Understand the importance of groups and types of different groups. Understand the factors affecting reference group influence. Understand what are the marketing applications in the context of reference group.
WHAT IS A GROUP? TWO OR MORE PEOPLE WHO INTERACT INTERDEPENDENT PEOPLE SHARE EXPLICIT PSYCOLOGY WITH EACH OTHER SOURCE OF INFLUENCE INDIVIDUALS WHO SHARE AN IDEOLOGY
IDENTIFY THE GROUPS COLLEAGUES AT WORK PEOPLE AT A RAILWAY STATION PEOPLE PRAYING TOGETHER
TYPES OF GROUPS SECONDARY GROUP FORMAL GROUP PRIMARY GROUP MEMBERSHIP GROUPINFORMAL GROUP SYMBOLIC GROUP
FAMILY FRIENDSCONSUME R FORMAL SOCIAL GROUPRELEVANT GROUPS INFORMAL WORK GROUPS SHOPPING GROUPS
SOCIALISM BIOLOGICAL MAINTENANCE SENSE OF BELONGINGSTRUCTUR IDENTITY TO THE E AND INDIVIDUALFUNCTION PHYSICAL AND PSYCOLOGICAL SECURITY ESTABLISHING CONTACTS SOCIAL STATUS
PEER PRESSURE SANCTIONSCONFORMI An indivdual has to followTY TO THE certain norms of the group GROUP GOSSIP APPROVALS
POINT OF COMPARISION FRAME OF REFERENCEREFERENC PERCEPTION E GROUP VALUES AND BELIEFS OR OTHER INDIVIDUALS FOLLOWING IDOLS
BROAD CATEGORIES OF REFERENCE GROUPS NORMATIVE REFERENCE GROUPS COMPARATIVE REFERENCE GROUPS
NORMATIV A group that influences the E general values or behavior ofREFERENC an individual. E GROUP
COMPARATIV A group whose norms serve E as a benchmark for highlyREFERENCE specific or narrowly defined GROUPS types of behavior.
Individuals or groups with whom a person identifies but INDIRECT does not have direct face-to-REFERENC face contact, such as movieE GROUPS stars, sports heroes, political leaders, or TV personalities.
POSITIVE ASPIRATIONAL GROUPREFERENCE GROUPS CONTRACTUAL GROUP DISCLAIMANT GROUPNEGATIVEREFERENCE GROUPS AVOIDANCE GROUP
FACTORS AFFECTINGREFERENCE GROUP INFLUENCE Information and experience Credibility, attractiveness, and power of the reference group Conspicuousness of the product
FACTORS ENCOURAGING CONFORMITYInform or make the individual aware of a specific product or brandProvide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the groupInfluence the individual to adopt attitudes and behavior that are consistent with the norms of the groupLegitimize the decision to use the same products as the group
REFERENCE GROUP APPEALS Celebrities The expert The “common man” The executive and employee spokesperson Trade or spokes-characters Other reference group appeals
A promotional technique in which a celebrity who has used a product or servicespeaks highly of its benefits in order to influence consumers to buy.
Celebrities who may or may not be users of a particularproduct or service may lend their names to advertisements for such products or services for a fee.
A celebrity or companyexecutive who represents aproduct, brand, or company over an extended period o time, often in print, on television, and in personal appearances.
TYPES OF CELEBRITY TYPE APPEALS EXAMPLE DEFINITIONTestimonial Based on personal usage, a Sachin Tendulkar celebrity attests to the quality Using the Visa Card of the product or serviceEndorsement Celebrity lends his name and Aishwariya Rai appears on behalf of a endorsing Lo’real product or service with which he/she may not be an expertActor Celebrity presents a product Imran Khan in the New or service as part of a Coca Cola add character endorsementSpokesperson Celebrity represents the brand Priyanka Chopra is the or company over an extended brand ambassador of period of time Nokia
An expert has some special training or is highly experienced or is an outstanding professional
A common man endorses a product with which he is satisfied.dove and ariel usesthis approach.
Top executives are well known. Theycan be effective influences. Vijay Mallyais used in an add where he advises moderation in drinking.
Media Reputed store OTHER Cartoon charactersREFERENC Seals of approval E POINTS Objective product ratings.
INCREASES AWARENESS OFMERITS OF THE BRANDREFERENC REDUCES PERCEIVED RISK IN E GROUP PURCHASING A SPECIFIC APPEAL PRODUCT