Reference Groups in consumer Behaviour

Reference Groups in consumer Behaviour

Every consumer prefers to evaluate his opinion based on the comparison of opinions of others. Moreover, consumers are influenced by people that they come in contact with or what they observe. Consumer reference groups are groups that serve as frames of reference for individuals in their purchase decisions.

The type of group that an individual uses as a point of reference in determining his own judgement, preferences, beliefs and behavior.

Thus, it can be said that a consumer’s reference groups are those groups, which may have a direct or indirect influence on one’s attitude or behavior. It provides points of comparison by which to evaluate attitudes and behavior. A consumer can either be a member of reference group or aspire to belong to a group.

Types of Reference Groups

Schiffman and Kanuk have specified the following specific reference groups

• Friendship groups
• Shopping groups

• Work groups
• Virtual groups or communities; and
• Consumer action groups.

Friendship groups are classified as informal groups. They are usually unstructured and lack specific authority levels. Friends are more likely to influence an individual’s purchase decisions. Friends influence the consumption pattern of individuals in certain category of products (choice of food habits, drinks etc.)

The Influence of friendship groups is important to the marketer. The opinions and preferences of friends greatly influence a consumer while selecting brands. Marketers of products such as clothing, fine jewellery, watches, snack, foods beverages etc., have recognized the importance of peer group. So, they frequently depict friendship situations in their advertisements.

2. Shopping groups

Two or more persons shop together. Family or buddy groupings often spawn these groups. The shopping group usually meets for lunch afterward to socialise. It reduces improper purchases. Collective choices may boost confidence. The shopping group compares quality, terms, style, customer service, pricing, etc. before buying. Group pressure and brand preference impact the customer. His shopping group’s opinions are trusted.

In-home shopping parties are a unique shopping group. It’s usually held at a friend’s house. The marketer shows prospective clients his items simultaneously. In-home shopping parties demonstrate and evaluate a certain product range. Undecided people buy when their buddies do.

3. Work groups

People spend considerable time at their jobs. So, it provides ample opportunity for work groups to serve as a major influence on the consumption behavior of members.

• Permanent formal work group and
• Temporary formal work group.

(A) Permanent formal work groups

They are part of the top management team, various departments of the organization and staff groups rendering specialized services to the line staff in the organization.

(B) Temporary formal work groups

They are formed for a particular purpose. They review salary policies to suggest measures to maintain a smooth relationship between the union and management. They also contemplate new products and services. Temporary formal work groups come to an end after the accomplishment of the mission assigned to them. The members of the group are permanent employees of the company.

Informal work groups

Informal work groups are made up of people who work for the same company and have become friends with each other. They might or might not work as a group. Informal work groups may affect what people drink during coffee breaks, lunch breaks, or meetings after work.

The marketer needs to have work groups. In the past, companies only sold their goods to housewives by going to their homes and talking to them. But nowadays many women go to work. So, salespeople go to offices during lunch break to try to make sales. Salespeople talk to women who work at their places of business.

4. Virtual groups or communities

Web-based consumer organisations are referred to as virtual groups. A new kind of virtual community has emerged as a result of the use of computers and the internet. Both adults and kids use the internet. They often browse chat-equipped websites with specialised interests. Online conversations between people with similar interests are possible. Instant messages may be sent or received by him. Thus, knowledge exchange on a variety of subjects and interests (such as vegetarianism, cooking, collecting, trading, finance, filmmaking, romance, politics, technology, art, hobbies, spiritualism, age grouping, online games, voice-video chats, See e-mail, travel and vacations, educational opportunities, and a host of lifestyle options) takes place within a virtual community. People are free to express themselves on the internet. The anonymity of the internet allows individuals to freely voice their opinions.

5. Consumer action groups

Consumer action groups have emerged in response to consumer movement. Consumer movement provides consumers with assistance in their effort to make the right purchase decisions. Consumer action groups are organized to correct a specific consumer abuse. Women action groups are opposed to any advertising that may have a negative impact on them.