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.