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Unit 1 Reference Groups and Family

1. A reference group is a group that influences a person's attitudes, values or behaviors through social interaction and comparison. 2. Reference groups can be classified by membership, interaction level, attraction type, and formality. They influence consumers through informational, normative and identification processes. 3. For marketing strategy, reference groups should be identified and their influence recognized and potentially increased through promotions targeting specific groups.

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Madhuri Shete
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38 views22 pages

Unit 1 Reference Groups and Family

1. A reference group is a group that influences a person's attitudes, values or behaviors through social interaction and comparison. 2. Reference groups can be classified by membership, interaction level, attraction type, and formality. They influence consumers through informational, normative and identification processes. 3. For marketing strategy, reference groups should be identified and their influence recognized and potentially increased through promotions targeting specific groups.

Uploaded by

Madhuri Shete
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Unit 1

Reference Groups and Family


What is a Group?

•Two or more people who interact to


accomplish either individual or mutual
goals.
•Reference Group: A person or group
that serves as a point of comparison
(or reference) for an individual in the
formation of either general or specific
values, attitudes, or behaviour
•.
Types of Reference Groups
•Classified by:
• Membership
• Symbolic
• Extent of interaction
• Direct versus indirect
• Nature of attraction
• Aspirational versus dissociative
• Degree of formality
• Formal versus informal
Types of Reference Group Influence
• Informational Influence
• When a member of reference group provides information used to make
purchase decisions
• Normative Influence
• When we conform to group norms in order to belong to that group
• Identification Influence
• When we identify with, and internalize, a group’s values and behaviours
Factors Encouraging Conformity:
A Reference Group Must ...
• Inform or make the individual aware of a
specific product or brand
• Provide the individual with the opportunity to
compare his or her own thinking with the
attitudes and behaviour of the group
• Influence the individual to adopt attitudes and
behaviour that are consistent with the norms
of the group
• Legitimize the decision to use the same
products as the group
Selected Consumer-Related
Reference Groups
• Friendship groups
• Shopping groups
• Work groups
• Virtual groups or communities
• Brand communities
• Consumer-action groups
• celebrities
Reference Groups and Marketing Strategy

• Recognize the extent of reference group influence in a situation


• Identify the most effective type of reference group influence
• Identify possible reference group members to use in promotions
• Attempt to increase reference group influence
Households

Family Households:
Married couple,
Nuclear family,
Extended family
Households

Non-Family Households:
Unmarried couples,
Friends/ Roommates,
Boarders
The Typical Household?

• Canada: Nuclear family


• Thailand: Extended family
• USA: Not married, no children
The Family Life Cycle
• Traditional Family Life Cycle
• Stage I: Bachelorhood
• Stage II: Honeymooners
• Stage III: Parenthood
• Stage IV: Post-parenthood
• Stage V: Dissolution
• Modifications - the Nontraditional FLC
Figure 12-6 Noteworthy Nontraditional
FLC Stages
Alternative FLC Stages Definition/Commentary
Family Households
Childless couples It is increasingly acceptable for married couples to
elect not to have children. Contributing forces are
more career-oriented married women and delayed
marriages.

Couples who marry later in More career-oriented men and women and greater
life (in their late 30s or later) occurrence of couples living together. Likely to have
fewer or even no children.

Couples who have first child Likely to have fewer children. Stress quality lifestyle:
later in life (in their late 30s “Only the best is good enough”
or later)
Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Family Households
Single parents I High divorce rates (about 50%) contribute to a
portion of single-parent households
Single parents II Young man or woman who has one or more children
out of wedlock.
Single parents III A single person who adopts one or more children.
Extended family Young single-adult children who return home to
avoid the expenses of living alone while establishing
their careers. Divorced daughter or son and
grandchild(ren) return home to parents. Frail elderly
parents who move in with children. Newlyweds
living with in-laws.
Figure 12-6 (continued)
Alternative FLC Stages Definition/Commentary
Nonfamily Households
Unmarried couples Increased acceptance of heterosexual and
homosexual couples.

Divorced persons (no High divorce rate contributes to dissolution of


children) households before children are born.

Single persons (most are Primarily a result of delaying first marriage; also,
young) men and women who never marry.

Widowed persons (most are Longer life expectancy, especially for women; means
elderly) more over-75 single-person households.
Dynamics of Husband-Wife
Decision Making
• Husband-Dominated
• Wife-Dominated
• Joint
• Equal
• Syncratic
• Autonomic
• Solitary
• Unilateral
Consumer Socialization

• The process by which children acquire the skills, knowledge, and


attitudes necessary to function as consumers.
Other Functions of the Family
• Economic well-being
• Emotional support
• Suitable family lifestyles
Family and Marketing Strategy
• Use the FLC for segmentation and positioning
• Recognize the diverse consumption roles within
the family
• Understand and use the dynamics of husband-wife
decision making
• Understand and use the consumer socialization
role played by the family
• Recognize the changing nature of Canadian
families.

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