...Influence of Reference Groups Lauren A. Grimsley Consumer Behavior January 23, 2011 Dr. Kelly Bruning Strayer University Abstract This paper talks about the influence of reference groups on consumer behavior. It identifies the different type of reference groups and takes a look at different websites that attract reference groups in order to gain identity and make sales. Introduction A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior (Hawkins & Mothersbaugh, 2010). In other words, a reference group is a group where a person will use the beliefs or opinions of the group to guide their own beliefs and opinions. There are three different forms of reference groups; the aspirational group, the associative group and the dissociative group. Aspiration Reference Groups The aspirational group is a group where people like to compare themselves to people in that group. An example of that is a company or brand will use a high favored celebrity or athlete as a representative for their product to gain patronage and attract consumers. One website that does this is www.weightwatchers.com. As well as on the commercial, on the first page of the website is a picture of Jennifer Hudson, who currently is the spokesperson for Weight Watchers. Most people who are fans of Jennifer...
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...STRAYER UNIVERSITY Running Head: Consumer Behavior WEEK 3: ASSESSMENT # 1 Influence of Reference Groups SUBMITTED TO Kelly Bruning BY AMBER MARSHALL MKT 510 Consumer Behavior January 21, 2011 Abstract In each society there is a breakdown of different groups or what today’s youth would call “clicks” each group can be broken down by culture, race, age or geographic location but if you dig deeper you will see that even those groups can be broken down even more. Let’s explore of reference groups and how each reference groups has a major impact on each other, how society views each groups and how the internet may attract certain groups. Different websites attract reference groups depending on what is being offered on that site, throughout the duration of this paper I will breakdown two different websites both different but both geared toward the same type of reference group. Online Community Online community is a community that is able to interact with each other over a vast period of time about a specific topic (Hawkins & Mothersbaugh, 2010 pg 231).Message boards, blogs and discussion groups make the internet a more interesting place for those of us that like to stay in the know of it all. The online Social Network sites make it even easier for people today to stay in touch, reconnect or just know what our favorite celebrities are up to these days. Social networking sites range from many different things like friendship ( facebook and myspace)...
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...as the family situation and even the psychological outlook of the purchase. Reference group is a group who’s perspective and individual takes on in forming values, beliefs, attitudes, opinions, and overt behaviors (pg.499). Reference groups can influence an individual’s cognitions, affective responses, and behaviors. As a consumer, your decision to purchase and use certain products, is influenced not only psychological factors, your personality and life-style, but also by the people around you with whom you interact and the various social groups to which you belong. The groups with whom you interact directly or indirectly influence your purchase decision and thus their study is of great importance to marketer to understand. Primary and secondary reference groups is one with which an individual interacts on a regular basis and whose opinion is of importance to him such as, family, neighbors, friends, colleagues and co-workers. Secondary reference groups are those with which an individual interacts only occasionally and does not consider their opinion very influential. Formal and informal reference groups are groups such as labor unions, social clubs, and societies are types of formal reference groups to which individuals may belong (pg 500-501). A formal reference groups has a highly defined structure, specific roles and authority positions and specific goals. In contrast an informal reference groups is loosely defined and may have no specified roles and goals. Meeting your...
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...However, it is not only related with the consumers’ experiences during the purchase processes, such as their feelings, thoughts and actions, but also some external factors, like the brand, packaging, price, advertising and so forth. Meanwhile, references group, culture background, economic circumstances and social status, especially the advertisement, and so on, are all deemed to be the factors which influence consumers’ decision. When you think about reference groups, there are a number of perspectives that one has to consider. According to Hawkins (2010), a reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Thus, a reference group is simply a group that an individual uses as a guide for behavior in a specific situation (p.227). From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions. Reference groups that influence general or broadly defined values or behavior are called normative reference groups. Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference groups. A comparative reference group might be a neighboring family whose lifestyle appears to be...
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...Human-beings inherently communicate, interact, and influence one another. A group, defined is: “A number of individuals assembled together who share a set of norms, values, attitudes, or beliefs.” Group membership has been recognized for years as the determinant of human behavior. People act in accordance to the shared norms, values, attitudes, and beliefs of the groups they belong to, as well as the groups they aspire to belong to. Throughout the years, marketing researchers and sociologists have discovered how to use reference groups, “Groups that serve as frames of reference for individuals in their consumption decisions because they are perceived as credible sources” (Schiffman, 2010), in order to successfully target their markets and influence consumer behavior. Researchers have identified several different forms of reference groups that consumers compare themselves to before making purchasing decisions. With the current boom of online social networking sites such as, “www.facebook.com, www.myspace.com, and www.youtube.com,” group influence is a pivotal part of consumer behavior today. After discovering the history of how group influence emerged, followed by how group influence fits into the consumer behavior discipline, this paper will explore how current marketing practitioners can apply understanding of group influence in order to effectively reach target markets. The earliest research conducted in the field of group influence as it pertains to modern consumer behavior dates...
