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MARKETING
APPLICATION OF
REFERENCE GROUPS
, FAMILY & CULTURE
 Consumer behavior Process through which
buyers make decisions.
 Marketers borrow extensively from
psychology and sociology to better understand
consumer behavior.
 Consumer behavior is usually understood as a
function of interpersonal influences and personal
factors.
WHAT IS CONSUMER BEHAVIOR ?
 An individual or group who serve as points of
comparison or reference and have a significant
relevance on an individual's evaluations, aspirations or
behaviour
 A group consists of two or more people who interact
with each other to accomplish some goal.
 A reference group involves one or more people used
as a basis for comparison or point of reference in
forming affective and cognitive responses and
performing behaviors.
WHAT IS REFERENCE GROUP?
 Play a vital role in socializing the consumer and
transmitting society’s norms and values
 Influence a person’s values, beliefs, attitudes and
behaviors.
 About :-
 products and brands
 What product attributes are important
 What lifestyles are desirable
 purchase/consumption decisions
What do they do?
 Reference groups are cultural groups in that
members share certain common cultural meanings.
 Marketers try to determine the content of the shared meanings
of various reference groups.
 Reference groups can have both positive and negative effects
on consumers.
ANALYZING REFERENCE GROUPS
FACTORS INFLUENCING BUYING
DECISIONS
Social
Factors
Individual
Factors
Psycho-
logical
Factors
Cultural
Factors CONSUMER
DECISION-
MAKING
PROCESS
BUY /
DON’T BUY
 Reference groups People or institutions whose opinions are
valued and to whom a person looks for guidance in his or her
own behavior, values, and conduct, such as family, friends,
or celebrities.
 Influence of reference group depends on two conditions:
• Purchased product must be seen and identifiable.
• Purchased product must be conspicuous, something
not everybody owns.
REFERENCE GROUPS
A group consists of two or more people who interact
with each other to accomplish some goal.
A reference group involves one or more people used as
a basis for comparison or point of reference in forming
affective and cognitive responses and performing
behaviors.
CONTINUE……
CULTURAL INFLUENCES
Culture Set of values, norms, attitudes, and other
meaningful symbols that shape human
behavior and the artifacts, or products, of
that behavior as they are transmitted
from one generation to the next.
 Culture Values, beliefs, preferences, and tastes
handed down from one generation to the next.
 Culture is a broad environmental determinant of
behavior.
 Culture:
The values, ideas, attitudes, and symbols that people adopt to
communicate, interpret, and interact as members of society.
CONTINUE….
COMPONENTS OF CULTURE
Myths
Language
Values
Customs
Rituals
Laws
Material artifacts
CULTURE IS. . .
Learned
Functional
Pervasive
Dynamic
 Culture is learned and transmitted from one generation to the next.
 Groups within a culture that have their own modes
of behavior.
 • In U.S. subcultures can differ by ethnicity,
nationality, age, rural versus urban location,
religion, and geographic distribution.
 • Population mix in U.S. is changing as the
Hispanic, African American, and Asian populations
grow.
SUB-CULTURES
Ethnic Patterns:
The norms and values of specific groups or subcultures within a society.
Demographic characteristics used to identify subcultures:
Nationality - Hispanics, Italians
Race - African-American, American Indian, Asian
Region - New England, the South
Age - Elderly, teenager
Religion - Catholic, Jewish, fundamentalist
ETHNIC PATTERN
 Everyone belongs
to multiple
social groups:
family,
neighborhood,
clubs, and
sports teams.
 Group membership
influences
buying
SOCIAL INFLUENCES
Groups establish norms of
behavior—values,
attitudes, and behaviors
that a group deems
appropriate for its
members.
 Differences in status and
roles within groups also
influence behavior.
 Some Americans make
CONTINUE…..
Six classes: upper-upper,
lower-upper, upper-middle,
lower-middle, working class,
lower class.
 Income not always a primary
factor.
