What are the 5 Factors Influencing Consumer Behavior? - Clootrack In families, for instance, parents are the sole decision-makers. Reference groups influence people's behavior through peer interaction and social perception, impacting the norms, values and desires of the average consumer. This is the second useful way to classify groups on the basis of their formal nature. Asch, S.E. The people in these groups are totally opposite to the people in the aspirational group. Such as influencing their buying patterns in looking the part of the traditional biker subculture by purchasing products such as the Harley jackets, sunglasses, riding pants and other Harley accessories. Reference Group Influence on Selection of Services The commercial showed how Britney was able to grow through the time frame that started from the 1950s to the present day. The groups power of influence on consumers behavior will depend on a number of factors. These subcultures can influence the consumer behavior. If you use an assignment from StudyCorgi website, it should be referenced accordingly. For example, if people dont like a particular community, they would never like being connected to them. Furthermore, as a result of Beckhams endorsements, my perception of some products has been changed. Consumer Behaviour & Reference Group, Sample of Essays - EduCheer! Overall, I feel that David Beckham has a value-expressive influence on my purchasing behavior (Park and Lessig 1977, p.102), because he is someone who I would like to emulate and he also advertises products that are considered trendy and fashionable. Advances in Consumer Research, 2, pp. 567-575. Antoun, R 2014, Muslim preacher in the modern world: a Jordanian case study in comparative perspective, Princeton University Press, New Jersey. Request Permissions. StudyCorgi, 15 Nov. 2020, studycorgi.com/reference-groups-influencing-consumer-behavior/. Ohanian, R. (1991) The Impact of Celebrity Spokespersons Perceived Image on Consumers Intention to Purchase. Conversely, a companys association with a charitable cause or heroic deed may compel the consumer to purchase the companys brand just to show support. 24, no. Park et al (2010, p.655) for example, found that individuals who were the most positively affected (i.e., experienced an increase in self-esteem) when associating themselves with a brand, were the individuals who saw those brands as a means of self-improvement. Consumer Buying Process 4. The influence of the reference groups is not influential for all types of products or services that consumers purchase. They are often groups that consumers will look to to make purchasing decisions. American Journal of Geriatric Psychiatry, 18, pp. Human Relations, 7, pp. For doing the same, they try to dress, talk, act, and even think of the way the members of that group do. These social powers can influence the consumer behavior in buying certain products and brands. A consumer gets influenced by his family members as well as friends. This shows that embarrassment is not necessarily a social phenomenon, but is something that can also occur in private (Tangney and Miller 1996, p.1256). Here are 5 major factors that influence consumer behavior: Psychological Factors Social Factors Cultural Factors Personal Factors Economic Factors 1. 102-110. Reference groups influence people a lot in their buying decisions. It is in the groups that individuals base their buying patterns and purchasing decisions. For instance, in primary groups such as families majority of those who make decisions comprise males. In H. Guetzkow (ed.) Psychological Factors Human psychology is a major determinant of consumer behavior. This can be seen how baby boomers can reminisce with her. In the Harley Davidson subculture their power to influence other members is through visible displays such as tattoos and motorcycle customization, this is done to emphasize the commitment to the group. In secondary reference groups, the power to influence people is quite less as compared to primary reference groups as people in these groups are not that comfortable in sharing their thoughts or views on the purchase. Park, J.K. and John, D.R. Journal of Consumer Psychology, 22, pp. Reference groups are groups (social groups, work groups, family, or close friends) a consumer identifies with and may want to join. and Lessig, V.P. To encourage conformity, a reference group must: 1. How Reference Groups Exert Influence on Consumer Behavior StudyCorgi. These people give you very honest and clear advice as they are so close to you, due to which you could be more confident about the purchase. Group Influence on Consumer Behavior - Small Business Factors Influencing Consumer Behaviour 5. For several decades, the dynamics in the marketing environment have shifted from predictable consumer trends to those that are complex and almost unpredictable. What Is a Reference Group in Business? An Intro - Indeed MBA Knowledge Base 2021 All Rights Reserved, Consumer Decision Process In Services Marketing, Solomon Model of Comparison Process - Model of Consumer Behavior, The Social and Cultural Environment in Marketing, Approaches to Studying Consumer Behaviour, Factors Influencing the Consumer Decision Making Process, Social, Societal, and Socially Responsible Marketing, Benefits of Ethical Practices in Business. Oxford University Press is a department of the University of Oxford. In our daily lives, we all get influenced by a variety of people while making our purchase decisions. Forehand and Deshpande, 2001. . Journal of Consumer Research, 37, pp. Baby boomers have many subgroups which can be catered very easily in terms of each demographic factor. 