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Chapter-5 Reference Groups
Chapter-5 Reference Groups
Chapter-5 Reference Groups
Outcomes covered:
9. Recognize the various reference groups available to consumers.
10. Assess the influence reference groups have on consumers purchase.
Topics covered:
1. Introduction
2. Reference Groups
3. Importance of reference groups
4. Opinion leaders
5. Types of reference groups influence
6. Categories or types of reference groups
7. Importance of families and households on consumer behavior.
1. Introduction
A group consists of two or more people who interact with each other accomplish some goal. Important
groups include families, close friends, co-workers, neighbours etc. Some of these groups may become
reference groups.
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17
2.
Reference Groups
A reference group involves one or more people whom someone uses as a basis for comparison or point of
reference in forming affective and cognitive responses and performing behavior.
Reference groups serve as direct (face to face) or indirect points of comparison or reference in forming a
persons attitudes or behavior. People are influenced by reference groups to which they do not belong.
Marketers try to identify the reference groups of their target markets.
Marketers try to identify opinion leaders for their products and direct marketing efforts towards them. They
use buzz marketing by enlisting or even creating opinion leaders to spread the word about their brands.
Example; mothers discuss about a new dish wash or a food item. Children talk about the taste of a new
health drink. They are the best source to capture honest word of mouth and to build a network that will
turn passionate consumers into brand evangelists.
5. Types of reference groups influence
1. Informational reference group influence transmits useful information to consumers about products,
services, and stores from other people. Consumers tend to be influenced by reference groups if the
information is perceived as reliable and trustworthy. Thus consumers reduce the risk of making a
decision. Highly credible reference groups are more likely to have informational influence on consumers.
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17
2. Utilitarian reference group influence on consumer behavior (affect and cognition) occurs when the
reference group controls important rewards and punishments. It concerns a degree of conformity with
the behavior or norms of a group with which the consumers want to identify. An individual may purchase
a brand because they want to comply with the expectations of others. (eg; family members or
colleagues at work etc)
Example; in some work groups, people are expected to wear formal business suits, whereas other work
groups encourage very casual dress.
3. Value expressive reference group influence can affect peoples self-concepts. As cultural units,
reference groups create cultural meanings (beliefs, values, goals, behavioual norms, life styles). People
seek desirable cultural meanings in maintaining self-concepts. By identifying with certain reference
groups, consumers can draw meanings and use it of their own.
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17
6. Informal groups: are less structured and based on friendship. Example; individuals circle of
friends. They exist only for mutual moral support, company and sharing experiences.
7. Automatic groups: are those groups one belongs by virtue of age, gender, culture and education.
They are also called as category groups. Members have not joined voluntarily, and people are
influenced by group pressure to buy.
8. Virtual groups: On line virtual groups (communities) are created due to the wide spread growth of
the World Wide Web. New technologies permit to make direct connections with others by the
elimination of middlemen. This process is known as disintermediation.
Likeminded people come together irrespective of time and space to form groups and a variety of
networks. This process is called aggregation.
Research on internet cultures revealed that online groups are market oriented in their interest. This
is referred as virtual communities of consumption.
9. Membership reference groups: A membership reference group is one to which a person belongs
or qualifies for membership. All workers in a factory qualify for membership to the labor union.
10. Symbolic reference groups: A symbolic reference group is one which an individual aspires to
belong to, but is not likely to be received as a member.
References:
Martin Evans, Ahmad Jamal, & Gordon Foxall, Consumer Behaviour, 2006, John Wiley & Sons, England.
Paul J. Peter and Jerry C Olson, Consumer Behaviour and Marketing Strategy, Eighth edition, 2008, Mc
Graw Hill International edition, Singapore
Philip Kotler, Marketing Management, Analysis, Planning, Implementation and Control, Prentice Hall of
India Pvt Ltd.