 Individuals’ buying habits
sometimes reflect the class to
which they aspire
Social Classes:
Relatively homogeneous divisions within a society that contain people with
SOCIAL
CLASSES
 A family has at least two
people, the householder
and someone who is
related to the householder
by blood, marriage, or
adoption.
 Like other
influences,
families have
norms of
expected
FAMILY
INFLUENCES
Family decision making refers to
how family members interact
and influence one another when
making purchase choices for the
household.
CONTINUE…..
Thank you

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Marketing applications of reference group, family and culture

  • 2.  Consumer behavior Process through which buyers make decisions.  Marketers borrow extensively from psychology and sociology to better understand consumer behavior.  Consumer behavior is usually understood as a function of interpersonal influences and personal factors. WHAT IS CONSUMER BEHAVIOR ?
  • 3.  An individual or group who serve as points of comparison or reference and have a significant relevance on an individual's evaluations, aspirations or behaviour  A group consists of two or more people who interact with each other to accomplish some goal.  A reference group involves one or more people used as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors. WHAT IS REFERENCE GROUP?
  • 4.  Play a vital role in socializing the consumer and transmitting society’s norms and values  Influence a person’s values, beliefs, attitudes and behaviors.  About :-  products and brands  What product attributes are important  What lifestyles are desirable  purchase/consumption decisions What do they do?
  • 5.  Reference groups are cultural groups in that members share certain common cultural meanings.  Marketers try to determine the content of the shared meanings of various reference groups.  Reference groups can have both positive and negative effects on consumers. ANALYZING REFERENCE GROUPS
  • 7.  Reference groups People or institutions whose opinions are valued and to whom a person looks for guidance in his or her own behavior, values, and conduct, such as family, friends, or celebrities.  Influence of reference group depends on two conditions: • Purchased product must be seen and identifiable. • Purchased product must be conspicuous, something not everybody owns. REFERENCE GROUPS
  • 8. A group consists of two or more people who interact with each other to accomplish some goal. A reference group involves one or more people used as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors. CONTINUE……
  • 9. CULTURAL INFLUENCES Culture Set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.
  • 10.  Culture Values, beliefs, preferences, and tastes handed down from one generation to the next.  Culture is a broad environmental determinant of behavior.  Culture: The values, ideas, attitudes, and symbols that people adopt to communicate, interpret, and interact as members of society. CONTINUE….
  • 12. CULTURE IS. . . Learned Functional Pervasive Dynamic  Culture is learned and transmitted from one generation to the next.
  • 13.  Groups within a culture that have their own modes of behavior.  • In U.S. subcultures can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution.  • Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow. SUB-CULTURES
  • 14. Ethnic Patterns: The norms and values of specific groups or subcultures within a society. Demographic characteristics used to identify subcultures: Nationality - Hispanics, Italians Race - African-American, American Indian, Asian Region - New England, the South Age - Elderly, teenager Religion - Catholic, Jewish, fundamentalist ETHNIC PATTERN
  • 15.  Everyone belongs to multiple social groups: family, neighborhood, clubs, and sports teams.  Group membership influences buying SOCIAL INFLUENCES
  • 16. Groups establish norms of behavior—values, attitudes, and behaviors that a group deems appropriate for its members.  Differences in status and roles within groups also influence behavior.  Some Americans make CONTINUE…..
  • 17. Six classes: upper-upper, lower-upper, upper-middle, lower-middle, working class, lower class.  Income not always a primary factor.  Individuals’ buying habits sometimes reflect the class to which they aspire Social Classes: Relatively homogeneous divisions within a society that contain people with SOCIAL CLASSES
  • 18.  A family has at least two people, the householder and someone who is related to the householder by blood, marriage, or adoption.  Like other influences, families have norms of expected FAMILY INFLUENCES
  • 19. Family decision making refers to how family members interact and influence one another when making purchase choices for the household. CONTINUE…..