Reference Group
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Transcript of Reference Group
Reference Groups
Definition -- A group or person that serves as a point of comparison for an individual which serves as a guide in formulating values
Broad Categories of Reference Groups
Indirect Reference Groups Direct Reference Groups Primary Reference Groups Secondary Reference Groups Aspirational Reference Groups
Indirect Indirect Reference Reference
GroupsGroups
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.
Major Consumer Reference
Groups
Reference Groups
Factors That Affect Reference Group Influence
Information and experience Credibility, attractiveness, and
power of the reference group
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
Selected Consumer-Related Reference Groups
Friendship groups Shopping groups Work groups Virtual groups or
communities
Informal Informal GroupsGroups
A group of people who see
each other frequently on an informal
basis, such as weekly chess
players or social acquaintances.
Shopping Shopping GroupGroup
Two or more
people who shop together.
Reference Group Appeals
Celebrities The expert The “common man” The executive and
employee spokesperson
TestimoniaTestimoniall
A promotional technique in
which a celebrity that has used a
product or service speaks
highly of its benefits in order
to influence consumers to
buy.
EndorsemenEndorsementt
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.
SpokespersoSpokespersonn
A celebrity or company
executive who represents a
product, brand, or company over
an extended period of time,
often in print, on television, and in
personal appearances.
Types of Celebrity Appeals
TYPETYPE DEFINITIONDEFINITION
Testimonial Based on personal usage, a celebrity attests to the quality of the product or service
Endorsement Celebrity lends his name and appears on behalf of a product or service with which he/she may not
be an expert
Spokesperson Celebrity represents the brand or company over an extended period of time
Diffusion of Innovations
An innovation is an idea, practice or product that is perceived to be new by the relevant individual or group.
Whether or not a product is an innovation is determined by the
perceptions of the potential market not by an objective measure of
technological change.
Innovations
Continuous Innovation
Categories of InnovationsTheir adoption require minor changes in behaviour of the consumer
Dynamically Continuous Innovation
Discontinuous Innovation
Their adoption requires moderate changes in an important behaviour of the consumer
Their adoption requires major changes in behaviour of significant importance to the individual or group of consumers
The Diffusion Process is the manner in which innovations spread throughout a market
Diffusion Process