GROUP: A group is a collection of individuals who have relations to one another that make them interdependent to some significant

degree. REFERENCE GROUP: Reference groups are groups that people refer to when evaluating their [own] qualities, circumstances, attitudes, values and behaviors. People whose attitudes, behavior, beliefs, opinions, preferences, and values are used by an individual as the basis for his or her judgment. One does not have to be (or even aspire to be) a member of a reference group to be negatively or positively influenced by its characteristics. Even the decision to like a Facebook page can mean something special to a particular consumer because of the way it reflects membership with a group. Reference groups are groups that consumers compare themselves to or associate with. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. Reference groups are considered a social influence in consumer purchasing. They are often groups that consumers will look to to make purchasing decisions. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. On the other hand, if a reference group disapproves of a product, those that associate with that group will probably not purchase the product. NORMATIVE AND COMPARATIVE REFERENCE GROUP: Both normative and comparative reference groups are important. There are three functions of reference groups. Firstly, they provide information to an individual or company, and by doing so help them to stay updated and adapt well to changes in society. Secondly, a reference group provides a means of comparison for personality or achievements and anything else. And finally, they offer guidance, whenever the individual or company is in need of it. In terms of the influence of normative and comparative reference groups, a normative group sets the norms and values, whereas a comparative group is there to compare. The comparative group is there for you to compare your progress in life, your achievements in the past or even your possessions to see which one of you comes out on top. A normative reference group is a group that has influence over the values or behaviour of an individual. Using the three functions of a reference group as mentioned above, they act as a sort of guide to the person by helping them adapt to society to live and survive, they act as a means of comparison and they are there for guidance if the individual needs it. For example, a child's normative reference group would be its immediate family i.e. Parents and siblings as these are likely to play an important role in shaping the child's values, view of the world and behaviour. On the other hand, a comparative reference group is a group whose norms and values serve as a benchmark for narrowly defined or highly specific types or ways of behaving. In other words, a comparative group is just that, you compare to it. For example, you may compare yourself to someone you know whose lifestyle appears better than yours and is worthy of your admiration.

INDIRECT REFERENCE GROUP: Indirect reference groups comprise those individuals or groups with whom an individual does not have any direct face to face contact, such as film stars, TV stars, sportsman, politicians. Indirect Reference groups are used in advertising to appeal to different market segments, group situation with which potential customers can identify are used to promote products and services. Hidden in this appeal is the subtle inducement to the customer to identify himself with the user the product in question. The three types of Indirect reference groups appeals most commonly used are: a) Celebrities, b) Experts, and c) The common man Celebrities are well known people (in their specific field of activity) who are admired and their fans aspire to emulate their behavior. Film stars and sports heroes are the most popular celebrities. Soft drink (Thums up), shaving cream (Palmolive), toilet soaps (Lux) , textiles ( Dinesh , Graviera) are advertised using celebrities from the sports and film fields. Experts such as doctors, lawyer, accountants and authors are used for establishing the benefits of the product. Colgate and Forhans toothpastes are examples of products, which use the expert reference groups appeal for promotion. Another Indirect reference group appeal is that which uses the testimonials of a satisfied customer vix the common man. It demonstrates to the prospective customer that demonstrates just like him uses and is satisfied with the product. Dove has recently tried something of the same. Pantene on the other hand tried to counter attack by using both, satisfied customers as well as celebrities. ASPIRATIONAL REFERENCE: Desire to be a part of the group. For example, many children in England admire the English national football team and have childhood dreams of playing for the team at some point. The English Football Association has used this to their advantage. One of their biggest sellers is their football shirt for children. These young consumers are driven to look like their idols on the national team, especially during international competitions like the World Cup.