Consumer Behavior

Reference Groups and Family References

10 - 2

Outline

• What Is a Group?• Categories of Reference Groups• Selected Consumer-Related Reference

Groups• Reference Group Appeals• Consumer Socialization• Family Decision Making• The Family Life Cycle

10 - 3

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 (e.g. Alumni Association)

• A symbolic group is one in which an individual is not likely to receive membership despite acting like a member (e.g. an amateur cricketer)

10 - 4

Reference Group

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.

10 - 5

Broad Categories of Reference Groups

• Normative Reference Groups– Reference groups that

influence general values or behavior (e.g. family)

• Comparative Reference Groups– Reference groups that

serve as benchmarks for specific attitudes or behavior (e.g. neighboring family)

10 - 6

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.

10 - 7

Teens are influenced by indirect reference groups.

weblink

10 - 8

Major Consumer Reference Groups

10 - 9

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

This ad compares the product to a

reference group.

10 - 11

Selected Consumer-Related Reference Groups

• Friendship groups

• Shopping groups

• Work groups

• Virtual groups or communities

• Consumer-action groups

10 - 12

The Internet has created

many friendship and

shopping groups.

weblink

Selected Consumer-Related Reference Groups

10 - 13

Brand Communities

• Saturn car owners who meet for reunions and barbecues

• Saab owners

• Harley-Davidson Owner Groups

• Maruti Owners’ Club

Brand Communities

Since Honda cannot

compete on brand

community, they choose to emphasize the

family.

10 - 15

Brand Communities

weblink

10 - 16

Reference Group Appeals

• Celebrities (Samsung – Amir Khan)

• The Expert (SugarFree - Sanjiv Kapur)

• The “Common man” (housewives - Nirma)

• The Executive and Employee spokesperson (Coke – Its CEO, MDH Masala – Its Owner)

• Trade or spokes-characters (Handyplast)

• Other reference group appeals

10 - 17

Importance of Celebrity Characteristics According to Product Types

10 - 18

Households

Households

Family Households: Married couple, Nuclear family, Extended family

Nonfamily Households: Unmarried couples,

Friends/ Roommates, Boarders

10 - 19

Other Functions of the Family

• Economic well-being• Emotional support• Suitable family lifestyles• Socialization of Family

Members

10 - 20

Consumer Socialization of Children

The process by which children acquire the

skills, knowledge, and attitudes necessary to

function as consumers.

10 - 21

Consumer Socialization of Children

• Many children acquire their consumer behavior norms through observation of their parents

• Preadolescent children rely on their parents, adolescents and teenagers are likely to look at their friends for models of accepted behavior

10 - 22

Consumer Socialization of Children

• Share shopping experiences also give children the opportunity to acquire in-store shopping skills

• Consumer socialization of children has other aspects when parents use promise or reward as a device to modify or control a child’s behavior (Promise to buy something or rewarding with chocolate / gift)

10 - 23

Consumer Socialization of Children

• Consumer socialization has two distinct components:– Socialization directly related to

consumption (such as acquiring skills and knowledge concerned with budgeting, pricing, brand attitudes, and actual product usage)

– Socialization indirectly related to consumption (such as a young man buying his first shaving cream / razor)

10 - 24

A Simple Model of the Socialization Process

10 - 25

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, consume, 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

10 - 26

Dynamics of Husband-Wife Decision Making

• Husband-Dominated

• Wife-Dominated

• Joint (i.e. Equal or Syncratic)

• Autonomic (i.e. Solitary or Unilateral)

10 - 27

Dynamics of Husband-Wife Decision Making

• Whether Decision-making will be HD – WD – Joint or autonomous depends on: – Types of Product or Service– Family role Structure Orientation– Stages in Decision-making Process

10 - 28

The Family Life Cycle

• Traditional Family Life Cycle– Stage I: Bachelorhood– Stage II: Honeymooners– Stage III: Parenthood– Stage IV: Postparenthood– Stage V: Dissolution

Targeting the parenthood

segment

10 - 30

Modification to FLC• Non- Traditional Family Life Cycle Stages

– Family Households• Childless couples• Couples who married late• Couples who have first child• Single Parent – I, II and III• Extended Family

– Non-Family Households• Unmarried couples• Divorced Persons• Single Persons• Widowed Persons