Group Influence and

Consumer Reference Groups

WHAT IS A GROUP?

TWO OR MORE PEOPLE WHO INTERACT

INTERDEPENDENT PEOPLE

SHARE EXPLICIT PSYCOLOGY WITH EACH OTHER

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 GROUPMEMBERSHIP GROUP

FORMAL GROUP

SECONDARY GROUP

PRIMARY GROUP

INFORMAL GROUP

CONSUMECONSUMER R

RELEVANRELEVANT T

GROUPSGROUPS

FAMILY

FRIENDS

FORMAL SOCIAL GROUP

INFORMAL WORK GROUPS

SHOPPING GROUPS

STRUCTUSTRUCTURE AND RE AND

FUNCTIOFUNCTIONN

SOCIALISM

BIOLOGICAL MAINTENANCE

SENSE OF BELONGING

IDENTITY TO THE INDIVIDUAL

PHYSICAL AND PSYCOLOGICAL SECURITY

ESTABLISHING CONTACTS

SOCIAL STATUS

CONFORMCONFORMITY TO ITY TO

THE THE GROUPGROUP

An indivdual has to follow certain norms of

the group

PEER PRESSURE

SANCTIONS

GOSSIP APPROVALS

REFERENCREFERENCE GROUPE GROUP

POINT OF COMPARISION

FRAME OF REFERENCE

PERCEPTION

VALUES AND BELIEFS OR OTHER INDIVIDUALS

FOLLOWING IDOLS

BROAD CATEGORIES OF REFERENCE GROUPS

NORMATIVE REFERENCE GROUPS

COMPARATIVE REFERENCE GROUPS

NORMATIVNORMATIVE E

REFERENCREFERENCE GROUPE GROUP

A group that influences the general values or behavior of

an individual.

COMPARATICOMPARATIVE VE

REFERENCE REFERENCE GROUPSGROUPS

A group whose norms serve as a benchmark for highly

specific or narrowly defined types of behavior.

INDIRECT INDIRECT REFERENCREFERENCE GROUPSE 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.

CONSUMER

REFERENTS

Reference Groups

ASPIRATIONAL GROUP

CONTRACTUAL GROUP

DISCLAIMANT GROUP

AVOIDANCE GROUP

POSITIVEREFERENCE GROUPS

NEGATIVEREFERENCE GROUPS

Information and experienceCredibility, attractiveness, and power of

the reference groupConspicuousness of the product

FACTORS AFFECTING REFERENCE GROUP INFLUENCE

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

FACTORS ENCOURAGING CONFORMITY

REFERENCE GROUP APPEALSCelebritiesThe expertThe “common man”The executive and

employee spokespersonTrade or spokes-charactersOther reference group

appeals

A promotional technique in which a celebrity who has used a product or service

speaks highly of its benefits in order to influence consumers to buy.

Celebrities who may or may not be users of a particular

product or service may lend their names to

advertisements for such products or services for a

fee.

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.

TYPES OF CELEBRITY APPEALS TYPETYPE DEFINITIONDEFINITION EXAMPLEEXAMPLE

Testimonial Based on personal usage, a celebrity attests to the quality of the product or service

Sachin Tendulkar Using the Visa Card

Endorsement Celebrity lends his name and appears on behalf of a product or service with which he/she may not be an expert

Aishwariya Rai endorsing Lo’real

Actor Celebrity presents a product or service as part of a character endorsement

Imran Khan in the New Coca Cola add

Spokesperson Celebrity represents the brand or company over an extended period of time

Priyanka Chopra is the brand ambassador of Nokia

An expert has some special training or is highly experienced or is an

outstanding professional

A common man endorses a product with which he is satisfied.dove and ariel uses this approach.

Top executives are well known. They can be effective influences. Vijay Mallya is used in an add where he advises moderation in drinking.

OTHER OTHER REFERENCREFERENCE POINTSE POINTS

Media

Reputed store

Cartoon characters

Seals of approval

Objective product ratings.

MERITS MERITS OF OF

REFERENCREFERENCE GROUP E GROUP APPEALAPPEAL

INCREASES AWARENESS OF THE BRAND

REDUCES PERCEIVED RISK IN PURCHASING A SPECIFIC PRODUCT