Chapter 12: Consumer groups,
Consumer reference groups,
family, and family life cycle
Consumer Behaviour
Sangeeta Sahney
© All rights reserved. Oxford University Press 2017
Learning outcomes
After going through this chapter, the reader will be able to understand:
The meaning and types of consumer groups and reasons for formation of groups
The concept of socialization
The concepts of consumer socialization and consumer reference groups
Reference groups, consumer conformity, and social power
Factors affecting the influence of reference groups
Reference group appeals
The variation of influence of reference groups with product
The meaning of a family and the role of family in consumer socialization
The relationship between a family and the buying decision process, and the
various stages in family life cycle
Introduction
People have a natural tendency to live and work together,
share and interact with one another, and be bound in social
relationships.
Group members influence the values, beliefs, attitudes, and
behaviours of others within the group.
Consumers are influenced by others with whom they interact
directly or indirectly, and the impact of this influence is
extremely important for a marketer.
Meaning of groups and
consumer groups
The term ‘group’ may be defined as two or more people who
interact with one another to achieve either individual or
collective, yet mutually agreed upon, goals.
Groups are generally characterized as constituting:
two or more people
common objectives and/or interests
direct or indirect interaction amongst members
members’ awareness of one another and of the fact that they
are members of the group
members’ liking towards one another and desire to remain a
part of the group
sense of unity, identity and reciprocity.
Reasons for formation
of groups
People seek physical and emotional safety and security
They have social and affiliation needs
People share common goals and interests and desire to live and work
together to achieve the goals
They feel that a sense of identification and membership would result
in social and economic betterment and lead to overall self-
development
People are also driven towards group formation because of their
esteem need
Further, one’s group membership also forms a part of the self-
concept
Types of consumer
groups
Groups may be classified on various bases such as:
Number and size
Membership
Regularity and type of contact and the amount of
interaction and influence
Degree of formalization (structure, hierarchy, and formality)
Degree of attraction and intimacy
permanence and strengths of ties.
Primary and secondary groups
Formal and informal groups
Membership and symbolic groups
Relevant groups in the study of consumer behaviour:
Family
Friendship groups and informal social groups
Shopping groups
Official workgroups: superiors, peers, and subordinates (formal)
Formal social groups
Consumer-action groups
Virtual groups
Socialization
Socialization is the process by which an individual learns about the
values, norms, language, customs, and traditions, as well as other
elements of the social and cultural fabric to which he/she belongs.
Socialization is a lifelong process.
Socializationthat takes place in life during childhood is known as
primary socialization.
The family is regarded as the primary socialization agent.
Socializationthat takes place during adulthood, when people face a
changed environment, and so they require additional socialization,
is known as secondary socialization.
The source(s) through which learning takes place is known as
the socialization agent(s).
Such agents play a direct or an indirect role in socialization,
and help a person groom himself/herself in line with the
expectations of others in the social cultural fabric.
Learning takes place through observation, modelling, and
reinforcement.
Consumer socialization
When a person acts out instances of behaviour which relate
to consumption patterns and behaviour, it is known as
consumer socialization.
It is the process by which consumers acquire the knowledge
and skills required to function as consumers in a market.
Ward defines consumer socialization as ‘the processes by
which young people acquire skills, knowledge, and attitudes
relevant to their functioning as consumers in the
marketplace’ (Ward 1974).
Consumer socialization is a continuous lifelong process, which
begins during childhood and continues throughout life, with
socialization and re-socialization taking place with changes in
the marketplace (due to socio-economic and cultural
changes), which further bring about pressures to adapt to the
change.
Consumer socialization gets influenced by various groups such
as family, friends, social class, reference groups, one's own
culture, and other cultures and sub-cultures.
In the context of consumer behaviour, and consumer socialization,
people and organizations involved in the orientation of children
and adults to act as consumers are regarded as socialization
agents.
Examples include:
Family and friends
Schools and religious institutions
Peers and colleagues
Community
Mass media (radio, TV, newspapers, books and magazines, and
movies)
Internet
Company spokespersons, salespeople, and retailers
Meaning of consumer
reference groups
Each one of us looks towards another individual or a group
for comparing and evaluating ourselves and our own
behaviour. This group which a person looks up to as a
point of comparison is known as a reference group.
The term ‘reference group’ was coined by Herbert Hyman
in the1940s.
