How does reference group affect consumer Behaviour?

How does reference group affect consumer Behaviour?

The reference group exercises impact on the manner in which a consumer selects, purchases and uses a product or service offerings and/or brands. He influences the purchase decision making process as also the purchase decisions, consumption patterns and resultant behavior.

How does family influence consumer Behaviour?

Each member influences and gets influenced by a family member depending upon his/her role, life cycle stage and relationship dynamics in the family. Therefore, family influence on consumer behaviour can be understood by studying the buying roles, family dynamics and life cycle stage of a family member.

What are the three ways reference groups influence consumer behavior?

Marketers and advertisers use reference group appeals very effectively to communicate with their customers. They use three types of group influence informational, comparative and normative to develop advertising and personal selling strategies.

What is a reference group in consumer behavior?

A Reference group refers to a group of people you refer to, while making buying decisions. It is a group that serves as a reference point for an individual for his/her beliefs, attitude and behaviour. Family members, Relative, Friends, Colleagues and other close acquaintance are usually termed as Reference Group.

What are the three main types of reference groups?

There are three basic types of reference groups: informational, utilitarian, and value- expressive. Informational influence can be powerful, and is perhaps the most easily affected by a well planned marketing strategy.

What are the factors that affect reference group influence?

3 Important Factors affecting the Influence of Reference Groups

  • Information and Experience.
  • Credibility and power of the reference group.
  • Conspicuousness of the product.

What are the factors influencing consumer behaviour?

3.2 The factors which influence consumer behaviour

  • Psychological (motivation, perception, learning, beliefs and attitudes)
  • Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self concept)
  • Social (reference groups, family, roles and status)

What is family influence?

Family influences include coercive interaction patterns, in which parent–child dyads learn to use increasingly intense behavior to coerce the other person into submitting to their demands.

How do reference groups influence individuals?

A reference group includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. They often serve as our role models and inspiration. Marketers view reference groups as important because they influence how consumers interpret information and make purchasing decisions.

What is reference group and its types?

Reference groups can be divided into two major types: A normative reference group influences your norms, attitudes, and values through direct interaction. A comparative reference group is a group of individuals whom you compare yourself against and may strive to be like. Examples include celebrities and heroes.

What is the example of reference group?

An example of a reference group is a group of people who have a certain level of affluence. For example, an individual in the U.S. with an annual income of $80,000, may consider himself affluent if he compares himself to those in the middle of the income strata, who earn roughly $32,000 a year.

What are the factors that influence consumer behavior?

How are reference groups used to influence consumer behavior?

They help you in buying items like clothing, etc. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a particular lifestyle. They are small groups and consist of family, close friends, work groups, neighbours or any other group of people you associate with.

How to understand family influence on consumer behaviour?

It is important for a marketer to know the family structure, family compositions, buying patterns, Buying roles and motives of family members, life cycle stages etc. in order to understand family influence on consumer behaviour and position a product efficiently in the market. There may be two types of families:

How are reference groups affect the purchase process?

In a family, influence is exerted by the members of the family in the purchase consumption process. Reference groups affect consumers by imparting information and by influencing value expressive needs of the consumers. If one wants to be a member of the group, one has to conform to the standards of the group.

How are reference groups related to normative influence?

(1) Normative Influence: When reference groups affect behaviour and attitudes through pres­sures for conformity, then this is known as normative influence. According to Park and Lessig, a consumer is motivated to conform to the norms and behaviour of the group if: