12-11-2012, 06:22 PM
REFERENCE GROUP & OPINION LEADERS
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CONCEPT UALISATION
“A reference group is an actual or imaginary institution, individual or group conceived as having significant relevance upon an individual's evaluations, aspirations, or behavior”
(Stafford and Cocanougher)
Reference groups are groups that serve as frames of reference for individuals in their purchase or consumption decisions.
UNDERSTANDING THE POWER OF REFERENCE GROUPS
Normative reference groups
General or broadly defined values or behavior
It sets the standard or a norm which you want to achieve yourself
Comparative reference groups
Provides benchmarks for specific or narrowly defined attitudes and behaviors
Group with which you can compare your own progress, possessions or whatever, to see who has more
Cohort friends and graduation class
FACTORS AFFECTING REFERENCE GROUP INFLUENCE
Information & Experience
Credibility, Attractiveness & Power of Reference Group (A reference group that is perceived as credible, attractive, or powerful can induce consumer attitude and behavior change).
Conspicuousness of the product (Products that are especially conspicuous and status revealing (a new automobile, fashion clothing, sleek laptop computer, or home furniture) are most likely to be purchased with an eye to the reactions of relevant others).
Consumer Conformity
OPINION LEADERSHIP
An opinion leader uses his or her knowledge and experience to play a dominant role in word-of-mouth communication.
Three key roles played by opinion leaders:-
Authority figure- provides news, advice and personal experience to help consumer satisfy their needs. E.g. Market maven is an authority in the process of buying products.
Trend setters- are ones whose personal experiences are emulated by others.
Local opinion leader-is an individual in consumer’s positive reference group who provides advice and personal experiences regarding purchase choices.
OTHER CLASSIFICATION OF REFERENCE GROUPS
Identification groups- are positive direct interaction groups whose values and behavior an individual incorporates in his or her behavior
Aspiration groups- are positive indirect contact groups having powerful influence on an individual who aspires to be a member.
Separation groups-are negative direct interaction groups from which a consumer wants to separate himself.
Discrimination groups- are negative indirect contact groups whose members an individual does not identify with and with whom the individual has little familiarity.