Thus, key persons are knowledgeable with a lot of experience. A reference group serves as a frame of reference for an individual and influences hisher behavior. The factors that impact reference group influence on consumption behavior are explained as follows. Despite the above tendency, however, i have chosen the examination of the role of reference group influence in consumer behaviour as the topic of my dissertation. Mar 08, 2010 reference group is defined as having significant relevance upon an individuals evaluations, aspirations or behavior influencing the consumer.
Many factors, specificities and characteristics influence the individual in what he is and the consumer in his decision making process, shopping habits, purchasing behavior, the brands he buys or the retailers he goes. A purchase decision is the outcome of all these factors. Interpersonal influences in consumer psychology chapter. Definition of reference group in consumer behaviour. The amount of knowledge and experience an individual possesses or has the capacity to possess determines the impact that the reference group can generate. Definition of reference group in consumer behaviour tutorial. Suresh subramanian and alka subramanian 1995, reference group influence on innovation adoption behavior. Reference groups influence a great deal of consumer decisions, nevertheless, the. They influence the image that the individual has of himself as well as his behavior.
Influences of reference group on users purchase intentions. As consumers, our buying decisions are often influenced by our reference groups, these being the group of people whose presumed perspectives or value are used as a basis for purchasing decisions. Whether it is a membership group or a nonmembership group. Learning objectives understand how reference groups influence consumer behaviour discuss the role of conformity as a social influence discuss the importance of wordofmouth communication understand the nature of opinion leadership understand the impact of groups and social. Reference groups are considered a social influence in consumer purchasing. The many types of reference groups include formal, informal, primary, secondary, membership, aspirational, and dissociative. So if a reference group endorses a product, either through use or statements. Reference groups can be classified in many different ways, based on degree of influence normative reference group and comparative reference group. A study on influence of reference group and role and. Reference groups influence consumer behavior in two ways. First, they set levels of aspiration, offering cues of what lifestyle and related purchasing patterns we should strive to achieve. The data has been collected from the respondents form ludhiana and jallandhar and as shown in the table. According to park and lessig, a consumer is motivated to conform to the norms and behaviour of the group if. Dec 30, 2017 in this article, we look at one of the common factors that affect consumer buying behavior.
Social influences on the consumer decision process. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of hisher involvement with the group. An individual and a consumer is led by his culture, his subculture, his social. Reference groups and the influence exerted by them in. Reference group influenec on consumer behaviour consumer. The motivation for this study is to investigate the strength of those social reference group influences on the mobile phone buyers in both usa and china, and. Influence of cultural, social and marketing factors on the. Influences on consumer buying behavior learning objective this activity helps achieve the following learning objective from essentials of marketing. Research has also suggested that the reference group can also be a deterrent to innovation and innovative behaviors.
The results show that the reference group influences consumer behaviour more than roles and. Reference groups influencing consumer behavior free. Of the reference groups, the immediate family influenced consumers most in their. Reference group is a group of people whom you refer to, while making buying decisions. Reference groups and family reference groups and families. Predictors of consumer lifestyles defined as any group of people that influences consumers purchase decisions. Reference group influence on innovation adoption behavior. This is a useful point of reference as you read the remainder of the chapter. The following powers are used to influence individuals in a group. Reference groups are groups that consumers compare themselves to or associate with. A reference group is a group with whom an individual identifies to the point where the group dictates a standard of behavior. Pdf the role of reference group influence in consumer behaviour.
They are also known as influencers and others are receivers. Incorporating comparative and normative referents, in e european advances in consumer research volume 2, eds. A reference group is any person or group that serves as a point of comparison or reference for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Consumer buying behaviour refers to the buying behaviour of the ultimate consumer. Factors affecting consumers buying decision in the. Second, they help define the actual itemsservices considered acceptable for displaying those aspirationsthe kind of housing, clothing, or car, for example, deemed appropriate for a member of the group. Consumer buying behavior is the behavior of final consumer. Assignment in the short cases that follow, a variety of psychological variables and social variables are operating to influence a consumer s response. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. Pdf reference group influence on product and brand purchase. The role of reference group influence in consumer behaviour. Semantic scholar extracted view of the role of reference group influence in consumer behaviour by tarkanyi eszter et al. Social reference group influence on mobile phone purchasing. Reference groups may influence the purchase of cars, vacations, tvs, flats, hotel rooms.
Another form of classification is by batra, myers and aaker 1996 who state that reference groups could be. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption. Due to various influencing factors to lowincome consumers in the market place we have taken only veblenian sociopsychological factors culture, subculture, social class, reference group and family to measure its impact on consumer behavior while making a purchase decision in the present study. Lecture 4 of mk510 customer behaviour, which deals with refrence groups. They are often groups that consumers will look to to make purchasing decisions. Jan 23, 2018 reference groups a person or group that serves as a point of comparison or reference for an individual in the formation of either general or specific values, attitudes, or behavior.
