Group Dynamics

Friendship Group Theory of social comparison

processesThe consumers enjoy the

company of their friends when purchasing certain items.

Especially clothing, fine jewellery, cosmetics and food items

Friendship Group The segment can be based on age and

genderAge between 18-30 roughly account for

1/5th of our populationThe influence of friends on their buying

behaviour is seen in their desire to have credit cards, costly/branded wears which are of their friends choice.

It can be as small as a hair style to as big as habits of smoking and drinking

Formal Social ClubsEvery human being is a social animal

so he needs associationHe joins clubs like rotary or lions club.The basic reasons why he wants to get

associated : make new friends career advancement, pursuing special interest, and working for a cause.

It comprises of three elements: activities, sentiments and interaction.

Shopping GroupShopping group exist because friends and

group have same perception or same location, style, matching personality

They are off shoots of the familyThey are made to shop aroundThey shop around after comparing:

quality, terms, style, customer services and price

The products purchased may include clothes watches, music system, vehicles.

Shopping GroupThey exercise a strong influence

on the living style and buying pattern of the individual

They act as advocators and stablisers of style patterns

They express their views on various aspects like the cost angle, prestige, utility, competitors, past experience

Work GroupFormal and informal groupThe permanent formal group are part of top

management The temporary formal group who come

together for a certain period of timeThe sub-ordinates try to copy their superiorsAnd the superiors also try to influence the

sub-ordinatesThe sub-ordinate who aspires to hold future

managerial position will try to adopt the values, attitudes, and consumption behaviour of the superior. It is many times referred as Aspiration Based Personality.