Consumer Related Reference Group

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CHAPTER 10 NOTES

GROUP:
A group may be defined as two or more people who interact to accomplish either individual or mutual goals.
It types are as follows: 1) Intimate Group: Two or more persons who do any task or work together whether they are interested or not. 2) Formal Group: A group of large no. of people who are learning or performing a same task because of their own interest. 3) One-Sided Grouping: It is a type of group in which an individual consumer observes the appearance or actions of others, who unknowingly serve as consumption-related role models. 4) Membership Group: It is a type of group which is classified by a membership status. It is a group to which a person either belongs or would qualify for membership. 5) Symbolic Group: It is type of group in which an individual is not likely to receive membership, despite acting like a member by adopting the group's values, attitudes, and behavior.

UNDERSTANDING THE POWER OF REFERENCE GROUPS: ▪ REFERENCE GROUPS: 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. It provides a valuable perspective for understanding the impact of other people on an individual's consumption beliefs, attitudes, and behavior. It also provides insight into the methods marketers sometimes use to effect desired changes in consumer behavior.

▪ Marketers’ View:
Reference groups are groups that serve as frames (If reference for individuals in their purchase or consumption decisions. The usefulness of this concept is enhanced by the fact that it places no restrictions on group size or membership, nor does it require that consumers identify with a tangible group (i.e., the group can be symbolic such as owners of successful small businesses, leading corporate chief executive officers, rock stars, or golf celebrities).

▪ NORMATIVE REFERENCE GROUPS:

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