Reference group, Opinion Leader

and consumer behaviour

Dr Ajitabh Dash
 What is reference group
• A reference group can be described as a group of
people that holds significant influence over an
individual’s behaviour.
• A group to which a person will compare himself or
herself, to determine his or her own relative
standing.
• A group of individuals who has significant
relevance for a consumer and who impacts the
consumer’s evaluations, aspirations, and behavior
 Types of Group
• Membership or Non-membership groups
• Primary or Secondary Groups
• Formal or Informal group
• Aspirational group or Dissociative group
 Reference Group Influence on Product
Selection
• Factors that affect how much influence
reference groups have on product
selection
– The situation in which the product is
consumed i.e., consumption setting which can
be public or private.
– The extent to which the product is considered
to be a necessity or a luxury
Reference Group Influence
• Informational Influence :
• Normative (utilitarian) Influence:
– The in which members within a group comply with
group norms to receive reward or avoid
punishment.
– Applicable to public as well as private luxury.
• Value Expressive Influence:
– Individuals join in specific groups as means of
expressing their values/beliefs.
– Eg Body shop
 OPINION LEADERHIP
• Is the process by which one person (The
opinion leader) informally influences the
action of others (Opinion Seekers).
• Opinion leaders are not generic in nature, they
are specific to a category of product.
Implications to the Marketer:
Opinion leadership replaces/supports Marketing communication efforts of a marketer
with interpersonal communication.
 Opinion Leadership Process
Planning Specific Market to be targeted
Resources that can be invested.
Specific outcomes which can be expected
Recognition Identify the influential/relevant opinion
leader.
• High Social Appeal
• Ideals of the target market
• Experience/expertise with the product
• An established pattern of Social Media
Activity
Alignment • Hedonic Value-serve an appeal
leadership function with the target
Market.
• Utilitarian value-Knowledge leadership
function.
Motivation Reward function
Coordination Negotiate, monitor and support the
influence of opinion leaders
 Most influential Customer
Innovators
• are better educated,
compared to the
average consumer
• have a higher socio-
economic status,
relative to others  about advertisements,
• are risk takers (i.e. they
tend to disregard risks
associated with new
products or services)
Market Maven
• Pays close attention to
advertisements and
brands
• Enjoys shopping
• Enjoys talking to others
stores, products and
shopping in general
• Knows where the best
deals are and actively
recommends them to
their friends
• Is aware of and are
eager to try new
products.
 Social Class
• a division of a society based on social and
economic status
– Subjective Measures
– Reputational Measures
– Objective Measures
• Single Variable Index (income, Education, Occupation)
• Composite variable Indexes