Introduction
Internal influence and external influence are the two main factors that contribute to the study in how individuals, groups buy, use and dispose of goods and services. Each of them consists of the varieties of factors affecting consumers in different aspects. Among these factors, reference group has been chosen to become the main topic of this research in order to define and analyse how it influences in consumers purchase decision. The research will focus on the informational influence which is one of the important categories in reference groups to explain in depth how marketers use it to recognize and satisfy consumers’ needs and wants. Having the knowledge of informational influence will help people, especially marketers understand why some particular groups behave as they do.
A reference group is a group whose significant perspectives an individual takes on in forming beliefs, attitudes, and behaviours. Reference group influence is described as a three-dimensional concept, consisting of informational, utilitarian, and value-expressive influences (Selvakumar and Keeshan 2010, 6). Informational influence provides with product or issue related information among group members so that information can assist members in decision making-processes when they are faced with choices (Babin and Harris 2014, 151).
The explicit searching behaviour might lead to the informational influence (Babin and Harris 2014, 151). For instance, when a consumer intends
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.
Consumers are the centre of many marketers work. While the consumer is part of the marketing environment, it is also very important to recognise and understand the more personal and specific influences effecting consumers and the nature of the decision making process they use.
(ii) Information Search – The purchase of canned tuna is a routine, repetitive and habitual behaviour, as such consumers largely rely information search internally based on their
Consumers buying decision making play an important role for the success of every company or organisation. Without the investigation into consumers and their buying behaviour companies and organisation and marketer cannot achieved their aims and objective of their goals in the sale of their product. The purpose of this investigation is to explore the relationship between the consumers buying decision making process and the beverage brand products. (Coca Cola and Pepsi Cola) The data for the research has been collected from the UK one of the biggest town in England know as Huddersfield. The result from the research has determining that in the UK, majority of the consumers prefer Coca cola beverage brand than Pepsi and the research result has indicated that consumers buying decision can significant influence the beverage brand product in the UK market the research continue to say that if coca cola has put more focus on consumers buying decision in the UK know what they expected from them and producer according to their customers demand and try to satisfy their need and wants this can lead coca cola toward the success and increase their profit in the UK market
It is possible to further classify reference groups into four types, depending on the function they perform and the kind of influence they exert reference groups operate by establishing certain norms, roles and status within the group for members to follow. As explained earlier, norms are unwritten codes or, standards of conduct that are assigned to individuals within the group. In addition, specific roles have been identified in group purchasing behavior in the attempt to select the best among alternative brands or makes of a product. These are described as those of the influencer, the gatekeeper (i.e. the individual who has the maximum control over the flow of information), the decision maker, the purchaser and, the final user. Status positions have also been designated within a group. High status of members within a group implies greater power and influence. Products are sometimes purchased to demonstrate status, for example an elegant dress or, an expensive car. The influence exerted by the group depends on the type of reference group it is. There are four general types of groups namely, normative, comparative, status and dissociative groups.
Understanding consumer behaviour is essential to succeed in business. As Solomon et al. (2013) stresses, businesses exist to satisfy consumer’s needs. By identifying and understanding the factors that influences their customers, firms have the opportunity to develop a more efficient strategy, marketing message and advertising campaigns that is more in line with the needs and ways of thinking of their target consumers (Perreau, 2015).
That is, instead of covering the entire market (undifferentiated), or several segments (differentiated), they concentrate only on one. Concentrated marketing is also financially suitable to the goals of Aldi.
Such a bold position requires a new approach to marketing. The authors present a thesis of the Influence Mix, which introduces that there are three influences on consumer decision-making — the individual’s prior preferences, beliefs and experiences (P), other people and information services in the form of reviews and
into another. Reference groups are formed by people's positions in society. This can have both positive and negative effects on a person.
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).
Economist, business analyst, and statisticians all are using consumer decision-making as a strategy. They use the information to ponder, “how different amounts of prior knowledge
Understanding consumer buying behavior entails marketing, relationships, and consumer behavior. Consumer behavior comprises all the consumer decisions and activities connected with the choosing, buying, using and disposing of goods and services. Marketers must pay very close attention to consumer behavior that occurs before the purchase and after the particular product has been used. Studying consumer habits is one of the steps in marketing search and analysis. In addition to other basic principles of consumer buying habits, marketers also need to study the decision and actions of real people. Until recent history the study of consumer behavior was focused on generalized consumer decisions. With
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.
Consumption is a process of acquiring, using and disposing of goods and services. Emotions play a very large role in consumer behavior. This behavior and emotions are affected and created by the society and the culture in which the consumer lives. For example, an American may approach the purchase of a costly car with relatively less pressure than a person in a developing country where a car could be a high unaffordable luxury. The customer will comprehend brands, offers and the meaning of the product based on the understanding that he or she has of similar brands and their experience by analogy or by hearsay from peers and form an opinion. For example a new soft drink from Pepsi may not be very informative in its advertisement but that it is from the stable of PepsiCo makes the users of Pepsi brands take it in without much research. Such an opinion is not based mostly on the complete set of facts. Where there are many alternatives or the information is scarce the customer has to make a lot of effort or 'high effort' to reach a decision and such a situation could be a turnoff. On the other hand the customer may not be inclined to devolve deep into facts in case where the brand value is established and may make a decision on little or even sometimes no information. (Hoyer;