Factors that affect reference group influence vikram ram. How do reference groups influence consumer behavior. Existing literature demonstrates that reference groups have significant influence on consumers purchasing behaviour. 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. Most people confuse this influence with peer pressure. What are social factors influencing consumer behavior. Social reference group influence on women buying behaviour. And these groups, called reference groups,can affect a consumers behaviorpositively or negatively. Figure 1 represents the relationships between the hypotheses to be tested in the empirical research. So if a reference group endorses a product, either through use or statements about the product, those that look to. Reference groups affect consumers by imparting information and by influencing value expressive needs of the consumers.
The society is composed of several individuals that have different preferences and behaviors. They are often groups that consumers will look to to make purchasing decisions. Using reference groups in marketing business 2 community. Social groups that are important to a consumer and against which heshe compares himselfherself. May 04, 2019 the modern day marketing has not only become consumer oriented but it has even diversified its base. Reference groups are the groups that people identify psychologically and in which it serves as the sources of selfevaluation.
Influence of reference groups on consumer behaviour 79,400 views. She is a key member of a team exploring how technology can be. Identifying and using reference groups in marketing are important because reference groups influence the attitudes, goals, aspirations, opinions, and information. Social factors affect consumer behavior significantly. It is a group that serves as a reference point for an individual for hisher beliefs, attitude and behaviour. When it comes to consumer or consumer behaviour, these are very complex concept.
Consumer behavior literature indicates that reference groups may alter consumers choices in three different manners. In an age where the brands are being created frequently. Consumer behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumers emotional, mental and behavioural responses that precede or follow these activities.
Consumer behavior implications for marketing strategies. How reference groups exert influence on consumer behavior 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. The purpose of the research is how the factors of consumer behavior affect or influences the branded product. Reference groups can influence a consumer by affecting how they perceive a given product or service i. The family life cycle stages in consumer behaviour. There are various different influences on whether we buy a product or not and this is called consumer behaviour. Reference group influence on product and brand purchase. Group influence on consumer behavior mba knowledge base. Informational influence occurs when an individual uses the behavior and opinions of. There are many types of reference groupsconsumers latch on to. Reference groups are those that somehow affect the value and the perceived behavior of others.
The modern day marketing has not only become consumer oriented but it has even diversified its base. Consumer behavior consists of factors that have effect on consumers buying. How reference groups exert influence on consumer behavior. Formal groups are highly defined in structure, interact frequently, such a school groups, business groups and work. Every consumer is an individual, but still belong to a group. This study aims to identify factors influencing thai students choices of vocational education. Social groups and consumer behaviour marketing essay.
Reference groups and family reference groups and families. Reference group has influence in consumers decision making. Influence of reference groups on consumer behaviour. Pdf reference groups and choice of vocational education. Social factors are among the factors influencing consumer behavior significantly. Most people have several reference groups like family, friends and church. Of the reference groups, the immediate family influenced consumers most in their. Reference groups can be classified in many different ways, based on degree of influence normative reference group and comparative reference group. Consumer behaviour is about people, or more accurately, the systematic study of their behaviour patterns in. If one wants to be a member of the group, one has to conform to the.
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 or behavior. A group consists of two or more individuals who share a set of norms, values or beliefs and have a defined relationship such that their behaviour. Both fields confirm that personal traits and the impact of the social environment equally form ones way of life including consumption as well piko 2003. Reference groups as seen above have the greatest influence with the closest personal connection with customers. Though in simple terms, consumer behaviour is defined as the study of individuals, groups or organizations and the processes used by them to select, secure and use. As this study is an exploratory study, a pilot study of 50. Reference groups in consumer buying role of reference groups. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. Every individual has someone around influencing their buying decisions. The family life cycle stages in consumer behaviour tutorial. Informal primary groups include family and peer groups. Primary groups are intimate, facetoface such as family and peer groups. Social factors influencing consumer behavior definition.
Reference groups are considered a social influence in consumer purchasing. 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. This explains the outside influences of others on our purchase decisions either directly or indirectly. A study on influence of reference group and role and. Oct 28, 2008 influence of reference groups on consumer behaviour. This is when the reference group is used as a knowledgeable source in the different parts of the buyers decision process. A persons reference group consist of all the groups that have a direct indirect influence on the persons attitude behaviour. Factors affecting consumers buying decision in the. It includes groups reference groups, aspirational groups and member groups, family, roles and status. Reference groups influence people a lot in their buying decisions. Reference group influence on product and brand purchase decisions. Today network marketing has come into picture which is also known as referral marketing. Humans are inherently social animals, and individuals greatly influence each other.
