Reference Groups

Reference groups are groups that consumers will look to for help in making purchasing decisions.

Learning Objective

Distinguish between an opinion leader and reference group

Key Points

Reference groups are groups that consumers compare themselves to or associate with. They can heavily influence purchasing patterns.
Friends, clubs, religious groups, and celebrities can all act as reference groups.
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.

Terms

opinion leader
The opinion leader is the agent who is an active media user and who interprets the meaning of media messages or content for lower-end media users.
target market
a group of people whose needs and preferences match the product range of a company and to whom those products are marketed

Full Text

Reference groups are groups that consumers compare themselves to or associate with. Reference groups are similar to opinion leaders in that they can have a profound influence on consumer behavior. Reference groups are considered a social influence in consumer purchasing. They are often groups that consumers will look to to make purchasing decisions. 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. On the other hand, if a reference group disapproves of a product, those that associate with that group will probably not purchase the product.

Types of Reference Groups

Reference groups can be either formal or informal. Schools, friends, and peers are examples of informal reference groups . Clubs, associations, and religious organizations are usually formal reference groups. Individuals can also be reference groups (usually known as opinion leaders). Additionally, celebrities can be used as a reference group. A company might use a celebrity it feels will match its target market to get that market to purchase its product. For example, a few years ago Shaquille O'Neal was used to endorse Pepsi because Pepsi felt he represented the spirit of teenagers of the time.

Friends

The friends we have are often one of the most powerful reference groups in influencing our consumer behavior.

Influence of Reference Groups

Reference groups can and do have a tremendous influence on purchasing decisions. This is evident in a number of ways, such as through roles. Everyone is expected to behave in a certain way based on the reference group we belong to. Students act like students. In keeping with this idea, people will often modify their own behavior to coincide with group norms (even those that profess non-conformity are in some ways conforming with other people who want the same thing). Reference groups communicate through opinion leaders, who influence what others do, act, and buy. In the consumer world, this means that if a reference group purchases a product, those that associate with the group likely will as well.

[ edit ]

Prev Concept

Family

Opinion Leaders

Next Concept