cb 8 (ref. grp flc)
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8/7/2019 CB 8 (Ref. Grp FLC)
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REFERENCE GROUP &
FAMILY INFLUENCES
Prepared by:
Prof. Manu Priya Gaur
manupriya@imi.ac.in
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Consumer Decision Process
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Influence of the Social Environment
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Consumers want to be
like the people theyadmire and respect.
They will
emulate them
aspire to be like them,
listen to them
identify with them
and buy what they buy.
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As the value of the group to the individual increases so too
does the likelihood that the group will guide consumption
decisions.
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A group may be defined as two or more
people who interact to accomplish eitherindividual or mutual goals.
What is a group ?
Types of GroupsTypes of Groups
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A group consists of two or more people who
interact with each other to accomplish some goal.
A reference group involves one or more people
used as a basis for comparison or point of
reference in forming affective and cognitive
responses and performing behaviors.
People to whom an individual looks as a source of
personal standards.
Reference Groups People or institutions whose opinions are valued and to
whom a person looks for guidance in his or her ownbehavior, values, and conduct, such as family, friends, or
celebrities.
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1. They serve as information sources and influence
perceptions.
2. They affect an individuals aspiration levels.
3. Their norms either constrain or stimulate consumer
behavior.
Marketers recognize interpersonal influences beyond the
family, including friends, coworkers, and others. These
sources of influence are often called reference groups, or
those others look to for help and guidance.
Influence of reference group depends on two conditions:
Purchased product must be seen and identifiable.
Purchased product must be conspicuous, something not everybody
owns.
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When do Group Exert Influence?
People use group norms to define themselves.
The group influence on an individual behaviour
depends on three factors.
1. Attitude Towards Group-
individuals susceptibility to group influence varies:
Views R G as credible source of information
Values the views & reactions of group members with
regard to buying decision. Accepts the rewards & sanctions allotted out by the
group for proper & improper behavior.
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2. The Nature of The Group- Reference more likely to
influence group members behaviour if they are:
Cohesive & having similar values & norms.
Frequently interacting
Distinctive & exclusive
3. The Nature Of the Product- the nature of the product
determines the degree of influences, if product are:
Visible as clothing
Exclusive that might speaks of status i.e.Mercedes.
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PrimaryPrimary InformalInformal GroupsGroups:: family & peers,important because of closeness & frequent
contact.
PrimaryPrimary FormalFormal GroupsGroups:: more formal structure,
contact less frequently. Advertisers use group
setting as a means of winning product approval.
SecondarySecondary InformalInformal GroupsGroups:: no formal structure &
meet once in a while. Ex. Womens kitty party ,sports groups.
SecondarySecondary FormalFormal GroupsGroups:: not very important tomarketers, meet infrequently. Ex. Teachers
associations, retailers associations.
Types Of Reference Group
Membership Groups
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Normative Reference Group
Group that directly influence general or broadly
defined values or behaviour. Childs normative reference group will be his family
Family plays a important role molding the childsconsumer behavior i.e. in food he consume, the
selection of food.
Comparative Reference Group
Group which serve as a bench mark or severe as a
point of comparison for evaluating own status. Neighbours & in college peers as comparative RG.
Comparative reference group can influenceindividuals drees code, life style etc.
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Indirect Reference Group
Movie stars, sports personality. No face-to-face
contact or interaction between. Fans try to imitate their hair styles, dressing, life
styles, behavior etc.
Their judgment on facts, & fashions or social
messages carries a lot weightage & this reflectedin their purchase decision.
Ex. Sachin Tendulkar promoting Action Shoes,
Sharukh Khan on Mayur Suitings, Saif Ali aboutHULS Clinic Plus. They act as Opinion Leaders.
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Indirect Reference Group
It is one which the individual wishes or aspire to
belong. Does not have face to face contact, but aspires to
be a member.
Teen-age cricket player hope to play some day for a
country.
So the consumer will select the brand of the
product because the personality matches &
express his own aspirations. Ex. Bagpiper Whisky promoted by film star
SUNNY DEOL,. Products like cigarettes, liquor,cosmetics, automobiles, fashion.
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Disclaiming Reference Group
This is a group whose values or behaviors does not
appeal to individual Person may have membership, but disapproves the
group values.
Avoidance Reference Group
Group with which the person may not hold
membership, nor have face to face contact. Person tend to avoid the group & adopt values &
attitude in opposition of the group.
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Analyzing 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
± Can have both positive and negative effects on
consumers ± People identify and affiliate with particular reference
groups for three reasons
To gain useful knowledge
To obtain rewards or avoid punishments
To acquire meanings for constructing, modifying, or
maintaining their self-concepts
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Selected Consumer-Related Reference Groups
FriendshipFriendship
GroupsGroups
They are unstructured, friends fulfill wide rang of needs, provide companionship, security,
opportunities, discussions. Marketers depicts
friendship situations for clothing, fine jewelry, snacks.
Consumers influenced by diverse range of people:
ShoppingShopping
GroupsGroups
WorkWork
GroupsGroups
Two or more people who shop together, for clothing,
households. Motive is to share time together, helps in
reducing the risk while making decisions. People feel
more confident in collective decision making.
35 hrs per week people spend at their workplace.
People who work together as part of team, sustained
opportunity to influence each other¶s consumption
related attitude, brand choices.
