Consumer Behaviour

Digital Assignment – 3
By: Bharath Selvam (21BBH1031)

Reference groups
A reference group is a group of people that an individual uses as a standard for evaluating their
own attitudes, beliefs, and behaviors. Reference groups can have a significant influence on
consumer behavior, as they can provide information about products and brands, and they can
also influence the individual's sense of identity.

Types of Reference Group

On basis of the extent to which an individual wants to be associate with the

group:

Aspirational reference groups

These are groups that an individual aspires to be a part of. These groups may represent the
individual's ideal self, or they may represent a lifestyle or status that the individual desires.
Aspirational reference groups can have a powerful influence on an individual's consumer
behavior, as they can motivate individuals to purchase products and brands that they believe will
help them achieve their desired goals.

For example, an individual who aspires to be a fashion model may look up to supermodels as an
aspirational reference group. The individual may be motivated to purchase the same clothing
brands, beauty products, and accessories that the supermodels use.

Membership reference groups

These are groups that an individual is already a part of. These groups may include family,
friends, coworkers, or members of a club or organization. Membership reference groups can
have a significant influence on an individual's consumer behavior, as they can provide
information about products and brands, and they can also influence the individual's sense of
identity.

For example, an individual who is a member of a book club may be influenced by the book
choices of the other members. The individual may be more likely to purchase books that the
other members have read and enjoyed.

Dissociative reference groups

These are groups that an individual does not want to be associated with. These groups may
represent values or behaviors that the individual rejects. Dissociative reference groups can also
have an influence on an individual's consumer behavior, as they can motivate individuals to
avoid products and brands that are associated with the group.

For example, an individual who does not approve of smoking may view smokers as a
dissociative reference group. The individual may be more likely to avoid products that are
marketed to smokers, such as cigarettes and lighters.

An individual may be a member of multiple reference groups, and that the influence of each
group may vary depending on the individual and the situation. For example, an individual may
be a member of a family, a religious group, and a professional organization. The influence of
each group on the individual's consumer behavior may vary depending on the product or brand in
question.

On the basic of the degree of interaction and influence:

Primary reference groups

Those with whom we have direct contact and interaction. They include our family, friends, and
co-workers. These groups have a strong influence on our behavior because we are more likely to
be influenced by the people we know and interact with on a regular basis.
 - Family: Our family is the most important primary reference group. They are the people
who have known us the longest and who have the most influence on our values, beliefs,
and attitudes.
- Friends: Our friends are also important primary reference groups. They are the people
with whom we share our interests and activities. They can influence our behavior by
providing us with information, advice, and support.
- Coworkers: Our coworkers can also be important primary reference groups. They are the
people we spend a lot of time with, and they can influence our behavior by setting norms
and expectations for our work performance.

Secondary reference groups:

Those with whom we do not have direct contact, but we still admire or aspire to be like them.
They include celebrities, athletes, and political figures. These groups have a less direct influence
on our behavior, but they can still be influential because we may want to emulate their lifestyles
or purchase the same products they use.

- Celebrities: Celebrities are often used by marketers to influence consumer behavior. We

may admire celebrities and want to emulate their lifestyles. This can lead us to purchase
the same products they use or to adopt their fashion trends.
- Athletes: Athletes are also used by marketers to influence consumer behavior. We may
admire athletes and want to be like them. This can lead us to purchase the same products
they use or to adopt their training regimes.
- Political figures: Political figures can also be used by marketers to influence consumer
behavior. We may admire political figures and want to support their causes. This can lead
us to purchase products that are associated with those causes.

Ascriptive reference groups:

Those that we are assigned to based on our social status, age, or gender. They include our race,
religion, and social class. These groups have an indirect influence on our behavior because we
are influenced by the norms and values of the groups to which we belong.

- Race: Our race is an ascriptive reference group. We are assigned to a race based on our
physical characteristics. Our race can influence our behavior by shaping our identity and
our sense of belonging.
- Religion: Our religion is also an ascriptive reference group. We are assigned to a religion
based on our birth or our family's beliefs. Our religion can influence our behavior by
shaping our values and our moral code.
- Social class: Our social class is an ascriptive reference group. We are assigned to a social
class based on our family's socioeconomic status. Our social class can influence our
behavior by shaping our aspirations and our consumption patterns.

On the Basic of Physical Presence of the Group:

Virtual reference groups

Those that exist online or in the media. They include social media influencers, bloggers, and
celebrities. These groups can have a strong influence on our behavior because we are exposed to
them on a regular basis and we may want to emulate their lifestyles or purchase the same
products they use.

Example: Social media influencers, bloggers, celebrities

Real reference groups

Those that exist in the real world. They include our family, friends, and co-workers. These
groups have a more direct influence on our behavior because we interact with them on a regular
basis and we are more likely to be influenced by their opinions and advice.

Example: Family, friends, co-workers