Reference groups

Reference groups imply any person(s) who serve(s)

as a point of reference or comparison for an
individual that cause him to develop certain values,
attitudes or influence his behaviour
Normative reference groups are those that

influence broadly defined values or behaviour while

comparative reference groups influence narrow
or spurious attitudes and behaviour


Indirect reference groups are individuals who you

do not have direct face to face contact with but yet
you are influenced by them.
Consumers today are also influenced by online groups,

consumer action groups, shopping groups and work

groups.
Reference groups
Major reference groups:
Family, friends, social class, selected subcultures,

one’s own culture & other cultures.

How attractive a reference group becomes depends

primarily on two things:

1)How comfortable, through experience or product
knowledge or both is a customer with the
product.
2)In the customer’s perception, how credible, powerful
and attractive is the reference group.
3)How verbally/visually conspicuous is the product
group?
Reference groups
Indirect reference groups:
Celebrities and customer perception of their

expertise and trustworthiness with respect to a

product category can have quite an influence on
consumer behaviour


Experts, because consumers trust them so much,



play a mammoth role in shaping consumer behaviour

towards a brand.


Corporate or executive spokesperson, much



admired by the public, some business leaders have

reached iconic status and use it quite well, like Steve
Jobs, Richard Branson, Vijay Mallya, N. R. Narayana
Murthy, et al.
Reference groups
Trade or spokes-characters serve as quasi-celebrity


endorsers, like Ronald for McDonald’s



Family: As a concept, it needs to be differentiated



from household, which may or may not have people

who are related by blood, adoption or marriage.


Socialisation of family members is a central family

function wherein children are taught about the value
of their culture and how to live within it.
Consumer socialisation of children is the process by

which children acquire the skills, knowledge,

attitudes and experiences necessary to function as
consumers.



Reference groups
Lots of influences are at work in this socialisation –
parents, peer groups, older siblings, advertisements
in the newspapers, etc.
Co shopping is a practice parents use often as they get

to spend less and less time with their children. And

as they move around with their parents and see
things around, children develop their own shopping
behaviour.
Parents further influence it with the promise of reward

they make for certain behaviour. Socialisation also

happens with regard to adults as they move along
the family life cycle.
Inter-generational socialisation is a trend that is

studied too, which talks about certain tastes and

preferences getting transferred from generation to
generation.
Reference groups
Young person

Family Friends
members

Influence basic
values, behaviour – Influence more
moral or religious expressive
principles, attitudes or
interpersonal behaviour like
skills, dressing or style, fashion and
grooming standards, fads. Impulse
educational purchases often
motivation, , career, happen with
consumer behaviour friends’influence
norms
Reference groups
In a family, it is important to also understand:


1)How is the responsibility of economic well being

allocated?
2)Emotional support
3)How parents visualise their children’s upbringing,
within their resources also determines the
lifestyle that their kids will lead.
Reference groups
Decision making process is also important in the
family when it comes to purchase of a product or
service:
Influencer: those who provide information

Gatekeepers: Those who control the flow of

information.
Deciders: People who decide on issues like purchase,

use, consumption or disposal

Buyers: Those who make the actual purchase

Preparers: Those who transform the product into

something worth consuming

Users: People who finally use

Maintainers: Ensure the product continues to operate

appropriately
Disposers: Those who do the final disposal


Reference groups
Who takes the decision: Husband or wife, or do they


take it jointly… This varies from culture to culture

and product to product.


Traditional Family Life Cycle:

Stage 1: Bachelor

Stage 2: Honeymooners

Stage 3: Parenthood

Stage 4: Post parenthood

Stage 5: Dissolution

There can be, and are deviations from these traditional

family concepts.
Reference groups
Purchase behaviour:


Family life cycle



Bachelorhood: Can be away from parents or with



parents. Those away from parents will have more

responsibilities and are less likely to indulge.
Common spending by independent singles is on rent,
home furnishings, enjoying with friends (travel and
entertainment), clothing and accessories.


Honeymooners: Joint decisions are taken and money



is spent on savings, home furnishings, movie tickets,

expensive clothes, vacations, restaurant meals &
alcoholic beverages.
Reference groups
Parenthood: Can be divided into three stages –
Full Nest 1 is immediately after first child is born.

Mostly wives stop working and family income

reduces. Purchases would be in the area of baby
cloths, furniture, food and health care products.
Materialistic consumption if at all is made to suit the
child.
Full Nest 2 is when income improves with husband’s

career advancing and wife possibly returning to

work. Families would however be more cautious in
spending due to sustained buying experience.
Full Nest 3: When income grows further and even

children are employed. Mostly durable goods are

purchased and even if possible they may go for a
house.

Reference Groups
Post parenthood: Is two phases Empty nest 1 and
Empty nest 2.
Dissolution: One surviving spouse… even more

towards the economical side.