This presentation is based on the important topics of the Two Chapters 1.Reference Group 2. Family Influence On Consumer Behavior. Reference Group: Groups that serve as source of comparison, influence and norms for people’s opinion’s, values and behaviors. Word Of Mouth: Communication where satisfied customer’s tell other people how much they like a business, product or service. Source Credibility:A source’s persuasive impact, stemming from its perceived expertise, trustworthiness, and believability. Reference Group Influence: * Normative Influence *Comparative Influence Consumption Related Reference Group: There are several Types which are as follow: *Friendship Group *Shopping Group *Virtual Community *Advocacy Group Factors Affecting reference Group Influence: Conformity: To influence its members, a reference group must: Inform members that the brand or product exists. Provide opportunity to compare thinking with the attitudes/behavior of the group. Influence individual to adopt attitudes and behavior that are consistent with the group’s norms. Legitimize the member’s decision to use the same products as other members.

1. Presented By:
Ramish Nadeem

2. Groups that serve as source of comparison,
influence and norms for people’s opinion’s,
values and behaviors.

3. Word Of Mouth
Communication where satisfied customer’s tell
other people how much they like a business,
product or service.

4. Family = Most Important
Reference Group

5. Source Credibility
A source’s persuasive impact, stemming from its
perceived expertise, trustworthiness, and
believability.

6. Reference Group Influence
 Normative influence
 Comparative influence

7. Consumption-Related Reference Groups
 Friendship groups
 Shopping groups
 Virtual communities
 Advocacy groups

8. Factors Affecting Reference Group Influence
Conformity
To influence its members, a
reference group must:
 Inform members that the
brand or product exists.
 Provide opportunity to
compare thinking with the
attitudes/behavior of the
group.
 Influence individual to adopt
attitudes and behavior that are
consistent with the group’s
norms.
 Legitimize the member’s
decision to use the same
products as other members.

9. Factors Affecting Reference Group Influence
 Group power and expertise
 Relevant information and experiences
 Product conspicuousness

10. Conveying Company Credibility
 Past performance
 Good Reputation
 Product Quality
 Good Service
 Image and attractiveness
of spokespersons
 Reputation of retailers
that carry offerings
 Media where they
advertise
 Institutional advertising

11. Endorsers and Spokespersons
 Synergy between endorser and type of product/service
advertised important
 Endorsers with demographics similar to target
audience more credible & persuasive
 Consumers must trust the marketer (even if they like
the endorser)
 Message contents must be congruent with
spokesperson’s qualifications

12. Celebrity Uses in Advertisements
 Celebrity testimonials
 Celebrity endorsements
 Celebrity actors
 Celebrity spokespersons

13. Other Sources Credibility
 Salesperson credibility
 Vendor credibility
 Message credibility (previous experience)
 Medium credibility

14. Family
 Two or more persons related by blood, marriage or
adoption residing together.
 Two Types of families:
i. Nuclear Family
ii. Extended Family

15. Social Class
 A division of a society based on social and economic
status.

16. Model of Socialization Process

17. Supportive Roles of Family
 Economic Well-being
 Emotional Support
 Suitable Family Lifestyles

18. Husband-Wife Decision Making
 Husband-Dominated Decision Making
 Wife-Dominated Decision Making
 Joint Decisions
 Autonomic Decisions

19. Children's As Three Markets
 Children's as Influencers
 Primary Market
 Future Consumers

20. Family Life Cycle
1. Bachelors
2. Honeymooners
3. Parenthood
4. Postparenthood
5. Dissolution