Reference

Groups
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Defining Reference Groups

 Groups that serve as sources of comparison, influence and norms

for people’s opinions, values and behaviours.
 A group of individuals whom one refers to or who serve as a point
of reference , with regard to formation of behaviour, beliefs,
attitudes and aspirations.

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Source Credibility

 Source’s persuasive impact, stemming from its perceived

expertise, trustworthiness and believability.
 Formal vs Informal source
 ‘ Please reuse the towels in order to help save the environment’
 ‘Most of your fellow guests had reused their towels. Please help us
save the environment and reuse yours’ – social norm
 ‘ Most of the guests who had stayed in this room reused their
towels’ – personal appeal

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Reference Group Influence

Normative • Learning and adopting a group’s

Influence norms, values and behaviours
• Arising when people compare
Comparative themselves to others whom they
Influence respect and admire, and then adopt
their values or imitate their behaviours

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Group Membership and Type of
Influence
Normative Influence Comparative Influence
Membership Group High level of conformity to the Conformity to the standards of
standard of immediate groups that the influenced aspires
membership groups to join , and probably will
Symbolic Group No significant influence. The High degree of influence, although
influencer is outside the influenced the influenced know that they will
reference group. never join the influencers. Socially
they are far apart.

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When do reference groups exert
influence
Attitude towards the group

Nature of the group

Nature of the Product

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 Norms Values Roles

Power
• Expert Power
Status Socialization • Referent Power
• Reward Power/Coercive Power
• Legitimate Power

Nature of Reference Groups

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 • Friendship groups
Consumpti • Shopping groups
on related • Virtual Communities

reference • Advocacy groups

• Work Groups
groups

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Reference Group Influences
• Reference Groups as part of the socialization
process
• Reference groups as setters of roles
• Reference groups as information sources
• Reference groups as normative influences
• Reference groups as an expression of self value

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WORD OF
MOUTH

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WOM
The informal communication that occurs between two people is called word of mouth communication. In terms of
marketing, such a conversation relates to purchasing activity and consumption behavior and thus pertains to
products and services.

Informal

Interpersonal

No commercial motive

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Opinion Leadership- The process by which one
person-the opinion leader-informally influences
others , who might be either opinion seekers or
recipients. 12
Influencer
• Bhuvan Bam
• India’s No. 1 individual
YouTuber
• YouTube - 16.7mn subscribers
• Instagram – 7.8 mn
• Current Brands - Mivi speakers,
Beardo , Pizza Hut,Lenskart,
Arctic Fox

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Opinion Leadership is a dynamic
process
• Provide both information and • Comic Con
advice
• Both positive and negative
information
• Influential and persuasive
• Category specific
• Trendsetters crucial for
companies
• Opinion Leaders and Receivers

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Characteristics of Opinion
Leaders
• Highly knowledgeable
• Self confident, outgoing and
sociable
• Read special interest
publications and visit websites
devoted to the specific topic
• Belong to the same
socioeconomic and age groups

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Role played by Opinion Leader
• Authority figure
• Trend Setter
• Local Opinion Leader

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Opinion leadership
OPINION LEADERS OPINION RECEIVERS
Self Involvement Reduce post purchase dissonance
Gain attention from others Reduce perceived risk
Show off expertise Reduce search and shopping time
Experience ‘converting’ others

Product Express satisfaction or complain about a Learn additional and more efficient ways to
Involvement product or service use products
Learn about newly introduced products
Social Express friendship by providing others Buy products that have the approval of
Involvement with consumption related information others

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 Measuring Opinion Leadership
Self Designating Method – self
administered questionnaire that
requires respondents to evaluate
the extent they have influenced
purchase decisions e.g, I am
usually the first one in my circle
of friends to know about new
technologies
Sociometric Method – measures
the person-to-person
communications about a product
or brand among members of a
community where people know
each other .g. The specific
individual to whom they
provided advice
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 Measuring Opinion Leadership

Key Informant method – a person who is knowledgeable about the nature of social communications among members of a specific
Klout Scores – measures people’s influence online based on their abilities to generate engagement and feedback to what they post.
group

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 Social Networks

Brand Communities

Strategic Weblogs

Applications Stimulating Word-of-Mouth

of Word of
Mouth Viral Marketing

Buzz agents

Managing Negative Rumours

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Advertising Strategies

Portraying informational influence Portraying Comparative Influence Portraying Normative Influence

Use experts Actual referent Showing group approval

Potential results of not

Use celebrities Symbolic referent
using the product

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Portraying influence

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• Write down the names of groups of which you are a member,
for example, your family. For what products does each group
influence your behaviour as a consumer? Write down also,
the type of group you believe it to be.

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