H7c the higher is the level of knowledge concerning a certain product, the stronger is the power of reference group influence in that consumption situation. Primary reference groups are basically the set of people whom you meet every day. Social factors play an essential role in influencing the buying decisions of consumers. They set the levels of lifestyle, purchasing patterns, etc. Cultural effects on consumer behavior, 7 7 although childers 1992 references hofstedes 1984 research, he further segregates reference groups into comparative reference groups which are used for a consumers selfappraisal and normative reference groups. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer s emotional, mental and behavioural responses that precede or follow these activities. Pdf the role of reference group on consumer purchasing. Influence of social reference group on buying behavior, a. Consumer behaviour is about people, or more accurately, the systematic study of their behaviour patterns in a marketing context keith williams 1983.
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 groups also influence the way people become, the way the think and act, as well as what people believe. The family life cycle stages in consumer behaviour the family life cycle stages in consumer behaviour courses with reference manuals and examples pdf. Classification of groups by membership status membership group. This research aims to analyze 1 what is the influence of social factors reference group, family, roles and status on young consumer behavior towards. The study of consumer behaviour is concerned with all aspects of purchasing and consumption behavior as well as all persons involved in purchasing and consumption activities. It should be noted that the reference group differs from opinion leaders. Reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also. 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. Conspicuousness of a product also plays a vital role in reference group influence on women consumer behaviour. 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. The impact of social factors affecting consumer behaviour on. The social factors are the factors that are prevalent in the society where a consumer live in. A reference group to which an individual wishes to belong consumers use others as a source of information to shape and evaluate their beliefs.
Social influences on the consumer decision process. Whether they realize it or not,consumers identify with certain groups. Consumer behaviour edinburgh business school v contents preface xii part 1 the consumer in context module 1 people as consumers 11 1. You as the marketer need to understand this relationshipto improve how you promote and sell your products. There is a significant positive relationship between reference group and consumer purchasing decision family. Social factors influencing consumer behaviour philip. Marketers frequently advertise their products in a group setting the family eating breakfast cereals, the neighbor admiring the paint of the house. These varied behaviors influence the personal preferences of the other set of individuals as they tend to perform those activities which are acceptable. Factors affecting consumers buying decision in the selection. Pdf social reference group influence on women buying. A group to which a person either belongs or would qualify for membership in. Now our reference could be very large or very small including few of our family members or few close friends. Based on these empirical findings, the first hypothesis to be tested is.
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. A reference group refers to a group of people you refer to, while making buying decisions. 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. Reference groups can influence an individuals cognitions, affective responses, and behaviors. A group in which an individual is not likely to receive membership, despite acting like a member by. A group consists of two or more individuals who share a set of norms, values or beliefs and have a defined relationship such that their behaviour is interdependent. How reference groups exert influence on consumer behavior 3143 words pages. Our parents, our families, and our friends play a role. In this article, we look at one of the common factors that affect consumer buying behavior. Normative reference group influences your norms, attitudes. Reference group group of people which includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. Reference group is a group that serves as a reference point for an individual in the formation of hisher beliefs, attitudes and behaviour.
Mar 08, 2010 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. The marketing implications of the consumer decisionmaking process are essential to understand in order to maximize sales. Reference groups and opinion leadership consumers behavior. A reference group is the group whose perspective we consider. A group in which an individual is not likely to receive membership, despite acting like a member by adopting the. The impact of social factors affecting consumer behaviour. Reference group and opinion leadership reference groups use other people as a frame of reference. Third, the created compulsive conditions may have influence on the choice of product brands kotler, armstrong, 2006. The stages at which families find themselves, affect the nature of the goods and services required, their wants and consumption patterns, as well as the volume of consumption on specific.
Reference groups are people in a consumers microsocial environment who are salient or relevant for the consumer. And the other purpose of this research is to gain the more knowledge about consumer behavior and improve the writing and thinking ability. 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. Reference groups family roles status reference groups. The role of reference group influence in consumer behaviour. Junior scientific researcher journal munich personal repec. We need people around to talk to and discuss various issues to reach to better solutions and ideas. Definition of reference group in consumer behaviour. Consumer behaviour emerged in the 1940s and 50s as a distinct sub. Reference groups and family 1 reference groups and families questions 1. A study on influence of reference group and role and status. Definition of reference group in consumer behaviour definition of reference group in consumer behaviour courses with reference manuals and examples pdf.
A group may be defined as two or more people who interact to accomplish either individual or mutual goals. Consumer behaviour emerged in the 1940s and 50s as a distinct subdiscipline in the marketing area. A reference group serves as a frame of reference for an individual and influences hisher behavior. Dec 30, 2017 reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also. 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. Aspiration groups want to belong to disassociate groups do not want to belong to honda, tries to disassociate from the biker group. There are two types of reference groups positive and negative reference groups. Low prestige attached to technical vocational education and training and its inherent inequities are a common phenomenon in thailand. Consumers are driven both by rational thinking and emotions, and marketers must conduct careful research to tap into and harness the power of this information in their efforts.
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