Reference Groups

Avil R. Pinto

“Reference groups are groups that people refer to when evaluating their [own] qualities, circumstances, attitudes, values

and behaviors”

—William Thompson & Joseph Hickey, Society in Focus, 2005

A group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values,

attitudes, or behavior.

From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions.

Reference groups that influence general or broadly defined values or behavior are called normative reference groups.

Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference groups.

Primary and secondary reference groups.

Formal and informal reference groups.

Membership and symbolic reference groups.

Friendship Groups

Shopping Groups – 2 or more people who shop together

Work Groups – Who work together as a part of a work team

Virtual Groups/ Communities

Consumer–Action Groups – Who are dedicated in providing assistance to consumers in order to make correct purchase decisions

Selected Consumer-related Reference Groups

Reference Group Appeals

1.Celebrities

2.Experts

3.Common Man

4.The Executive/ Employee Spokesperson

5.Trade/ Spokes Characters or Familiar Cartoon Characters

1.Testimonial

based on personal usage, a celebrity attests to the quality of the product or service.

Types of celebrity Appeals

2.Endorsement

celebrity lends his/her name and appears on behalf of a product o service which he/she may be an expert with or not. The celebrity represents the product over time in a variety of media and in personal appearances

3. Actor

celebrity presents a product as part of a character endorsement

A type of reference group appeal used by marketers is the expert—a person who, because of his or her occupation, training, or experience, can help the consumer evaluate the product being promoted.

Experts

A reference group appeal of based on testimonials of satisfied customers is called the common-man approach.

The Common Man

The trade or spokes-character and the cartoon character serve as quasi-celebrity endorsers.

This person represents the idealized image and dispenses important product information.

Spokes Characters or Familiar Cartoon

Factors that affect Reference Group Influence

Information and Experience

An individual who has firsthand experience with a product or service, or can easily obtain full information about it, is less likely to be influenced by the advice or example of others.

Credibility, Attractiveness, and Power of the Reference Group

A reference group that is perceived as credible, attractive, or powerful can induce consumer attitude and behavior change

Conspicuousness of the Product

Products that are especially conspicuous and status revealing (a new automobile, fashion clothing, sleek laptop computer, or home furniture) are most likely to be purchased with an eye to the reactions of relevant others.