104-122. Reference Group in Sociology: Definition, Types & Examples In 2001 Pepsi Joy of Pepsi campaign used a celebrity endorsement such as Britney Spears to promote and incorporate the young joy and entertainment of Pepsi. The associations, also known as reference groups, may be formal or informal depending on the strength of the bonds and the setting. Besides status and position in the group, religion is also another factor that determines how individuals in a particular formation share power. The parents, siblings, relatives all have their own views about a particular purchase. Elliott, R. and Elliott, C. (2005) Idealized Images of the Male Body in Advertising: A Reader Response Exploration. Reference Groups Influence on Consumer Behavior: Examples of Group Reference groups play an important role in influencing the purchasing behavior of consumers. "Reference Groups Influencing Consumer Behavior." Inform about a product or brand. The Harley Owners Group (HOG) is a successfully group that has over 1 million members around the world. Toyotas campaign of the redesign of the new Avalon was to provide a youthful image that reminds the baby boomers of the late 1960s. People favor brands that resonate with what they believe in and what they think like-minded believers accept. We, as humans do a lot to try to impress others. 1. How to Know Who Created a Facebook Account. Nowadays marketers are using the celebrity for advertising their products so that people aspire to become like them after owning and using those products. 7, no. and Shaw, M.E. 71-83. This item is part of a JSTOR Collection. Health & Parenting Guide - Your Guide to Raising a Happy - WebMD Differences in susceptibility to reference group influence. So they would try all the possible ways to avoid the way in which they dress, think, or act. It may be the case therefore, that the reason why celebrities are often used to advertise and promote the sale of products, is because their mere presence may, as a result of ones motivation to reach their ideal self, be particularly effective at stimulating the natural tendency towards imitative behavior (Ohanian 1991, p.46), and by doing so, then prime the consumer to behave in a certain way (i.e., to purchase an endorsed product) (Ferguson and Bargh 2004, p.33). Vroom, V.H. consumer behaviour "is about people, or more accurately, the systematic study of their behaviour patterns in a marketing context" (Keith Williams 1983). For example, a high-end watchmaker may release a limited edition luxury watch for its targeted consumers followed by a more affordable version of the product, under the same brand name, for a wider market. For example, an injustice involving a manufacturer that is publicized in the media may trigger a consumer to join a boycott of the manufacturers brand. Reference groups can influence an individual's cognitions, affective responses, and behaviors. They will want to be associated with groups that have an attractive social position. 1-19. 79-81. 1-19. The influence of reference groups on consumer behaviour with examples from group dynamics.Reference group is an important concept in consumer behaviour because of the influence it has on consumer choice and norms. Cote, J & Levine, C 2014, Identity, formation, agency, and culture: a social psychological synthesis, Psychology Press, London, United Kingdom. Interestingly, the act of imitation appears to be an innate human characteristic, as it is something that has been observed in infants as young as one month of age (Meltzoff and Moore 1983, p.702) and also in adults via neurological studies of mirror neurons (Gazzola and Keysers 2009, p.1239-1255). Reference groups fall into many possible grouping, which is not necessarily to be exhaustive. The opinion presented by reference groups where individuals are members can facilitate the purchase or consumption of a service or dissuade them from buying the products. Reference groups influence people a lot in their buying decisions. An informal reference group is a group that has no set structure or designated roles (Moschis 1976, p.237). Arnett, J 2014, Adolescence and emerging adulthood, Pearson, Boston. Influence on Both Products and Brands Primary and secondary groups can be distinguished on the basis of the perceived importance of the group to the individual and the frequency with which the individual interacts with them. 1256-1269. Many things a person buys, especially showy items such as clothing, accessories, vehicles, restaurants or club memberships, are symbolic of what he thinks is acceptable to a certain reference group such as his family, social circle, workplace, community or culture. Empirical, theoretical, and methodological articles spanning fields such as psychology, marketing, sociology, economics, and anthropology are featured in this interdisciplinary journal. November 15, 2020. https://studycorgi.com/reference-groups-influencing-consumer-behavior/. Reference Groups: Aspirational and Non-Aspirational Groups in Consumer Meltzoff, A.N. A reference group is the group whose perspective we consider. Therefore, understanding the factors that dictate power-sharing in reference groups is vital in unearthing their influence on consumer behavior. The purpose of this essay is to identify two reference groups, assess the factors that determine power-sharing in these groups, and how the groups influence consumer behavior. Public Opinions Quarterly, 25, pp. (213) 740-7127 Cocanougher, A.B. Peer influence is a form of reference group influence that greatly impacts behaviour.Dr Catherine NgahuElevatusConsumer Behaviour00:00 Importance of consumer reference groups00:47 Contractural reference group01:01 Aspirational reference group02:31 Disclaimant reference group03:34 Avoidance reference group05:00 Reference group and consumer conformity06:00 Multi level marketing and consumer references06:31 Marketing applications of reference group According to Hoonsopon and Puriwat (2016), examples of groups classified in the second category include employees, businesspeople, as well as members of a particular society. In this article we will discuss about Consumer Behaviour: 1. Baby boomers are more vulnerable to nostalgia appeals, especially the products and items associated with their childhood or