“point of reference”
whose perspective an individual takes on in
forming values, beliefs, attitudes, opinions, and
behaviors
Reference groups
Very small Large
(few friends) (sports club, political party)
If a person interacts on regular basis with
other individuals, then these individuals can
be considered a primary group. Interaction can
be with members of the family, with the
colleagues, with neighbors etc., this means
whose opinions are valued by that person,
on the other hand, if a person interacts only
occasionally with others, or whose opinions
are not important, then this type of group is
called secondary.
This is the second useful way to classify groups on the basis of their formal
nature. If a group has a highly defined structure, specific roles and
authority levels and specific goals then this is called a formal group. For
example, in an organization – a list of all employees (defined structure),
Managing Director, Manager, Assistants etc., (specific roles and authority
levels), this shows a formal group.
Goals may be different for different organisations like to assist the
homeless, working for the benefit of old people or marketing goals-
Increasing sales, promoting the product etc. In these kinds of groups
members have a vested interest towards a specific -goal, therefore, they
are classified as a formal group.
On the other hand, if a group is more loosely defined, then it is an informal
group. For example, four five girls who become friends in the school and
now meet only once a month. For the marketer, informal social groups are
more important because of loosely defined structure a more conducive
environment is available for exchange of information to the members.
Membership Group is a group to which a person belongs or
would qualify for membership. For example, college alumni
association, IMA, association of doctors, tennis club etc.
Symbolic group is a group in which an individual is not likely
to receive membership even if he/ she acts like a member by
adopting that group’s values, behaviour and attitude. For
example, for youngsters cricketers like Sachin Tendulkar,
Sourav Ganguly etc. may constitute a symbolic group. They
try to identify with these players by imitating their behaviour
like the style or sometimes by purchasing specific brand of
bat, gloves, dress, ball etc.
The Family:
It is seen, that from childhood an individual needs and
consumption decisions are influenced by his/her family.
Importance of the family in various decisions is based on the
frequency of contact that individual has with other family
members. Moreover, it is in the family an individual establishes
a wide range of values, attitudes and behaviors.
Friendship Groups:
The immediate group which an individual forms after he/she
moves out from the house is friendship group. Friendships are
also sign of maturity and independence as they represent a
breaking away from the family and forming of social ties with
the outside world. They are classified as informal groups as
they are unstructured and usually lack specific authority levels.
Formal social Groups:
Formal social groups, as the name says, lack intimate relationship
and they serve different function for an individual. A person joins
this group to fulfill goals like making new friends, pursuing a special
interest, meeting important’ people specially for career advancement
or also sometimes promoting a specific cause (working for the
welfare of orphans).
Shopping Groups:
Two or more people who shop together this can be either for food,
for clothing or simply to pass the time-can be called a shopping
group; people like to shop with others who are pleasant company or
who they feel have more experience or knowledge about a desired
product or service. Shopping with others reduces the risk that a
purchase decision will be socially unacceptable, collective decision is
the best in which none of the members knows about the product to
be purchased.
Consumer-Action Groups:
Consumer movement provides consumers with assistance in
their effort to make the right purchase decisions. Consumer
action groups are organized to correct a specific consumer
abuse. Women action groups are opposed to any advertising
that may have a negative impact on them.
Work Groups:
This type of group also serves as a major influence on the
consumption behaviour of members as they spend a sheer
amount of time at their jobs (around 48 hours per week).
Formal work group consists of those individuals who work
together as a team.
Informational benefit
Association
Values expressive
Celebrities
Experts
Spokes character
