It is a group that serves as a reference point for an individual for hisher beliefs, attitude and behaviour. Now our reference could be very large or very small including few of our family members or few close friends. Figure 1 represents the relationships between the hypotheses to be tested in the empirical research. Reference group has influence in consumers decision making. Pdf the role of reference group on consumer purchasing. The family life cycle stages in consumer behaviour the family life cycle stages in consumer behaviour courses with reference manuals and examples pdf. Social factors influencing consumer behavior definition. So if a reference group endorses a product, either through use or statements about the product, those that look to. Normative reference group influences your norms, attitudes. These varied behaviors influence the personal preferences of the other set of individuals as they tend to perform those activities which are acceptable.
Reference groups influence people a lot in their buying decisions. H7c the higher is the level of knowledge concerning a certain product, the stronger is the power of reference group influence in that consumption situation. Social factors play an essential role in influencing the buying decisions of consumers. How reference groups exert influence on consumer behavior 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. Reference groups affect consumers by imparting information and by influencing value expressive needs of the consumers. Informational influence occurs when an individual uses the behavior and opinions of. Consumer behaviour edinburgh business school v contents preface xii part 1 the consumer in context module 1 people as consumers 11 1. Existing literature demonstrates that reference groups have significant influence on consumers purchasing behaviour. Based on these empirical findings, the first hypothesis to be tested is. Reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also. What are social factors influencing consumer behavior. A reference group to which an individual wishes to belong consumers use others as a source of information to shape and evaluate their beliefs.
As this study is an exploratory study, a pilot study of 50. A group to which a person either belongs or would qualify for membership in. Social factors are among the factors influencing consumer behavior significantly. The degree of reference group influence varies across product and brands with factors such as 1 the visibility to the group, 2 the necessitynonnecessity nature. Influence of social reference group on buying behavior, a. Humans are inherently social animals, and individuals greatly influence each other. Consumer behaviour is about people, or more accurately, the systematic study of their behaviour patterns in. The purpose of the research is how the factors of consumer behavior affect or influences the branded product. A group in which an individual is not likely to receive membership, despite acting like a member by. Factors affecting consumers buying decision in the. Using reference groups in marketing business 2 community. There are two types of reference groups positive and negative reference groups. The modern day marketing has not only become consumer oriented but it has even diversified its base.
This explains the outside influences of others on our purchase decisions either directly or indirectly. Reference groups are considered a social influence in consumer purchasing. Though in simple terms, consumer behaviour is defined as the study of individuals, groups or organizations and the processes used by them to select, secure and use. In an age where the brands are being created frequently. A persons reference group consist of all the groups that have a direct indirect influence on the persons attitude behaviour. Cultural effects on consumer behavior, 7 7 although childers 1992 references hofstedes 1984 research, he further segregates reference groups into comparative reference groups which are used for a consumers selfappraisal and normative reference groups. Every individual has someone around influencing their buying decisions. Identifying and using reference groups in marketing are important because reference groups influence the attitudes, goals, aspirations, opinions, and information. Junior scientific researcher journal munich personal repec. Our parents, our families, and our friends play a role. There are many types of reference groupsconsumers latch on to. A study on influence of reference group and role and status.
The family life cycle stages in consumer behaviour. The impact of social factors affecting consumer behaviour on. Oct 28, 2008 influence of reference groups on consumer behaviour. They are often groups that consumers will look to to make purchasing decisions. Reference groups are those that somehow affect the value and the perceived behavior of others.
This is when the reference group is used as a knowledgeable source in the different parts of the buyers decision process. 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. Social factors influencing consumer behaviour philip. How do reference groups influence consumer behavior.
May 04, 2019 the modern day marketing has not only become consumer oriented but it has even diversified its base. Reference group is a group that serves as a reference point for an individual in the formation of hisher beliefs, attitudes and behaviour. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption. Reference groups also influence the way people become, the way the think and act, as well as what people believe. It should be noted that the reference group differs from opinion leaders. It includes groups reference groups, aspirational groups and member groups, family, roles and status. Consumer behaviour is about people, or more accurately, the systematic study of their behaviour patterns in a marketing context keith williams 1983. Reference groups are the groups that people identify psychologically and in which it serves as the sources of selfevaluation.
Every consumer is an individual, but still belong to a group. Thus, it can be said that a consumer s reference groups are those groups, which may have a direct or indirect influence on ones attitude or behavior. The social factors are the factors that are prevalent in the society where a consumer live in. She is a key member of a team exploring how technology can be. Primary groups are intimate, facetoface such as family and peer groups. As consumers, our buying decisions are often influenced by our reference groups, these being the group of people whose presumed perspectives or value are used as a basis for purchasing decisions. Reference groups and opinion leadership consumers behavior. The family life cycle stages in consumer behaviour tutorial. Consumer behaviour emerged in the 1940s and 50s as a distinct sub. And these groups, called reference groups,can affect a consumers behaviorpositively or negatively.
