of opening the online ticket registration website, the Trump campaign was announcing that over a million seats had been reserved (tickets were free, but those reserving had to provide address information which of course was falsified by the young activists) and an outdoor overflow area had been secured for what they believed to be exceptionally high demand to see the President. Such groups influence all of us. Communication within reference groups is an important source of information about products. Young students who avoid wearing certain style of clothes for the fear of getting mocked by his friends experiences the type influence common to Normative groups. As a member, you'll also get unlimited access to over 88,000 (1)Normative GroupsPark and Lessig A consumer is motivated to conform to the norms and behaviour of the group if : These are the groups that care for set norms and ensure that the same are held up at all points of time. For example, if you take a flight and land at an unfamiliar airport you may follow the flow of other passengers who disembarked before you. Want to create or adapt OER like this? London: Constable and Robinson. Buying Motives of Consumers 7. Although this type of group can establish and/or enhance personal identity, it is from the sub-groups of a reference group that the significance offered to individuals is found. Primary reference groups function in several ways. The groups of people in our lives that we use for social comparisons. Association for Consumer Research, 479-485. Why would some individuals elect to be non-conformists? We believe that choosingthe jacketwas the right thing to do and that the crowd will lead us to the baggage carousel.