Reference groups may be direct or indirect, and formal or informal.
Direct reference groups include primary reference groups (family and
friends), secondary reference groups (social clubs and religious bodies),
and membership groups.
Indirect reference groups include symbolic groups, aspirational groups,
and avoidance groups.
Reference group influence can be either informational or normative.
Informational influence is the tendency to seek information from others
and accept such information from others as true and valid.
Normative influence is the tendency to conform to the beliefs and
expectations of others.
Normative influence(conformity) may manifest in two forms:
value-expressive
utilitarian influence
Reference groups exercise a huge influence on one’s
purchasing patterns.
Family, relatives, friends, neighbours, work peers and
colleagues, religious institutions, celebrities, all of these
have a tremendous influence on one’s buying behaviour and
consumption patterns.
Apart from the family, society, and the mass media, people
today also connect with each other through Internet and e-
platforms, giving rise to virtual communities.
Types of consumer
reference groups
Broadly speaking, based on the kind of contact
(direct/indirect and regularity and frequency), reference
groups can be classified as primary reference groups and
secondary reference groups.
Based on the kind of influence that they have, reference
groups can also be classified as normative reference
groups and comparative reference groups.
Based on whether people hold membership or not or
aspire to hold membership, reference groups can also be
classified as membership groups and aspirational groups.
Reference groups, consumer
conformity, and social power
Herbert Kelman (1958) has proposed that social influence occurs
through three processes, namely compliance, identification, and
internalization.
When a person agrees with another person (or group) in an overt
manner, but actually does not accept his/her values and beliefs, as well
as attitudes and behaviour, it is known as compliance.
When a person identifies with another, and conforms to him/her, it is
known as identification.
When a person agrees with another (person or group) as he/she feels
that the latter’s values and beliefs, as well as attitudes and behaviour,
are similar to his/her own and in congruence with his/her value system,
it is known as internalization.
In general, people are influenced by their reference groups either
due to conformity or peer pressure.
When a person yields to the values and beliefs, attitudes, and
behaviour of others, it is known as conformity.
On the other hand, when a person feels compelled to think and
behave like others in his/her group, it is known as peer pressure.
Consumer reference group influence may be classified as
informational influence, utilitarian influence, and value-
expressive influence.
Influence of reference
groups FACTORS
Reference group influence varies across a) people, b) goods
and service offerings, and c) situational factors.
Both susceptibility to interpersonal influence and high levels of
ATSCI lead to conformity to social norms.
A person’s susceptibility to interpersonal influence is
illustrative of a need for affiliation, social approval,
maintaining and/or enhancing of social image, as well as the
desire for identification and internalization.
A person’s ATSCI is defined as the degree to which he/she is
affected by other people’s opinions regarding his/her
behaviour.
Reference group influence also varies according to the type of the
good and service.
For products that are high on involvement (e.g., electronic gadgets
and cars) and where there is risk and uncertainty as well as where
product usage and consumption are visible and conspicuous (e.g.,
carpets and furnishings, apparel wear, and watches), people seek
support from members of their reference groups and the influence is
high.
The influence of reference group also varies according to the type
of the group and the group characteristics.
Factors such as one’s value system and cultural pressures, size of
the group, degree of involvement and interaction with, and
dependence on, the group, group cohesiveness and commitment,
as well as fear and consequences of deviance, and the importance
of the group for the individual, increase the influence that
reference groups have on people.
The various factors that affect the influence that a
reference group can generate on people, and particularly
on consumption behaviour, are as follows:
Information and experience
Power, credibility, and attractiveness
Conformance with group and social approval
Visibility and conspicuousness of the product
Uncertainty and risk associated with a purchase
Reference group
appeals
Reference group appeals are used by marketers to show
how products and/or brands are being used by some
people to persuade others into purchase and consumption
of the same.
The commonly used reference group appeals are:
celebrity appeals
expert appeals
common-man appeals
executive appeals
others: trade or spokes-character appeals
Influence of reference
groups varies by product
INFLUENCE
Reference groups have varied influence on consumers
depending on the type of the product, that is, whether it is
a luxury or a necessity product, and whether it is used in
public and viewed by others or whether it is used in
private.
Bearden and Etzel (1982) examined the issue from two
perspectives, namely (a) the decision to purchase the type
of product and (b) the choice of the brand.
