Reference group influence in consumer behaviour pdf

The modern day marketing has not only become consumer oriented but it has even diversified its base. The influence of reference groups on consumer behaviour is felt through the influence of social power. Consumer behaviour jane priest is a teaching fellow at edinburgh business school and teaches parts of the oncampus marketing course, as well as the consumer behaviour elective by distance learning. Our parents, our families, and our friends play a role. Nowadays marketers use the concept of group dynamics or personal influence often as this exceeds the. Factors affecting consumers buying decision in the. Feb 20, 20 a reference group is any person or group that serves as point of comparison or reference for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Social influences on the consumer decision process. Reference group somehow affects the value and behavior of others. Definition of reference group in consumer behaviour tutorial. Many factors, specificities and characteristics influence the individual in what he is and the consumer in his decision making process, shopping habits, purchasing behavior, the brands he buys or the retailers he goes. The influence of cultural factors on consumer buying behaviour has been widely debated and studies at different points in time. Within a reference group that influences the consumer buying behavior, several roles have been identified.

Normative reference group influences your norms, attitudes. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of hisher involvement with the group. Mostly younger consumer are powered by this influence. The following powers are used to influence individuals in a group.

H4 as the individuals age increases, the significance of reference group influence declines in hisher consumer behaviour. In an age where the brands are being created frequently. From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption. Every individual knows some people in the society who become their idols in due course of time. Digital marketing impact on the consumer decision making. Factors influencing consumer behaviour from the viewpoint of the marketing strategist, the mix of cultural, social. The purpose of this paper is to understand the influences of social reference group on women buying behaviour and across specific women segments. In reference groups those groups that directly influence the consumer behavior are called membership group or primary groups such as friends, neighbors, family and coworkers. Group influence on consumer behavior mba knowledge base. Family bonds are more stronger than bonds in any other group and all members of the family form a single decision unit in case of purchase of products and services for common consumption.

Most of the purchases affect ideas and opinions of the reference group nesai, 2009. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Reference group is a group that serves as a reference point for an individual in the formation of hisher beliefs, attitudes and behaviour. Reference groups can influence a consumer by affecting how they perceive a given product or service i.

Thus, it can be said that a consumer s reference groups are those groups, which may have a direct or indirect influence on ones attitude. Sociocultural influences family one of the most basic sociocultural influence is that of the family. The impact of social factors affecting consumer behaviour on selecting characteristics of purchased cars. Marketers frequently advertise their products in a group setting the family eating breakfast cereals, the neighbor admiring the paint of the house. How reference groups exert influence on consumer behavior 3143 words pages. Reference groups can influence an individuals cognitions, affective responses, and behaviors. Oct 31, 2011 a comparative reference group might be a neighboring family whose lifestyle appears to be admirable and worthy of imitation. Reference groups comprise of people that individuals compare themselves with.

Reference group and opinion leadership reference groups use other people as a frame of reference. Consumer behavior gets influenced by various groups like family, friends, social class, reference groups, ones own. In the two elementary schools from each year 7 th grade, 8 grade and 9 grade were chosen four students of each gender based on random numbers. The key concept is that the reference group or social body with which an individual identifies himself and whose standards of behaviour heshe accepts and adheres to, exerts a significant influence on the individual behaviour. Group dynamics means how individuals form groups, and how one persons purchasing influences the other individuals actions.

Reference group group of people which includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. Marketers should recognize the extent to which a reference group influences the consumer and he should also understand out of all the groups which group influences him the most. Ways in which group members influence attitudes, behaviors, and opinions of others within the group. Clipping is a handy way to collect important slides you want to go back to later. Primary groups are intimate, facetoface such as family and peer groups. Reference groups and family 1 reference groups and families questions 1. The impact of social factors affecting consumer behaviour on. A study on influence of reference group and role and. Existing literature demonstrates that reference groups have significant influence on consumers purchasing behaviour. They set the levels of lifestyle, purchasing patterns, etc. A reference group is any person or group that serves as a point of comparison or reference for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Reference group is defined as having significant relevance upon an individuals evaluations, aspirations or behavior influencing the consumer. Family provides the setting for our earliest learning experience.

Comparative reference groups influence the expression of specific consumer attitudes and behavior. Reference groups and opinion leadership consumers behavior. It is also an earning, consuming and decisionmaking unit. Pdf the role of reference group on consumer purchasing.

The parents, siblings, relatives all have their own views about a particular purchase. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a particular lifestyle. Nowadays marketers use the concept of group dynamics or personal influence often as this exceeds the power of. Social classan open group of individuals who have similar social rank. Most people confuse this influence with peer pressure.

Despite the above tendency, however, i have chosen the examination of the role of reference group influence in consumer behaviour as the topic of my dissertation. Here to influence advertiser will show the brand being used by socially. Reference groups in consumer buying role of reference groups. Reference groups includes buyer reference group, such as family members, friends, social organizations, professional institutions and. Today network marketing has come into picture which is also known as referral marketing. The influence of reference groups on consumer behavior depends on the type of consumption. Oct 28, 2008 influence of reference groups on consumer behaviour.