Both fields confirm that personal traits and the impact of the social environment equally form ones way of life including consumption as well piko 2003. Reference groups and family reference groups and families. A group consists of two or more individuals who share a set of norms, values or beliefs and have a defined relationship such that their behaviour is interdependent. The marketing implications of the consumer decisionmaking process are essential to understand in order to maximize sales. Informal primary groups include family and peer groups. The impact of social factors affecting consumer behaviour. A group in which an individual is not likely to receive membership, despite acting like a member by adopting the. Consumer behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Dec 30, 2017 reference groups in consumer buying hints that as a consumer, your decision to purchase and use certain products is influenced by reference also. Social reference group influence on women buying behaviour. When it comes to consumer or consumer behaviour, these are very complex concept. Reference groups are people in a consumers microsocial environment who are salient or relevant for the consumer.
The study of consumer behaviour is concerned with all aspects of purchasing and consumption behavior as well as all persons involved in purchasing and consumption activities. A useful framework of analysis of group influence on the individual is the so called reference groupthe term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Factors affecting consumers buying decision in the selection. Consumer behavior consists of factors that have effect on consumers buying. Reference groups in consumer buying role of reference groups. Reference groups and family 1 reference groups and families questions 1. The role of reference group influence in consumer behaviour. Conspicuousness of a product also plays a vital role in reference group influence on women consumer behaviour.
Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer s emotional, mental and behavioural responses that precede or follow these activities. Reference group and opinion leadership reference groups use other people as a frame of reference. In this article, we look at one of the common factors that affect consumer buying behavior. A group consists of two or more individuals who share a set of norms, values or beliefs and have a defined relationship such that their behaviour. Marketers frequently advertise their products in a group setting the family eating breakfast cereals, the neighbor admiring the paint of the house. A reference group serves as a frame of reference for an individual and influences hisher behavior.
Low prestige attached to technical vocational education and training and its inherent inequities are a common phenomenon in thailand. Formal groups are highly defined in structure, interact frequently, such a school groups, business groups and work. Social groups that are important to a consumer and against which heshe compares himselfherself. Reference groups can influence a consumer by affecting how they perceive a given product or service i. Pdf social reference group influence on women buying. The stages at which families find themselves, affect the nature of the goods and services required, their wants and consumption patterns, as well as the volume of consumption on specific. Pdf reference groups and choice of vocational education. How reference groups exert influence on consumer behavior. Classification of groups by membership status membership group. Of the reference groups, the immediate family influenced consumers most in their.
We need people around to talk to and discuss various issues to reach to better solutions and ideas. Social factors affect consumer behavior significantly. Reference groups as seen above have the greatest influence with the closest personal connection with customers. Consumer perceptions of reference group influence on product and brand decisions were examined using 645 members of a consumer panel and 151 respondents in a followup study.
Consumer behaviour jane priest is a teaching fellow at edinburgh business school and teaches parts of the oncampus marketing course, as well as the consumer behaviour elective by distance learning. Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumers emotional, mental and behavioural responses that precede or follow these activities. They set the levels of lifestyle, purchasing patterns, etc. A study on influence of reference group and role and. If one wants to be a member of the group, one has to conform to the. There is a significant positive relationship between reference group and consumer purchasing decision family. Mar 08, 2010 the nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption. This study aims to identify factors influencing thai students choices of vocational education.
Consumer behavior literature indicates that reference groups may alter consumers choices in three different manners. Consumers are driven both by rational thinking and emotions, and marketers must conduct careful research to tap into and harness the power of this information in their efforts. A group may be defined as two or more people who interact to accomplish either individual or mutual goals. Reference groups can influence an individuals cognitions, affective responses, and behaviors. Despite the above tendency, however, i have chosen the examination of the role of reference group influence in consumer behaviour as the topic of my dissertation. Aspiration groups want to belong to disassociate groups do not want to belong to honda, tries to disassociate from the biker group. Social influences on the consumer decision process. Most people confuse this influence with peer pressure. Definition of reference group in consumer behaviour definition of reference group in consumer behaviour courses with reference manuals and examples pdf. So if a reference group endorses a product, either through use or statements about the product, those that look to the group will often purchase that product. Consumer behaviour emerged in the 1940s and 50s as a distinct subdiscipline in the marketing area. Influence of reference groups on consumer behaviour. Social groups and consumer behaviour marketing essay.
Consumer behavior implications for marketing strategies. Third, the created compulsive conditions may have influence on the choice of product brands kotler, armstrong, 2006. The society is composed of several individuals that have different preferences and behaviors. Reference group group of people which includes individuals or groups that influence our opinions, beliefs, attitudes and behaviors. There are various different influences on whether we buy a product or not and this is called consumer behaviour. Reference groups family roles status reference groups. Factors that affect reference group influence vikram ram. This research aims to analyze 1 what is the influence of social factors reference group, family, roles and status on young consumer behavior towards.
Reference groups can be classified in many different ways, based on degree of influence normative reference group and comparative reference group. How reference groups exert influence on consumer behavior 3143 words pages. Reference group influence on product and brand purchase decisions. Influence of reference groups on consumer behaviour 79,400 views. Most people have several reference groups like family, friends and church. You as the marketer need to understand this relationshipto improve how you promote and sell your products. Reference group influence on product and brand purchase.