How do reference groups influence consumer Behaviour?
Reference groups are considered a social influence in consumer purchasing. They are often groups that consumers will look to to make 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.
What are the three ways reference groups influence consumer behavior?
Marketers and advertisers use reference group appeals very effectively to communicate with their customers. They use three types of group influence informational, comparative and normative to develop advertising and personal selling strategies.
Why is reference group important in consumer behavior?
A reference group includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. They often serve as our role models and inspiration. Marketers view reference groups as important because they influence how consumers interpret information and make purchasing decisions.
What factors affect the reference group influence?
3 Important Factors affecting the Influence of Reference Groups
- Information and Experience.
- Credibility and power of the reference group.
- Conspicuousness of the product.
What is a group in consumer Behaviour?
A group consists of two or more individuals who share a set of norms, values or beliefs and have certain implicitly or explicitly defined relationship with one another, such that their behaviour is interdependent. Reference group is a group of people whom you refer to, while making buying decisions.
What are the types of reference groups?
There are three basic types of reference groups: informational, utilitarian, and value- expressive. Informational influence can be powerful, and is perhaps the most easily affected by a well planned marketing strategy.
What is reference group factors?
consumer buying behaviour Social factors include reference groups—that is, the formal or informal social groups against which consumers compare themselves. Consumers may be influenced not only by their own membership groups but also by reference groups of which they wish to be a part.
What is a reference group?
A reference group refers to a group to which an individual or another group is compared. Sociologists call any group that individuals use as a standard for evaluating themselves and their own behavior a reference group.
What is the role of Reference Group in consumer behaviour?
The brand use of reference group provides image associations, while the identification with it mediates the feeling of psychological utility to the consumer. In order to achieve their goals related to self-identity, people often use products and brands to create and demonstrate their self-image.
What are the 5 Veblenian factors of consumer behaviour?
• Sources: Field data The five Veblenian socio-cultural factors include ‘reference group’, ‘culture’, ‘sub-culture’, ‘family’, and ‘social class’, with high communalities of 0.894, 0.906, 0.936, 0.903, and 0.943 respectively. This indicates that the factors have high degree of association among themselves.
Why is culture so important to consumer behavior?
Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
How does age and way of life affect consumer behavior?
Age and way of life A consumer does not buy the same products or services at 20 or 70 years. 57 consumer habits evolve throughout his life. Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time.
