Week 7 - Reference Groups and Consumer Behaviour Flashcards
(40 cards)
reference groups
a person, real or fictitious, who influences the attitudes, behaviour, standards and values of other people
3 ways reference groups influence consumer behaviour
- informational influence
- utilitarian influence
- value-expressive influence
informational influence of reference groups
- we seek information from knowledgeable and credible reference groups to make informed decisions
e.g., a blogger, friend
utilitarian influence of reference groups (normative influence)
we conform our behaviours to social norms of reference groups; based on the idea that we want to fit in with cultural expectations or what is ‘fashionable’
value-expressive influence of reference groups (identification influence)
occurs when you internalise, or identify, with the values of a group that also reflects your own self image e.g., sustainability - influence each other; volunteering/religious group, health/exercise group
3 types of reference groups
associative
aspirational
dissociative
associative reference groups
- people in our in-group - a social group to which a person psychologically identifies as a member
- groups you belong to with clear informational, normative, and/or value-expressive influences
e.g., family, friends, colleagues, neighbours, church group, social club…
aspirational reference groups
- a group in which an individual is not a member, despite acting like a member
- people you want to compare to, whom you ideally aspire to be more like
- often comprises idealised and successful people e.g., celebrities, politicians, boss, athletes
dissociative reference groups
individuals/groups you want to avoid association with
- people in ‘out-group’ - a social group with which can individual does not identify
- can be both personal and cultural
- examples inc groups which are not culturally valued (extremists), celebrities who have ‘fallen-from-grace’, or ‘deviants’
- individually, people might not associate w groups based on age, status, gender…
opinion leaders
person whose knowledge and insightful views we value as the basis of our thinking and decisions
- type of aspirational reference group
- can be found in politics, business, technology, education, entertainment, religion etc.
possible ways to identify opinion leader
- self-designation
- conduct research
- organically via search
implications of reference groups
- word of mouth (positive vs negative)
- innovative diffusion (through population over time)
household decision-making process actors (8)
- influencer: provide info to other members
- gatekeeper: control flow of info into family
- deciders: power to determine whether to shop for, purchase, consumer, dispose of…
- buyers: make actual purchase
- preparers: transforms into form suitable for consumption
- users: consume particular product/service
- maintainers: service or repair product so it will provide continued satisfaction
- disposers: initiate/carry out disposal or discontinuation of particular product
social stratification
the way in which social inequity is manifest into hierarchical levels in a society - societal rank
social status plays integral role in consumer behaviour as:
- aspiration to increase one’s social status can lead to purchasing and consumption of objects that will elevate one’s status (esp. conspicuous consumption)
- need to consume to ‘consolidate’ one’s position in their own social strata/class
how is social status often defined
- family income
- occupational status
- educational attainment
Han, Nunes & Dreze (2010) - scarcity
- scarcity one way a product becomes a status signal
- however rise of “accessibility luxury” to the masses has challenged this
- consumers are finding increasingly nuanced ways to signal status
brand prominence
- level a brand is conspicuous on a product
- loudly vs quietly status signalling through observable consumption choice
- often luxury brands charge more for quieter objects
patricians
possess significant wealth and pay a premium for inconspicuously branded products that serve as a signal to other patricians
- signal to each other
- use quiet signals
e.g., generational wealth
parvenu
possess significant wealth but not the connoisseurship necessary to interpret subtle signals.
- associate with other haves and want to dissociate themselves from have-nots.
- use loud signals
e.g., new money - don’t want to be seen as poor (want to be like patricians)
poseur
highly motivated to consume for the sake of status, however do not possess financial means to afford authentic luxury goods.
- aspire to haves.
- mimic parvenus
- e.g., may buy counterfeit brands, want to associate with parvenu and patricians
proletarian
less affluent consumers who are also less status conscious.
- do not engage in signalling
how do social strata signal status
- clothing, fashion & shopping: dress to fit self-image, inc social class membership
- home decoration
- leisure activities
- serving, spending & credit: credit, afterpay, ‘convenient cash’
low-end strategy - masstige (mass prestige)
- luxury brand extensions to increase sales by appealing to mass markets
