Reference groups Flashcards
why are reference groups important?
because they influence consumer decisions through desire to be accepted by others
def reference group
an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour
def group
2/more individuals who share a set of norms/beliefs ++ their behaviours are interdependent
what are the 7 parts of the social environment?
- culture
- subculture
- social class
- organisations
- reference groups
- family
- situation
when are certain reference groups important?
when certain individuals have social power = the capacity to alter the actions of others
define 6 types of social power
- referent power
- information power
- legitimate power
- expert power
- reward power
- coercive power
state 4 ways in which reference groups influence individuals
- socialisation
- self-concept
- social comparison
- conformity
define socialisation as a way of influencing
individual gets to know what kind of behaviours will likely result in stability for the group and for them
define self-concept as a way of influencing
individuals interact with group members and protect or modify their self-concept through that
define social comparison as a way of influencing
individuals evaluate themselves by comparing to others
define conformity as a way of influencing
real or percieved group pressures make an individual change their beliefs or actions
which groups have a potential to influence an individual? (4)
- those they’re an active participant in
- those they belong to
- those they want to belong to
- those they avoid
what do groups provide an individual with? (3)
information
rewards
identity
how can groups influence in an individual? (3)
purchases
consumption
communication
state 5 types of reference groups
- formal vs informal
- primary vs secondary
- with membership
- aspirational
- avoidance (dissociative)
what is the difference between formal and informal groups?
formal have clearly defined objectives and structure, while informal dont
what is the difference between primary and secondary groups?
primary invlove direct and face to face interactions
secondary have indirect interactions
state examples for formal, informal, primary, and secondary groups
F: religious community
I: group of students in a dorm
P: family
S: professional association
what is the main characteristic of a group with membership?
individuals formally become members
def aspirational group
individuals aspire to join / emulate (imitate) behavioural patterns
e.g. fan base
def avoidance (dissociative) group
individuals seek to avoid or reject certain reference groups
def brand community
a specialised group of consumers with a structured set of relationships that are based on use or interest in a certain brand
def consumer tribe
a group of people who share emotions, moral beliefs, lifestyles, and consumption preferences, and can identify withothers in terms of activities or products
def anti-brand community
coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it
how are types of reference groups used in marketing? (4)
- linking products with aspirational groups
- detailed presentation of a reference group as a meaning of marketing
- easier developing brand communities
- avoided use of dissociative groups
which reference groups are most used in advertising?
primary informal and aspirational
which three factors predict the group membership?
- propinquity (physical or psychological proximity to others)
- mere exposure (to the group in question)
- group cohesiveness (the level of ‘togetherness’)
state three types of group influences
- utilitarian (normative)
- informational
- value-expressive (identification)
def utilitarian type of group influence.
what is its basis?
give one example of the group+product mix that this influence applies to
- individual fulfills group expecatitions to gain rewards / avoid punishment
- material rewards or sanctions
- working group + working clothes
def informational type of group influence.
what is its basis?
give one example of the group+product mix that this influence applies to
- individual gets information from group’s behaviour and opinions
- professional knowledge
- doctors + medicine
def value-expressive type of group influence.
what is its basis?
give one example of the group+product mix that this influence applies to
- individual uses norms and values of the group as a guide for their own norms and values
- self-expression
- rolemodels + merch
state four types of influences (and examples in terms of products) depending on the consumption (visible or private) and degree of necessity (necessity or nonnessecity)
- visible consumption, necessity: weak product and strong brand = public necessities (shoes, car)
- private consumption, necessity: weak product and weak brand = private necessities (washing machine)
- visible consumption, nonnecessity: strong product and brand = public luxuries (snowboard)
- private consumption, nonnecessity: strong product and weak brand = private luxuries (hot tub)
when is group influence high (on a high level)? (5)
- visible usage
- high relevance of product to group
- low individual purchase confidence
- strong individual commitment to group
- not a necessary item
def role (of an individual)
a prescribed pattern of behaviour expected of a person in a given situation by virtue of the person’s position in that situation (specific behaviors expected of a person in a given position)
def household
shared residence and common housekeeping arrangement
what are the three influences on purchase behaviour of households?
- household structure
- the family lifecycle (young, mature, old)
- types of household decision-making
what are the three current trends regarding household structure?
- increasing migration trends
- falling fertility rates
- delaying marriages
why is the family life cycle important for household decision making?
changes in demands due to:
- amount of income
- family composition
def household decision-making
how family members work together and influence each other in making purchase decisions for the household
state 5 types of husband-wife decision making
- autonomic by man (only man makes decisions)
- man-dominated (man makes final decision)
- joint decision
- woman-dominated
- autonomic by woman
state 8 factors that influence decision making and roles of partners
- stereotypes
- employment status
- stage in the family lifecycle
- time availability
- importance of purchase
- socioeconomic status
- sources of income
- stage in the purchase process
state 6 roles in the family decision-making process and describe them
- influencer (their opinions are sought after)
- gatekeeper (initiator, gathers information)
- decider (has power to make decisions)
- buyer (the one who actually buys it)
- user (the one who actually uses it)
- disposer (the one who initiates or carries out the disposal)
what are the marketing implications of roles in family decision-making process? (5)
- different roles provide information
- assit in planning
- developing out-of-store selling
- automatisation of processes
- improved delivery
def social shopping
allows an online shopper to stimulate and simulate the experience of shopping in a bricks-and-mortar store by accessing feedback from other people either prior to or after deciding on a purchase.
tldr; online reviews of goods and services simulate a brick-and-mortar shop experience
what are the three markets children make up?
- primary (spending their own money)
- influence (parental yielding to children)
- future (what they will buy in the future)
state 6 characteristics of children
- variablity
- difficult traceablitiy
- moodiness
- openess
- inhomogeneity
- move product use down the ladder
def consumer soicalization
process by which young people acquire skills, knowledge, and attitudes relevant to their
functioning in the marketplace
what is children’s purchasing behaviour influenced by?
parents, family, friends, teachers
television, toys
culture
state 5 stages of consumer development
- observing
- making requests
- making selections
- making assisted purchases
- making independent purchases
what are the two ethical concerns regarding marketing to children?
- limited capability of small children to process information
- marketing activitiss might lead to undesired values for children (e.g. inappropriate diet)
what are the main trends in children as consumers? (8)
- increased number of households with two incomes
- decline in birth rates
- couples decide to have children later
- more mixed families with stepchildren
- increasing number of single parent families
- increased role of grandparents
- parental sense of guilt
- parents are concerned about children’s futures
which factors impact childrens’ impact on their parents’ decision? (6)
- type of product
- stage in decision-making process
- subdecisions regarding the product
- parents’ characteristics
- child’s age
- characteristics of the family