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...Group Influence On Consumer Behaviour * INTRODUCTION Each consumer is a member of a culture, various subcultures, and a social class; most of us belong to a number of different groups and almost would like to belong to several others. A group is defined as two or more individuals who share a set of norms, values, or beliefs and interact to accomplish individual or mutual goals. A group becomes a reference group when an individual identifies with it so much that he or she takes on many of the value, attitudes or personal standards of group members. The degree of reference group influence varies across product and brands with factors such as (1) the visibility to the group, (2) the necessity/non-necessity nature of the product, (3) the level of commitment the individual feels to a group, (4) the relevance of the behavior to the group, and (5) degree of individual’s confidence in his own judgment in the purchase situation. * DESCRIPTION The majority of people belong to more different groups at the same time and frequently they want to be included in other groups as well, but in a specific situation they report themselves to a single group. When a new situation appears or the conditions change, the individuals may report themselves to the rules of another group which becomes the reference group for the given situation. Most people prefer to adapt, more or less, to the group's rules, from politeness or the desire to not be left aside. The norms are the general...
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...INTRODUCTION Each consumer is a member of a culture, various subcultures, and a social class; most of us belong to a number of different groups and almost would like to belong to several others. A group is defined as two or more individuals who share a set of norms, values, or beliefs and interact to accomplish individual or mutual goals. A group becomes a reference group when an individual identifies with it so much that he or she takes on many of the value, attitudes or personal standards of group members. The degree of reference group influence varies across product and brands with factors such as (1) the visibility to the group, (2) the necessity/non-necessity nature of the product, (3) the level of commitment the individual feels to a group, (4) the relevance of the behavior to the group, and (5) degree of individual’s confidence in his own judgment in the purchase situation. DESCRIPTION The majority of people belong to more different groups at the same time and frequently they want to be included in other groups as well, but in a specific situation they report themselves to a single group. When a new situation appears or the conditions change, the individuals may report themselves to the rules of another group which becomes the reference group for the given situation. Most people prefer to adapt, more or less, to the group's rules, from politeness or the desire to not be left aside. The norms are the general, common expectations of behavior that are considered appropriate...
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...Role of Reference Groups For reliable and authentic information related to products, consumers seek sources that are not owned or sponsored by media such as ‘word of mouth’. Sources of word of mouth includes friends and family, clubs, online forums and neighbours. Online sources such as Facebook, Twitter and Instagram provide a platform for user to discuss, tag people and share their experiences and opinions about products. Such reference groups help marketers to manage feedback and address issues promptly. Though, social media feedback poses a lot of challenges for marketers since they have to be very vigilant and tactful in handling online feedback, if positive, it also has the potential to create a strong brand name. Customer concerns...
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...head: REFERENCE GROUP ANALYSIS Reference Group Analysis MKT510 - Week 3 – Assignment #1 Prof. Wei Song REFERNECE GROUPS Reference groups are groups whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. These groups are used as a guide for behavioral patterns is specific situations. These reference groups are classified according to the number of variables, and are used to identify consumption patterns and assist in marketing efforts. There are four criteria that have been found particularly useful; the first criteria is membership criterion is dichotomous; either one is a member or their not. Some members are more secure in their membership than others. The second is strength of social ties identifies the closeness and intimacy of the group linkage, the primary groups are considered family and friends which involve strong ties and frequent interaction while professional and neighborhood associations with weaker ties and less frequent interactions are considered secondary groups. The third criterion is the type of contact and weather it is direct group (face-to-face) or indirect group (internet, social networking). The forth and last is the attraction or desirability that memberships in a given group has for the individual. A dissociative reference group is a group with negative desirability and can influence behavior just as those with positive desirability. Non-membership groups with a...
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...subjected to a wide variety of cultural reference groups that ultimately affect their consumer behavior. Consequently, marketers must develop marketing communication that addresses cultural and reference group factors from both a domestic and global perspective; that means marketers must adhere to the Levi-Strauss maxim to think globally but act locally. To this end, marketers use market segmentation and micromarketing to develop customer-centric marketing messages with the goal of providing precisely defined marketing messages that satisfy consumer’s need for personal information regarding products and services so that consumers should be adequately stimulated to purchase the product or service being advertised. www.lead-inspire.com December 26, 2010 Table of Contents Introduction ..................................................................................................................................... 3 Effects of Cultural Values on Consumer Behavior......................................................................... 3 Characteristics of Cultural Values .............................................................................................. 3 Strategic Application of Cross Cultural and Global Influence ................................................... 5 Societal Implications of Reference Group Influences .................................................................... 6 Influence of Reference Groups on Consumers ..............................
