Assignment # 1, p o-mkt, (refence group)
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A reference group is a group that individuals compare themselves to in order to evaluate their own characteristics, behaviors, and attributes. It provides the standard by which people measure their accomplishments, roles, aspirations, and identities. Reference groups can influence buying behaviors, as people may purchase products they believe are preferred by their reference group. An individual's perception of their own affluence, for example, depends on which income group they compare themselves to - those earning around $32,000 or those making over $1.6 million. Reference groups are important for determining self-identity and social ties as people relate themselves to and aspire to belong to their reference group.
Assignment # 1, p o-mkt, (refence group)
- 1. REFERENCE GROUP Definition: A group of people or organization of which an individual respects, identifies with, or aspires to join, e.g., membership or associative groups. Group, class, or category of people to which individuals believe they belong, whether or not they actually do. Their relationship to their reference group may influence their buying behavior. For example, if a man buys a more expensive car than he normally would because his neighbors drive that particular model, his buying behavior is seen to be influenced by his reference group. Reference groups act as a frame of reference to which people always refer to evaluate their achievements, their role performance, aspirations and ambitions. A reference group can be either from a membership group or non-membership group. An example of a reference group being used would be the determination of affluence. An individual in the U-S with an annual income of $80,000, may consider himself affluentif he compares himself to those in the middle of the income strata, who earn roughly $32,000 a year, If, however, the same person considers the relevant reference group to be those in the top 0.1% of households in the US, those making $1.6 million or more, then the individual's income of $80,000 would make him or her seem rather poor. A reference group is a concept referring to a group to which an individual or another group is compared. Sociologists call any group that individuals use as a standard for evaluating themselves and their own behavior a reference group. Reference groups are used in order to evaluate and determine the nature of a given individual or other group's characteristics and sociological attributes. It is the group to which the individual relates or aspires to relate himself or herself psychologically. It becomes the individual's frame of reference and source for ordering his or her experiences, perceptions, cognition, and ideas of self. It is important for determining a person's self-identity, attitudes, and social ties. It becomes the basis of reference in making comparisons or contrasts and in evaluating one's appearance and performance. DATE: 15th October 2010
- 2. ASSIGNMENT REFERENCE GROUP PRINCIPLES OF MARKETING SUBMITTED BY: SYED ARIF ALI SHAH (7922) UMBREEN GUL ABRO (14518) ZUNAIRA ABRO (10028) SUBMITTED TO: ATIF SHAHAB BUTT