GROUP INFLUENCES ON CONSUMER

BEHAVIOUR

GROUPTWO OR MORE INDIVIDUALS WHO SHARE A SET OF NORMS, VALUES, BELIEFS AND HAVE CERTAIN IMPLICITLY OR EXPLICITLY DEFINED RELATIONSHIPS TO ONE ANOTHER SUCH THAT THEIR BEHAVIOURS ARE INTERDEPENDENT

REFERENCE GROUP

GROUP WHOSE PRESUMED PERSPECTIVES OR VALUES ARE BEING USED BY AN INDIVIDUAL AS THE BASIS FOR HIS/HER CURRENT BEHAVIOUR

CO-WORKERSAT WEEKEND

JOB

HOMETOWN FRIENDS

FRIENDS AT APARTMENT

COMPLEX

CLASSMATES

INSTITUTECRICKET TEAM

IMMEDIATE FAMILY

INDIVIDUAL

CLASSIFICATION OF GROUPS

•FORMAL & INFORMAL – goals and structures•PRIMARY & SECONDARY – interaction•ASSOCIATIVE & DISSOCIATIVE – people are very similar as how I would like to be•CONSUMPTION GROUPS

• Group self-selection on the basis of shared COMMITMENT to particular product class, brand or consumption activity

Morning walk, Golf, Cricket, Swimming, Biking, Judo, Health

clubCONSUMPTION NEED

NOT BE SHARED PHYSICALLY

(ENTHUSIASM)Eg.. cricket uniform, cap, gloves,

•BRAND GROUPS

NON-GEORAPHICALLY BOUND COMMUNITY BASED ON A STRUCTURED SET OF SOCIAL RELATIONSHIPS AMONG OWNERS OF A BRAND & PSYCHOLOGICAL RELATIONSHIP WITH BRAND.

Eg – Car clubs, annual get together, kitties, Brandfests

GROUP POWERS

• REWARD POWER• EG.. FAIRNESS CREAMS, PIMPLE PROBLEMS, BAD ODOUR

• COERCIVE POWER• EG.. TUPPERWARE

• EXPERT POWER• EG.. DENTIST FOR TOOTHPASTE, CERTIFICATIONS

• REFERENT POWER• EG.. GARNIER HAIR COLOUR

REFERENCE GROUP INFLUENCES

INFORMATIVE

• use of opinion, behaviours as useful bits of information

• based on similarity & expertise

•UTILITARIAN

•VALUE-EXPRESSIVE

•NORMATIVE– Individual fulfills group expectation to gain a direct reward or to avoid a

sanction. Eg.. Mouthwash, Deo

IDENTIFICATION

• when individual has internalized the group’s values & norms. Eg.. Showing socially active young people using the pdt

Group Benefits

• Informational Benefits – actively search information from opinion leaders /experts /professionals /friends /neighbours /relatives – Observation of behaviour of other people.

• Utilitarian Benefits – pressure on ind. to conform to preferences/expectations of another ind. or group.- visibility – control of rewards or punishments – motivation – satisfy expectations of others.

• Value-expressive benefits – motive to enhance self-concept, bolster his ego, like the group, establish maintain relationship

Variability Among ProductsConspicuousness, exclusive, identifiedDistinction between luxuries & necessitiesPublicly consumed luxuryPrivately consumed luxuryPublicly consumed necessityPrivately consumed necessityShifting of product perceptionsStrategies :: not strong brand/pdt- intrinsic qualities, price, advantage over competing pdts ::: operative-kinds of people, stereotypes, learning, tailored appeal

DEGREE OF INFLUENCE BY REFERENCE GROUP

VISIBLE USAGE – mobile / pen drive/ insurance/ medicines

NON-NECESSARY ITEM- designer wear

HIGHER COMMITMENT – dressing for dinner

HIGH RELEVANCE OF PRODUCT TO GROUP – style of dressing for nice restaurant or basketball team

PURCHASE CONFIDENCE