Group & Family Influences: Group & Family Influences Learning outcomes Explore the definitions of and types of reference groups Understand the concept of power and power influence of reference groups Understand modern families and the power roles of family in the consumption process Examine Opinion Leaders and their use my marketers


Introduction to Group : Introduction to Group Human beings are social animals Groups are of particular interest to consumer scientists and to marketers because behaviour in groups is usually more readily predictable than that of individuals A group is ‘a plurality of persons who interact with one another in a given context more than they interact with anyone else’ Sprott 1958 In marketing we call different groups reference groups


Reference group: Reference group A reference group is any individual or collection of people whom the individual uses as a source of attitudes, beliefs, values of behaviour. The essence of a reference group lies in its use by individual as: - a point of comparison for personal attitudes, behaviour and performance


Broad categories of reference groups: Broad categories of reference groups Normative reference groups Comparative reference groups Formal and informal/friendship groups Membership Vs Aspirational groups Positive vs Negative groups Virtual groups or communities


Types of reference groups: Types of reference groups Reference groups Formal & informal groups Primary/secondary groups Membership groups Aspirational groups Dissociative groups Distinctions & characteristics Formal reference groups have clearly specified structure, informal groups do not Primary reference groups involve direct, face-to-face interactions; secondary groups do not people become formal members of membership reference groups People aspire to join or emulate aspirational reference groups People seek to avoid or reject dissociative reference groups


Reasons for group affiliation: Reasons for group affiliation People identify with particular groups for three main reasons: To gain useful knowledge To obtain rewards or avoid punishment To acquire meanings for constructing, modifying, or maintaining their self-concepts The above three goals reflect three types of group influences Informational reference group influence Utilitarian reference group influence Value-expressive reference group influence All three types of reference group can in some cases be accomplished by a single reference group


Reference groups influence on Products and Brands: Reference groups influence on Products and Brands Public necessities Private necessities Public luxuries Private luxuries


Definition of Family: Definition of Family A family is a group of at least two people formed on the basis of marriage, cohabitation, blood relationship, or adoption. Eg -Married couple -Nuclear family -Extended family -Single parent family -Same sex family -Multigenerational family - Variations of family in different countries In consumer behaviour studies, families often serve as a basis for various types of consumer analysis


The family as a reference group: The family as a reference group The family exerts an important influence because of its role in the following processes: - the socialisation of children - role definition - self awareness - goal-formulation & articulation - consumer decision making


Family influences: Family influences The importance of the family is also emphasised by its various functions to marketers -The family as a consumption unit -A purchasing unit -A financial resource - A source of information - A source of physical satisfaction - A source of emotional satisfaction


Family decision-making: Family decision-making Kotler distinguishes five buying roles which must be taken into consideration in analyses of family consumption behaviour The initiator The influencer The decider The purchaser The user It is common for individuals in a family to carry out different and sometimes more than one role in the purchase process


Implication of family decision making for marketers: Implication of family decision making for marketers Marketers must find out whether a woman or man in the household is the buyer or decision-maker Whether it is parents or children who usually finds out first about products or brands Who in the family has the power to persuade the buyer to make a particular brand choice and purchase The above information may determine the product positioning (ie masculine/feminine, youthful/mature image) May also determine distribution and promotion pattern May determine target audience for information


Power roles of family in the consumption process: Power roles of family in the consumption process If marketers can identify power influencers they can be targeted as a way of getting to decision makers Media designed for sharing by whole family unit eg –Television – Sunday newspapers – Family films The above used by marketers to reach influencers, decision makers, buyers and users


Types of family members influence on product purchase: Types of family members influence on product purchase Husband-dominant Wife dominant Autonomic Syncratic


Types of family: Types of family Autocratic families: In which the main power is concentrated in a single person. These could be in the form of the dominant sex: -Patriarchal -Matriarchal Democratic families: Where the decisions are made jointly. Several types depending on the role of the children. -children submitting to parents influence -children takes control of the family (consciously or unconsciously)


Changing patterns of roles in the family: Changing patterns of roles in the family Marketers must take note of the shifting patterns of family roles Greater financial independence for working women Acceptance of household tasks by men The earlier age at which children expect their own independence The above points are changing the composition of the traditional target markets


Opinion Leadership: Opinion Leadership An Opinion Leader is a person who informally influences the actions or attitudes of others He/she may be a leader in relation to certain products Opinion Leader has the following characteristics – Knowledge and interest – Consumer innovators – Media choice


Implication of reference groups for consumer behaviour: Implication of reference groups for consumer behaviour Many purchases are subject to groups pressure as consumers try to buy products that others want them to have, that they think will make others accept, approve or envy them, or because they have learnt something important about the product from others Many marketing and advertising strategies use group influences to persuade consumers to ‘buy this brand because this group recommends it’ Membership in a group involves the individual in accepting a degree of conformity as the group norms of behaviour which define the group’s identity by specifying the ideal patterns of behaviour which members should perform Therefore reference group influence consumer behaviour by compliance, identification & internalization