adolescence memories. Now our reference could be very large or very small including a few of our family members or few close friends. Dornbusch Exchange Rate Overshooting Model, Exploring the Concept of Sustainable Strategic Fit, Utilization of Artificial Intelligence (AI) in the Banking, Introduction to Investments Meaning, Objectives and Elements, Case Study of Kellogs: Marketing Strategy for Latin America, Case Study: Inventory Management Practices at Walmart, Advantages and Disadvantages of Organizational Change, Role of Information Technology (IT) in the Banking Sector. Therefore, companies cannot underscore the role that reference groups play in determining the buying patterns as well as client perception towards certain brands in the market. In some cases, a person may be forced to dress in a way that the society thinks is right but not by their desires. Culture contains smaller subcultures or groups of people with shared values systems based on common life experiences and situations. Beckham endorses many different types of products such as those from Adidas, Gillette, Giorgio Armani and Calvin Klein, brands that I also like to use. Lets have a look at few more reference groups. In this essay, I shall discuss the groups that I belong to and evaluate how they may have influenced my purchasing behavior as a consumer. 157-164. (1983) Newborn Infants Imitate Adult Facial Gestures. In some instances for example, a utilitarian influence may hinder or inhibit the formation of a value expressive influence. StudyCorgi. However, the type of influence exerted by these groups can vary depending on the type of product, whether that product is consumed privately or publically and the characteristics of the consumer such as their age, beliefs and who they associate or would like to associate with. Reference Group Influence on Product and Brand Purchase Decisions - JSTOR We can also include, that an individual consumer looks to others for help in deciding which products or services to use. The group influence is noticeable when there are specialized products such as PC sets or mobiles. Pepsi also realized how youth is important as many baby boomers wish to see themselves as youthful again. The Effect of Reference Groups on Purchase Intention: Evidence in Consumer Behaviour & Reference Group. Nowadays marketers use the concept of group dynamics or personal influence often as this exceeds the power of the companys promotional efforts. A reference group is any person or group that serves as a point of comparison (or reference) for an individual in forming either general or specific values, attitudes, or a specific guide for behavior. They are - 1. These people from primary groups may have a direct and strong impact on your lives and your buying decisions since they are very significant to you. It has become familiar to millions through a diverse publishing program that includes scholarly works in all academic disciplines, bibles, music, school and college textbooks, business books, dictionaries and reference books, and academic journals. The main reference group influences might be the following: INFORMATIONAL: individuals might seek information about several car brands (included Tesla) from an independent group of experts (e.g. Nowadays marketers use the concept of group dynamics or personal influence often as this exceeds the power of the company's promotional efforts. How to Protect Your Personal Info from Being Sold on Dark Web? In workplaces, it is likely to find people practicing different lifestyles and professing diverse religions, a factor that is not common in families, church groups, and intimate lovers. They just hate being related to that group. The groups influence will depend on the degree of confident of the buyer during the buying process. and Chaplin, L.N. 281-315. Therefore, if an individual admires another person (i.e., an aspirational figure) they will subsequently compare their actual self (i.e., the way they currently are) with their ideal self (i.e., the way they want to be). From 2000 to 2005, he wrote true stories of human triumph for "Woman's World" magazine. Consumer behavior is greatly influenced by cultural, social, personal, and psychological factors. 12391255. 68, no. Marks & Spencer Company: Organisational Structure. Notably, status in many groups may be an outcome of the earnings that individuals have or the resources at their disposal. Certain brands keep luxury consumers believing theyre part of an elite club. Reference groups come with various degrees of influence. Each consumer in society is a member of different groups depending on their culture, various subcultures or even social class can influence their consumer purchase. Models of Consumer Decision Making 6. Sub-Culture 3. For example degree of visibility of the product or trademark used by the group members. A: The factors influencing consumer behaviour are- 1. In contrast, people comply with identification groups standards for the sake of belongingfor example, a member of a religious group may wear a symbol even outside the house of worship because the religion is a part of the persons identity. Grhan-Canli, Hayran, and Sarial-Abi (2016) argue that the increasing use of celebrities in adverts is because several clients look at them as role models and are likely to change their minds once they see them advertising certain products. William Bearden Clemson University Michael J Etzel Abstract Consumer perceptions of reference group influence on product and brand decisions were examined using 645 members of a consumer. When companies win the minds of the opinion leaders, the likelihood of receiving positive regard from the group members amplifies. Informal Reference Group. Reference Group Influence on Product and Brand Purchase Decisions I also do not think that there is a big difference between the quality or comfort of designer brands and less expensive unknown brands.
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