Contents

• Introduction
• Theory of reference group
• Informational influence
• Utilitarian or Normative Influence
• Conclusion
• References

Description

Consumers’ buying behaviors, preferences and decisions depend upon various factors. Some of them are age group, demography, sex, socio economical status etc. Another major influence on consumers’ buying decision is that of references or reference groups (Solomon, 2009). According to Merton and Rossi 1949, people act with a frame of reference produced by the groups they belong (Bearden & Etzel, 2001). Reference group concepts have been used by advertising agencies in their efforts to market products and services. According to Kotler 1980, use of celebrities endorsing products, portrayal of products being consumed at socially pleasant situations, use of group members as spokespersons for the brands are all indications to substantial use of reference groups as a marketing tool by companies (Bearden & Etzel, 2001). Many brands use celebrities as their brand ambassadors. The choice of a movie celebrity is strategically done depending on the common role or personality that the actor normally essays in the movies. This could create symbolic association for brands which could be appropriated by consumers and lead to self-brand connections ( Solomon, 2009). Self-brand connections are nothing but consumers using products and brands to create and represent self-images to others as well as themselves. (Jennifer Escalas & James Bettman 2003). Apart from self-brand connections, consumers are influenced by information and norms endorsed by group members of reference groups. The article discusses the influence of reference groups on consumers’ buying decisions, the theory of reference group and its two dimensions of influences.