Differences for 16 products in informational, value expressive, and utilitarian influence were investigated in a nested repeated measures design. Reference group influence on product and brand purchase decisions. The degree of reference group influence varies across product and brands with factors such as 1 the visibility to the group, 2 the necessitynonnecessity nature. Reference groups and family reference groups and families.

Chapter 6 class notes contents of chapter 6 class notes. Reference groups as seen above have the greatest influence with the closest personal connection with customers. This influence is directly related with the bond of a person with its group strongest the bond strong will be the influence. Consumer perceptions of reference group influence on product and brand decisions were examined using 645 members of a consumer panel and 151 respondents in a followup study. The reference group influences the selfimage of consumers and consumers behavior. Reference groups can be classified in many different ways, based on degree of influence normative reference group and comparative reference group. Social factors influencing consumer behaviour philip. Reference groups family roles status reference groups.

Reference groups are people in a consumers microsocial environment who are salient or relevant for the consumer. They are often groups that consumers will look to to make purchasing decisions. Factors affecting consumers buying decision in the selection. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a. Consumer buying behaviour refers to the buying behaviour of the ultimate consumer. For the purpose of research, null hypothesis has been taken into consideration. Start studying ch 8 and 9 reference groups and culture. Reference groups influence people a lot in their buying decisions. A useful framework of analysis of group influence on the individual is the so called reference groupthe term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Refer those groups that directly or indirectly influence the consumer behavior. Normative reference groups influence the development of a basic code of behavior. A study on influence of reference group and role and status on.

Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. The main reason of my decision is that this area has attracted little attention in hungarian literature until now, with. Now our reference could be very large or very small including few of our family members or few close friends. The reference group provides some points of comparison to consumers about their behavior, lifestyle or habits. This research aims to analyze 1 what is the influence of social factors reference group, family, roles and status on young consumer behavior towards. As consumers, our buying decisions are often influenced by our reference groups, these being the group of people whose presumed perspectives or value are used as a basis for purchasing decisions. The same system was applied to the selection of secondary schools. Conspicuousness of a product also plays a vital role in reference group influence on women consumer behaviour. Consumer behavior literature indicates that reference groups may alter consumers choices in three different manners. Reference group, social influence and social power. Family buying influences in consumer behaviour tutorial 18. Reference group influenec on consumer behaviour consumer.

Humans are inherently social animals, and individuals greatly influence each other. Read this article to learn about the meaning and types of group dynamics in consumer behaviour. Reference group influence will be higher if one wants. The role of reference group influence in consumer behaviour. Family is one of the most important reference groups. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption. Consumer behaviour, influencing factors, veblenian. Of the reference groups, the immediate family influenced consumers. How reference groups exert influence on consumer behavior. Influence of social reference group on buying behavior, a. A reference group is the group whose perspective we consider. A study on influence of reference group and role and status. Family of a consumer plays an important role in the decision making process. Reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also.

What are the factors influencing consumer behavior. The results show that the reference group influences consumer behaviour more than roles and status and the influence is found to be higher in ludhiana than in. Mccarthy, oreilly and deboer 2004, while studying the factors influencing consumption of pork and poultry in the irish market, found that for poultry. Digital marketing impact on the consumer decision making process in nikes customer retail operations in south africa girshwyn reddy 15389317 a research proposal submitted to the gordon institute of business science, university of pretoria, in partial fufilment of the requirements for the degree of master in business administration. Reference group is a group of people whom you refer to, while making buying decisions. How do reference groups influence consumer behavior. Every individual has some people around who influence himher in any way. Reference group influenec on consumer behaviour free download as powerpoint presentation. George homans 7 noted that generally consumers accept reference group influence because of the perceived benefits in doing so. Influence of reference groups on consumer behaviour. Herbert hyman defines a reference group as the type of group that an individual uses as a point of reference in determining his own judgement, preferences, beliefs and behavior. The impact of social factors affecting consumer behaviour.

Reference group influence on product and brand purchase. A persons reference group consist of all the groups that have a direct indirect influence on the persons attitude behaviour. Family buying influences in consumer behaviour family buying influences in consumer behaviour courses with reference manuals and examples pdf. Also known as valueexpressive influence, occur when consumer has adopted all values and attitude of group and identify himself with the. Definition of reference group in consumer behaviour. A reference group is any person or group that serves as point of comparison or reference for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Pdf social reference group influence on women buying. H5 among the clusters created on the basis of psychographic variables, there are significant differences in the measure of susceptibility to parents and friends influence as reference groups. A family is a social group and all members of a family influence and get influenced by each other.

Most people have several reference groups like family, friends and church. A reference group serves as a frame of reference for an individual and influences hisher behavior. The role of reference group on consumer purchasing behaviour. Reference groups are considered a social influence in consumer purchasing. Mar 08, 2010 reference group is defined as having significant relevance upon an individuals evaluations, aspirations or behavior influencing the consumer.

Formal groups are highly defined in structure, interact frequently, such a school. She is a key member of a team exploring how technology can be used to enhance the student learning experience. Reference group can impact a person at least in three ways. Impact of reference groups on the teenagers buying process of clothing in the czech republic 491 in this research were selected.