REFERENCE GROUPDefinition: A group of people or organization of which an individual respects, identifies with, oraspires t...
ASSIGNMENT   REFERENCE GROUP                PRINCIPLES OF MARKETINGSUBMITTED BY:•SYED ARIF ALI SHAH           (7922)•UMBR...
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Assignment # 1, p o-mkt, (refence group)

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Assignment # 1, p o-mkt, (refence group)

  1. 1. REFERENCE GROUPDefinition: A group of people or organization of which an individual respects, identifies with, oraspires to join, e.g., membership or associative groups.Group, class, or category of people to which individuals believe they belong, whether or not theyactually do. Their relationship to their reference group may influence their buying behavior.•For example, if a man buys a more expensive car than he normally would because his neighborsdrive that particular model, his buying behavior is seen to be influenced by his reference group.Reference groups act as a frame of reference to which people always refer to evaluate theirachievements, their role performance, aspirations and ambitions. A reference group can be eitherfrom a membership group or non-membership group.•An example of a reference group being used would be the determination of affluence. Anindividual in the U-S with an annual income of $80,000, may consider himself affluentif hecompares himself to those in the middle of the income strata, who earn roughly $32,000 a year, If,however, the same person considers the relevant reference group to be those in the top 0.1% ofhouseholds in the US, those making $1.6 million or more, then the individuals income of $80,000would make him or her seem rather poor.A reference group is a concept referring to a group to which an individual or another group iscompared.Sociologists call any group that individuals use as a standard for evaluating themselves and theirown behavior a reference group.Reference groups are used in order to evaluate and determine the nature of a given individual orother groups characteristics and sociological attributes. It is the group to which the individualrelates or aspires to relate himself or herself psychologically. It becomes the individuals frame ofreference and source for ordering his or her experiences, perceptions, cognition, and ideas of self. Itis important for determining a persons self-identity, attitudes, and social ties. It becomes the basisof reference in making comparisons or contrasts and in evaluating ones appearance andperformance. DATE: 15th October 2010
  2. 2. ASSIGNMENT REFERENCE GROUP PRINCIPLES OF MARKETINGSUBMITTED BY:•SYED ARIF ALI SHAH (7922)•UMBREEN GUL ABRO (14518)•ZUNAIRA ABRO (10028)SUBMITTED TO:ATIF SHAHAB BUTT

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