Group Influence and Consumer Reference Groups

WHAT IS A GROUP?
TWO OR MORE PEOPLE WHO INTERACT INTERDEPENDENT PEOPLE SHARE EXPLICIT PSYCOLOGY WITH EACH

OTHER
SOURCE OF INFLUENCE INDIVIDUALS WHO SHARE AN IDEOLOGY

IDENTIFY THE GROUPS

COLLEAGUES AT WORK

PEOPLE AT A RAILWAY STATION

PEOPLE PRAYING TOGETHER

TYPES OF GROUPS

SECONDARY GROUP PRIMARY GROUP

FORMAL GROUP

MEMBERSHIP GROUP INFORMAL GROUP SYMBOLIC GROUP

 FAMILY FRIENDS

CONSUMER RELEVANT GROUPS

FORMAL SOCIAL GROUP

INFORMAL WORK GROUPS

SHOPPING GROUPS

 SOCIALISM BIOLOGICAL MAINTENANCE SENSE OF BELONGING

STRUCTURE AND FUNCTION

IDENTITY TO THE INDIVIDUAL

PHYSICAL AND PSYCOLOGICAL SECURITY ESTABLISHING CONTACTS SOCIAL STATUS

PEER PRESSURE SANCTIONS

CONFORMITY TO THE GROUP

An indivdual has to follow certain norms of the group

GOSSIP

APPROVALS

POINT OF COMPARISION FRAME OF REFERENCE

REFERENCE GROUP

PERCEPTION VALUES AND BELIEFS OR OTHER INDIVIDUALS FOLLOWING IDOLS

BROAD CATEGORIES OF REFERENCE GROUPS

NORMATIVE REFERENCE

GROUPS COMPARATIVE REFERENCE GROUPS

NORMATIVE REFERENCE GROUP

A group that influences the general values or behavior of an individual.

COMPARATIVE REFERENCE GROUPS

A group whose norms serve as a benchmark for highly specific or narrowly defined types of behavior.

INDIRECT REFERENCE GROUPS

Individuals or groups with whom a person identifies but does not have direct face-toface contact, such as movie stars, sports heroes, political leaders, or TV personalities.

CONSUMER REFERENTS

POSITIVE REFERENCE GROUPS

CONTRACTUAL GROUP

ASPIRATIONAL GROUP

NEGATIVE REFERENCE GROUPS

DISCLAIMANT GROUP

AVOIDANCE GROUP

FACTORS AFFECTING REFERENCE GROUP INFLUENCE

Information and experience Credibility, attractiveness, and power of the

reference group Conspicuousness of the product

FACTORS ENCOURAGING CONFORMITY

Inform or make the individual aware of a specific product or brand Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group Legitimize the decision to use the same products as the group

REFERENCE GROUP APPEALS

Celebrities The expert The common man The executive and employee

spokesperson Trade or spokes-characters Other reference group appeals

T E S T I M O N I A L

A promotional technique in which a celebrity who has used a product or service speaks highly of its benefits in order to influence consumers to buy.

E N D O R S E M E N T

Celebrities who may or may not be users of a particular product or service may lend their names to advertisements for such products or services for a fee.

S P O K E S P E R S O N

A celebrity or company executive who represents a product, brand, or company over an extended period o time, often in print, on television, and in personal appearances.

TYPES OF CELEBRITY APPEALS

TYPE Testimonial DEFINITION Based on personal usage, a celebrity attests to the quality of the product or service EXAMPLE Sachin Tendulkar Using the Visa Card

Endorsement

Celebrity lends his name and Aishwariya Rai appears on behalf of a endorsing Loreal product or service with which he/she may not be an expert

Actor

Celebrity presents a product or service as part of a character endorsement Spokesperson Celebrity represents the brand or company over an extended period of time

Imran Khan in the New Coca Cola add

Priyanka Chopra is the brand ambassador of Nokia

E X P E R T S

An expert has some special training or is highly experienced or is an outstanding professional

C O M M O N

M A N

A common man endorses a product with which he is satisfied.dove and ariel uses this approach.

E X E C U T I V E S

Top executives are well known. They can be effective influences. Vijay Mallya is used in an add where he advises moderation in drinking.

 Media Reputed store

OTHER REFERENCE POINTS

Cartoon characters Seals of approval

Objective product ratings.

MERITS OF REFERENCE GROUP APPEAL

INCREASES AWARENESS OF THE BRAND REDUCES PERCEIVED RISK IN PURCHASING A SPECIFIC PRODUCT