GROUP 4

CHAPTER 7
THE REFERENCE GROUP AND
FAMILY INFLUENCES
WHAT IS GROUP?
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 BEHAVIOR IS
INTERDEPENDENT.
UNDERSTANDING THE There are 4 basic types of reference group:
POWER OF REFERENCE
a. Primary Groups - Primary reference groups are the
GROUPS
set of people whom you meet every day.

b. Secondary Groups - Secondary reference group are

usually formal and they speak less frequently.

c. Aspirational group - is the one to which a person

may want to become part of. They currently are not part
of that group but wish to become and get with that
group.

d. Dissociative group - The people in these groups are

totally opposite to the people in the aspirational group.
Here people deny of becoming or getting connected to a
particular group.
A BROADENED
PERSPECTIVE ON
REFERENCE GROUP

Direct Reference Group - narrowly defined to include

only those groups with which a person interacted on a
direct basis (such as family and close friends)

Indirect Reference Group - consist of those individuals or

groups with whom a person does not have direct face-to-
face contact. (Like Movie stars, sports heroes, political
leaders, and TV personalities.
INFORMATION
AND EXPERIENCE

An individual who has firsthand experience with a product or

service, or can easily obtain full Information about it, is less
likely to be influenced by the advice or example of others. On
the other hand, a person who has little or no experience with a
product or service and does not expect to have access to
objective information about it (e.g., a person who believes that
advertising may be misleading or deceptive) is more likely to
seek out the advice or example of others.
CREDIBILITY, ATTRACTIVENESS, AND
POWER OF THE REFERENCE GROUP

A reference group that is perceived as credible, attractive, or

powerful can induce consumer attitude and behavior change.
For example, when consumers are concerned with obtaining
accurate information about the performance or quality of a
product or service, they are likely to be persuaded by those
whom they consider trustworthy and knowledgeable. That is,
they are more likely to be persuaded by sources with high
credibility.
CONSUMER CONFORMITY
& REFERENCE GROUPS
REFERENCE GROUPS
A consumer identifies with and may want to join. They influence
consumers' attitudes and behavior. A reference group helps shape a
person's attitudes and behaviors.

CONSUMER CONFORMITY
Consumer Conformity is a behavior which refers to a preference of using
the behaviors or expectations of others as a guideline for one's own
consumption patterns.
 SELECTED CONSUMER-RELATED REFERENCE GROUPS
Shopping Groups
Shopping Groups looks
around and select
merchandise in the wake
of contrasting the quality,
terms, style, client
administrations, cost, and
so on.
Friendship Groups
Classified as INFORMAL
GROUPS, They are
typically unstructured and
need explicit power levels.
Companions are bound to
impact a singular's buy
choices. Companions
impact the utilization
example of people in
specific classification of
items
Consumer Action
Group
Consumer action groups have
Work Groups
emerged in response to
consumer movement.
Consumer movement
People spend considerable provides consumers with
time at their jobs. So, it assistance in their effort to
provides ample make the right purchase
opportunity for work decisions. Consumer action
groups to serve as a major groups are organized to
influence on the correct a specific consumer
consumption behavior of abuse. Women action groups
members. are opposed to any
advertising that may have a
negative impact on them.
CELEBRITY AND OTHER
REFERENCE GROUP
APPEALS

CELEBRITIES CAN BE A POWERFUL FORCE IN

CREATING INTEREST OR ACTIONS WITH REGARD
TO GOODS AND SERVICES
CELEBRITY AND OPINION LEADERSHIP

WHY DOES CELEBRITY ENDORSEMENT WORK?

Celebrity endorsement is "endorsement by a famous or respected
individual who is perceived to be expert or knowledgeable in his or
her field, or who displays particular attractive qualities; used to market
specific goods and services". To consumers, celebrities may be both
opinion leaders and reference groups.

Using celebrities to endorse products or services is effective because

famous people are more likely to be 'invited in' to the lives of
consumers than other people.

According to Pringle this is because of the celebrity's fame and the

consumers consequent ability to visualize them easily.
HOW MIGHT BRANDS USE CELEBRITIES OR
ENDORSERS?

GENERALLY, BRANDS GENERALLY USE CELEBRITIES / ENDORSERS IN

PROMOTIONAL CAMPAIGNS FOR ONE OF THREE THINGS:

1. Launching new products / brands

Celebrities particularly useful in establishing brands in new

categories where consumers need the reassurance and leadership
of an established star (primary demand)

2. Reinforcing existing positions

Celebrities help by reinforcing a brands position - particularly if

new players have entered the market and changed the dynamics
(secondary demand)
HOW MIGHT BRANDS USE CELEBRITIES OR
ENDORSERS?

