Reference Groups

Meeting-10

• Group is two or more people who interact to accomplish either individual or mutual goals

• Reference Group is any person or group that serve as a point of comparison (or reference) for an individual in forming either general or specific values, attitudes, or specific guide for behavior

Selected Consumer-Related Reference Group

• Friendship Groups

• Shopping Groups

• Work Groups

• Virtual Groups or Communities

Brand Groups Ex: Harley Davidson

• Consumer-Action Groups

Factors that affect Reference Group Influence

• Information and Experience

• Credibility, Attractiveness, and Power of the Reference Group

• Conspicuousness of the Product

• Consumer Groups and Consumer Conformity

Celebrity and Other Reference Group

• Celebrities

• The Expert

• The “Common Man”

• The Executive and Employee Spokesperson

• Trade or Spokes-Character

• Other Reference Group Appeals

Working in Group

1. As a Marketing consultant, you have been asked to evaluate a new promotional campaign for a large retail chain. The campaign strategy is aimed at increasing group shopping. What recommendation do you make?

2. Many Celebrities who are considered to be persuasive role models often appear in TV. Does the use of such celebrities effective?

3. You are the marketing manager of a large soft drink company. Your company’s advertising agency is in the process of negotiating a contract to employ a superstar female singer to promote your product. Discuss the reference group factors that you would raise before the celebrity is hired.

4. As a marketing consultant, you were retained by the Walt Disney Company to design a study investigating how families make vacation decision. Whom, within the family would you interview? What kind of questions would you ask? How would you assess the relative power of each family member in making vacation-related decisions?