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Group Influences and Consumer Reference
Groups
By Kaustubh Pal
Introduction to groups
• Human beings are social animals.
• As per Maslow’s motivational theory we need to satisfy our social
needs at some stage or other.
• Effectively the consumer interacts with family, friends, neighbors,
college-mates, office-mates and a host of other strangers.
• Even casual remarks given by these surrounding environment or
groups can impact the consumer buying process in a big way
• Groups are of particular interest to consumer scientists and to
marketers because behaviour in groups is usually more readily
predictable than that of individuals
• A group can be defined as two or more people who interact to
accomplish either individual or mutual goals.
• In a group people are inter-dependent.
• Each group has a unique ideology to distinguish it from others.
• When several groups form a larger group then it is called a social
organization.
• An example of a social organization can be a manufacturing plant
where there are smaller groups like labour unions, supervisor's club,
officer’s associations.
Consumer Relevant Groups
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Family
Informal groups like Friends group
Formal groups like clubs
Work-group
Shopping groups
All the above groups influences consumer behavior in its
own way.
Types of Groups
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Normative reference groups
Comparative reference groups
Formal and informal/friendship groups
Membership Vs Aspirational groups
Positive vs Negative groups
Virtual groups or communities
Groups and their characteristics
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Groups
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Formal & informal groups
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Primary/secondary groups
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Membership groups
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Aspirational groups
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Dissociative groups
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Distinctions & characteristics
Formal groups have clearly specified
structure, informal groups do not
Primary groups involve direct, face-toface interactions; secondary groups do
not
People become formal members of
membership reference groups
People aspire to join or emulate
aspirational reference groups
People seek to avoid or reject
dissociative reference groups
Reference Groups
• The concept of reference groups was put forward by
Herbert Hyman
• It is a point of reference which man uses to arrive at his
own judgment, preference and beliefs.
• It is a basis for formation of attitudes, behavior etc
• The reference groups concept has 3 dimensions
– Point of comparison
– Groups of aspiration
– Perspective formation
Normative, Informational, and Value-Expressive
Influences
– Normative influence - occurs when group norms act to
influence individual behavior.
– Informational influence - operates when the group provides
highly credible information that influences the consumer’s
purchase decision.
– Value-expressive influence - consumers sense that a
reference group has certain values and attitudes pertaining
to the consumption process and the consumer wants to
identify with the group.
Consumption Situations and
Reference Group Influences
Situation
Behavioral response
A friend mentions that
Koutons has a good
selection of shirts.
Needing a new shirt,
Mr.X visits a Koutons
store.
At several friends’ homes,
Taj Mahal tea is served.
Mr.X decides to give
Taj Mahal tea a try.
The best presenter in the
office group uses Lenovo
Laptops
Mr.X buys a Lenovo
Type of influence
Informational
Consumption Situations and
Reference Group Influences
Two neighbors joke about
Mr.X’s car being dirty.
Mr.X washes and
Mr.X notices that his
friends buy premium beers
though he can’t taste the
difference.
For parties, but
not for home use,
Mr.X buys some
premium beers.
An ad stresses that “Even
your friends won’t tell
you” if you have bad
breath — they will just
ignore you.
waxes his car.
Mr.X buys the
recommended
mouthwash.
Normative
Consumption Situations and
Reference Group Influences
Over time, Mr.X notices
that successful
executives dress
conservatively.
Mr.X believes that a
Mr.X sees an ad
showing “smart young
people on the way up”
using Communicator
phones.
Mr.X begins to use
Communicator phones
Many of Mr.X ’s friends
regularly consume
health foods.
conservative image is
appropriate for executives and develops a
conservative wardrobe.
Mr.X decides that
health foods are good
for you and begins to
consume them
regularly.
Identification
Reference Groups Change as
the Situation Changes
Coworkers at
job
Hometown
friends
Reference group
influencing behavior
at Anniversary
dinner celebration
Immediate
family
Individual
Friends from
apartment
complex
Cricket or
football
teams
Consumer
behavior
classmates
Reference group
influencing behavior
at “After the final
exam” celebration
Factors affecting reference Groups
Necessity
Consumption
Weak reference group
influence on product
necessities
Visible (conspicuous) Public
Influence: Weak product &
Strong reference
group influence
on brand
Private
Weak reference
group influence
on brand
Non-necessity
(Luxury)
Strong reference group
influence on product
Public luxuries
strong brand
Examples:
Wristwatch, Automobile
Influence: Strong product
& brand
Examples:
Health club
Private necessities
Private luxuries
Influence: Weak product
& brand
Examples:
Mattress, Refrigerator
Influence: Strong product
& weak brand
Examples:
Hot tubs, Home
entertainment center
Opinion Leadership
• An Opinion Leader is a person who informally influences the actions
or attitudes of others
• He/she may be a leader in relation to certain products
• Are usually involved with the product category.
• May have higher social status than followers.
• May be more innovative in purchases than followers.
Types of Opinion Leaders
• Opinion Leader
– Always involved in product
category.
– High status, socially active.
• Product Innovator
– Purchases innovative
products
– Less integrated into social
groups.
• Market Maven
– General market knowledge
– Expertise not product specific.
• Surrogate Consumer
– Often professional: tax
consultant, stock broker.
Implication of reference groups for consumer
behaviour
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Many purchases are subject to groups pressure as consumers try to buy products
that others want them to have, that they think will make others accept, approve or
envy them, or because they have learnt something important about the product from
others
Many marketing and advertising strategies use group influences to persuade
consumers to ‘buy this brand because this group recommends it’
Membership in a group involves the individual in accepting a degree of conformity as
the group norms of behaviour which define the group’s identity by specifying the ideal
patterns of behaviour which members should perform
Therefore reference group influence consumer behaviour by compliance,
identification & internalization