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REFERENCE GROUP

Definition:
People whose attitudes, behavior
, beliefs, opinions, preferences, and values
are used by an individual as the basis for
his or her judgment
TYPES OF REFERENCE
GROUPS
Normative reference group
Comparative reference group
Indirect reference group
Contactual group
Aspirational group
 Disclamant group
 Avoidance group
TYPES OF REFERENCE
GROUPS
 Normative Reference Group:
Reference Groups that directly
influence general or broadly defined values or
behaviour are usually called Normative.

Ex: Insurance companies


TYPES OF REFERENCE
GROUPS
Comparative Reference Group:
This Group will serve as a
benchmark for certain specific or narrowly
defined attitudes are called Comparative.

Ex: Cricket team


TYPES OF REFERENCE
GROUPS
 Indirect Reference Group:
These are in the form of movie stars
,sports personalities etc..though there is no face to
face contact or interaction b/w the fan and
respective star, they are able to influence their
fans.

Ex: Scahin Tendulkar promoting Action shoes,


Adidas
Asin communicates about HUL’s LUX soap.
TYPES OF REFERENCE
GROUPS
 Contactual Reference Group:
This group will be in terms of a
persons membership or degree of
involvement with the in terms of the
positive/negative influence they are able to
evolve on the persons attitude ,behavior and
values.

Ex: clubs
TYPES OF REFERENCE
GROUPS
 Aspirational Reference Group:
Is one to which the individual
wishes or aspires to belong .An individual may
not have direct contact but he inspires to be a
member.

Ex: IBM employee


TYPES OF REFERENCE
GROUPS
 Disclamant Reference Group:
This is a group whose values or
behaviors does not appeal to the individual.

 Avoidance Reference Group:


Here the person will tend to avoid
the group and will adopt values, attitudes and
behaviors which will be in opposite to that of
group.
Ex: Andhra & Telangana issue
Influencing Factors of Reference
Groups
 Information and Experience
 Credibility , Attractiveness & power of the
reference group
 Conspicuous of the product
Reference Group & consumer
conformity
1.Explore
consumption habits Reference
& identify common Group
needs.

2. Inform the individual


about the product.

3.Provide opportunity
for comparison of
individual thinking with
group thinking

4. Attract customer
/individual by
highlighting or
associating brand of the
product with conformity
to group norms.
Benefits of Reference
Group
 Better communication and increased brand
awareness.
 Reduces perceived risk.
Benefits of Reference
Better communicationGroup
& increased brand awareness:-
 Reference group acts as the source of learning through
observation & hearing others experience and also with
more data & information available from others group
members.
 The individual customer is able to communicate & interact
with the group.
 This constant interactions b/w the individual & group,
influence his buying behavior and consequently increases
his awareness of the brand.
Benefits of Reference
Group
Reduces perceived risk:-
 This risk is reduced with customers association
with the reference group.
 The group provides & shares the information about
the product with the members in an open
environment.
 More over past experience of other members with
the usage of the product brand are also revealed.
 All these will remove the doubts of individual has
about the product.

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