How Reference Groups Exert Influence on Consumer Behavior

Reference groups are actual or imaginary individual or group that significantly influences an individual’s evaluations, aspirations, or behavior. Reference group influences us in three ways: informational, utilitarian, and value-expressive. The National Rifle Association of America (NRA) is an American non-profit organization, which backs for gun rights. NRA has been acknowledging its members about gun-related bills. NRA has also been directly promoted against legislation.

Conformity is a concept that has been heavily researched in the field of social psychology. Conformity is defined as a change in behavior, beliefs, and attitudes due to group pressure perceived as real (encompassing the presence of others) or imagined (encompassing the pressure of social standards) (Myers, 2010, p. 192). The concept of conformity is a powerful influence on the tendency for people to arrange their thoughts, perspectives, and ideas with others, especially when in a group. This takes away from a person’s individuality because they want to feel accepted by others and therefore, a person will accomplish this basic need of approval through conforming.

2.Social Factors: A consumer's behaviour is influenced by such social factors as reference groups, family and social roles and statuses. A person's reference group consists of all the groups that have a direct or indirect influence on the person's attitudes or behaviour (Kotler, 2000, pp.163). Reference Groups create pressures for conformity that affect actual product and brand choices. The MiZone and Aqua Blue range of bottled water is aimed and is consumed by people who do considerable exercise and are concerned about their fitness and well being. Consumers in this group would notice that their peers consumed MiZone or Aqua Blue and would then purchase it themselves.

As stated in "You May Ask Yourself" by Dalton Conley a reference group is defined as "a group that helps us understand or make sense of our position in society relative to other groups"(Conley 161). There are many reference groups that we all encounter and compare ourselves to everyday without even noticing that we are doing so. This groups can include classmates, clubs, teammates(if you play or played a sport), and many other groups that we could encounter on a daily basis. I found that I would often use the goalies on the opposing teams as a reference group to judge my performance as a lacrosse goalie. In doing this I either left a game feeling great, or

A reference group is the most powerful way for someone to find their self-worth. According to Botton, the group consists of one’s peers who they consider to be their equal. Thus, if a person’s peers are higher, the person becomes angry because he or she is now lower than what was their equal. Botton does point out that some avoid the trap of the all-inclusive reference groups. The escape is contingent upon acknowledging the unachievable. They remove the unachievable from their standards and escape envious destruction. People of Greece, Roman, or Catholic belief were able to destroy the need to escape altogether. These groups brought a thought of divine placement, someone

They describe the individual as part of a group or indirectly influenced by a group. Based on these three independent variables we based our hypotheses as such:

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. They help us understand the impact of other people on an individual’s consumption beliefs, attitudes, and behavior. It helps marketers choose their methodology to affect desired changes in consumer behavior. From a marketing perspective, reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions. Reference groups that influence general or broadly defined values or behavior are called normative reference groups. Reference groups that serve as benchmarks for specific or narrowly

There is a fundamental human need to belong to social groups especially if people were to live and work together, it is likely that they need to agree on common beliefs, values, attitudes and behaviours in order to get along and fit-in. Thus, we learnt to conform to rules of other people, the more people see others behaving in a particular way or making particular decisions, the more likely people will feel obliged to follow the suit. This is called conformity and can be defined in different ways, Aronson, Wilson & Akert (2014) stated it is the changing of one’s behavior due to the real or imagined influence of other people. According to Deutsch and Gerard (1955), social influence should be distinguished into two types, the informational social influence and normative social influence. The occurrence of social influence has implied to many real life events, which has drawn many researchers to attention. This has lead many researchers to design distinct experiments to try and understand the cause of the conformity, whether conformity is situation dependent, and whether we are able to resist social influences.

Also analyzes how activation of our Identity (specifically our morals) affects our behavior with regard to choosing and being active members in groups and why (i.e. group affirmation, favoritism, view confirmation, etc). Their experiment assesses how ingroup factors combine such as peer pressure and environmental factors. Experiment utilized undergraduate colleges studies of varied demographics; participants underwent an online survey and then a laboratory trial which turned on the participants moral identity in certain groups and did not activate this personality in others. The survey created a baseline for analysis to pair with the results of the experiments performed which used priming techniques to study the effect of activating the moral identity while playing a game of sorts which invoked confidence and competition. If ingroup pressures were high, the members tended to deviate more from their baseline identification (morals) which suggests that the Us membership is so strongly valued that we are willing to disregard our beliefs to align with the norm of the

Buying a car is a high-involvement purchase as you can be faced was a large selection of choices. When figuring out which car to buy, consumers consult the advice of family and friends. However, according to a vehicle customer survey from Maritz Research, the most important information that is also the most influential in the buying decision tends to come from an individual that has a lot of knowledge on the product, such as a cars salesperson at the dealership. Considering the complex nature of this decision, reference groups play a large role. A reference group is ‘an actual or imaginary individual or group conceived of having significant relevance upon an individual or group’s aspirations

Reference groups sometimes have the same meaning as in-groups. This is mostly when the reference group accepts the individual. An example of this is when a black wants to be part of the white majority, and isnt able to because of his color and affiliation with the black in-group. This is brought on by the demand for people color to adapt to white culture. In doing so, people of color are forced to rid themselves of taking pride in their ethnicity and culture. By doing this, a person of color may develop self-hate for themselves as individual or for their group. The minority group member is forced to make the dominant majority his reference group in respect to language, manners, morals, and law. He may be entirely loyal to his minority in-group, but he is at the same time always under the necessity of relating himself to the standards and expectations of the majority (Allport 95). The dominant majority is for him a reference group. It exerts a strong pull upon him, forcing attitudinal conformity. Thus, both in-groups and reference groups are important in the formation of attitudes (Allport 97).

This chapter reviewed many different aspects of group work such as different processes and skills required to run several different groups. The groups discussed were open-ended group, groups hosted in residential settings, single-session groups, and large activity groups.

“Social influence is the process by which the actions of an individual or group affect the behavior of others” (Feldman 495). These influences are strongly experienced by members in the group. Every group is unique and is mostly guided by a particular norm and behavior. An individual in a group passively or actively allows himself to be influenced by the group just to have a sense of belongingness. In the bid to prevent being excluded or rejected from a group, some individuals overtly adhere to the norms of the group. “Thus, people conform to meet the expectations of the group” (Feldman 495).

In order to understand what reference group influences are, it is necessary to firstly understand what a reference group is. The depth of information surrounding reference groups and the influences they poses on individuals, particularly on consumer purchasing behaviour is vast and one could get lost in the mist of it all. Therefore, it is vital to ensure that only research relevant to this study is included in this section, thus an overview of what a reference group is will be provided, then the different types of reference groups will be explored based on previous research, then the data will start to look at the influences reference groups have on individuals, and their purchasing behaviour, in order to fully understand the power that reference groups have.

The purpose of this report is to use a variety of research techniques aimed at understanding the role that knowledge and group influences have on a consumer’s decision-making process. Additionally, the report will advise a range of recommendations that an inert brand can adopt to guarantee its inclusion in the consumer’s consideration set of brands.