Loading...

Messages

Proposals

Stuck in your homework and missing deadline?

Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing

100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Assignment on Reference Groups and Consumer Behavior

Category: Business & Management Paper Type: Assignment Writing Reference: APA Words: 1050

Reference Groups and Consumer Behavior

Introduction of Reference Groups and Consumer Behavior

  In terms of consumer buying behavior, the reference group consists of two or more people, who influence each other in terms of making a variety of buying decisions. One member of the group gets influenced by other group members, when they are looking to buy different kinds of products such as clothes, shoes, food items, etc. So, it is evident that a reference group can be extremely influential to make an impact on consumer behavior. The reference group almost comes with a similar kind of lifestyle, which means that when a group member gets aspirations from them, he/she tends to adopt a similar kind of lifestyle with identical products, purchased by other group members. If a reference group has great experience of enjoying the great taste of a fast-food brand, then all members will most likely go to that fast-food chain every time. Even, there can be a situation that a group member may opt to buy a pizza from a local chain rather buying it from any renowned international chain of fast food. It is important to understand that it happens because a reference group has influenced the behavior of a consumer. In this task, I am taking myself as a reference group member, where four other group members are my friends. We have similar kind of buying patterns because we tend to influence each other in this regard (Louden & Della Bitta, 2001).

Discussing Group of Adopters
Innovators of Reference Groups and Consumer Behavior

            In the consumer buying mechanism, there are groups of adopters, who tend to adopt different products at different stages. One of the first groups is “innovators”. The people under this group tend to try any kind of new product, which is just introduced in the consumer market. If a new innovation has been introduced in the market, then members of the innovators’ group will rush to buy the innovative product, because they don’t feel any type of hesitancy. They like to try new products because they are not only risk-takers, but they are also a variety of seekers. They love to try new tastes, features, and variety to get new experience. One of my friends in the group has this characteristic, as he tends to try new products earlier than us. If he knows that KFC has launched a new burger, he will be the first to visit KFC to try the new taste of a burger (Lamb, Hair, & McDaniel, 2008).

Early Adopters of Reference Groups and Consumer Behavior

            In this group, the members are not only one of the first to try the innovative product, but they also try to make opinions by convincing others about the product. For instance, if a new product of a solar plate to charge the battery of the car engine is introduced, then early adopters will like to try this solar mechanism. The good thing is that they not only use the new product but also play the role of opinion makers, which helps to start a new trend in consumer buying behavior. One of my friends is a tech geek, and he always suggests us to try new electronic gadgets (Lamb, Hair, & McDaniel, 2008).

Early Majority of Reference Groups and Consumer Behavior

            Once the product has been used and propagated by the first two groups, and an evident trend is established, then there comes the third group, which is the early majority. It is important to understand that when the early majority starts to buy products, the trend is already established, and the product has already got recognition form the consumers. I would say that I fall under this group because I tend to buy products, when it has made a vibe and trend in the market, and when it has been established what kind of product it is. For instance, buying a new model of iPhone, I would like to wait for 2 to 3 months to see the response from the consumer market (Hanlon , 2013).

Late Majority of Reference Groups and Consumer Behavior

            In the list of adopters, this group comes at number fourth, when the product has been tried and tested, and it has enjoyed great success in the market. They are very skeptical in terms of adopting change and don’t want to involve in any kind of risk. So, when the product has been tested and proved by the majority, they will then buy it to remain safe. One of my group members is included in this group of adopters. He never tries new products, and when we are about to leave using the product, he then purchases it (Hanlon , 2013).

Laggards of Reference Groups and Consumer Behavior

            The people in this group are very conservative in their approach, and their thought process is very limited. They don’t welcome change; rather they tend to show resistance. They are afraid of using innovations and like to go with the traditional methods. For instance, our of five friends, one friend is still using a manual ignition car, because he is very resistant to use a car having an automatic transmission.  This group is never included in the reference group because they don’t have any essence to influence others (Hanlon , 2013).

What Group is Preferred being a Marketer

            If I am a marketer, and I am looking to target a group of adopters, then my focus would be on early adopters, because they are the first opinion makers. They are the ones who are trendsetters, and if they are convinced, then a product will easily get to other groups of adopters. For instance, I produce an innovative power bank, which not only used to charge smartphones but also laptops and computers. I would target tech geeks, who like to try new and innovative products. They like to use innovative technologies so that they can increase the efficiency of products, already being used.

 References of Reference Groups and Consumer Behavior

Hanlon , A. (2013). What is the The Diffusion of Innovation model? Retrieved April 2, 2020, from https://www.smartinsights.com/marketing-planning/marketing-models/diffusion-innovation-model/

Lamb, C. W., Hair, J. F., & McDaniel, C. (2008). Essentials of Marketing (6th Edition ed.). Cengage Learning.

Louden, D. L., & Della Bitta, A. J. (2001). Consumer Behavior: Concepts And Applications. Tata McGraw-Hill Education.

 

 

Our Top Online Essay Writers.

Discuss your homework for free! Start chat

Best Coursework Help

ONLINE

Best Coursework Help

1554 Orders Completed

Assignment Helper

ONLINE

Assignment Helper

21 Orders Completed

Financial Analyst

ONLINE

Financial Analyst

1596 Orders Completed