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Impact of Reference Groups on Buying Behaviour of (1)

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    (Age group: 22-35years)

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    India is one of the youngest countries in the world with63.6% of its population in the age-group of 15-64 years.

    This age group also enjoys a decent 1.06: 1 male to

    female ratio, giving women an almost equal presence.

    Now, if we look at the 10 largest cities of India, they have

    a combined population of 6,41,11,356.

    Even if we assume that half of these are women andone-eighth of these citizens are working women, the

    figure still stands at over 40 lakh.

    Thus giving us a very lucrative area of study on women.

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    Reference group is a group to which an individual

    relates to or aspires to relate to himself. It becomes theindividuals frames of reference for ordering hisexperiences, perceptions, cognition and behavior .

    This research is aimed towards study of variousprimary reference groups which include family, friends,neighbors, colleagues etc and their impact on buyingbehavior of working women.

    Working women has been a segment of interest asthey have ameliorated exposure through which theytend to get influenced by both formal and informalreference groups.

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    Advertising

    Personalselling

    Sales

    promotions

    Publicrelations

    Formal

    Referencegroups

    Social class

    Culture

    Environment

    Informal

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    A reference group is the anchor used by andindividual to base any decision or judgement. Itaids a person to evaluate his or her opinions andbehaviour.

    The church, labour union, political party, or sororityare examples of both positive and negativereference groups for specific individuals.

    A reference group can have a large number ofpersons like a political party or can be an individuallike a family member or celebrity.

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    Positive

    Membership Group

    Disclaimant Group

    Aspiration Group

    Avoidance Group

    POSITIVE

    ATTITUDE

    NEGATIVE

    ATTITUDETYPES OF MEMBERSHIP GROUPS

    Family/Peer Groups

    Shopping Groups

    Sports Groups

    INFORMAL FORMALSchool Groups

    Business Groups

    Alumni Groups

    Tenant Organization

    PRIMARY

    SECONDARY

    TYPES OF ASPIRATION

    GROUPS

    Anticipatory

    Symbolic

    CONTACT

    NO CONTACT

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    Primary reference groupsSecondary reference groups

    Types of Reference Groups

    Formal reference groups

    Informal reference groups

    Membership reference groups

    Symbolic reference groups

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    Decision maker of 85% of purchases in ahousehold.

    Women have long been type casted as shopaholics

    and men are run away from it, the recent surveysshow no change in the same.

    Relation between annual income and shoppingfrequency is analysed - 38% women having annualincome if more than 3.5 lacs shop once a month andrest shop once in three months.

    27 percent of a single working womans purchasesconstitute of apparel and accessories. Whereas for amarried woman, this figure stands at 15 percent.

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    Youngsingle

    Outdoor

    sportinggoods,

    sports, carsfashionclothing,

    entertainmentand

    recreationservices

    Youngmarriedwith nochildren

    Recreation

    andrelaxation,insurance,

    home

    furnishing,travel, homeappliances,

    highpurchase

    rate ofdurables

    Youngmarried

    withchildren

    Baby food,clothing, and

    furniture :starter

    housing,

    insurance,washers-

    dryers,medicalservices

    for children,toys

    Middle-agedwith childrenat home

    Restaurants

    Large foodpurchases

    (respond tobulkbuying)dental care,

    higher-pricedfurniture,autos,housing,fast-food

    Divorced

    child care,time-saving

    appliancesand foods,

    cash poor

    Money-savingproducts,

    frozenfoods,rentalhousing

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    Reference group influence generally falls into oneof three categories defined in the following list:

    Informational Influence Consumers use the

    behaviors and attitudes of reference groups asinformation when making their own decisions.

    Utilitarian Influence Consumers conform togroup expectations to receive a reward or avoid

    punishment. Value-Expressive Influence Consumers

    internalize a groups values or joingroups to express their own values and beliefs.

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    Information influence behaviours and opinions of reference groups are used as

    potentially useful pieces of information

    Normative influence (utilitarian influence)when an individual fulfils group expectations to gain a direct

    reward or avoid a sanction

    Identification influence (value-expressiveinfluence)when an individual uses perceived-group norms and values as

    a guide for their own attitudes or values

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    Toilet paper

    Deodrant

    Hot water

    heater

    Clothing

    Mobile

    Automobiles

    shoes

    Jacuzzi tub

    DVD Player

    Electric

    Blanket

    Digital

    Camera

    Jewellery

    In Private In Public

    Necessity

    Luxury

    High

    HighLow

    Low

    Influence on the brand

    Influenceonwh

    ethertheproduc

    tis

    purchased

    What type of

    product is it

    Where is it

    consumed

    Reference group Influence on Public and Privately used Products

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    Need to

    connect

    with

    reference

    groups

    Abundant offerings

    to choose from

    Conscious nature of

    women

    Need to be socially

    accepted

    Trust family &

    friends more than

    themselves

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    Family

    Friends

    Colleagues

    Husband

    Children

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    Identification

    & judging of

    reference

    groups

    Relationship with

    the shopper

    Knowledge &

    expertise

    Social quotient Decision making

    power

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    Easy toconvince duringpoint of

    purchase

    Alwaysconfused

    Not very muchsatisfied

    Are more firm

    Know what theyexactly want

    Moresatisfied

    Women Men

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    Consumers tend to be more influenced by referencegroups if the information is perceived as reliable andrelevant to the problem at hand.

    Thus, some marketers hire recognized experts toendorse a product and tell consumers why it is good.

    The utilitiarian reference groups influence is whenreference groups have the control over certain rewardsand punishment .

