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SKYE BOULGER 9955666. Babin and Harris (2013) define Reference Group Influence as: The research of reference groups that require an understanding of the.

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Presentation on theme: "SKYE BOULGER 9955666. Babin and Harris (2013) define Reference Group Influence as: The research of reference groups that require an understanding of the."— Presentation transcript:

1 SKYE BOULGER 9955666

2 Babin and Harris (2013) define Reference Group Influence as: The research of reference groups that require an understanding of the group reference processes. Yuelee 1024, 2011

3 Reference Group Influence Informational Influence Utilitarian Influence Value- Expressive Influence CB5, 5 th Edition

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5 Reference groups exert group influence by the power they may hold over or which the choices They make that influence a consumer to purchase a product or service. There are number factors which affect the amount of influence that Reference Groups have on a consumer's product selection. The consumer must first decide whether the product is a public item (eg. watch) or a private product (eg. Underwear). They then need to consider whether the product is a necessity or a luxury. (CB5, 5 th Edition, 2013)

6 CB5, 5 th Edition, page 154, 2013

7 Babin and Harris (2013) define Group Influence as: The way in which group members influence other member’s attitude, opinions and behaviours.

8 Types of Group Influence Primary Secondary FormalInformal Aspirational Dissociative Cengage Learning 2012

9 Primary Groups are people who have frequent and direct contact with each other (CB5, 5 th Ed, 2013) For example immediate family (mum, dad, sister or brother) Secondary Groups are people who have infrequent contact with each other (CB5, 5 th Ed, 2013) For example social clubs (sporting clubs)

10 Formal Groups have consumers formally join the group, by meeting the membership or application requirements. (Cengage Learning, 2012) An example of this may be a consumer joining an RSL Club Informal group is a group of consumers that have no membership requirements to meet. An example of this could be a group of people who meet regularly to exercise (Cengage Learning, 2012)

11 According to the Business 2 Community website (2015), Aspirational Groups are groups that an consumer would like to be associated with, because of their values and beliefs. An example of this could be a consumer wanting to be a member of an elite sporting group that has strict membership requirements that they need to meet. According to the USC Marshall’s website (1999-2010), Dissociative reference group are consumers who do not wish to belong to a group. A good example of this the retail outlet The Gap was established when ‘younger’ consumers didn’t want to purchase items where their parents, or “un-cool” people purchase from (USC Marshall’ 1999-2010)

12 Conformity is an important topic to discuss. Conformity occurs when an consumer concedes to the attitudes and behaviours that other members within a group have towards a product or service. (CB5, 5 th Edition, 2013, page 149) Peer Pressure can be defined as the pressure that a consumer feel they need to behave in accordance with the group’s beliefs. (CB5, 2013, page 149) An example of Peer Pressure is when a consumers may be required to own a particular brand of clothing to belong in the group (eg. Nike Clothing)

13 Social Power is described in Textbook CB5 (page 150, 2013) as the ability of an single consumer or group that are able to change the attitudes and behaviours of others.

14 Types of Social Power Referent Power Legitimate Power Expert Power Reward Power Coercive Power CB5, 5 th Edition, 2013

15 Types of Social Power Is defined as a consumer having the desire for a feeling of oneness and acceptance in a valued relationship ( Beth Zemsky, 2015) Referent Power: Is defined by CB5 (5 th Edition, 2013 page 150) is the social arrangement that is dictated by the differing levels of power which are dependent on one’s position with in a group. Legitimate Power: Is based upon a consumer’s perception that a manager or some other member of a group has a high level of knowledge or skills that they or other group members may not possess. (Education Portal, 2003-2015) Expert Power:

16 Types of Social Power Is defined by CB5 (5 th Edition, 2013, page 151), as a group that frequently have the power to issue rewards to other members in the group. Reward Power: Coercive power is defined by Chron (2015) in the article 5 Types of Power in Businesses as the most primitive type of power in a group. It goes onto explain that coercive power exists when a person who has authority threatens a member with some type of punishment if a certain duty or activity is not completed. Coercive Power:

17 Social Media Social Media is defined as how a group communicates with others through the media, and internet (CB5, 5 th Edition, 2013). Anthropology Consumer Behavior and Public Relations (2014)

18 Word of Mouth is when information on a product, service or experience is communicated from one consumer to another (CB5, 5 th Edition, 2013)

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21 Academic.brooklyn.cuny.edu, (2015). [online] Available at: http://academic.brooklyn.cuny.edu/economic/friedman/consumerbtopic10n.doc [Accessed 11 Jan. 2015]. Babin, B. and Harris, E. (2013). CB5. 5 th Edition, Mason, Ohio: South-Western., pages 147-161 Consumerpsychologist.com, (2015). Group Influences--Consumer Behavior. [online] Available at: http://www.consumerpsychologist.com/cb_Group_Influences.html [Accessed 10 Jan. 2015]. Education Portal, (2015). Expert Power in Leadership: Definition, Examples & Quiz | Education Portal. [online] Available at: http://education-portal.com/academy/lesson/expert-power-in-leadership-definition-examples- quiz.html#lesson [Accessed 9 Jan. 2015]. Johnson, J. (2015). 5 Types of Power in Businesses. [online] Small Business - Chron.com. Available at: http://smallbusiness.chron.com/5-types-power-businesses-18221.html [Accessed 12 Jan. 2015]. Lee, F. (n.d.). Consumer Behavior – Groups. [online] California State University, Los Angeles. Available at: http://web.calstatela.edu/faculty/flee/www/mkt342/www/Lectures/week7.pdf [Accessed 13 Jan. 2015].

22 Pittard, V. (2013). Using Reference Groups in Marketing. [online] Business 2 Community. Available at: http://www.business2community.com/marketing/using-reference-groups-in-marketing-0427866 [Accessed 12 Jan. 2015]. Shanahan, K. (2014). Anthropology, Consumer Behavior and Public Relations | Kat Shanahan. [online] Kshanahan.com. Available at: http://www.kshanahan.com/anthropology-consumer-behavior-and-public-relations/ [Accessed 19 Jan. 2015]. Sociologyguide.com, (2015). Group, Sociological Group, Primary Group, Secondary Group, Group Decision- Making, Formal Organization, Bureaucracy, Functions of Bureaucracy, Peter Principle. [online] Available at: http://www.sociologyguide.com/questions/group.php [Accessed 8 Jan. 2015]. The University of Vermont, (n.d.). Group Influence. [online] Available at: http://www.uvm.edu/~jashman/cdae127/powerpoint/Text/Chapter12.ppt [Accessed 10 Jan. 2015]. yuelee1024, (2011). Peer influence. [online] Available at: https://yuelee1024.wordpress.com/2011/11/25/peer- influence/ [Accessed 8 Jan. 2015].


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