reference groups and family

14 Reference Groups and Family : 

14 Reference Groups and Family Paul and Olsen Edited by J. Tang

Reference Groups and Family : 

Reference Groups and Family They are aspects of the micro social environement for consumers. Social interactions with reference groups and family are often direct and face to face, which can have immediate influences on consumers’ cognitive, affective and behavioral responses to marketing strategies.

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Example. The social environment created when two friends shop together can influence each person’s shopping experience, decision process and overall satisfaction with a purchase.

Reference group : 

Reference group Involves one or more people whom someone uses as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors. Reference groups can be of any size ( from one person to hundreds) and may be tangible ( actual people) or intangible one symbolic ( successful business executive s or sports heroes)

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People’s reference groups ( and single referent persons) may be from the same or other social classes, subcultures, and even cultures. I:ssues of major importance to marketing concerning reference group influence include the ff: 1. What types of influence do reference groups exert on indiviuals?

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2. How does reference group influence vary across products and brands? 3. How can marketers use the concept of reference groups to develop effective marketing strategies?

Types of Reference Groups : 

Types of Reference Groups Formal/Informal – Formal reference groups have clearly specified structure; informal groups do not. Primary/secondary – Primary reference groups involve direct, face-to-face interactions; secondary groups do not. Membership – People become formal members of membership reference groups

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4. Aspirational – People aspire to join or emulate aspirational reference groups. 5. People seek to avoid or reject dissociative reference groups. Analyzing Reference Groups: Reference groups are cultural groups in that members share certain common cultural meanings. Marketers try to determine the content of the shared meanings of various reference groups ( the common values, beliefs, behavioral norms and so on)

Analyzing Reference Groups : 

Analyzing Reference Groups They then select certain reference groups to associate and promote their products. Reference groups can have both positive and negative effects on consumers. Many social groups incorporate desirable, positive cultural meanings and become associative reference groups that consumers want to emulate or be affiliated with.

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Others are negative by being distasteful. Types of Reference Group Influence Identify/affiliate with reference groups for three reasons: To gain useful knowledge To obtain rewards or punishments To acquire meanings for constructing, modifying or maintaining their self-concepts

Three types of reference group influence: : 

Three types of reference group influence: 1. Informational reference group influence: - It transmits useful info to consumers about themselves, other people or aspects of the physical environment such as products, services and stores. - Consumers tend to be more influenced by reference groups if the information source is perceived to be trustworthy.

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Directly or indirectly, intentionally or accidentally sought out obtained like a direct observation or vicarious learning they provide more information ( cognitive ) than affective strategies .

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2. Utilitarian reference group influence on consumers’ behaviors (and affect and cognitions) occurs when the reference group controls important rewards and punishments. Consumers comply with the desires of a reference groups if … A. They believe the group can control the rewards and punishments

Consumer comply… : 

Consumer comply… B. The behavior is visible or known to the group. C. They are motivated to obtain rewards and avoid punishments. 3. Value-expressive reference group influence can affect people’s self-concepts. If reference group create cultural meanings. People seek desirable cultural meanings to use in constructing , enhancing or maintaining

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- their self-concepts. (Beliefs, values, goals behavioral norms, lifestyles) Identification with a reference group strengthens a belief. Ex. A religious group can strengthen faith in God and a Catholic will buy saints and crucifixes. These reference groups meanings can influence affect, cognitions and behaviors

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A public luxury brand and product has strong influence A private luxury product is strong and brand is weak A public necessity has a weak product and strong brand influence A private necessity has a weak product and weak brand influence

Reference Groups and Marketing Strategy : 

Reference Groups and Marketing Strategy Marketers try to stimulate reference group influence. Ex. A health club offers you two months’ service free if you get a friend to sign up for one year membership)

Family see Bernadette’s report : 

Family see Bernadette’s report The End ----