    Marketers use these factors by showing suchsanctions in TV commercials (people recoiling fromoffensive body odours, bad breath, or dandruff flakeson someones shoulder).

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    Application of reference groups through :

    Socialnetworking

    sites

    Blogs

    YouTube Media

    ProductPositioning

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    Researches have been done on the impact ofreference groups on buying behavior of women

    for apparels and many other categories of

    products.

    But this research is confined to study the age

    group 0f 22- 35 years of working women which

    can be considered to be the most dynamic agegroup for women.

    We are striving to explore this age segment of

    women and to study their buying behaviour.

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    The two major objectives of our study will be as

    follows:

    To study the primary reference groupsinfluencing the buying behavior of workingwomen.

    To study why consumers affiliate with acertain reference group and how they do so.

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    Research Design An exploratory study in nature focusing on thereference groups and its influence on women.

    Data collection Primary and Secondary Both.

    Primary Data Questionnaires (sample size 100) and Focus Group.

    Sample Size 100 sample divided into

    Single

    Married Married with Kids.

    Secondary Data Research Papers and Journals.

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    ROL fr mp\marketing

    research\Questionnaire.docx

    http://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docxhttp://localhost/var/www/apps/conversion/tmp/scratch_4/ROL%20fr%20%20mp/marketing%20research/Questionnaire.docx
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    SHOPPING COMPANION

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    ACCEPTANCE OF OPINION

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    SOURCES OF INFORMATION

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    Reference groups for women can be family, friend orcan be any one the woman knows. Women are largelyinfluenced by the people around them for theirshopping decision.

    The data shows that women explore for shoppingtrends and shop at least once a month.

    Also the impact of reference group varies with productcategories .

    Magazines and television can be important sources ofinformation for women. Hence marketers can usethese mediums to target women.

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    To continue the study further :

    How primary reference group influences.

    Detailed analysis of each group.

    Impact of age on the reference group

    influence for women.

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    The age group 22-35 considers of women

    at different stages who may act differently

    at different stages.

    Due to the scarcity of resources , the

    sample size was kept at100

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    http://libguides.usc.edu/content.php?pid=83009&sid=818072

    (Accessed on 27/1/13 at 12:50am)

    http://www.egyankosh.ac.in/bitstream/123456789/35538/3/Unit-3.pdf (Accessed on 27/1/13 at 12:50am)

    http://wiki.answers.com/Q/Definition_of_primary_and_secondary_research(Accessed on 27/1/13 at 12:50am)

    http://www.businessdictionary.com/definition/reference-group.html#ixzz2NVyBVuPg

    (accessed on 14/3/13 at 5:30pm) https://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdf(Accessed on 10/3/13 at 2.09 am)

    http://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQ

    (Accessed on 14/3/13 at 10:30pm)

    Images references:

    http://www.google.co.in/imgres?q=women+purchasing+apparel&um=1&hl=en&biw=1366&bih=623&tbm=isch&tbnid=eEtIps8fAcj_OM:&imgrefurl

    (Accessed on 14/3/13 at 10:30pm)

    http://libguides.usc.edu/content.php?pid=83009&sid=818072http://www.egyankosh.ac.in/bitstream/123456789/35538/3/Unit-3.pdfhttp://wiki.answers.com/Q/Definition_of_primary_and_secondary_researchhttp://www.businessdictionary.com/definition/reference-group.htmlhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://www.google.co.in/imgres?q=women+purchasing+apparel&um=1&hl=en&biw=1366&bih=623&tbm=isch&tbnid=eEtIps8fAcj_OM:&imgrefurlhttp://www.google.co.in/imgres?q=women+purchasing+apparel&um=1&hl=en&biw=1366&bih=623&tbm=isch&tbnid=eEtIps8fAcj_OM:&imgrefurlhttp://www.google.co.in/imgres?q=women+purchasing+apparel&um=1&hl=en&biw=1366&bih=623&tbm=isch&tbnid=eEtIps8fAcj_OM:&imgrefurlhttp://www.google.co.in/imgres?q=women+purchasing+apparel&um=1&hl=en&biw=1366&bih=623&tbm=isch&tbnid=eEtIps8fAcj_OM:&imgrefurlhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttp://books.google.co.in/books?id=QpCvQfnPpNwC&pg=PT234&lpg=PT234&dq=why+do+people+associate+with+a+reference+group+for+buying&source=bl&ots=hYuU0GjrKj&sig=4WoFiKEKoQptZdPB2-K5rtwAh9k&hl=en&sa=X&ei=iABCUbySAsjOrQfWq4H4Dw&ved=0CDEQ6AEwAQhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttps://globaljournals.org/GJMBR_Volume12/1-The-Influence-of-Formal-and-Informal.pdfhttp://www.businessdictionary.com/definition/reference-group.htmlhttp://www.businessdictionary.com/definition/reference-group.htmlhttp://www.businessdictionary.com/definition/reference-group.htmlhttp://wiki.answers.com/Q/Definition_of_primary_and_secondary_researchhttp://www.egyankosh.ac.in/bitstream/123456789/35538/3/Unit-3.pdfhttp://www.egyankosh.ac.in/bitstream/123456789/35538/3/Unit-3.pdfhttp://www.egyankosh.ac.in/bitstream/123456789/35538/3/Unit-3.pdfhttp://libguides.usc.edu/content.php?pid=83009&sid=818072
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    THANK YOU

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    MFM II

    Palak AgarwalRutu Patel

    Ruchi Patel


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