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Reference Group will influence choice of
clothes in Group members
Ad shows RG influences among youth for
Duke T-shirts & Shorts
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Consumer Consumer--ActionAction
GroupsGroups
Celebrities &Celebrities &other RGother RG
AppealAppeal
A Particular kind of consumer group, has emerged in
response to the consumerist movement. Providingconsumers with assistance in right purchasing
decision, consume products & services in healthy
manner.
The experts, The Common man, the executive &
employee spokesperson, trade or spoke-characters
VirtualVirtual
Groups/Groups/CommunitiesCommunities
People on their computers, logging onto the we,
visiting special interest with chartrooms. These
communities provide members with extensive amountof information covering large variety of topics. Help
good product sells fast.
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Groups Influence Buying
in Two Ways:
They affect thepurchases made by
individual consumers
Group memberssometimes make
decisions as a group
You and your partner/friends have decidedto go out to dinner and want to try some
place new, and a little classier. How do you
choose which restaurant to go to?
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Factors that Affect
Reference Group InfluenceInformation and experience (more informed and
experienced individuals in a product category are less
likely to be influenced by groups)
Individual difference factors, e.g.personality/involvement
Conspicuousness of the product (e.g. public use of a
product can influence acceptance of group attitudes)Credibility, attractiveness, and power of the reference
group.
Degree of perceived risk (economic, social, physical)
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Who would you go to for
information or advice on skinCare products?
Friend 30.2%
Doctor (Specialist) 22.1
Hair dresser/beautician) 18.6
Other 14.0
Pharmacist 8.1
Spouse 7.0Total 100%
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U sing students as the market segment, describe the most
relevant reference group(s) and indicate the probable degree of
influence for each of the following decisions:
a. Brand of mouthwash
b. Purchase of Car Insurance
c. Purchase of a Pet
d. Choice of Restaurant
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FAMILY INFLUENCES
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Family
How does the family affect consumer
behavior?
(consumer socialization)
Roles in Family Decision Making
Who is the Decision Maker(Husband dominant, wife dominant, and joint
decision making)
Family Life Cycle
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Group/Family Decision Making
Decision Roles: ± Influencer: influences the purchase decision.
± Gatekeeper: Role to control as in organization.
± Decider: makes the final decision regarding a purchase.
± Buyer: engages in the actual transaction/ purchase.
± Preparer: prepares the purchased goods for use.
± User: uses the purchased good(s).
± Maintainer: maintains or takes care of the good(s).
± Disposer: chooses when and how to dispose of the
good(s).
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FAMILY INFLUENCES
F our roles of spouses:
Autonomic Autonomic rolerole ² partners independently make an equal number
of decisions.
Husband Husband--dominant roledominant role ² husband usually makes certain buying
decisions, such as purchasing life insurance.
WifeWife--dominantdominant rolerole ² wife makes buying decisions, such as buying
children¶s clothing.
SyncraticSyncratic rolerole ² buying decision made jointly.
(Increasing occurrence of two-income households increases likelihood of spouses
making joint buying decisions.)
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Who Buys the Pants?
Although many men still wear the pants in the family, its
women who buy them.
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Family Influences
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Families and HouseholdsHouseholds are
composed of all those
people who occupy a
living unit
±
The Nuclear Family ± The Extended Family
± The Detached Nuclear
Family
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Family Households: Married couples
Married with children at home
Married with no children at
home
Single fathers
Single mothers
Other families
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Nonfamily Households:
Men Living
Alone
Women Living
Alone
Other
Nonfamilies
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Some Household Trends
Childless couples 45-64 have the most
buying power.
± Single parents/childless singles over 45 have
the least.
Size has shrunk from 3.14 to 2.67 persons.
± Increase in divorce: children leave home prior
to marriage: older people maintain ownhomes.
Later marriage.
2-career families.
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Relationships among Purchasers and
Consumers in the Family
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Traditional Family Life Cycle StagesTraditional Family Life Cycle Stages
StageStage II:: BachelorhoodBachelorhood-- Young single adult
living apart from parents. Spend their
income on rent, basic home requirements,
lifestyles, entertainment.
StageStage IIII:: HoneymoonersHoneymooners-- Young married
couple. Start-up expenses on appliances,
utensils, accessories, vacations.StageStage IIIIII:: ParenthoodParenthood-- married couple
with atleast one child at home. Expenses
on education
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StageStage IVIV:: PostparenthoodPostparenthood-- older married couple
with no children living at home. Worrying about
marriage of remaining children. Higher disposable income because of savings &
investments.
Expenses on travel, entertainment, club fee,
refurnishing home, market for new automobiles,luxury goods.
StageStage VV:: DissolutionDissolution-- occurs at the death of one
spouse.Expenses on health, donations etc.
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Marketers use the family life cycle toMarketers use the family life cycle to
±Segment the market
±Analyze market potential
±Identify target markets
±Develop more effective marketing
strategies
Developing marketing strategies for the
bachelor segment is a challenge
Some stages in the family life cycle are
more important markets than others
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Family Life Cycle StagesFamily Life Cycle Stages1. Young Single
2. Young Married with no Children (DINKS)
3. Young - married with children- divorced without children
- divorced with children
4. Middle Aged
a. married without children
b. divorced without children
c. married with children
d. divorced with children
e. married without dependent children
f. divorced without dependent children5. Older
(i) older married (ii) older unmarried (divorced, widowed)
6. Other- SSWDs
single separated widowed / divorced
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MODERN FAMILY LIFE CYCLE
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Functions of Family
1.Economic Well-Being
2.Emotional Support
3.Suitable Family
Lifestyle
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