Reference group theory consumer behaviour pdf

Consumer behaviour is very important to understand what influences the buying decisions of the consumers and why does it so. 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. Reference group group of people which includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. Reference group is a group that serves as a reference point for an individual in the formation of hisher beliefs, attitudes and behaviour. Dec 30, 2017 i primary and secondary reference groups in consumer buying a primary reference group is one with which an individual interacts on a regular basis and whose opinion is of importance to him, family, neighbors, close friends, colleagues and co workers are examples of primary reference groups.

Once the human behavioural models have been addressed, the chapter will focus on models of consumer behaviour. In the consumer world, this means that if a reference group purchases a product, those that associate with the group likely will as well. A reference group can be either from a membership group or nonmembership group. 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. That apart, cultures of the group to which the consumer belongs and. Return to contents list types of consumer buying behavior types of consumer buying behavior are determined by. Reference groups influence people a lot in their buying decisions. The basic theme is that mans attitudes and behaviour are influenced by several levels of society, culture, subculture, social classes, reference groups, face to face groups and. Family buying influences in consumer behaviour tutorial 18. The desire to imitate other individuals or groups is instinctive in him. The role of theory in science marketers now a days use contemporary consumer behavior theories in. Mar 08, 2010 reference group is defined as having significant relevance upon an individuals evaluations, aspirations or behavior influencing the consumer.

In reference groups those groups that directly influence the consumer behavior are called membership group or primary groups such as friends, neighbors, family and coworkers. In this unit we shall try to focus in brief on each of different types of consumer behavior theories. Now our reference could be very large or very small including few of our family members or few close friends. It is important to note that this chapter will provide an overview of consumer behaviour theory and that an internet perspective on consumer behaviour, and. Social groups and consumer behaviour marketing essay. A reference group refers to a group of people you refer to, while making buying decisions. Read this article to learn about the meaning and types of group dynamics in consumer behaviour. Junior scientific researcher journal munich personal repec. The many types of reference groups include formal, informal, primary, secondary, membership, aspirational, and dissociative. Reference groups and family reference groups and families. Alternatively we can say, the consumer is indifferent between a and b.

Reference group influence on product and brand purchase. His wants and behaviour are largely moulded by his present group memberships and the group memberships to which he aspires. Consumer buying behaviour refers to the buying behaviour of the ultimate consumer. Ps make sure you can describe each type of reference group 2. Factors affecting consumers buying decision in the selection. The reference group influences the selfimage of consumers and consumers behavior. This helps reduce cognitive dissonance when a marketer can answer any concerns of a new consumer. Reference groups influence consumer behavior by building aspirations for the individual and, helping him to choose the product for a particular lifestyle. Consumer behaviour and marketing action learning objectives after studying this chapter, you will be able to understand. Consumer behaviour is the study of how consumers make decisions about what they need, want, and desire and how do they buy, use, and dispose of goods. H4 as the individuals age increases, the significance of reference group influence declines in hisher consumer behaviour. H5 among the clusters created on the basis of psychographic variables, there are significant differences in the measure of susceptibility to parents and friends influence as reference groups. 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.

All workers in a factory qualify for membership to the labor union. The concept of group influence in consumer research has been further refined. Reference group is a group of people whom you refer to, while making buying decisions. Group dynamics means how individuals form groups, and how one persons purchasing influences the other individuals actions. An example of a reference group being used would be the determination of affluence. Iii membership and symbolic reference groups in consumer buying. Groups may take the form of family, reference group, social class and caste. Meeting your neighbors over lunch once a month for friendly exchange of news is an instance of an informal reference group.

