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Do we buy under pressure

Group Influences
What is a Group?
• Group:

– Is defined as two or more persons who share a set of norms, values or
beliefs and have certai...
•

Types of Groups
Classification of Groups:

•

– Regularity of Contact
• Primary Group: Interaction on a regular basis
•...
•

Types of Reference Groups
Contactual / Membership Reference Group:

– Individual holds membership of this group
– Regul...
Types of Reference
Groups
Membership

No Membership

Positive Influence

Contactual RG

Aspirational RG

Negative Influenc...
Reference Group Influence
• Nature of Reference Group Influence:
– Informational Influence
• Occurs when an Individual use...
Reference Group Influence
– Normative Influence
• Occurs when an individual fulfills group expectation to gain a
direct re...
Reference Group
Influence
• Influence is strongest when the product or brand is visible
to the group
• Influence is strong...
Influence on Marketing
High Relevance of
product to Group
Low Individual
Purchase
Confidence
Strong Individual
Commitment ...
Influence on Marketing
High Relevance of
product to Group
Low Individual
Purchase
Confidence
Strong Individual
Commitment ...
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Groups and influance

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Social Network and its Groups

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Groups and influance

  1. 1. n on eo ce nc en ue fllu nf IIn g ng tiin et ke rk ar Ma M Munif Ahmad Do we buy under pressure Group Influences
  2. 2. What is a Group? • Group: – Is defined as two or more persons who share a set of norms, values or beliefs and have certain implicit or explicit defined relationships to one another such that their behaviour are interdependent • Reference Group: – Is a Group whose presumed perspective or values are being used by an individual as the basis for his current behaviour
  3. 3. • Types of Groups Classification of Groups: • – Regularity of Contact • Primary Group: Interaction on a regular basis • Secondary Group: Occasional Contact – Extent of Formality: • Formal Group: Well defined structure, roles and authority levels • Informal Group: Loosely defined structure – Membership Status: • Membership Group: Qualifies certain norms / standards to be a member • Symbolic Group: Aspires to be a member of the group Influence of Group Individual Family Friends Social Class Subculture Degree of Influence (More to Less) Culture
  4. 4. • Types of Reference Groups Contactual / Membership Reference Group: – Individual holds membership of this group – Regular face-to-face contact with the members of the group – Approves of the values, attitudes and standards • Aspirational Reference Group: – Individual does not hold membership – No face-to-face contact with the members of the group – Provide positive influence on attitudes, values and behaviours • Disclaimant Reference Group: – Individual holds membership of this group – Regular face-to-face contact with the members of the group – Does not approves of the values, attitudes and standards • Avoidance / Dissociative Reference Group – Individual does not hold membership – No face-to-face contact with the members of the group – Individual avoids / has opposite attitudes and values
  5. 5. Types of Reference Groups Membership No Membership Positive Influence Contactual RG Aspirational RG Negative Influence Disclaimant RG Avoidance RG Membership to the Reference Group is Dynamic and Changes with Time and External Influences
  6. 6. Reference Group Influence • Nature of Reference Group Influence: – Informational Influence • Occurs when an Individual uses the behaviours and opinions of the reference group members as potentially useful information • Influence is based on similarity to group members / expertise of the influencing member • E.g.: Purchasing a NOKIA cell phone because my friends have one
  7. 7. Reference Group Influence – Normative Influence • Occurs when an individual fulfills group expectation to gain a direct reward or to avoid a sanction • Influence is based on strong ties to the group and the product involved is socially conspicuous • E.g.: Purchasing Close-Up toothpaste to avoid bad breath – Identification Influence: • Occurs when the individual has internalized the groups values and norms • E.g.: Purchase of health foods because I belong to a fitness group
  8. 8. Reference Group Influence • Influence is strongest when the product or brand is visible to the group • Influence is stronger when the product or brand is a luxury (non-necessity) item • Influence is directly proportional to the identification with group • Influence is strong when a particular activity is essential to the group functioning • Influence is also determined by the individual’s confidence in a buying situation
  9. 9. Influence on Marketing High Relevance of product to Group Low Individual Purchase Confidence Strong Individual Commitment to Group Luxury / Nonnecessary Item` High Degree of Reference Group Influence Visible Usage • • Personal Selling: – Asch Phenomenon • Influence of others on individual’s assessment capabilities – Word of Mouth Influences Advertising: – Using Snob Appeal – Using Informational Influence – Using Identification Influences – Repositioning Group Norms • E.g.: A guy thinks smoking is cool, but a group of is shown as saying smoking is un-cool Normative Influences not used in advertisement as they are critical of person portrayed
  10. 10. Influence on Marketing High Relevance of product to Group Low Individual Purchase Confidence Strong Individual Commitment to Group Luxury / Nonnecessary Item` High Degree of Reference Group Influence Visible Usage • • Personal Selling: – Asch Phenomenon • Influence of others on individual’s assessment capabilities – Word of Mouth Influences Advertising: – Using Snob Appeal – Using Informational Influence – Using Identification Influences – Repositioning Group Norms • E.g.: A guy thinks smoking is cool, but a group of is shown as saying smoking is un-cool Normative Influences not used in advertisement as they are critical of person portrayed

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