Reference Groups Influence on Consumer Behavior: Examples of Group Dynamics

The influence of reference groups on consumer behaviour with examples from group dynamics. Reference group is an important concept in consumer behaviour because of the influence it has on consumer choice and norms. The video answers the question: What is a reference group and the influence of group dynamics in consumer behaviour. A reference group, is a group that serves as a point of reference or comparison for an individual in forming either general or specific values and attitudes. It influences consumer choice and behaviour. Four types of reference groups are discussed – contractual group, aspirational group disclaimer group and avoidance group. Marketers are interested, in understanding Reference groups and group dynamics, because of their influence on consumer behaviour and consumer conformity. In terms of application of the reference group concept in marketing People or groups with whom a target audience, can identify are used to promote goods, and services. This is based on aspiration, empathy and recognition. Peer influence is a form of reference group influence that greatly impacts behaviour. Dr Catherine Ngahu Elevatus Consumer Behaviour 00:00 Importance of consumer reference groups 00:47 Contractural reference group 01:01 Aspirational reference group 02:31 Disclaimant reference group 03:34 Avoidance reference group 05:00 Reference group and consumer conformity 06:00 Multi level marketing and consumer references 06:31 Marketing applications of reference group