Reference Group Influences

Introduction:

We are all part of one or more groups. Almost all purchasing decisions are made in a group setting. Groups are one of the most important agents of consumer socialisation, and they have the power to influence socially acceptable, inappropriate, and even personally detrimental consumer behaviour. For example, group influences can impact excessive alcohol consumption, the use of dangerous and addictive medications, and stealing, among other things.

Reference groups are groups that consumers compare themselves to or associate with. Reference groups are similar to opinion leaders in that they can profoundly influence consumer behaviour. Reference groups are considered a social influence in consumer purchasing. They are often groups that consumers will look to when making purchasing decisions. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. On the other hand, if a reference group disapproves of a product, those who associate with that group will probably not purchase the product.

Reference groups can be either formal or informal. Schools, friends, and peers are examples of informal reference groups. Clubs, associations, and religious organizations are usually formal reference groups. Individuals can also be reference groups (usually known as opinion leaders). Additionally, celebrities can be used as a reference group. A company might use a celebrity it feels will match its target market to get that market to purchase its product.

Consumer-related Reference Groups:

An individual can be a member of a membership group if they belong to a reference group such as their family. This same person can aim to join a cricket club and be considered a member of an aspiration group. A disclaimer group is one a person may belong to or join before rejecting the group’s values. Individuals may also view membership in a certain group as undesirable and should be avoided. A dissociative group is one like this. Types of reference groups are depicted in Figure.

• Membership Groups:

Positive reference groups are crucial and can be formal or informal, as well as primary or secondary. A primary group is formed when a person keeps frequent touch with family members, friends, and work associates. People gather infrequently, such as those who meet for a morning stroll or belong to a club. Primary groups are essential to marketers because they influence consumers’ product attitudes, tastes, and preferences and have a more direct impact on purchasing behaviour. According to research, individuals in primary groups are more inclined to purchase the same products.

Groups can also be separated based on whether or not they have a formal structure with particular positions, such as a president, executive, and secretary. An informal group’s structure isn’t well defined. For example, if three people become friends while taking a computer application course and get together for dinner on the last Saturday of each month, they are termed an informal group. The types of formal and informal groups are depicted in the table.

Types of Formal and Informal Group

Aspiration Groups:

Aspiration groups are non-membership groups with a positive appeal and a lot of power. Anticipatory and symbolic aspiration groups are two types of such groups. Individuals frequently buy things they think are used by a desired group to gain actual or symbolic membership in the organisation.

1. Anticipatory Aspiration Groups:

These are groups that a person intends to join at some point in the future. In most cases, the individual has some direct contact with such a group (s). For instance, the individual may aspire to join a higher-ranking group inside the organisation.

2. Symbolic Aspiration Groups:

Despite accepting the group’s beliefs and attitudes, the individual admires them but is unlikely to join them. A tennis lover, for example, would purchase a Nike sports jacket and shoes because many tennis professionals wear them.

Celebrity and Reference Group Appeals:

According to research, groups have informational, comparative, and normative effects, as indicated in Table.

Types of Reference Group Influences

1. Informational Influence:

Reference groups and other influence sources can exert informational influence by providing information to aid decision-making. For instance, Internet chat rooms frequently provide information on topics like Internet travel sites.

Informational influence is significant because it influences how much time and effort customers spend searching for information and making decisions. When consumers can acquire trustworthy information from others, they are less likely to participate in time-consuming information searches when making purchases. Informational influence is based on the group’s members’ likeness to the individual or the influencing group member’s knowledge. When customers perceive financial, social, or performance risk in purchasing a product, informational impact is more likely to play a role. Because of the cost of purchasing, social visibility, and the possibility of mechanical breakdowns, a consumer purchasing a car will seek information from knowledgeable relatives, friends, neighbours, or salesmen. Celebrities may also help consumers by supplying them with information. Some individuals, particularly their admirers, follow celebrities and believe what they say. For instance, former beauty queen Aishwarya Rai is the finest person to provide knowledge about beauty care products.

The second situation in which information influence is more likely is when a person is considering buying a complex product, such as a computer, and has no understanding or experience with it and seeks expert counsel.

2. Normative Influence:

According to Robert J. Fisher and D. Ackerman, normative influence, also known as utilitarian influence, is a type of social pressure that encourages people to conform to others’ expectations to get a direct reward or avoid punishment. Consider the clothes you wear or the music you listen to. You and your pals have likely made similar decisions.

Conformity, or the tendency for an individual to behave as the rest of the group does, can be influenced by normative influence.

3. Comparative Influence:

Consumers have a habit of comparing their sentiments to those of members of key organisations. They serve as a reference point, and the individual’s instinct is to seek support for her or his beliefs and actions. Individuals are more likely to associate with organisations with whom they agree and avoid organisations with whom they disagree to achieve this. As a result, comparative influence is based on comparing oneself to other group members and deciding whether the group would be supportive. Many people aspire to live the life of a star. They want to use the same products and services as celebrities to get a taste of their lifestyle. Companies use celebrities to advocate their products for this reason.

Individuals impacted by comparative effects should have qualities similar to those whose influence is approved. Consumers are more inclined to seek advice from peers who they believe are similar to them and are viewed as trustworthy. The conclusion for advertisers is that they should use spokespersons who are considered similar to them by consumers (Lalitaji in the ads of Surf is viewed as a typical middle-class housewife).

Nature of References Group:

Reference groups establish certain norms, roles, status, socialisation, and power, which exert influence on consumers.

1. Norms are generally defined rules and standards of behaviours that the group establishes.
2. Values are shared beliefs among group members regarding what behaviours are appropriate or
3. Roles refer to functions that an individual assumes or that the group assigns to her/ him to accomplish group
4. Status is the achieved or ascribed position that the individual occupies within the group’s
5. Socialisation refers to the process by which new members learn the group’s system of values, norms and expected behaviour
6. A group’s influence on its members’ behaviour is closely related to its ‘power’. Power may be of the following types:
   1. Reward power refers to the group’s ability to reward the
   2. Coercive power relates to the power of the group to use disapproval, withholding rewards, or even punishing the
   3. Expert power influences the results from the experience, expertise and knowledge of the individual or

Referent power flows from the feeling of identification that the individual has with the group members.