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Welcome to. Chapter No: 04 Chapter Name: Reference Groups. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8 th edition, Prentice Hall – 2006 0 1. Understand the roles of different types of reference groups.

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  1. Welcome to Chapter No: 04 Chapter Name: Reference Groups Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 01

  2. Understand the roles of different types of reference groups. • Learn how companies use different types of reference groups appeals. Learning Objectives Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 02

  3. Group: A group is defined as two or more people who interact to accomplish either individual or mutual goals. Definition Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 03

  4. Definition • Membership Status: Sometimes groups are classified by membership status. A person is qualified for membership status when he/ she either belongs or would qualify for membership in. Ex: the group of women with whom a young executive plays tennis weekly would be considered, for her, a membership group. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 04

  5. Symbolic Group: There are also group in which an individual is not likely to receive membership. Despite acting like a member by adopting the group’s values, attitudes and behavior. Definition Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 05

  6. Reference Group: A group in society that influences an individual’s purchasing behavior. In another words, A reference group is any person or group that serves as a point of comparison (reference) for an individual in forming either general or specific values, attitudes or specific guide for behavior. Definition Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 06

  7. Reference Group: From a marketing perspective, they are the groups that serve as frames of reference for individuals in their purchase or consumption decisions. Ex: owners of successful small businesses, leading corporate chief executive officers, rock stars or golf celebrities. Definition Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 07

  8. Importance of reference group -Identifying and using reference groups in marketing are important because reference groups influence the attitudes, goals, aspirations, opinions, and information that determine customer standards and expectations regarding your business and your products or services.

  9. Types of Reference Groups • Normative Reference Groups: Reference groups that influence general or broadly defined values or behavior are called normative reference groups. Ex: A child normative reference group is immediate family. Such as which foods to select for good nutrition, appropriate dress for specific occasions. normative = আদর্শস্থাপনকারী , মান-নির্ণায়ক , আদর্শ, establishing, relating to, or deriving from a standard or norm, especially of behaviour. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 09

  10. Types of Reference Groups • Comparative Reference Groups: Reference groups that serve as benchmarks for specific or narrowly defined attitude or behavior are called comparative reference groups. Ex: A Young comparative reference group is friends, teachers etc. a comparative reference group might be a neighboring family whose lifestyle appears to be admirable and worthy of imitation. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 010

  11. Special Reference Groups The meaning of reference group has changed over the years. • Indirect Reference Groups: It consists of those individuals or groups with whom a person does not have direct face-to-face contact. Ex: Movie stars, Sports heroes, or even well dressed and interesting looking people on the street. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 011

  12. Special Reference Groups • Societal Reference Groups: It consists family, friends, social class, various sub-cultures, one’s own culture, and even other cultures. They influence an individual’s consumer behavior. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 012

  13. Implications of Reference Groups • They serve as information sources and influence perceptions • They affect an individual’s aspiration levels • Their norms either constrain or stimulate consumer behavior Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 013

  14. Major Consumer Reference Groups Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 014

  15. Factors that affect Reference Group Influence • Information and Experience: An individual who has firsthand experience with a product or service, he can easily obtain full information about it, is less likely to be influenced by the advice or example of others. On the other hand, a person who has little or no experience with a product or service and does not expect to have access to objective information about it, is more likely to seek out the advice or example of others. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 015

  16. Factors that affect Reference Group Influence • Credibility, Attractiveness and Power: A reference group that is perceived as credible, attractive, or powerful can induce consumer attitude and behavior change. They are more likely to be persuaded by sources with high credibility. Different reference groups may influence the beliefs, attitudes and behavior of an individual at different points in time or under different circumstances. For ex: consumers are likely to be persuaded by those whom they consider trustworthy and knowledgeable. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 016

  17. Factors that affect Reference Group Influence • Conspicuousness of the product: The potential influence of a reference group on a purchase decision varies according to how visually or verbally conspicuous the product is to others. Example: Visually : luxury item or novelty product verbally: highly interesting or it may easily described to others the more and individual identifies with a particular team, the greater the likelihood that he or she will purchase the products of the companies that sponsor that team. conspicuous = দৃষ্টি-আকর্ষণকারী , স্পষ্টলক্ষিত Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 017

  18. Factors affecting Reference Groups • Reference groups & consumer conformity (traditional values): A reference group must accomplish (achieve): • Inform or make the individual aware of a specific product or a brand • Provide the individual with the opportunity to compare his/ her own thinking • Influence the individuals to adopt attitudes that consistent with the norms of the group • Legitimize the decision to use the same products as the group Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 018

  19. Types of Reference Groups • Friendship Groups This type of groups are usually unstructured and lack specific authority levels. In terms of relative influence, after an individual’s family, his/ her friends are most likely to influence the individual’s purchase decisions. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 019

  20. Types of Reference Groups • Shopping Groups Two or more people who shop together are shopping groups. Ex: Shop together whether for food, for clothing or simply to pass the time. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 020

  21. Types of Reference Groups • Work Groups The sheer amount of time that people spend at their jobs frequently more than 35 hours per week are work groups. Ex: Work together as a team for the development of the company. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 021

  22. Types of Reference Groups • Virtual Groups/ Communities Both adults or children are turning on their computers, logging onto the web and visiting special-interest Web Sites often with chat rooms are virtual groups or communities. Ex: Groups working with computers and internet. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 022

  23. Types of Reference Groups • Consumer Action Groups This type of groups are has emerged in response to the consumerist movement. They mainly work to make the right purchase decisions, consume the products and services in a healthy and responsible manner and to generally add to the overall quality of their lives. Ex: Consumers Association of Bangladesh (CAB) Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 023

  24. Types of Reference Groups Appeals • Celebrities: Celebrities, particularly movie stars, TV personalities, popular entertainers and sports icons provide a very common type of reference group appeal. They promote the products/ services by giving a testimonial or an endorsement. They act as a company spokesperson. Ex: Shahrukh Khan in Pepsodent, Aamir Khan in Coca-Cola etc, Dr. Yunus in Shakti Dadhi. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 024

  25. Types of Reference Groups Appeals • The Expert: Experts are the marketers of the products/ services. A person who because of his/ her occupation, experience, special training is in a unique position to help the prospective consumer evaluate the product or service that the advertisement promote. Ex: Dentist for Pepsodent, Colgate toothpaste and Doctor for Lifebuoy Handwash etc. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 025

  26. Types of Reference Groups Appeals • The “Common Man”: Here the testimonial or satisfied customers are known as the common man appeal. Ex: Mother and Daughter for Hash Marka Narikel Toil. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 026

  27. Types of Reference Groups Appeals • The Executive & Employee Spokesperson: The firms usages their top executives for the ads of their products/ services as a spokesperson. Ex: Different ads for Grameenphone or Banglalink advertisements. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 027

  28. Types of Reference Groups Appeals • Trade/ Spokes-character: Trade or spokes-characters are the familiar cartoon characters for creating the appeal of the products/ services advertisement. Ex: Nitai Bhattachargee, Amitav Reza etc. Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 028

  29. Query?

  30. Thank You … For staying with me … Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall – 2006 030

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