Gary Armstrong and Kotler Philip, Marketing, An Introduction, 8th edition, 2007, Pearson Prentice Hall,
New Jersey
Jim Blythe, Principles and Practice of Marketing, 2008, Thomson Learning, London
http://www.marketing91.com/reference-groups-in-consumer-buying/
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17
MINISTRY OF MANPOWER
DIRECTORATE GENERAL OF TECHNOLOGICAL EDUCATION
NIZWA COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
Outcomes covered:
7. Recognize the role of personality in individual behavior and apply various perspectives to that role.
8. Identify those attributes of consumer lifestyle and psychographics that affect consumer behavior
Topics covered:
1. Personality
2. Brand personality
3. Impact of personality on consumer behavior
4. Types of personality
5. Age and life cycle stage
6. Occupation
7. Economic situation
8. Life style
Course Tutor: Dr.V.Vishnukanth Rao, Mr.Mushtaq Ahmed.
1. Personality
Personality refers to the unique psychological characteristics. It is described in terms of traits such as selfconfidence, dominance, sociability, autonomy, defensiveness, adaptability and aggressiveness. Personality
consists of mannerisms, habits and actions that make a person as an individual and makes different from
other people. Personality is a function of inner drives, learned motives and experience.
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2. Brand personality
Brand personality is the specific mix of human traits that may be attributed to a specific brand. The brand
personality traits are;
1. Sincerity (honest, cheerful)
2. Excitement (daring, imaginative)
3. Competence (reliable, intelligent and successful)
4. Sophistication (Upper class and charming)
5. Ruggedness (Tough)
Examples; Levis with ruggedness, MTV with excitement, BBC with Competence, Campbells with
sincerity
4. Types of personality
1. Compliant consumers
Compliant individuals are anxious to be with others, to receive love, recognition, help and
guidance.
They are over-generous and over-sensitive. They shy away from criticism and allow others
to dominate them
They are essentially conformists
2. Aggressive consumers
They tend to be achievement-oriented and desire status
They seek the admiration of others through being outgoing in their behaviour.
They exhibit leadership qualities
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17
3. Detached consumers
They try to separate themselves from others both emotionally and behaviourally
They do not seek responsibility or obligations
They do not try to impress other people
MINISTRY OF MANPOWER
DIRECTORATE GENERAL OF TECHNOLOGICAL EDUCATION
NIZWA COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
BAMK 2102 Consumer Behavior
Chapter No 7
Perception and Attitude
Outcomes covered:
13. Analyze the role perception plays in consumer behavior
14. Recognize how consumers form attitude
15. Identify appropriate methods to measure consumers attitude.
Topics covered:
8. Consumer perception
9. Influence of consumer perception on buying behavior
10. Learning
11. Beliefs
12. What is Attitude?
13. Levels of attitude concepts
Course Tutor: Dr.V.Vishnukanth Rao, Mr.Mushtaq Ahmed.
1. Consumer perception
Perception is the process by which people select, organize, and interpret information to form a meaningful
picture. There are three perceptual processes;
1. Selective attention: tendency of the people to screen out most of the information to which they are
exposed.
2. Selective distortion: tendency of people to interpret information in a way that will support what they
actually believe.
3. Selective retention: consumers tend to retain information that supports their beliefs and attitudes.
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Examples
Levels class
of attitude concept
Product
Television
Product form
LED
LCD
Brand
Sony
Samsung
LG
Model
32 inch
40 inch
72 inch
Brand/model
General situation
Lulu Hyper market, Nizwa
Brand/model
Specific situation
Buying from Lulu Hypermarket,
AlKuwair, before Ramdan
Purchase/
Specific situation
With friends
Purchase/
Specific situation
Cash
With family
members
Loan
Alone
Debit
card
Installment
payment
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References:
Martin Evans, Ahmad Jamal, & Gordon Foxall, Consumer Behaviour, 2006, John Wiley & Sons, England.
Paul J. Peter and Jerry C Olson, Consumer Behaviour and Marketing Strategy, Eighth edition, 2008, Mc
Graw Hill International edition, Singapore
Philip Kotler, Marketing Management, Analysis, Planning, Implementation and Control, Prentice Hall of
India Pvt Ltd.
Gary Armstrong and Kotler Philip, Marketing, An Introduction, 8th edition, 2007, Pearson Prentice Hall,
New Jersey
Jim Blythe, Principles and Practice of Marketing, 2008, Thomson Learning, London
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BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17