Groups influence consumer behavior through reference groups and consumption groups. Reference groups are those whose perspectives or values individuals use as a basis for their own behavior, such as friends or coworkers. Consumption groups are those who share a commitment to a particular product, brand, or activity, such as a cricket team. Groups can influence consumers through rewarding conformity, exerting coercive pressure, or by serving as expert references on products. The degree of a reference group's influence depends on factors like how visible or necessary a product is and how relevant the group is to that product.

1. GROUP INFLUENCES ON CONSUMER BEHAVIOUR

4. CO-WORKERS AT WEEKEND JOB HOMETOWN FRIENDS FRIENDS AT APARTMENT COMPLEX CLASSMATES INSTITUTE CRICKET TEAM IMMEDIATE FAMILY INDIVIDUAL

10. Variability Among Products Conspicuousness, exclusive, identified Distinction between luxuries & necessities Publicly consumed luxury Privately consumed luxury Publicly consumed necessity Privately consumed necessity Shifting of product perceptions Strategies :: not strong brand/pdt- intrinsic qualities, price, advantage over competing pdts ::: operative-kinds of people, stereotypes, learning, tailored appeal