Download Reference Group A group is described as a social unit which

Reference Group
A group is described as a social unit which consists of a number of individuals who stand in (more or
less) definite status and role relationships to one another and which possesses a set of values or
norms of its own. This set of values regulates the behaviour of individual members, at least in matters
of consequence to the group.
Types of Reference Groups: how much contact, familiarity
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primary vs. secondary: wn u value each others opinion eg people at your office vs.
people in a professional organization who u interact with occussionaly.
membership vs. aspirational: one to which an individual belongs to r qualify for
membership e.g your gym friends vs. the Olympic team - want to be trim so join an
exercise club
positive vs. negative (dissociative): liked vs. disliked groups e.g do not want to be
unemployed, so seek degree with high employment rate
formal vs. informal: rules clearly defined like e.g - learn the rules of a company where
you would like to work
NEW! Virtual group – internet communities eg facebook.
Other groups tat can mold consumer behavior;
-friendship groups,-work groups, shopping groups and consumer action groups.
The term reference group refer to any and all groups that influence the attitudes and behavior of
individuals. The theory is often used to describe two major types of relationships between individuals
and groups. These two major dimensions are known as "normative" reference group behaviour and
"comparative" reference group behaviour.
A normative reference group is described as a group in which individuals are motivated to gain or
maintain acceptance. To promote this acceptance, individuals hold their attitudes in conformity with
what they perceive to be the consensus of opinion (norms) among the group members. In normative
reference group theory, the group sets and enforces standards for individuals. Such standards are
often referred to as group norms; thus we have the "normative function" of reference groups.
A comparative reference group is used to describe a group which individuals use as a standard or
point of reference in making evaluations or comparisons of themselves and of other individuals or
groups. In regard to comparative reference groups, the group is merely a standard or checkpoint
which individuals or others use to make judgment.
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Socially, individuals are influenced by groups they believe are important;
Individuals use certain groups as a guide as to how they should behave (normative reference
groups);
Individuals use groups as a basis for comparing themselves to other individuals or other
groups (comparative reference groups);
Individuals can and do use more than one group as a reference guide (multiple reference
groups); and
Certain groups that individuals use as a point of reference possess the power to influence the
attitudes and behaviour of individuals who may or may not be members of the group.
Influence is a term used to denote changes in behaviour of a person or group due to
anticipation of the responses of others .
Power is the ability to influence and control others while resisting their influence and control.
Control here means to dominate valuable resources (Johnson & Johnson, 1996, p. 403).
Solidarity refers to a belief in the collective sharing of aims, interests, and norms (Marshall,
1994, p. 503).
Why have reference groups
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Individuals seek affiliation with groups they perceive as having desirable social status.
Individuals choose reference groups so that in their imagination, or ultimately in reality, they
can feel themselves part of a more favored group.
Individuals choose certain groups to advance themselves in society.
Individuals, in order to guide themselves by a reference group, must have some perception or
cognition of the group's norms.
Some groups, because of their unique characteristics, are perceived to have greater social
status and power than other groups.
Some groups are selective in regard to which individuals they admit as members.
Why are Reference Groups Important?
Why are Reference Groups Important?
Who is likely to influence your company’s customers?
-Who do they want to imitate?
-Who will they ask for advice?
-Does your company have any social processes where your customers are influenced by others?
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Any person or group (actual or imaginary) that serves as a point of comparison for an
individual in the formation of either general or specific values, attitudes, or behavior
When shopping in a group, you bring your reference group with you.
Why? To get information or advice
To satisfy the expectations of others
To be like a certain type of admired person
Reference Group Influences
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Members of a reference group are likely to influence your company’s consumers
E.g. which types of clothes to wear, food to serve, restaurants to patronize
These are people whom your customers tend to look to for influence or advice
How to identify them??
Social Norms and Conformity
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Social norm—any rule or behavior for meeting societal expectations? normative system
Conformity pressures—actions taken to encourage or force members to act, think, and/or express
themselves in certain ways
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The more important a group is in our lives, the greater our desire to accept and conform
to its norms
Factors affecting reference groups
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Conspicuousness of product-prdts tat are status revealing.eg cars
Public necessities: don’t need influence to get one - in U.S., watches and cars - so weak
product and strong brand influence – what brand of watch you’ll wear
Public luxuries: golf clubs - strong product and strong brand
Private necessities: washer and dryer - most everyone has these - weak product and weak
brand - people not talk about it
Private luxuries: hot tub - people not talk about brands - strong product and weak brand
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Power and credibility of reference group
Reward power: parental reward, peer approval, rebates
Coercive power: punishment, disappointment, “I should have bought _____ ”
Legitimate power: your country says that here is what you ought to do, “Buy American”
Referent power: be like someone you aspire to imitate - Olympics
Expert power: authorities, who can give you advice - Inquirer asks professor to talk about
Christmas shopping
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Information and experience
Individuals with first had info or exp abt a prdt are less likely to be influenced by a group.
Reference groups can use ads appeals in the form of celebrities, experts and common man
Celebrities –spokeperson,testimonials,endorsement land nm in ads,actor
Expert-eg ads featuring a professional footballer commenting abt soccer
Common man-testimonials of satisfied cust ‘sm1 just like u is satsfd’