The influence of reference groups on consumer choice. How reference groups exert influence on consumer behavior. How social media has changed reference group influence the. Firms and organizations rely on consumer behaviour knowledge to forecast consumer needs and desires. Utilitarian influence occurs when consumers comply with the expectations of other to receive rewards or avoid punishment. Influence of social reference groups is one of the many subconscious factors that can form a consumer behavior for products used in public settings. Various social factors influence consumer behavior. Reference groups and opinion leadership consumers behavior. A purchase decision is the result of each and every one of these factors. The influence of familial and peerbased reference groups on consumer decisions. Personal influence on consumer behaviour priya 4942 words 20 pages. Family the family of a consumer plays an important role in the decisionmaking process.
Influence of social reference groups on automobile buying. This phenomenon also affects our preferences for particular brands or products and influences our purchase decisions relating to them. Reference group s have the greatest influence on consumer behaviour when the product service in question is seen as a luxury and the consumption is conspicuous. A economic situations b situational influences c consumption decisions d physiological influences ans. They are often groups that consumers will look to to make purchasing. Factors affecting consumers buying decision in the selection. Because the individual can also be influenced by a group to which he doesnt belong yet but wishes to be part of. A consumer s behavior is also influenced by social factors, such as the consumer s reference group, family, and social roles and statuses pandey and dixit, 2011.
In addition to understanding the needs of customers, organizations need to understand what motivates them to purchase and how they can influence the buying process to ensure that. Now reference groups are influencing consumer behaviour and purchases across social media platforms. Consumer behavior literature indicates that reference groups may alter consumers choices in three different manners. A study on influence of reference group and role and status. Understand how social influences affect an individuals buying behavior. Pdf consumer perceptions of reference group influence on product and brand decisions were examined using 645 members of a consumer. This paper describes a comparative study investigating the influence of different reference groups on consumer purchasing behaviour between the mobile phone users of usa and china. Reference groups exert tremendous influence on consumers hospitality and tourism purchase decisions. Conspicuousness of a product also plays a vital role in reference group influence on women consumer behaviour. These factors are consumers, small groups, family, and social roles and status and can be explained as under. This recent but accumulating literature suggests that interpersonal influence in online contexts is very similar to offline interpersonal influence, despite. Group refers to two or more people who interact to accomplish individual or mutual goals. Reference group influence the young consumer behavior towards purchase intention of luxury fashion brands partially.
Prior research has shown that the individual consumer often makes. Reference groups are an important component in the study of consumer behaviour. Reference groups assume great importance to marketers because consumers frequently receive important cues on how and what to buy from reference group influences. Cultural effects on consumer behavior, 6 6 chinese in indonesia, middleeasterners in germany, france, or england, americans in russia, and mexicans in the u. What is the role of group influence in consumer behavior. The family has the very important role and influence in the buying behavior of the consumers that includes parents, husband, wife and children. These are key persons in a group who influence their group and are innovators or early buyers. Reference groups in consumer buying role of reference groups. Reference group reference group can be defined as any person or group of people who significantly influences an individuals behavior sakpichaisa, 2012. Cultural factors and buying behaviour solomon 2011 sees consumer behaviour as the study of processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs or desires. Reference group serves as direct or face to face points of comparison in forming a persons attitude or behavior 6.
Reference groups affect consumer choice because of following factors. The reference group influences the selfimage of consumers and consumers behavior. May 07, 2017 depending on your reference group you will have different influences and engage in different behaviours. Influence an individual to adopt norms of the group. Reference groups can influence an individuals cognitions, affective responses, and behaviors. Understand how psychological variables affect an individuals buying behavior. Marketers should recognize the extent to which a reference group influences the consumer and he should also understand out of all the groups which group influences him the most. Pdf social reference group influence on women buying. The amount of knowledge and experience an individual possesses or has the capacity to possess determines the impact that the reference group. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a particular lifestyle. Doc consumer behavior today reference group influence. Reference group influence on product and brand purchase decisions. Legitimize himher to use the same products as the group. Pdf the role of reference group influence in consumer.
The reference group provides some points of comparison to consumers about their behavior, lifestyle or habits. Every marketer strives to tap the subconscious factors that can help strengthen the brand associations and drive. A case stated above drive the researcher interested on analyzing the social factors. Many small groups exert influence on a persons behavior. For the purpose of research, null hypothesis has been taken into consideration.
Reference group influences the behavior of the group to use the product category, use product type, or brand used. Group influence on consumer behavior mba knowledge base. Societal implications of reference group influences influence of reference groups on consumers. The marketeer focuses his strategies on key persons in the group, some are opinion leaders, and others are opinion seekers. Reference group applications in marketing consumer behaviour. They help us understand the impact of other people on an individuals consumption beliefs, attitudes, and behavior. The consumer buying decision process is influenced by many internal and external factors. Ps make sure you can describe each type of reference group 2. The influence of reference groups on consumer behaviour is felt through the influence of social power.
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