GENERALLY, BRANDS GENERALLY USE CELEBRITIES / ENDORSERS IN

PROMOTIONAL CAMPAIGNS FOR ONE OF THREE THINGS:

3. Repositioning products / brands

The celebrity acts as a focus (particularly in maturing markets) and as a signal to

customers that its positioning is changing.

Provided the celebrity suits the brand and is part of the potential customers'
aspirational reference group, they provide meaningful resonance and positive
disposition to the consumer, leading to a successful brand/consumer/celebrity
relationship.

There is a clear link between the fame of a celebrity and consumer favourability
towards the endorsed brand (the greater the fame, the more likely the
favourability).
5 MAJOR TYPE OF REFERENCE GROUP APPEAL
IN COMMON MARKETING USAGE
• CELEBRITY APPEAL

• EXPERT APPEAL

• COMMON MAN APPEAL

• EXECUTIVE AND EMPLOYEE APPEAL

• TRADE OR SPOKES CHARACTER APPEAL

CELEBRITY APPEAL
CELEBRITIES MOSTLY INCLUDE:

•MOVIE STARS
•TV STARS
•ENTERTAINERS SPORTS ICONS|
•ENTERTAINERS
CELEBRITY APPEAL

Celebrities, particularly movie stars, TV personalities, popular entertainers, and sports icons, provide a very common type
of reference group appeal. Of all the benefits that a celebrity might contribute to a firm's advertising program—fame,
talent, credibility, or charisma—celebrity credibility with the consumer audience is the most important. To illustrate, when
a celebrity endorses only one product, consumers are likely to receive the product in a highly favorable light and indicate a
greater intention to purchase the different types of methods in which celebrities are used to promote the products are
testimonial: endorsement, actor, spokesperson
CELEBRITY APPEAL
According to an estimate, about 25% of advertisements include celebrities. Advertisers spend enormous sums of money to
have celebrities promote their products with the exception that the reading or reviewing audience will act positively toward
the celebrity’s association with their product. Famous people hold viewers’ attention.

Examples:

❑ Michael Jordon is Under contract with NIKE till 2023

❑ Tiger Woods has a five-year contract with Buick, estimated at $ 30 Million

❑ Tiger Woods is also with NIKE where his deal is going to rise up to $ 80 Million

❑ David Beckham signed a contract with Gillette worth $ 68 Million

Celebrity Credibility Audience’s perception of the celebrity’s level of expertise in endorsing a product is considered
important by the target consumers. It matters to them that–How much the celebrity knows about the product area–How
hones the celebrity is about what he or she says about the product).
EXPERT APPEAL

A person who because of his/her occupation, special training, or experience is in a unique position to help
prospective consumers evaluate the product or service that the advertisement promotes.

Example:

❑ Advertisement of a quality Oil may feature the endorsement of a chef.

❑ The advertisement of a toothpaste endorsed by a dentist.

❑ The advertisement of a car leasing plan endorsed by a financial analyst.

THE COMMON MAN APPEAL

Reference group appeal that uses the testimonials of satisfied customers is known as the common man approach.

Examples:

❑ Middle-aged humble and innocent lady – endorsing a financial savings plan.

❑ Nike sneakers ad taking the common youngsters playing cricket on the rooftops of the buses advantage of the common man
appeal demonstrates to the prospective customer that someone just like they uses and is satisfied with the product or service
being advertised. Common man appeal is especially effective in public health announcements. Most television commercials
show a typical person or family solving a problem using the advertised product/service.
EXECUTIVE AND EMPLOYEE APPEAL

Spokesperson Increasing number of companies has shown their CEOs in the advertisements.
TRADE OR SPOKES CHARACTER
APPEAL

Characters created by the company to endorse their products, E.G., Ninja turtles, commander safeguard,
etc.
FAMILY
❑ The family can be defined as two or more persons who
are bound by blood relationship, marriage, or adoption
who live together.

❑ Provides love, support and a framework of values to each

of its members. Family members teach each other, serve
one another and share life's joys and sorrows.

❑ Most important reference group.

3 TYPES OF FAMILIES DOMINATE

1. The Married Couple

A husband and a wife, as a newly married couple and have not
started a family or elderly couple who have been raising their
children.

