Influence of reference groups on consumer behaviour

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  2. Buyer Psychological Personal Social Culture
      • Groups
        • Membership
        • Reference
        • Opinion Leaders
      • Family
        • Many influencers
      • Roles and Status
    5 - Cultural Social Personal Psychological Key Factors
  3. Types of Reference Groups a. Direct b. Indirect STUDENT CLUBS (1)Primary: Daily (2)Secondary: (1) Aspirational (+ve) “Want-to-Be” (2) Non-inspirational (-ve) “ DON’T Want to Be” IDOLS MICHEAL JACKSON
    • Normative vs. Comparative Reference Groups
    • Normative Reference Groups - 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.
    • Comparative Reference Groups - 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
    • Friendship Groups – Most likely to influence after the family
    • Shopping Groups – 2 or more people who shop together
    • Work Groups – Who work together as a part of a work team
    • Virtual Groups/ Communities
    • Consumer–Action Groups – Who are dedicated in providing assistance to consumers in order to make correct purchase decisions
    • Celebrities
    • Experts
    • Common Man (someone just like them uses it)
    • The Executive/ Employee Spokesperson
    • Trade/ Spokes Characters or Familiar Cartoon Characters
    • Respected Retailers
    • Editorial content of Special –interest Magazines
    • Seals of Approval
    • High Rating in Consumer Reports
    • Information and Experience
      • High for consumers – less likely to be influenced by reference groups
    • Credibility, Attractiveness and Power of the Reference Group
    • Conspicuousness of the Product
      • Verbally conspicuous product – easily explained to others – higher influence by the reference group
  4. Strong Weak Strong Weak Brand Choice Product Choice Public Luxuries Golf Clubs Snow Skis Sail Boat Private Luxuries TV Video Games Ice Makers Trash Compactors Public Necessities Wrist Watch Automobiles Dress Clothes Private Necessities Mattresses Floor Lamps Refrigerators
    • Decision-making unit of a buying organization is called its buying center .
    • Not a fixed and formally identified unit.
    • Membership will vary for different products and buying situations.
    • Buying Center Members:
      • Users
      • Buyers
      • Deciders
      • Gatekeepers
      • Influencers
      • Initiators