What Is Consumer Reference Group And Buying Decision?

Consumer reference group is that group to which the consumer has close relationship and proximity and which the consumer uses for references and which effect the buying behavior of the consumer. We have generally two types of reference groups.

1: Normative reference group:

Normative reference group is that group in which the consumer had direct relation or face to face relation and influence on the consumer buying decision and behavior.

For example, family and friends etc. The members of the family are always in interaction with the consumer and they give different ideas and suggestions or advice to the consumer to buy a specific product or brand. And thus they influence the consumer.

2: Comparative reference group:

Comparative reference group is that group in which the consumer has indirect relation and less face to face interaction, such type of groups attract the consumer and the consumer gradually start to adopt the life style of the personalities lying in the comparative reference group.

For example, in this group we have television a star, cinema stars, sports mans, and other popular personalities. The consumers are attracted by the marketer through different types of promotional campaigns and start to purchase different types of products used by the personalities of the comparative reference group.

                                                 TYPES OF REFERENCE GROUP Normative reference group.Comparative reference group.Aspirational reference group.Associate reference group.Disassociate reference group.Primary and secondary .Avoidance group . 

1- friendship groups
2- shopping groups
3- work groups
4- virtual groups or communities
5- consumer-action group

Most consumer purchases depend upon the word-of-mouth publicity the products or services get in society. Today, there is a general awareness towards the quality available at a particular rate and no one is willing to compromise on the functionality of the product. The inflation that surrounds us makes it impossible not to seek absolute value for the money spent. Consumer forums make the public aware of every new product and service in the market and even address those in the thought process.

Consumer reference group and buying decisions are co-related with one another. They are two sides of the same coin, effective marketing. The consumer reference groups affect the buying decisions customers make and vice versa. The popularity of a product or service does result in the formation of such forums too. The end desired result is optimum sales and increased consumer awareness. This is successfully achieved by the relationship shared between consumer reference groups and the resultant buying decisions.

The consumer reference groups are widely recognized and referred to by consumers from all around the world. They play an unbiased role in the sales of products and services. The buying decisions are taken on the basis of the personal preferences and the recommendations of the group.

There are three types of reffed