Types of reference group in consumer behaviour pdf

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. Pdf the role of reference group on consumer purchasing. Reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also. A normative reference group influences your norms, attitudes, and values through direct interaction. Reference group influence on product and brand purchase. Reference group is defined as having significant relevance upon an individuals evaluations, aspirations or behavior influencing the consumer. Our parents, our families, and our friends play a role.

Reference group meaning, nature, types, categories, influence of reference groups on consumer behaviour, application in marketing of a. Before understanding consumer behaviour let us first go through few more terminologies. Refer those groups that directly or indirectly influence the consumer behavior. Consumer behavior mar 3503 group project instructions. A reference group is the group whose perspective we consider. January e when cues about actual behaviour are limited and text is the main form of. Reference groups in consumer buying role of reference groups. Chapter 6 class notes contents of chapter 6 class notes.

This helps reduce cognitive dissonance when a marketer can answer any concerns of a new consumer. Consumer behaviour and marketing action learning objectives after studying this chapter, you will be able to understand. Consumer behavior reference groups in our daily lives, we all get influenced by a variety of people while making our purchase decisions. Reference groups influence people a lot in their buying decisions. 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.

May 04, 2019 the modern day marketing has not only become consumer oriented but it has even diversified its base. In first case, the individual is said to be in a membership group and in the second, the individual is part of an aspiration group. Reference groups are used in order to evaluate and determine the nature of a given individual or other groups characteristics and sociological attributes. Pdf consumer purchasing behaviour necessitates understanding the factors. Dec 30, 2017 i primary and secondary reference groups in consumer buying a primary reference group is one with which an individual interacts on a regular basis and whose opinion is of importance to him, family, neighbors, close friends, colleagues and co workers are examples of primary reference groups.

Reference groups and family reference groups and families. Types of reference group work groups consumeraction groups shopping groups formal social group friendship group. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a. The role of reference group influence in consumer behaviour. Definition of reference group in consumer behaviour. Understanding consumer behavior will assist business entities to be more practical at selling, designing, development of products or services, and every other different initiative that impacts their. In this essay, i shall discuss the groups that i belong to and evaluate how they may have influenced my purchasing behavior as a consumer. Consumer behaviour refers to the behaviour of consumers in deciding to buy or not to. Reference group, social influence and social power in consumer behaviour reference group, social influence and social power in consumer behaviour. Types of consumer buying behavior are determined by. Finally, theres the aspiration reference group, which is a group of people that we would typically want to be much more like or even become a part of. Group influence on consumer behavior mba knowledge base. The modern day marketing has not only become consumer oriented but it has even diversified its base. Secondary reference groups are those with which an individual.

A consumer can either be a member of a reference group like. An understanding of consumer behaviour is essential in planning and programming the marketing system. Figure 1 represents the relationships between the hypotheses to be tested in the empirical research. Read this article to learn about the meaning and types of group dynamics in consumer behaviour. Reference groups can be divided into two major types. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a particular lifestyle. One such group that i am part of is my circle of close friends from my. They set the levels of lifestyle, purchasing patterns, etc. Group dynamics and consumer reference groups shamshul anaz kassim senior lecturer faculty of business management uitm perlis. An example of a reference group being used would be the determination of affluence. His wants and behaviour are largely moulded by his present group memberships and the group memberships to which he aspires. Reference group, social influence and social power in. A reference group refers to a group of people you refer to, while making buying decisions.

Consumer behaviour emerged in the 1940s and 50s as a distinct subdiscipline in the marketing area. Consumer behavior mar 3503 group project instructions overview this project should give you experience applying some of the concepts youve learned in class as you collect data on consumer behavior. The reference group provides some points of comparison to consumers about their behavior, lifestyle or habits. Reference group meaning, nature, categories, influence on consumer behaviour, application a reference group refers to a group of people you refer to, while making buying decisions. In simpler words a consumer is one who consumes goods and services available in the market. Types of consumer buying behaviour free download as powerpoint presentation. It is a group that serves as a reference point for an individual for hisher beliefs, attitude and behaviour. A conceptual frame work introduction consumer behaviour is a subset of human behaviour. 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. 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. Types of consumer buying behaviour behavior consumer.

