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Group Dynamics and Reference

 In our daily lives, we all get influenced by a variety of
people while making our purchase decisions.
 As a consumer, your decision to purchase and use
certain products and services, is influenced not only by
psychological factors, your personality and life- style,
but also by the people around you with whom you
The interact and the various social groups to which you
Introduction belong.
 This is particularly true for high-visibility products,
Saie Parab, Roll no 126
such as the cars we drive, the clothes we wear, and the
restaurants we choose.
 We, as humans do a lot to try to impress others. We
make purchase to get compliments and try that others
should not think less of us.
 “A group may be defined as two or more people
who interact to accomplish either individual or
mutual goals”
 Definition :- Group dynamics means how
individuals form groups, and how one persons
purchasing influences the other individual’s
actions.• Now-a-days marketers use the concept of
group dynamics or personal influence often as this
exceeds the power of company’s promotional
 This means that there can be an intimate group as
well as we can also include, that an individual
consumer looks to others for help in deciding
which products or services to use.
 Group Dynamics consists of two or more persons.
 It is a formal social structure ran by rules and regulations
 All the members have common fate.
 There is face to face interaction among the members
 Members are emotionally connected having common goals
 Members are mutually dependent on each other Recognition
 Self Definition
 Clarifying doubts and misunderstandings
 Assume roles to help one another
The Following Points explain the Significance of Group
 Increases Knowledge about ourselves
Significance of
 Develops ability to anticipate the actions and reaction
Group Dynamics of others
Sumedh Pawar, Roll no 130  Facilitate smooth Interpersonal Relationship
 Facilitates self- actualization needs and job satisfaction
 Facilitates motivation, leadership and communication
Primary and

In Groups Small and

and Out Large
Groups Groups

Types of Groups
Parth Parulekar, Roll no 127 Membership
Formal and
 Reference Group is any person or group that serves as a
point of comparision for an individual in forming either
general or specific values,attitudes or a specific guide for
 This group does not place restriction on group size or
membership nor does it require that consumers identify
Definition with a tangible group.

 Reference Group has a tremendous impact on the buying

Uzair Patel, Roll no 129
habits of the people.
 From Marketing point of view, reference groups are that
which serve as frames of reference for individuals in their
purchase or consumption decisions
 Reference Groups have direct influence on the buying behaviour of the

 eg:- Family will influence childs eating habits, friends influence

teenagers spending habits and office norms determine employees
should wear during work hours

 The three factors which influence individual buying behaviour are:-

 Individuals attitude towards the group
 Nature of the group
 Nature of the product

The Roles Identified are:-

 The Initiator
 The Influencer
 The Decision Maker
 The Buyer
The factors determining reference groups are as
 Information Power:- ( A businessman
approaching a teacher looking for guidance to
get his son admitted in a professional institute)
 Referent Power:- Influenced By Icons of the
film or sports industry
 Expert Power:- Looking out for experts to
Factors recieve best dervice
Determining  Legitimate Power:- Our society has given
Reference Groups poers to police, army or courts. They have the
right to influence Law and Discipline
 Coercive Power:- Agressive Salemenship may
succeed in the short run and may not succeed
in retaining customers
 Reward Power:- Buy 1 and get 50% off on the
second garment
Normative Comparative
Reference Reference
Groups Groups

Types of Reference Aspirational Contractual

Groups Reference Reference
Groups Groups
Sheron Patel, Roll no 128

Avoidance Disclaiming
Reference Reference
Groups Groups
The Factors which influence Reference Group Influence are as
 Information and Experience
 Credibility
 Power Groups
 Attractiveness
 Conspicuousness of the Product

Factors that affect

reference group
Vishrut Pande, Roll no 125
Selected Consumer Related Reference Groups are:-
 Friendship Groups
 Shopping Groups
 Work Groups
 Virtual Group or Communities
 Brand Communication
Selected Consumer  Consumer-action Groups
Related Reference
The Final Word
Thank You