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Reference Groups and Opinion Leadership

Reference groups are groups that significantly influence an individual's behaviors and evaluations. There are different types of reference groups, including membership, primary/secondary, formal/informal, and aspirational/dissociative groups. Reference groups can influence product selection through informational influence, normative influence, and value expressive influence. Opinion leaders are individuals who informally influence others through interpersonal communication, replacing or supporting a marketer's communication efforts. Marketers can identify and align with influential opinion leaders to motivate and coordinate their influence within target markets.

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529 views12 pages

Reference Groups and Opinion Leadership

Reference groups are groups that significantly influence an individual's behaviors and evaluations. There are different types of reference groups, including membership, primary/secondary, formal/informal, and aspirational/dissociative groups. Reference groups can influence product selection through informational influence, normative influence, and value expressive influence. Opinion leaders are individuals who informally influence others through interpersonal communication, replacing or supporting a marketer's communication efforts. Marketers can identify and align with influential opinion leaders to motivate and coordinate their influence within target markets.

Uploaded by

Devasish Panda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Reference group, Opinion Leader

and consumer behaviour


Dr Ajitabh Dash
What is reference group
• A reference group can be described as a group of
people that holds significant influence over an
individual’s behaviour.
• A group to which a person will compare himself or
herself, to determine his or her own relative
standing.
• A group of individuals who has significant
relevance for a consumer and who impacts the
consumer’s evaluations, aspirations, and behavior
Types of Group
• Membership or Non-membership groups
• Primary or Secondary Groups
• Formal or Informal group
• Aspirational group or Dissociative group
Reference Group Influence on Product
Selection
• Factors that affect how much influence
reference groups have on product
selection
– The situation in which the product is
consumed i.e., consumption setting which can
be public or private.
– The extent to which the product is considered
to be a necessity or a luxury
Reference Group Influence
• Informational Influence :
• Normative (utilitarian) Influence:
– The in which members within a group comply with
group norms to receive reward or avoid
punishment.
– Applicable to public as well as private luxury.
• Value Expressive Influence:
– Individuals join in specific groups as means of
expressing their values/beliefs.
– Eg Body shop
OPINION LEADERHIP
• Is the process by which one person (The
opinion leader) informally influences the
action of others (Opinion Seekers).
• Opinion leaders are not generic in nature, they
are specific to a category of product.
Implications to the Marketer:
Opinion leadership replaces/supports Marketing communication efforts of a marketer
with interpersonal communication.
Opinion Leadership Process
Planning Specific Market to be targeted
Resources that can be invested.
Specific outcomes which can be expected
Recognition Identify the influential/relevant opinion
leader.
• High Social Appeal
• Ideals of the target market
• Experience/expertise with the product
• An established pattern of Social Media
Activity
Alignment • Hedonic Value-serve an appeal
leadership function with the target
Market.
• Utilitarian value-Knowledge leadership
function.
Motivation Reward function
Coordination Negotiate, monitor and support the
influence of opinion leaders
Most influential Customer
Innovators Market Maven
• are better educated, • Pays close attention to
compared to the advertisements and
average consumer brands
• have a higher socio- • Enjoys shopping
economic status, • Enjoys talking to others
relative to others  about advertisements,
• are risk takers (i.e. they stores, products and
tend to disregard risks shopping in general
associated with new • Knows where the best
products or services) deals are and actively
recommends them to
their friends
• Is aware of and are
eager to try new
products.
Social Class
• a division of a society based on social and
economic status
– Subjective Measures
– Reputational Measures
– Objective Measures
• Single Variable Index (income, Education, Occupation)
• Composite variable Indexes

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