2. The Nuclear Family

A group of people who are united by ties of partnership and
parenthood and consisting of a pair of adults and their socially
recognized children.

It is a unit generally composed of married couples (in the statuses

of husband and wife) in the role of ‘mother’ and ‘father’ or ‘parent’
and their unmarried dependent children, either natural or
adopted, living together.
3 TYPES OF FAMILIES DOMINATE

3. The Extended Family

When the nucleus of the conjugal family is extended by the
addition of other closely related kin (grandparents, aunts, uncles,
nephews, brothers and their wives, cousins, sisters, etc.), it is called
an extended family.

Giddens (1997) writes: ‘When close relatives other than a married

couple and their children live in the same household or in close and
continuous relationship with one another, we speak of extended
family.
FAMILY DECISION MAKING AND
CONSUMPTION-RELATED ROLES

When two or more family members are directly or indirectly involved in

the decision making process, it is called family decision making. Such family
decisions differs from individuals decisions in many ways. For example, if we
consider the purchase of a bicycle for a child, some of the relevant aspects to
think about can be: who recognizes the need for bicycle? How a brand is
selected? What role the concerned child plays?

Joint decisions are more likely to operate in the early stages of family life

PRESENTATION TITLE
cycle when both spouses are relatively less experienced. After gaining
experience, they usually delegate responsibilities concerning buying decisions
to each other.

25
DYNAMICS OF HUSBAND-WIFE DECISION
MAKING

The relative influence of husbands and wives can be classified as: husband
dominated, wife dominated, joint, and autonomic. The relative influence of a
husband and wife on a particular consumer decisions depends in part on the
product and service category.

Should husband and wife make decisions together?

Each decision you as a couple can successfully make together brings you
closer to each other – deepens the connection and increases the level of trust
that you are looking out for each other, putting each other's needs equal to (if
not above) your own.
THE EXPANDING ROLE OF CHILDREN IN
DECISION MAKING

How are children involved in decision-making?

Children tend to have a say in little decisions, whereas adults have more
input in bigger decisions. As children get older they gain more confidence, are
given better explanations and have more say in decisions. Positive
communication skills are important to ensure children feel safe to tell adults
what they think.
WHAT IS THE FAMILY LIFE CYCLE?
The family life cycle is a series of stages through which a family may
pass over time.
FAMILY LIFE CYCLE
FAMILY LIFE CYCLE STAGES
(FROM GLADDING, 2009)
TRADITIONAL FAMILY
LIFE CYCLE
Traditionally the life cycle, illustrated a
progression of stages through which families
passed; it comprised stages, starting from
bachelorhood (single), to married (couple), to
family growth (parenthood: birth of children), to
family contraction (grown up children leaving home
for studies or employment) to post parenthood (all
children leaving home) to dissolution (single
survivor: death of one of the spouses).
TRADITIONAL FAMILY
LIFE CYCLE
Stage I - Bachelorhood
Bachelorhood: The stage comprises a young single adult
(male/female) living apart from parents and into a livelihood.

Stage II - Honeymooners
Honeymooners: The stage comprises a newly married couple and
continues till the first child is born.
TRADITIONAL FAMILY
LIFE CYCLE
Stage III - Parenthood
When a couple has it first child, the honeymoon is considered over. The parenthood stage usually extends over more
than a 20-year period. Because of its long duration, this stage can be divided into shorter phases the preschool phase,
the elementary school phase, the high school phase and the college phase.

Stage IV – Post-Parenthood
Because parenthood extends over many years it is only natural to find that post parenthood when all the children have
left home, is traumatic for some parents and liberating for others. This so-called empty nest stage signifies for many
parents almost a rebirth, a time for doing all the things they could not do while the children were at home, and they
had to worry about soaring educational expenses.

Stage V - Dissolution
Dissolution of the family unit occurs with the death of one spouse. When the surviving spouse is in good health, is
working or has adequate savings, and has supportive family and friends, the adjustment is easier. The surviving spouse
often tends to follow a more economical lifestyle. Many surviving spouses seek each other out for companionship;
others enter into second marriages.
THANK YOU
Members:

Medina, Karl Andrew B.

Laguitan, Nesa
Sayas, Jasmin
Responde, Cricia Dimples Y.
Quinto, Ritz Genard
Datukalir, Namraida
Parohinog, Maekie
Deloso, Angeline
San Pedro, John Lexter James