Few decisions are made in a vacuum. Where we live, where we
work, the cars we drive, and the toothpaste we use often are the results of
what we hear and who we speak to. It may not be scientifically derived, but
anecdotal information heavily influences our choices.
It stands to reason, then, that businesses will market goods and services based on the traits of those with whom we share our lives. They could be colleagues, classmates, or neighbors. Likewise, they could be friends from the gym, fellow association members, or favored celebrities. If we can identify with them, they can be counted as a Referral marketing.
Defining Reference Groups
Marketing professor Lars of the University of Southern
California contends that three factors determine identification with a
reference group. There are some people, for example, that we may admire or
aspire to be like. These include movie stars, elite athletes, and public
authority figures. We may not know them, but we still follow them.
Others are closer to our own orbits, such as people we
associate with because of what we hold in common: age groups, religious faiths,
and political affiliations.
Finally, reference groups are determined on the basis of
disassociation. Many adolescents, for example, actively seek to identify apart
from their parental ties. Nonvoters, in the same way, refrain from civic
participation because they feel alienated from the prevailing political system.
Aspiration, association, and disassociation each contribute to the consumer
profile.
Their Purpose
Reference groups help people navigate their way through
financial decisions, relationships, child-rearing, recreation, and many other
aspects of life. Peer pressure certainly can be a negative, but it also can be
a positive. Reference groups also help businesses, advertisers, and social
scientists better determine patterns of behavior to sell products or craft
policies. Case in point: a company that sells chewing tobacco is more likely to
place an ad in a hunting magazine than in an urban nightlife periodical because
its customers and prospects tend to be rural, middle-aged males.
Types of Groups
Reference groups can be categorized in many ways. A key
distinction is between formal and informal reference groups, the former
consisting of clubs, organizations, and religious fellowships, while the latter
often is comprised of friends or colleagues. In some cases, a reference group
can be what is called an opinion leader, such as a rock star or famous
politician, who attracts devotees.
Groups also can be divided into primary and secondary
status, depending on how much influence they carry with a given person. Other
paradigms include informational, normative, and identification reference
groups. Informational groups are based on knowledge attained; normative, on
expectations met, such as when company employees conform to a dress code; and
identification, on a desire to belong.
Belonging to a reference group can be by choice, by
necessity, or simply by birth. Humans are social animals and likely will always
be grouped and categorized. These groups can guide members in plotting their
courses in life. At the same time, they can help others understand and predict
future behaviors.
