Introduction

Reference group refers to a group of individuals who influence a person when making purchase decisions.  Reference group help when buying items through their opinions and first-hand experience with a particular product.  Therefore reference group potentially affects consumer behavior through guiding advising and imparting aspirations to an individual. Reference groups can comprise of family members, neighbors, friends and other people associated with. Notably, reference groups regulate lives and people strive to meet the standards and expectations of the reference group. For example, a family has a significant influence on the purchase and consumption of an individual.

Reference group influences a person by providing information on the value of a product.  For purposes of belonging to a group, a person must comply and conform to the set standards.  Furthermore, the value and opinions of the reference group adopted the use of a product. Also, members of a group with more homogenous characteristics tend to be more susceptible to change of attitude compared to members with different characteristics.  Some people may have strong identification to the group due to the benefit associated with the group or psychological bond that exists. Thus, conformity pressures form part of consumer behavior.

Analysis of Case

The Importance of Reference Groups in Purchase Decisions

1. a) Shoes: Reference groups for the purchase of shoes are critical in the sense that the shoes can be for various groups such as men, women, girls, boys, and infants. Shoes are of different categories, for example, casual shoes, trainers, sports and formal shoes, etc. A focus on men shoes clearly shows that brand potentially how they purchase the product. Notably, some of the familiar casual top brands include Nike, Gucci and Jordan Air. Men clients most prefer the above brands to others. The brands are more likely to be purchased even when they serve a similar purpose; also, they have a normative influence. A brand is more potent than quality and any other factor because people tend to conform to the established social norms. Male adults would like to associate with the societal gender roles and normative society (Huang 2010).
2. b) Barbecue grill: Barbecue grill has many relevance groups because it serves different purposes, and also has unique from the rest of the grills. When the many relevance groups buy a grill, they value brand most. Therefore, informational influence becomes a determinant in the purchase of the product. Precisely, clients rely on information provided to ensure the barbecue grill chosen serves its purpose efficiently. The clients influenced by the information provided concerning whether to purchase. Also, it’s through information is given that the customer decides on the grill type required.
3. c) Car: In the purchase of car people are greatly influenced by reference groups in the sense when an individual wants to buy a private car brand becomes a significant factor to consider. For example, some of the leading brands include Mercedes, Porsche, Audi, Range Rover, Ferrari, and Lamborghini. A buyer is most likely to consider the above brands over others due to their global brand trend; influence affects the model and brand of car purchased. Notably, the top brands are known to offer to provide executive and luxurious features that attract and captivates clients. Again, once people buy and become loyal to the brands, they promote the identification influence of the choices they make. Also, due to the enormous influence of the brands the majority of people would like to buy and associate themselves with it even though it does not meet all their needs.
4. d) Toaster: Reference group for toaster includes the number and size of slices made in one round. This fact has a massive influence on the number of people who buys a toaster and consequently affects the model and brand. Therefore, this has a normative influence.
5. e) iPad: The purchase of ipads are significantly affected by the reference group. Furthermore, there exist gadgets that serve a similar purpose as that of the iPad, but the brand and model of iPad potentially influence customer purchase of a product. For example, Apple firm produces ipads that operate on IOS, with Samsung company and others producing tablets that accomplishes similar purpose as that of Apple iPad.

Apple has cut itself a niche in the market because people prefer to be associated with its superior brand even though they are more expensive when compared with other firms’ products. Therefore, social identity influences the customer base of the product as the product is associated with society’s top cream group. Nevertheless, the influence does not last forever because innovation can create products with more superior features.

1. f) Adopting a pet from a shelter: Adopting a pet is greatly influenced by a reference group. Upon a customer deciding on which pet to keep such as monkey, cat, dog or other animals, a breed type becomes a critical factor when making a selection for a pet. For instance, many customers prefer German shepherd dog pets breed, and this is according to pet owners advice and preference. Thus informative influence significantly influences the purchase of the pets, because people tend to trust first-hand information. In other words information from individuals who already have the same pets.  Again, realistically, the majority of people keep dogs as pets as compared to other animal pets. Therefore, customers easily acquire information about dogs, and this influences the purchase and adoption of dog breeds. The most preferred dog pet include Alsatians, Dalmatians, German shepherd, and many others.