Chapter 3 will provide clarity on the consumer decisionmaking process. The basic theme is that mans attitudes and behaviour are influenced by several levels of society, culture, subculture, social classes, reference groups, face to face groups and. In an age where the brands are being created frequently. Existing literature demonstrates that reference groups have significant. Ps make sure you can describe each type of reference group 2. Consumer buying behaviour refers to the buying behaviour of the ultimate consumer. The discussion commences by distinguishing different types of decisionmaking. 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. Consumer behavior literature indicates that reference groups may alter consumers choices in.

Any individual who purchases goods and services from the market for hisher enduse is called a consumer. Reference group is a group of people whom you refer to, while making buying decisions. Factors affecting consumers buying decision in the selection. A reference group can be either from a membership group or nonmembership group. Reference group influence on product and brand purchase decisions. They often serve as our role models and inspiration. Consumer behavior is about the approach of how people buy and the use merchandise and services. Reference groups as seen above have the greatest influence with the closest personal connection with customers. Group dynamics means how individuals form groups, and how one persons purchasing influences the other individuals actions. 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.

Apr 02, 2015 learning objectives understand how reference groups influence consumer behaviour discuss the role of conformity as a social influence discuss the importance of wordofmouth communication understand the nature of opinion leadership understand the impact of groups and social networks 3. A reference group serves as a frame of reference for an individual and influences hisher behavior. A reference group is a group to which an individual or another group is compared sociologists call any group that individuals use as a standard for evaluating themselves and their own behavior a reference group. 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 behaviour is the study of how consumers make decisions about what they need, want, and desire. From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption. Pdf social reference group influence on women buying. I primary and secondary reference groups in consumer buying a primary reference group is one with which an individual interacts on a regular basis and whose opinion is of importance to him, family, neighbors, close friends, colleagues and co workers are examples of primary reference groups. 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.

Understanding consumer behavior will assist business entities to be more practical at selling, designing, development of products or services, and every other different initiative that impacts their customers. We compare this process to traditional types of interpersonal. Pdf a replication and extension of a study performed by bearden and etzel are reported in this article. Example tom might purchase a tricycle for his son or mike. Learning objectives understand how reference groups influence consumer behaviour discuss the role of conformity as a social influence discuss the importance of wordofmouth communication understand the nature of opinion leadership understand the impact of groups and social networks 3. Reference group, social influence and social power in consumer behaviour reference group, social influence and social power in consumer behaviour courses with reference manuals and examples pdf.

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. Now our reference could be very large or very small including few of our family members or few close friends. A consumer can either be a member of a reference group like family or aspire to belong to a group. Pdf the influence of familial and peerbased reference. Factors affecting consumers buying decision in the. Reference groups can influence an individuals cognitions, affective responses, and behaviors. A reference group is a group whose rules, norms and values are used by an individual as the base of his daily behavior. 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.

Below i give you several topics to choose from, but you will still have. Group dynamics and consumer reference groups shamshul anaz kassim senior lecturer faculty of business management. 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. Return to contents list types of consumer buying behavior types of consumer buying behavior are determined by. She is a key member of a team exploring how technology can be used to enhance the student learning experience. The purpose of this paper is to understand the influences of social reference group on women buying behaviour and across specific women segments. The influence of familial and peerbased reference groups on consumer decisions. A reference group includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors.

Definition of reference group in consumer behaviour tutorial. A family is a social group and all members of a family influence and get influenced by each other. Social groups and consumer behaviour marketing essay. The reference group influences the selfimage of consumers and consumers behavior. An informal reference group is a group that has no set structure or designated roles moschis 1976, p. Unit iii consumer buying behaviour marketing implications consumer. Today network marketing has come into picture which is also known as referral marketing. Environmental influences on consumer behaviour cultural influences social class reference groups and family influences opinion leadership and the diffusion of innovations marketing implications of the above influences.