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Groups
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.
Definition
“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
efforts.
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
Features
The Following Points explain the Significance of Group
Dynamics:-
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
Secondary
Types of Groups
Parth Parulekar, Roll no 127 Membership
and
Formal and
Informal
Reference
Groups
Groups
Consumer
Reference
Groups
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
behaviour.
This group does not place restriction on group size or
membership nor does it require that consumers identify
Definition with a tangible group.
The Initiator
The Influencer
The Decision Maker
The Buyer
The factors determining reference groups are as
follows:-
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
Avoidance Disclaiming
Reference Reference
Groups Groups
The Factors which influence Reference Group Influence are as
follows:-
Information and Experience
Credibility
Power Groups
Attractiveness
Conspicuousness of the Product