Reference group meaning, nature, categories, influence on consumer behaviour, application a reference group refers to a group of people you refer to, while making buying decisions. Definition of reference group in consumer behaviour. A group becomes a reference group when an individual identifies with it so much that he or. One such group that i am part of is my circle of close friends from my. In this essay, i shall discuss the groups that i belong to and evaluate how they may have influenced my purchasing behavior as a consumer. A membership reference group is one to which a person belongs or qualifies for membership. The influence of dissociative reference groups on consumer. Today network marketing has come into picture which is also known as referral marketing. There are various different influences on whether we buy a product or not and this is called consumer behaviour. Reference group theory with implication for information. In his theory on symbolic consumption, levy 1959 described consumption goods as meaningful symbols that are appropriate to fulfil the individuals need for self. Of the reference groups, the immediate family influenced consumers most in their choice of. They set the levels of lifestyle, purchasing patterns, etc. Unit iii consumer buying behaviour marketing implications consumer.

The role of reference group influence in consumer behaviour. The impact of social factors affecting consumer behaviour on selecting characteristics of purchased cars hossein mirzaei,mehdi ruzdar the present study examined the impact of social factors on consumer behavior in selecting traits of the purchased car in tabriz iran. From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption. Consumer behaviour jane priest is a teaching fellow at edinburgh business school and teaches parts of the oncampus marketing course, as well as the consumer behaviour elective by distance learning. Pdf the influence of familial and peerbased reference. How do reference groups influence consumer behavior. She is a key member of a team exploring how technology can be used to enhance the student learning experience. Group influence on consumer behavior mba knowledge base.

Refer those groups that directly or indirectly influence the consumer behavior. The reference group provides some points of comparison to consumers about their behavior, lifestyle or habits. Consumer behavior reference groups in our daily lives, we all get influenced by a variety of people while making our purchase decisions. Consumer behavior is about the approach of how people buy and the use merchandise and services. Pdf social reference group influence on women buying. The main reason of my decision is that this area has attracted little attention in hungarian literature until now, with. Reference groups can influence an individuals cognitions, affective responses, and behaviors. Reference group meaning, nature, types, categories, influence of reference groups on consumer behaviour, application in marketing of a. Each consumer is a member of a culture, various subcultures, and a social class. Reference groups in consumer buying role of reference groups. Feb 20, 20 a reference group is any person or group that serves as point of comparison or reference for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. Environmental influences on consumer behaviour cultural influences social class reference groups and family influences opinion leadership and the diffusion of innovations marketing implications of the above influences.

The chapter will be concluded with a short summary in section 2. May 04, 2019 the modern day marketing has not only become consumer oriented but it has even diversified its base. When one finds another person progressing in life, he also desires to progress likewise. It is a group that serves as a reference point for an individual for hisher beliefs, attitude and behaviour. Pdf the purpose of this paper is to understand the influences of social reference group on women buying behaviour and across specific. Consumer behaviour is about people, or more accurately, the systematic study of their behaviour patterns in a marketing context keith williams 1983. The impact of social factors affecting consumer behaviour on. Informational influence occurs when an individual uses the behavior and opinions of. Approaches and models while behavioural research still contributes to our understanding of human behaviour, it is now widely recognised as being only part of any possible full explanation. Social influences on the consumer decision process. For any two bundles of goods a and b which are identical the consumer will consider a to be at least as good as b a is weakly preferred to b. Reference groups act as a frame of reference to which people always refer to evaluate their achievements, their role performance, aspirations and ambitions.

Reference groups communicate through opinion leaders, who influence what others do, act, and buy. Consumer behavior literature indicates that reference groups may alter consumers choices in. Nowadays marketers use the concept of group dynamics or personal influence often as this exceeds the power of. The influence of familial and peerbased reference groups on consumer decisions. Pdf this paper presents a conceptual model of meansend theory. A reference group is the group whose perspective we consider. Marketers frequently advertise their products in a group setting the family eating breakfast cereals, the neighbor admiring the paint of the house. These scholars have also enquired how individual behaviors in marketing decisions are affected by groups. Marketers view reference groups as important because they influence how consumers interpret information and make purchasing decisions. An informal reference group is a group that has no set structure or designated roles moschis 1976, p. Reference group meaning, nature, categories, influence on consumer behaviour, application. The basic theme is that mans attitudes and behaviour are influenced by several levels of society, culture, subculture, social classes, reference groups, face to face groups and family.