Every group to which an individual belongs is a reference group for that consumer.
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Consumers are a tribal bunch, and the groups they choose to belong to are significant to how those consumers view themselves and live their lives. Much the way they pick like-minded friends, consumers also purchase brands they believe represent standards they relate to. This is a key component of reference group marketing. Convincingly associating your product or service with a group your target market admires is how you can use group influence to boost your brand's sales. Show
Consumers Trust Reference GroupsConsumers are influenced by different types of reference groups they believe they are a part of or aspire to be. Group influence goes both ways; sometimes, consumers avoid brands they believe would put them into a group they don’t want to be included in. People buy things to help form and express their self-concept and their connections with like-minded people. Many things a person buys, especially showy items such as clothing, accessories, vehicles, restaurants or club memberships, are symbolic of what he thinks is acceptable to a certain reference group such as his family, social circle, workplace, community or culture. An individual buyer might make purchases that appeal to a few different types of reference groups. For example, a consumer who wants to appear eco-friendly may purchase a Toyota Prius. That same consumer might also feel connected to Nintendo's gaming community and opt to buy Nintendo consoles over Sony or Microsoft products. Group influence comes from many directions and in most cases, different types of reference groups do not clash in the buyer's mind because the products that signify them are in completely separate categories. Branded Upbringings Make Lifetime BuyersKids influence their parents’ purchases, and reference group marketing can be quite effective with children and teenagers. Marketers aim their messages at children via television, apps and internet to establish early brand familiarity and inspire direct sales. While parents may refer to other parents and groups for the final decision on household purchases, teens and children are typically driving forces behind their parents' purchasing decisions. Consumers Buy Peer StatusWealthy consumers influence non-wealthy consumers. Certain brands keep luxury consumers believing they’re part of an elite club. The trick for marketers of high-end luxury goods and services is to appeal to the wealthier consumers who want to feel distinguished from the non-wealthy while at the same time appealing to the larger audience of consumers who want to emulate the wealthy, according to research on consumer behavior. For example, a high-end watchmaker may release a limited edition luxury watch for its targeted consumers followed by a more affordable version of the product, under the same brand name, for a wider market. Cause Affiliations and PurchasingMovements in society can influence consumer behavior. Media reports associated with a brand can fuel consumer activism for or against it, making social media an important asset for any brand engaging in reference group marketing. For example, an injustice involving a manufacturer that is publicized in the media may trigger a consumer to join a boycott of the manufacturer’s brand. Conversely, a company’s association with a charitable cause or heroic deed may compel the consumer to purchase the company’s brand just to show support. People favor brands that resonate with what they believe in and what they think like-minded believers accept.
The set of associations consumers have about a brand is an important component of brand equity. In this article, we focus on reference groups as a source of brand associations, which can be linked to one's mental representation of self to meet self-verification or self-enhancement goals. We conceptualize this linkage at an aggregate level in terms of self-brand connections, that is, the extent to which individuals have incorporated a brand into their self-concept. In 2 studies, we show that brands used by member groups and aspiration groups can become connected to consumers’ mental representation of self as they use these brands to define and create their self-concepts. Results from Experiment 1 show that the degree to which member group and aspiration group usage influences individual self-brand connections is contingent on the degree to which the individual belongs to a member group or wishes to belong to an aspiration group. In Experiment 2, we found that for individuals with self-enhancement goals, aspiration group brand use has a greater impact on self-brand connections; for individuals with self-verification goals, on the other hand, member group use has a greater impact. Cited by (0)Copyright © 2003 Elsevier, Inc. Published by Elsevier Inc. All rights reserved. How does a group differ from a reference group?A group is two or more persons who share a set of norms and whose relationship makes their behaviour interdependent. A reference group is 'a person or group of people that significantly influences an individual's behaviour' (Beardon and Etzel, 1982).
Which category of reference groups represent groups that a consumer does not have membership?(b) Symbolic aspiration groups are those groups, in which an individual is not likely to belong, despite acceptance of the group's beliefs and attitudes.
What are reference groups quizlet?reference groups. people we look to for help making decisions. an actual or imaginary individual or group conceived of having significant influence upon evaluations, aspirations and behaviour.
What are the three forms of reference group influence?Three types of reference group influences are studied-informational, value expressive and utilitarian.
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