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CONSUMER BEHAVIOR
MODULE 7: SOCIOLOGICAL INFLUENCES ON
CONSUMER DECISION MAKING
MODULE 7.1 and 7.2: CONSUMER GROUPS AND CONSUMER REFERENCE GROUPS LESSON – 32
FAQS (FREQUENTLY ASKED QUESTIONS): Ques 1 What do you mean b y a consumer group? Discuss the various ty pes of consumer groups? Ans 1 The term “group”, may be defined as two or more people who interact with each in order to achieve mutually agreed upon goals; such goals may relate to an individual or to the many who get together for the achievement of such goals. “Consumer groups”, refer to individuals or group of individuals or the family who have a need and desire purchasing a good or service so as to fulfill the need and derive satisfaction. Groups may be classified on various bases like i) number and size; ii) regularity of contact; and iii) structure and hierarchy. The various types of consumer groups are as follows: i) Primary and Secondary Groups : The distinction between primary and secondary groups is based on the significance/relevance of the group to an individual, and the frequency of interaction between group members. Based on the regularity of contact and the importance given to subsequent interaction, groups may be classified as primary and secondary. When people interact with each other on a regular basis, and regard each others’ opinions as valuable and significant, they are said to constitute a primary group; an individual who interacts with others regularly, is said to be a member of that primary group. For example, family, neighbours, work peers, co- workers and colleagues. Secondary groups, on the other hand, are those, where the level of interaction is infrequent, irregular and occasional, and not much of value is given to other’s judgments and beliefs. When a person interacts with others on an occasional basis, he is said to be a constituent of a secondary group. So far as consumer behavior is concerned, the focus lies on primary groups.
ii) Formal and Informal Groups : Based on the group structure and membership, roles and norms, as well as purpose of formation, groups may be classified as formal and informal groups. When the group structure and membership (membership roll list), roles (various positions, like president, secretary etc), group norms (do’s and don’t’s) and the reason for existence (goals of the group) are clearly defined, the group is said to be a formal group. On the other hand, when the group structure, roles and norms as even the purpose of the group are ill defined, or not defined at all, they are said to constitute an informal group. So far as consumer behavior is concerned, informal groups are of greater relevance to a marketer because with ill defined structures, and lesser of rules and regulations, there is greater opportunity for interaction between the members, better exchange of information and greater influence of each other on consumption patterns and behavior.
c) Membership and Symbolic Groups : Groups can also be classified on the basis of membership as membership groups and symbolic groups. When a person belongs to a group by virtue of membership or even if he merely qualifies for a membership to that group, it is called a membership group. On the other hand, when a person does not form a part of a group and/or does not qualify to be a member of the group, but nonetheless adopts the values, norms and patterns of behavior similar to members of the group, he is said to be a member of a symbolic group. In consumer behavior, the focus lies on membership groups.
Ques 2 What is a reference group? Why does a consumer look up to wards a reference group? Ans 2 It is a natural tendency on the part of an individual to look up to another as with comparison; each one of us looks towards another individual or a group as a point of comparison. This group to which a person looks up as a point of comparison is known as a reference group. A reference group may be a person or a group to which an individual looks up as a frame of reference for his general and specific acts of behavior, values, opinions, attitudes etc. The reference person or the reference group exercises tremendous influence on an individual. This is true for consumer behavior as well.
experience, would look towards primary and secondary reference groups for help and advice. ii) Power, credibility, and trustworthiness: The impact that a reference group can generate also depends upon how powerful, credible and trustworthy the reference group is. When a reference group is powerful, and regarded as credible and trustworthy, there is greater probability of it being able to influence people. A person who looks towards reference groups for information and advice about product and service offerings as also brands, always examines the credibility and trustworthiness of the group. He may also be fearful of the power of the reference group and would go by group-say out of fear or to avoid any undesirable consequences. He may also be looking for social approval and acceptance of others in his reference group. The probability of he being persuaded by such reference groups is high. iii) Conformance with group and social approval: When a consumer is other- directed or socially-directed, and looks towards others for social approval, he generally conforms to the advice given by members of his reference groups. This is because he wants to be identified with people whom he likes or whom he wants to be associated with. Thus he would conform to the product and service and/or brand suggested by members of their reference group. iv) Visibility and Conspicuousness of the Product: The impact of reference groups also depends on the visibility and conspicuousness of a product. When a product offering is visible and conspicuous, such that it relates to esteem and is status revealing (fashion apparel, carpets and upholstery, jewellery and other luxurious items), the consumer tends to be conscious while purchasing it especially because of reaction of others (fear of social disapproval, social embarrassment). Thus he would buy such keeping in mind the advice, likes and dislikes of reference group. When the product is low on public visibility and conspicuousness, one is less likely to be influenced by the reference group.
