Cb 10


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Cb 10

  1. 1. Reference Groups and Family References
  2. 2. Outline <ul><li>What Is a Group? </li></ul><ul><li>Categories of Reference Groups </li></ul><ul><li>Selected Consumer-Related Reference Groups </li></ul><ul><li>Reference Group Appeals </li></ul><ul><li>Consumer Socialization </li></ul><ul><li>Family Decision Making </li></ul><ul><li>The Family Life Cycle </li></ul>
  3. 3. What Is a Group? <ul><li>Two or more people who interact to accomplish either individual or mutual goals </li></ul><ul><li>A membership group is one to which a person either belongs or would qualify for membership (e.g. Alumni Association) </li></ul><ul><li>A symbolic group is one in which an individual is not likely to receive membership despite acting like a member (e.g. an amateur cricketer) </li></ul>
  4. 4. Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior.
  5. 5. Broad Categories of Reference Groups <ul><li>Normative Reference Groups </li></ul><ul><ul><li>Reference groups that influence general values or behavior (e.g. family) </li></ul></ul><ul><li>Comparative Reference Groups </li></ul><ul><ul><li>Reference groups that serve as benchmarks for specific attitudes or behavior (e.g. neighboring family) </li></ul></ul>
  6. 6. Indirect Reference Groups Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities.
  7. 7. Teens are influenced by indirect reference groups. weblink
  8. 8. Major Consumer Reference Groups
  9. 9. Factors Encouraging Conformity: A Reference Group Must ... <ul><li>Inform or make the individual aware of a specific product or brand </li></ul><ul><li>Provide the individual with the opportunity to compare his or her own thinking with the attitudes and behavior of the group </li></ul><ul><li>Influence the individual to adopt attitudes and behavior that are consistent with the norms of the group </li></ul><ul><li>Legitimize the decision to use the same products as the group </li></ul>
  10. 10. This ad compares the product to a reference group.
  11. 11. Selected Consumer-Related Reference Groups <ul><li>Friendship groups </li></ul><ul><li>Shopping groups </li></ul><ul><li>Work groups </li></ul><ul><li>Virtual groups or communities </li></ul><ul><li>Consumer-action groups </li></ul>
  12. 12. Selected Consumer-Related Reference Groups The Internet has created many friendship and shopping groups. weblink
  13. 13. Brand Communities <ul><li>Saturn car owners who meet for reunions and barbecues </li></ul><ul><li>Saab owners </li></ul><ul><li>Harley-Davidson Owner Groups </li></ul><ul><li>Maruti Owners’ Club </li></ul>
  14. 14. Brand Communities Since Honda cannot compete on brand community, they choose to emphasize the family.
  15. 15. Brand Communities weblink
  16. 16. Reference Group Appeals <ul><li>Celebrities (Samsung – Amir Khan) </li></ul><ul><li>The Expert (SugarFree - Sanjiv Kapur) </li></ul><ul><li>The “Common man” (housewives - Nirma) </li></ul><ul><li>The Executive and Employee spokesperson (Coke – Its CEO, MDH Masala – Its Owner) </li></ul><ul><li>Trade or spokes-characters (Handyplast) </li></ul><ul><li>Other reference group appeals </li></ul>
  17. 17. Importance of Celebrity Characteristics According to Product Types
  18. 18. Households Households Family Households: Married couple, Nuclear family, Extended family Nonfamily Households: Unmarried couples, Friends/ Roommates, Boarders
  19. 19. Other Functions of the Family <ul><li>Economic well-being </li></ul><ul><li>Emotional support </li></ul><ul><li>Suitable family lifestyles </li></ul><ul><li>Socialization of Family </li></ul><ul><li>Members </li></ul>
  20. 20. Consumer Socialization of Children The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.
  21. 21. Consumer Socialization of Children <ul><li>Many children acquire their consumer behavior norms through observation of their parents </li></ul><ul><li>Preadolescent children rely on their parents, adolescents and teenagers are likely to look at their friends for models of accepted behavior </li></ul>
  22. 22. Consumer Socialization of Children <ul><li>Share shopping experiences also give children the opportunity to acquire in-store shopping skills </li></ul><ul><li>Consumer socialization of children has other aspects when parents use promise or reward as a device to modify or control a child’s behavior (Promise to buy something or rewarding with chocolate / gift) </li></ul>
  23. 23. Consumer Socialization of Children <ul><li>Consumer socialization has two distinct components: </li></ul><ul><ul><li>Socialization directly related to consumption (such as acquiring skills and knowledge concerned with budgeting, pricing, brand attitudes, and actual product usage) </li></ul></ul><ul><ul><li>Socialization indirectly related to consumption (such as a young man buying his first shaving cream / razor) </li></ul></ul>
  24. 24. A Simple Model of the Socialization Process
  25. 25. Eight Roles in the Family Decision-Making Process ROLE DESCRIPTION Influencers Family member(s) who provide information to other members about a product or service Gatekeepers Family member(s) who control the flow of information about a product or service into the family Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Buyers Family member(s) who make the actual purchase of a particular product or service Preparers Family member(s) who transform the product into a form suitable for consumption by other family members Users Family member(s) who use or consume a particular product or service Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction. Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service
  26. 26. Dynamics of Husband-Wife Decision Making <ul><li>Husband-Dominated </li></ul><ul><li>Wife-Dominated </li></ul><ul><li>Joint (i.e. Equal or Syncratic) </li></ul><ul><li>Autonomic (i.e. Solitary or Unilateral) </li></ul>
  27. 27. Dynamics of Husband-Wife Decision Making <ul><li>Whether Decision-making will be HD – WD – Joint or autonomous depends on: </li></ul><ul><ul><li>Types of Product or Service </li></ul></ul><ul><ul><li>Family role Structure Orientation </li></ul></ul><ul><ul><li>Stages in Decision-making Process </li></ul></ul>
  28. 28. The Family Life Cycle <ul><li>Traditional Family Life Cycle </li></ul><ul><ul><li>Stage I: Bachelorhood </li></ul></ul><ul><ul><li>Stage II: Honeymooners </li></ul></ul><ul><ul><li>Stage III: Parenthood </li></ul></ul><ul><ul><li>Stage IV: Postparenthood </li></ul></ul><ul><ul><li>Stage V: Dissolution </li></ul></ul>
  29. 29. Targeting the parenthood segment
  30. 30. Modification to FLC <ul><li>Non- Traditional Family Life Cycle Stages </li></ul><ul><ul><li>Family Households </li></ul></ul><ul><ul><ul><li>Childless couples </li></ul></ul></ul><ul><ul><ul><li>Couples who married late </li></ul></ul></ul><ul><ul><ul><li>Couples who have first child </li></ul></ul></ul><ul><ul><ul><li>Single Parent – I, II and III </li></ul></ul></ul><ul><ul><ul><li>Extended Family </li></ul></ul></ul><ul><ul><li>Non-Family Households </li></ul></ul><ul><ul><ul><li>Unmarried couples </li></ul></ul></ul><ul><ul><ul><li>Divorced Persons </li></ul></ul></ul><ul><ul><ul><li>Single Persons </li></ul></ul></ul><ul><ul><ul><li>Widowed Persons </li></ul></ul></ul>