Welcome toafmktpstu.weebly.com/uploads/5/4/2/4/5424898/ch_04.pdf · point of comparison (reference) for an individual in forming either general or specific values, attitudes or specific

Welcome to

Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 01

Chapter No: 04of

MKT 425: Consumer Behavior

Chapter Name: Reference Groups

Modular:

Mr. Afjal Hossain

Lecturer

Department of Marketing, PSTU

Learning Objectives


1. Understand the roles of different types of referencegroups.

2. Learn how companies use different types of referencegroups appeals.

Definition


Group:

A group is defined as two or more people

who interact to accomplish either individual

or mutual goals.

Definition


Membership Status:

Sometimes groups are classified by membership

status. A person is qualified for membership status

when he/ she either belongs or would qualify for

membership in.

Definition


Symbolic Group:

There are also group in which an individual is notlikely to receive membership. Despite acting likea member by adopting the group’s values,attitudes and behavior.

Definition


Reference Group:

A group in society that influences an individual’s

purchasing behavior.

In another words,

A reference group is any person or group that serves as a

point of comparison (reference) for an individual in forming

either general or specific values, attitudes or specific guide

for behavior.

Definition


Reference Group:

From a marketing perspective, they are the groups that

serve as frames of reference for individuals in their

purchase or consumption decisions.

1. Normative Reference Groups:

Reference groups that influence general or broadlydefined values or behavior are called normativereference groups. Ex: A child normative referencegroup is immediate family.

Types of Reference Groups


2. Comparative Reference Groups:

Reference groups that serve as benchmarks forspecific or narrowly defined attitude or behaviorare called comparative reference groups. Ex: AYoung comparative reference group is friends,teachers etc.



1. Indirect Reference Groups:

It consists of those individuals or groups withwhom a person does not have direct face-to-facecontact. Ex: Movie stars, Sports heroes etc.

Special Reference Groups


2. Societal Reference Groups:

It consists family, friends, social class, various sub-cultures, one’s own culture, and even othercultures. They influence an individual’s consumerbehavior.

Special Reference Groups


• They serve as information sources and influence perceptions

• They affect an individual’s aspiration levels

• Their norms either constrain or stimulate consumer behavior

Implications of Reference Groups


Major Consumer Reference Groups


Major Consumer Reference Groups

1. Information and Experience:

An individual who has firsthand experience with a productor service, he can easily obtain full information about it, isless likely to be influenced by the advice or example ofothers. On the other hand, a person who has little or noexperience with a product or service and does not expectto have access to objective information about it, is morelikely to seek out the advice or example of others.

Factors affecting Reference Groups


2. Credibility, Attractiveness and Power:

A reference group that is perceived as credible, attractive,or powerful can induce consumer attitude and behaviorchange. They are more likely to be persuaded by sourceswith high credibility. Different reference groups mayinfluence the beliefs, attitudes and behavior of anindividual at different points in time or under differentcircumstances.



3. Conspicuousness of the product:

The potential influence of a reference group on a purchasedecision varies according to how visually or verballyconspicuous the product is to others. A visuallyconspicuous product is one that will stand out and benoticed, a verbally conspicuous product may be highlyinteresting or it may be easily described to others.



4. Reference groups & consumer conformity:

A reference group must accomplish:

• Aware of a specific product or a brand

• Opportunity to compare his/ her own thinking

• Adopt attitudes that consistent with the norms of the group

• Legitimize the decision to use the same products as the group



1. Friendship Groups

This type of groups are usually unstructured andlack specific authority levels.

In terms of relative influence, after anindividual’s family, his/ her friends are mostlikely to influence the individual’s purchasedecisions.



2. Shopping Groups

Two or more people who shop together areshopping groups.

Ex: Shop together whether for food, for clothingor simply to pass the time.



3. Work Groups

The sheer amount of time that people spend attheir jobs frequently more than 35 hours perweek are work groups.

Ex: Work together as a team for thedevelopment of the company.



4. Virtual Groups/ Communities

Both adults or children are turning on theircomputers, logging onto the web and visitingspecial-interest Web Sites often with chat roomsare virtual groups or communities.

Ex: Groups working with computers and internet.



5. Consumer Action Groups

This type of groups are has emerged in responseto the consumerist movement.

They mainly work to make the right purchasedecisions, consume the products and services ina healthy and responsible manner and togenerally add to the overall quality of their lives.Ex: CAB.



1. Celebrities:

Celebrities, particularly movie stars, TV personalities,popular entertainers and sports icons provide a verycommon type of reference group appeal. They promotethe products/ services by giving a testimonial or anendorsement.

They act as a company spokesperson. Ex: Shahrukh Khan inPepsodent, Aamir Khan in Coca-Cola etc, Dr. Yunus inShakti Dadhi.

Types of Reference Groups Appeals


2. The Expert:

Experts are the marketers of the products/ services. Aperson who because of his/ her occupation, experience,special training is in a unique position to help theprospective consumer evaluate the product or service thatthe advertisement promote.

Ex: Dentist for Pepsodent, Colgate toothpaste and Doctorfor Lifebuoy Handwash etc.



3. The “Common Man”:

Here the testimonial or satisfied customers are known asthe common man appeal.

Ex: Mother and Daughter for Hash Marka Narikel Toil.



4. The Executive & Employee Spokesperson:

The firms usages their top executives for the ads of theirproducts/ services as a spokesperson.

Ex: Different ads for Grameenphone or Banglalinkadvertisements.



5. Trade/ Spokes-character:

Trade or spokes-characters are the familiar cartooncharacters for creating the appeal of the products/ servicesadvertisement.

Ex: Nitai Bhattachargee, Amitav Reza etc.



Query?

Thank You

… For staying with me …


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Welcome toafmktpstu.weebly.com/uploads/5/4/2/4/5424898/ch_04.pdf · point of comparison (reference) for an individual in forming either general or specific values, attitudes or specific