Relative influence of reference groups on product and brand choice decisions

Abstract

Group pressure to conform is referred to in the consumer and social psychology literature as social influence or interpersonal influence , which has an impact on consumer product and brand preferences, on evaluations of product quality and also on buying decisions. Market researchers have long strived to understand the effects of social influence on consumer attitudes and behaviors. That is, how, why, and when do consumers conform to social norms? Researchers around the world have tried to study how people behave in a particular situation and why do they behave like that? The results however have not been commensurate with the efforts made, primarily due to the diversity that people exhibit in their behavior. Thus, it is imperative for marketers to keep track of their customers by undertaking researches on the various facets of consumer behavior on a regular basis. Reference Groups: Olson and Peter (1996), define a reference group as one or more people that someone uses as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors . Reference groups expose an individual to new behaviors and lifestyles and influence attitudes and self-concept; they create pressures for conformity that may affect actual product and brand choices. Consumers use informal groups as a source of information about products and as a frame of reference in product evaluations and why informal groups influence purchasing behavior. It is argued that the individual has a need to compare himself on various attributes with other individuals in order to judge the consequences of his behavior when physical evidence is unavailable. Social comparison increases the stability of one s evaluation and offers an occasion for expressing affection and other interpersonal rewards (Clarke, 1971). Consumer susceptibility to group influence is assumed to be a general trait that varies across individuals and is related to other individual traits and characteristics.