Thought of the Day

You can not judge a person’s

intelligence only by his answers
but by Questions also.
Social/Reference Groups
 What is a group?
• Two or people who interact with each
other to accomplish either individual or
mutual goals.
 Types of groups
• Primary Vs. Secondary group
• Formal Vs. Informal Group
• Membership Vs. Symbolic group
 Consumer Related Groups
• Family
• Friends
• Shopping groups
• Consumer action groups
• Work groups
• Formal social groups
 Reference groups
• A group that serves as frame of reference
for individuals in their purchase or
consumption behavior.
Reference Groups

Individual

Family
Friends
Social Class
Selected Subcultures

One’s own culture

Others culture
 Types of reference groups
Membership Non Membership
Group Group

Positive Contactual Aspirational

Influence Group Group

Disclaimant Avoidance
Negative Group Group
Influence
 Factors affecting the Reference
Group Influence
• Information and experience
• Credibility, power and attractiveness
• Conspicuousness of the Product
 Applicability of the Reference
Group Concept
• Celebrities
 Applicability of the Reference
Group Concept
• Celebrities
– How celebrities are used
• Testimonials
• Endorsement
• Actor
• Spokesperson
– Credibility
– Who the celebrity is
 Top 10 Deals in 2003-04
• David Beckham Gillette $68
• Searena Williams Nike $60
• David Beckham Pepsi $25.5
• Tiger Woods Accenture $18
• Andre Agassi 24Hour fitness $15
 Use of Reference group as:-
• The expert
• The common man
• The executive and employee
spokesperson
• Trade or spokes character
• Other reference Groups
Benefits of reference group appeal
• Increased brand awareness
• Reduced perceived risk
Thank you.
Expert
Promoter in Ad
Employees as endorsers
Employees as endorsers
Trade character
Seals of Approval