Ques 4 Does Reference Grou p appeal v ary by product? Discuss in refe rence to Bearden’s and Etzel’s model? Ans 4 The influence of Reference Groups varies according to the nature of the product and/or service. Reference groups have varied influence on consumers depending upon the type of the product, whether a luxury or a necessity, and whether it used in public and viewed by others or whether it is used in private.
Bearden and Etzel have examined the issue from two perspectives, viz., a) the decision to purchase the type of product; and b) the choice of the brand. They conclude that reference group influence varied by 1) the type of product; whether it is a luxury or a necessity; and 2) its visibility; whether it is used in public or private settings or environment (See Figure). According to Bearden and Etzel, reference group influence is strong both for the purchase decision as well as for the brand in case of public luxuries , like expensive carpets, paintings, antiques etc. The consumer does not possess a need for such products, but requires them for social approval and acceptance, and finds these purchases as crucial for avoidance of social embarrassment, and ridicule. Because of the lifestyle and the social class that a consumer belongs to, he is conscious towards the purchase of such products as well as the brands that he buys. Thus, reference groups influence both the consumer's need for the product in general as well as the choice of brand. On the other hand, when in case of products which are public necessities , like a car or a cell phone, reference group influence is weak with respect to the purchase decision, but strong with respect to the choice of the brand. The reference group does not affect the decision to make a purchase as the product is already regarded as one of necessity and will be purchase regardless of what the members of the reference group have to say; the only impact that a reference group can make is with respect to the brand.
- A group where people hold membership, meet face-to-face and have interaction, and where people abide by the values, norms, opinions and judgments that the group entails, is known as a compliant group.
- The impact of reference groups depends on the visibility and conspicuousness of a product.
- According to Bearden and Etzel, reference group influence is strong both for the purchase decision as well as for the brand in case of public necessities.
Section B Fill up the blanks:
1. Based on the regularity of contact and the importance given to subsequent interaction, groups may be classified as ______________ and __________________ 2. As consumer behavior is concerned, the focus lies on small ____________ groups.
- When a person acts out instances of behavior which relate to consumption patterns and behavior, it is known as _____________________ socialization.
- A _______________group may be a person or a group to which an individual looks up as a frame of reference for his general and specific acts of behavior, values, opinions, attitudes etc.
- ________________ appeals are the most commonly used kind of appeal.
- ___________________ appeals are also known as slice-of-life commercials.
Section C Multiple choice questions:
1. This group to which a person looks up as a point of comparison is known as a a) reference group b) social group c) formal group d) None of the above.
- Which of the following is true about Bearden and Etzel’s Model: a) Bearden and Etzel have examined the issue from two perspectives, viz., a) the decision to purchase the type of product; and b) the choice of the brand. b) Reference group influence varied by the type of product; whether it is a luxury or a necessity;
c) ) It is also influenced by the visibility; whether it is used in public or private settings or environment. d) All of the above.
Section D Short answers:
- Define normative reference groups.
- What do you mean by primary reference groups?
- Mention commonly used reference group appeals.
- Mention two basic advantages of using reference group appeals.
KEY Section A True/false:
- False 2. False 3. True 4. False
Section B Fill up the blanks:
- Primary and secondary 2. Informal 3. Consumer
- Reference 5. Celebrity 6. Common-man
Section C Multiple choice questions:
- a 2. d
Section D Short Answers:
1. Those groups that influence general or broadly defined values, attitudes and/or behavior are known as normative reference groups. For example, for a child the family acts as a normative reference group. 2. Such group(s) with which a person has a direct (face-to-face) contact and where a direct influence occurs, is known as a primary reference group(s). For example, family, friends, neighbours, superiors, peers, colleagues etc. 3. Celebrity appeals; expert appeals; common man appeals; executive appeals, trade or spokes-character appeals. 4. Reference group appeals are useful for a marketer in two ways; firstly they provide information and increase consumer awareness and knowledge; two, they reduce perceived risk amongst consumers, with respect to market offerings.