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...Identification of relevant social factors that affect customer behavior in purchasing car 1.1 Background of the Study The main purpose of this research is to identify the relevant social factors that affect purchase intention in purchasing car. The result of the research could be used as reference by the car dealer and manufacture which allows to understand the requirement of the market demand in Malaysia. Since there are a lot of competitors in vehicle industry provides advance manufacturing technologies and facilities which to be successful, automaker companies have to strengthen the need according to the need of the customer in order to remain in the car manufacturing industry. Carmaker and marketers should not only focuses on manufacturing vehicle and performance of the vehicle instead they also should emphasises on the social factors which influence the buyers decision in purchasing car such as reference group, family factor and social status. Other than that, the basic principle in the current market which is governing is customer orientation and customer centeredness in belief. Currently, the Competitive market is forced to produce the goods according to the customer needs (Tafler, 2007). The study on the consumer purchase behaviour which also refer as consumer behaviour, provides information of the consumer patterns and purchase intention (Nesai, 2009). Other than that, the organization able to survive along the organization could able to supply the needs...
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...is the study of how individuals groups and organizations select, buy, use, and dispose-off goods, services, ideas or experience to satisfy their needs and wants. CB is influenced by:- 1) Cultural factors 2) Social factors 3) Personal factors Cultural Factors Include:- 1) Culture, 2) Sub Culture 3) Social Class (Social stratification) 4) Language etc. Social Factors include:- 1) Reference Group 2) Family 3) Roles & Status Social Factors Continued:- 1) Reference group:- A person’s reference group that have a direct (face to face) or indirect influence on their attitudes or behavior. 2) Groups having direct influence are called membership groups 3) Some are primary groups with whom the person interacts fairly continuously and informally like family, friends, neighbors & colleagues. Reference Group People also belong to secondary groups such as religious, professional & trade union groups which tend to be more formal and require less continuous interaction. Reference Groups Influence members in following ways:- 1) Expose an individual to new behaviors and lifestyles. 2) Influence attitudes & self Concept. 3) Create pressures for conformity that may affect product and brand choice. Reference Group 1) People are also influenced by groups to which they do not belong 2) Aspirational groups are those a person hopes to join. 3) Dissociative groups are those whose values or behavior...
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...research the consumer behavior which will impact the consumption of palm oil during the economy slow down. The objective of this report is to produce a clear guide that aids company to know how the consumer will behavior and the decision making. Impact of reference group Direct reference group will influence consumer to spend time and money on Alif cooking oil. Indirect reference group are either aspirational or non-aspiration group. More consumer are having the multi reference group, which are informational and membership. Family could be the most influencing factor for reference group. It influence the consumer from a generation to generation. Since consumer are having a good experience on Alif cooking oil they may tell other about their experience, this is the power of word of mouth. Consumer reaction on the about to end discontinue product. The theory of reasoned action model show consumer attitude, which are cognitive, affective, conative and subjective norm. Consumer beliefs the Alif cooking oil is good for them. Consumer also hold certain feeling toward Sime Darby brand and Alif cooking oil. Consumer will make the decision to buy or not to buy the product during the behavior decision. Subjective norm influence consumer to purchase the Alif cooking oil. The motivation that affect the discontinuation decision. Consumer may fulfill their physiological needs and oil is the basic needs. The next needs will come when the first needs is satisfied. Consumer will look...
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...Consumer Decision Making According to (Consumer decision making process, 2010) Consumer decision making is the process of choosing between two or more alternatives; consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option, goods, services, organizations, people, places, and ideas that will best addressing their current need. Sometimes consumers go through these stages of gathering and processing the information without even realizing that they are going through the processes. (Alet, 2001), states that Consumer behaviour and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years. Consumer Decision Making pertains to making decisions regarding product and service offerings. There are different consumer decision making models such as Bettman's Information Processing Model of Consumer Choice, the Howard-Sheth model of buying behavior, Kotler model and the Nicosia model. The Engel, Kollat & Blackwell (later Miniard) consumer decision making model will be looked at for the purpose of this research. Engel, Kollat & Blackwell (later Miniard) consumer decision making model According to (Sahney, 2005), the Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed to organize and describe the growing body of knowledge/research concerning consumer behavior. A comprehensive model, it shows the various components...
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...perspective on green buying Shruti Gupta, Denise T. Ogden Article information: To cite this document: Shruti Gupta, Denise T. Ogden, (2009),"To buy or not to buy? A social dilemma perspective on green buying", Journal of Consumer Marketing, Vol. 26 Iss: 6 pp. 376 - 391 Permanent link to this document: http://dx.doi.org/10.1108/07363760910988201 Downloaded on: 28-05-2012 References: This document contains references to 76 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 4703 times. Access to this document was granted through an Emerald subscription provided by INDEPENDENT UNIVERSITY BANGLADESH For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Additional help for authors is available for Emerald subscribers. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication...
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