Reference Groups

Learning changes behaviour through experience, practice and information and creates values and self concept. Therefore the source of learning will often have an impact on an individual’s attitude and ultimately buyer behaviour. Social factors such as cultures and sub-cultures therefore have an impact on an individual’s values, norms and attitudes and shape consumer behaviour (www.nmmu.ac.za). These cultures and sub-cultures are used by individuals as reference groups.

Reference groups are groups that people refer to when evaluating their own qualities, circumstances, attitudes, values and behaviours (Thompson, 2005). They influence consumers in at least 3 ways (Kotler, 2005):
  1. They expose the person to new behaviours and lifestyles
  2. They influence the person’s attitudes and self concept
  3. They create pressures to conform that may affect the person’s product, brand and vendors choice. 
They are either formal or informal groups.

Formal Groups

Blythe (2008) describes formal groups as being ‘groups with a known, recorded membership list. Often these groups have fixed rules.’

Religious groups for example would be a formal group. Different religions have different behaviours. The Muslim faith for instance do not eat pig or drink alcohol and would therefore be less receptive when offered beer and pig roast.

As cultural norms are previously set with formal groups there is rarely change in product behaviour.

Informal Groups

It is Informal groups who generally have more impact on product behaviour.

Blythe (2008) describes informal groups as being ‘less structured, and based on friendship. There are no formalities to joining; one merely has to fit in with the group’s joint ideals’.

Island holidaymakers themselves may be seen as an informal group with members having their own informal characteristics. We rarely see business travellers at our resort and don’t expect to dry clean many suits. There is little need for a shoe shine service or a trouser press in rooms. Dress code is relaxed and loose. Purchase behaviour on islands i.e. clothes brands, maybe Abercrombie or Roxy instead of Ralph Lauren or Dior. An aspirational figure is more likely to be Bob Marley than Alan Sugar.

Another informal group is the “Hiso” culture in Thailand where lower classes try to mimic the aspirational group of “High Society” (similar to trickle-down theory of social class).  Higher ‘hedonic’ needs (pleasurable and aesthetic aspects of the product) have greater importance than lower ‘utilitarian’ needs (the functional attributes of the product). What restaurants you eat at is more important than where you sleep. Our resort would fit well with this group.

The most influential person in reference groups is an opinion leader.