Reference Groups Relevant to the Purchase Decision

(a) Shoes:  The selected men fashion shoes such as Gucci, Nike, and Jordan are mostly preferred and relevant to college boys.  College boys value the shoes as fashionable and cool. Furthermore, this reference group selects this type of shoes to feel appreciated by their colleagues. The social influence is to strengthen that somebody can purchase even though he doesn’t like it the kind of shoes.

(b) Barbecue grill: University students would consist of the reference group in the purchase of barbecue grill. Again the barbecue grill is both the traditional and modern designed models.

(c) Car: Majority of the reference group who are the college students prefer luxurious convertible cars because the models are fashionable and stylish among college students.

(d) Toaster: Top companies are the reference groups for toasters. The number and size of slices the machine makes is the most crucial factor here.

(e) iPad: Regardless of the high cost and availability of the product college students still prefers it to gadgets that serve the purpose due to the status quo.

(f) Adopting a pet from a shelter: Dogs are the most adopted pets as they are common in society. Therefore, the decision on adopting dogs is very common relevant in society. Also, people tend to easily purchase what their friends tell them, and they have experienced.

Norms of the Social Groups

(a) Shoes: Typically, boys who wear designer shoes are valued as cool and fashionable while those who do not wear are regarded as uncultured. Consequently this becomes an issue for bullying others in college.

(b) Barbecue grill: Traditional barbecue is usually associated with the poor down-trodden since they are known to out of fashion. Also, society tends to despise those people who own and use old-fashioned barbecue grills as compared to those who use modern barbecue grills.

(c) Car: Stylish and convertible cars are regarded and cool, and those who own and drive them are highly respected while those who own and drive old-fashion cars are despised or seen as having no car at all.

(d) Toaster:  Typically, large toasters are more valued and seen as more useful as compared to small toasters that people despise as useless.

(e) iPad: iPad owners and users are more respected and associated with rich while those who own and use other brands or own nothing are regarded as uncivilized and less respected n society.

(f) Adopting a pet from a shelter:  people who adopt pet and breeds such as German shepherd dogs are more respected and also seen as normal as compared those who keep other pets such as monkeys, fish as they are seen as backward and uncivilized hence poorly treated.

A possibility of Using Asch-Type Situation

Notably, the Asch theory explains human being conformity.  Accordingly, when people are in groups they tend to think, have the same opinions and react to the situation is the same manner rather than rationally applying their judgments correctly(Asch, 1955).

• Shoes: In the purchase of shoe the majority of people will follow arch-type theory in the sense that they will apply their beliefs and what society expects of them. For example, they will purchase the latest fashion no matter the taste, preference, and price. People want to be accepted and feel to be part of society more than follow personal beliefs.
• Barbecue grill: Buyers of barbecue grill mostly follow the opinions of others than what they know; therefore human beings conform to Asch type theory.
• Car: In the purchase of car majority of people often choose model and brand that is highly valued in society than to buy according to personal taste and preference.
• Toaster: People to purchase toasters to conform to societal expectations than to follow their preference. For example, a person may buy a large toaster to earn respect whereas he/she needs a small toaster.
• Ipad: Mostly consumers buy ipads as a sign that they also belong to a respectable class in society. The trend is typical among college students. Therefore, Asche type theory strongly applies to the purchase of such electronics.
• Adopting a pet from a shelter: The people always strive to keep those pets that more respected such as a dog because those who keep pets such as fish and monkey are not appreciated at all or considered to be poor.

Conclusion

Generally, reference groups play a significant role in marketing and consumer behavior. From the case analysis, it’s evident that the reference group is critical in determining consumer behavior and consumption.   Advertising and marketing agencies utilize knowledge of reference groups for strategic marketing. Identifying and use of reference group helps to target the actual audience and market niche of a product. There exist two main types of reference groups namely; primary and secondary. Whereas the primary group includes close friends and family members, a secondary group may involve workmates, your seniors and club acquaintance.

References

Huang, Y. A., Phau, I., & Lin, C. (2010). Consumer animosity, economic hardship, and normative influence: How do they affect consumers’ purchase intention?. European Journal of Marketing, 44(7/8), 909-937.

Conte, R., & Castelfranchi, C. (1995). Understanding the functions of norms in social groups through simulation. Artificial societies: the computer simulation of social life, 1, 252-267.