This document discusses how reference groups and families influence consumer behavior. It defines reference groups as people or social groups that influence an individual's values, attitudes, and behaviors. Celebrities, friends, and family are common reference groups used in advertising to communicate with target markets. The concept of family is explored, along with the socialization of family members and the roles families play in decision making. The family life cycle model outlines common stages families progress through, from bachelorhood to parenthood to dissolution. Reference groups and families are important for marketers to consider when trying to understand and influence consumer behavior.

1. Welcome to the PresentationWelcome to the Presentation

2. Reference Groups & FamilyReference Groups & Family
InfluencesInfluences

4.  Almost all individuals regularly interactAlmost all individuals regularly interact
with other people who directly orwith other people who directly or
indirectly influence their purchaseindirectly influence their purchase
decisions.decisions.

5. At a GlanceAt a Glance
 1. What is a group?1. What is a group?
 2. Understanding the power of reference groups2. Understanding the power of reference groups
 3. Selected consumer related reference groups3. Selected consumer related reference groups
 4. Reference group appeals4. Reference group appeals
 5. The concept of family5. The concept of family
 6. Socialization of family members6. Socialization of family members
 7. Functions of family7. Functions of family
 8. Family decision & consumption related roles8. Family decision & consumption related roles
 9. The family life cycle9. The family life cycle

6. PreamblePreamble
 This presentation begins with the basicThis presentation begins with the basic
concepts of group dynamics & howconcepts of group dynamics & how
reference groups both directly &reference groups both directly &
indirectly influence consumerindirectly influence consumer
behaviour.behaviour.
 It also discusses in two parts.It also discusses in two parts.
1)1) Group involvements & influence.Group involvements & influence.
2)2) Family influencesFamily influences

8. 1. What is a group?1. What is a group?
 A Group may be defined as two orA Group may be defined as two or
more people who interact tomore people who interact to
accomplish either individual or mutualaccomplish either individual or mutual
goals.goals.
 Group sometime considered asGroup sometime considered as aa
MembershipMembership & sometime as& sometime as aa
Symbolic Group.Symbolic Group.

9. 2. Understanding the power of2. Understanding the power of
reference groupsreference groups
 A reference group is any person orA reference group is any person or
group that serves as a point ofgroup that serves as a point of
comparison for an individual in formingcomparison for an individual in forming
either general oreither general or specific valuesspecific values,,
attitudesattitudes oror aa specific guidespecific guide forfor
behaviour.behaviour.

10. 2.1. Classification2.1. Classification
 Normative Reference Groups.Normative Reference Groups.
 Comparative ReferenceComparative Reference
Groups.Groups.
 Indirect Reference GroupIndirect Reference Group

11. 2.2. Factors (Influence Groups)2.2. Factors (Influence Groups)
Other Culture
Selected Subculture
Social Class
One’s Own Culture
Friends
Family
Individuals

12. 2.3 Factors influences consumer2.3 Factors influences consumer
behaviourbehaviour
 Information & experienceInformation & experience
 Credibility, attractiveness &Credibility, attractiveness &
power of the reference grouppower of the reference group
 Conspicuousness of theConspicuousness of the
productproduct
 Consumer conformityConsumer conformity

13. 3. Selected consumer related reference3. Selected consumer related reference
groupsgroups
 Friendship groupsFriendship groups
 Shopping groupsShopping groups
 Work groupsWork groups
 Virtual groups or communitiesVirtual groups or communities
 Consumer-action groupsConsumer-action groups

14. 4. Reference group appeals4. Reference group appeals
 Appeals by celebrities & other similarAppeals by celebrities & other similar
reference groups are used veryreference groups are used very
effectively by advertisers toeffectively by advertisers to
communicate with their markets.communicate with their markets.

15. 4.1. Major Types4.1. Major Types
 CelebritiesCelebrities
 The expertThe expert
 TheThe common mancommon man
 The executive & employeeThe executive & employee
spokespersonspokesperson
 Trade or spokes-charactersTrade or spokes-characters
 OthersOthers

16. 5. The concept of family5. The concept of family
 In a dynamic sense the individualsIn a dynamic sense the individuals
who constitute a family might bewho constitute a family might be
describes as members of the mostdescribes as members of the most
basic social group who live togetherbasic social group who live together
& interact to satisfy their personal && interact to satisfy their personal &
mutual needs.mutual needs.

17. 5.1. Types of family5.1. Types of family
 The married coupleThe married couple
 The nuclear familyThe nuclear family
 The extended familyThe extended family

18. 6. Socialization of family members6. Socialization of family members
 The Socialization of family
members ranging from young
children to adults, is a central
family function.

19. 6.1. A simple model of the6.1. A simple model of the
socialization processsocialization process
Young
Person
Other Family Members Friends
Preadolescent Adolescent Teenager Older
Influence More Basic
Values/Behaviour
Influence More Expressive
Attitudes/Behaviour

20. 7. Functions of family7. Functions of family
 Economic Well-beingEconomic Well-being
 Emotional SupportEmotional Support
 Suitable Family LifestyleSuitable Family Lifestyle

21. 8. Family decision &8. Family decision &
consumption related rolesconsumption related roles
 For a family function is aFor a family function is a
cohesive unit.cohesive unit.
 In a dynamic society familyIn a dynamic society family
related duties are constantlyrelated duties are constantly
changingchanging

22. 8.1. The Eight Roles in the
Family Decision Making Process
 InfluencersInfluencers
 GatekeepersGatekeepers
 DecidersDeciders
 BuyersBuyers
 PreparersPreparers
 UsersUsers
 MaintainersMaintainers
 DisposersDisposers

23. 9. The family life cycle9. The family life cycle
 The traditional family life cycle is aThe traditional family life cycle is a
progressing of stages throughprogressing of stages through
which many families pass startingwhich many families pass starting
with bachelorhood, moving on towith bachelorhood, moving on to
marriage, then to family growth, tomarriage, then to family growth, to
family construction & ending withfamily construction & ending with
the dissolution of the basic unit.the dissolution of the basic unit.

24. 9.1. FLC stages
 Stage 1) BachelorhoodStage 1) Bachelorhood
 Stage 2) HoneymoonersStage 2) Honeymooners
 Stage 3) ParenthoodStage 3) Parenthood
 Stage 4) Post ParenthoodStage 4) Post Parenthood
 Stage 5) DissolutionStage 5) Dissolution

25. Conclusion
 The study of groups & theirThe study of groups & their
impact on the individual is ofimpact on the individual is of
grate importance to marketersgrate importance to marketers
concerned with influencingconcerned with influencing
consumer behaviour.consumer behaviour.

26. Reference
 Chapter TenChapter Ten
 Reference Groups & FamilyReference Groups & Family
InfluencesInfluences
 Book: Consumer BehaviourBook: Consumer Behaviour
# Ninth Edition# Ninth Edition
By- Leon G. Schiffman & LeslieBy- Leon G. Schiffman & Leslie
Lazar KanukLazar Kanuk
Page: 330 to 372Page: 330 to 372

27. The EndThe End