by Consumers are a tribal bunch, and the groups they choose to belong to are significant to how those consumers view themselves and live their lives. Much the way they pick like-minded friends, consumers also purchase brands they believe represent standards they relate to. This is a key component of reference group marketing. Convincingly associating your product or service with a group your target market admires is how you can use group influence to boost your brand’s sales.
Consumers Trust Reference Groups
Consumers are influenced by different types of reference groups they believe they are a part of or aspire to be. Group influence goes both ways; sometimes, consumers avoid brands they believe would put them into a group they don’t want to be included in. People buy things to help form and express their self-concept and their connections with like-minded people. Many things a person buys, especially showy items such as clothing, accessories, vehicles, restaurants or club memberships, are symbolic of what he thinks is acceptable to a certain reference group such as his family, social circle, workplace, community or culture.
An individual buyer might make purchases that appeal to a few different types of reference groups. For example, a consumer who wants to appear eco-friendly may purchase a Toyota Prius. That same consumer might also feel connected to Nintendo’s gaming community and opt to buy Nintendo consoles over Sony or Microsoft products. Group influence comes from many directions and in most cases, different types of reference groups do not clash in the buyer’s mind because the products that signify them are in completely separate categories.
Branded Upbringings Make Lifetime Buyers
Kids influence their parents’ purchases, and reference group marketing can be quite effective with children and teenagers. Marketers aim their messages at children via television, apps and internet to establish early brand familiarity and inspire direct sales. While parents may refer to other parents and groups for the final decision on household purchases, teens and children are typically driving forces behind their parents’ purchasing decisions.
Consumers Buy Peer Status
Wealthy consumers influence non-wealthy consumers. Certain brands keep luxury consumers believing they’re part of an elite club. The trick for marketers of high-end luxury goods and services is to appeal to the wealthier consumers who want to feel distinguished from the non-wealthy while at the same time appealing to the larger audience of consumers who want to emulate the wealthy, according to research on consumer behavior. For example, a high-end watchmaker may release a limited edition luxury watch for its targeted consumers followed by a more affordable version of the product, under the same brand name, for a wider market.
Cause Affiliations and Purchasing
Movements in society can influence consumer behavior. Media reports associated with a brand can fuel consumer activism for or against it, making social media an important asset for any brand engaging in reference group marketing. For example, an injustice involving a manufacturer that is publicized in the media may trigger a consumer to join a boycott of the manufacturer’s brand. Conversely, a company’s association with a charitable cause or heroic deed may compel the consumer to purchase the company’s brand just to show support. People favor brands that resonate with what they believe in and what they think like-minded believers accept.
