Chapter 14: Group Influences

What is a Reference Group?

An actual or imaginary group which has an influenceon a person’s evaluations, aspirations and behavior.

Forms of Influence:~ informational (pre-purchase, purchase,

and post-purchase)~ utilitarian (group’s preferences)~ value-expressive (social image)

Types of Reference Group Influence

Normative:Setting fundamental standards of

“how” to conduct oneself. This kind of influence affects the product class one

consumes, not so much the specific brand.

Comparative:This influences the specific brands onepurchases rather the broader productclass level decisions.

Variations in Reference Groups

Formality: (1) Formal reference groups characterized by structure

charter, periodic meetings, officers, explicit set of rules(e.g., Religious groups etc.). These are more “marketable”

(2) Informal reference groups (e.g., Friends)

Nature of Relationship:(1) Membership groups. Here identification depends on:

~ propinquity or physical distance~ group cohesiveness~ mere exposure

(2) Aspirational

Variations in Reference Groups (Continued)

Valence of Relationship:(1) Positive or Approach(2) Negative or Avoidance

In summary, reference groups vary in terms or(a)degree of formality, (b) nature of relationship and(c) valence of relationship.

When Do Reference Groups Have the most Influence?

Some factors are: Level of RiskLuxury or NecessityPublic or Private Consumption

Also, some times the influence is at the brand level and othertimes it may be at the product level.

The effect of the reference group depends on the visibilityof the consumption and the extent to which a product is a necessity. For example, in the grid below, reference groupsgenerally affect brand choice for publicly consumed necessities, and affect product class choices for privately consumed luxury goods.

Necessity Luxury

Brand Product ClassBrand

None Product Class

Public

Private

Types of Power Which Reference Groups Have

Social Power refers to the ability to change a person’sbehavior.

~ referent power (the model)~ informational power (editors)~ legitimate power (officers in a formal structure)~ expert power (your friend who is a computer expert)~ reward power~ coercive power

Factors that Influence Conformity to the Group Dictat

Culture Pressures

Fear and Consequences of Deviance

Commitment~ principle of least interest

Group Unanimity, Size and Expertise

Gender Differences