They concluded that reference group influence varied by
the type of product, that is, whether it is a luxury or a
necessity
its visibility, that is, how conspicuous the product is to others
Brand Product
Weak reference group Strong reference group
influence (−) on product influence (+) on product
Strong reference group Public necessities Public luxuries
influence (+) on brand Influence: Influence:
Weak for product and strong Strong for product and
for brand strong for brand
e.g., cars and cell phones e.g., carpets, paintings, and
antique art forms
Weak reference group Private necessities Private luxuries
influence (−) on brand Influence: Influence:
Weak for product and weak Strong for product and weak
for brand for brand
e.g., towels, soaps, and e.g., body massagers and
detergents sauna bath
Effects of reference groups on product purchase and brand choice
Meaning of family
The family is also regarded as the most important socialization agent.
The family has the most profound and enduring influence on consumer
behaviour.
The term family is defined as two or more people staying together and related
to each other by blood, marriage, or adoption.
However, it is a term that is not easy to define and conceptualize because of
two reasons:
the composition and structure, as well as the roles and statuses, of family
members are evolutionary
it is culture specific
The composition, size and structure (in terms of roles and statuses), of the
family as a social unit has undergone a change across time and culture.
During his/her lifetime, a person experiences around him/her
two kinds of families: (i) the family of orientation and (ii) the
family of procreation.
The family of orientation refers to the family in which one is
born, and comprises parents and siblings (even grandparents).
The family of procreation refers to the family which is formed
after marriage and birth of children, and comprises spouse and
children.
Today, we find three kinds of families, namely the married
couple, the nuclear family, and the extended family.
It is noteworthy that from a marketer’s perspective while
families have been referred to as households, not all
households are families.
People related or unrelated, but who live together as a
single housing unit, comprise a household.
A household may also refer to a house that has just a
single individual, or a family, or it might even include
individuals who are not related to one another by blood or
marriage, such as friends, roommates, and work peers.
Broadly speaking, households may be classified as family
households and non-family households (single individuals,
live-ins, unmarried couples, and friends).
The family is regarded as the primary purchase decision-
making and consumption unit in the society.
This is because of three reasons:
a monetary source for dependents
an indication of, and introduction to, values and lifestyles
the root for socialization
© All rights reserved. Oxford University Press 2017
Role of family in
consumer socialization
Socialization takes place in two stages: (i) during childhood,
as family of orientation, and (ii) after marriage, as family of
procreation.
Socialization during Childhood
Socialization during Adulthood
Intergenerational Socialization
Family and buying
decision process
Purchase decisions in the family are generally joint decisions
made by the members of the family, be it husband, wife,
children, or even members of the extended family.
So, the family is recognized not only as the basic social unit, but
also as the basic decision-making unit.
Familial decision-making is impacted by elements pertaining to
the family, as well as elements pertaining to the purchase.
Elements related to family include role structure and gender-role
orientation, power structure and dynamics, and cultural and
emotional ties.
Elements related to the purchase include, the nature and usage of
the product and service, the level of involvement with the product
and the purchase situation, and the decision-making stage.
Buying Roles
Reversal of Buying Role
Joint Decision-making in a Family
Spouse decision-making
• Researchers have identified family consumption decisions
between husband and wife as husband dominated, wife
dominated, joint (i.e., equal or syncratic: both husband and
wife jointly take the decision), and autonomic (i.e., solitary
or unilateral).
• Children today are very active in playing various buying roles
• It is collated from Yukl and Falbe (1990).
Role of children in decision making
Consumer conflict in a family
Family life cycle
A sociological concept introduced in the 1930s, the FLC has
been defined as a series of stages through which most
families progress, with varying characteristics across time.
These characteristics relate to marital status, size of the
family, the age profile of the family members (focusing on
the age of the oldest and/or youngest child), the
employment status of the head of the household, the income
level, and the disposable income at hand.
Family needs and wants, income and savings, assets and
debts, purchase preferences and expenditures, and the
choice of goods and service categories, as well as their rates
of consumption, change across various stages of the FLC.
Traditional family life cycle
The traditional FLC can be synthesized into five
basic stages, namely bachelorhood, honeymooners,
parenthood, post-parenthood, and dissolution.
Modifications to the family life cycle.
© All rights reserved. Oxford University Press 2017