Socialization and Reference Groups Impact
Socialization and Reference Groups Impact
Indices
SOCIAL ORGANIZATIONS
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5.01 What is Social Organization?
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In an organized society, there is stability and change. Stability is the condition of equilibrium
among the parts of society. It is the state of smooth functioning. During this condition; the social
problems decrease in society. Change is the dynamic condition of society. An organized society
is also changing for the fulfilment of social needs. Abrupt changes in the form of revolution disrupt
the existing social order and disorganization occurs in society.
The examples of organization can easily be understood from the organs of human body which are
technically joined together called organization of parts in human body. The parts of a table are
prepared separately by the carpenter and then fitted together in a technical order. This table is an
organized body. It means organization is arranging of parts into its whole. Similarly, social group
is an organization of individuals into a social unit. The individuals set themselves at their positions
(status) and by interaction (role) they make a social group. It means they are fitted themselves into
the group according to their positions. This participation individuals into group is social
organization.
Step 6 - Measure Your Results: Here's where you find out if it worked. Write an honest, detailed
assessment report. This can help pinpoint both the weak and strong points for any future
campaigns.
Conclusion: To successfully market your programs and ideas you must understand the directions
in which society is moving. Recognizing public attitudes will help you implement a solid social
marketing program. Always remember, underlying everything is one basic question your audience
wants answered. So, stand back for a moment, put yourself in their shoes and ask, "What's in it for
me?" A six-step social marketing campaign, based on the trends and attitudes of the 1990s will
give your organization the answer.
REFERENCE GROUPS
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5.04 Reference Group
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Reference group is a group of people whom you refer to, while making buying decisions. They
help you in buying items like clothing, etc. Reference groups influence consumer behaviour by
building aspirations for the individual and, helping him to choose the product for a particular
lifestyle. They are small groups and consist of family, close friends, work groups, neighbours or
any other group of people you associate with.
These groups regulate the lives and set standards for norms and conduct. In a family, influence is
exerted by the members of the family in the purchase consumption process.
Reference groups affect consumers by imparting information and by influencing value expressive
needs of the consumers. If one wants to be a member of the group, one has to conform to the
standards of the group. Their values and attitudes have to be appreciated and adopted, and one
tends to buy and use the products which the group uses and appreciates. More homogeneous
groups, or group members having similar characteristics are more susceptible to attitude changes
than the groups whose members are less homogeneous. Some individuals have a strong sense of
identification with a group because they derive strong material or psychological benefit by being
associated with that group. Sometimes, there are pressures of buying, known as conformity
pressures, and one adheres to the norms of the group. Conformity pressures can be noticed with
norms set by schools and colleges, other membership organization and military or police
organisation and the like. These can be exerted directly or indirectly on the members of the group.
168 CONSUMER BEHAVIOR
1. Compliance (m¤§wZ ): The members of the group have to comply only by overt or open
behaviour with the norms and standards, i.e., comply by paying certain fixed fees. Being
present on [Link] the same clothes, etc. It makes no demand on the change of attitudes,
beliefs of the person concerned. You can only be a passive member of a service organisation,
pay fees, eat food, meet people and go away without being service minded, e.g., Lions Clubs
and Rotary Clubs.
2. Identification (kbv³KiY): This is a deeper relationship where the individual not only
complies to the standards, but also maintains a social relationship and changes his perception
to a great extent, i.e., you can join a service organisation only for being a member or, you can
change your perception and become service minded and actually start believing in service
doing and, appreciating to achieve the service objectives of the organisation. You can become
involved deeply and take pride in identifying yourself as a Lion or a Rotarian.
3. Internalising (Af¨šÍixYKiY): Here you become more committed and, not only believe in
service, but also try to enforce the objects and views on others, to get more deeply involved
in it. You make or force others to follow the norms and rules of the organisation. An example
of the process can be that you are born in religious surroundings and perform rituals enforced
on you. The next stage is that you start being religious yourself and the third stage is that you
start preaching the same to others.
2. Formal or Informal Group (m`m¨c` Ges m`m¨nxb †Mvôx): A formal group has a structure and
some objectives and the roles of the members are defined. Certain rules and regulations are
followed. An informal group has no structure. People come and go at random, e.g., a group
meeting in the market place having tea and snacks together, meeting without much purpose.
3. Primary or Secondary Group (AvbyôvwbK ev AbvbyôvwbK †Mvôx): This depends on the frequency
of contact. Primary groups consists of family, close friends, peers and business associates
with whom one has regular contact. Secondary groups meet infrequently and are not so
closely knit. Club membership groups and shopping groups are secondary groups.
4. Aspirational Groups (cªv_wgK ev gva¨wgK †Mvôx): Aspirational groups are the groups you aspire
to belong to and want to join at some future time. These are known as anticipatory aspirational
groups. We also have symbolic aspirational groups to which a person is attached but not likely
to belong to. These are professional sports groups, or some other elite group. Marketeers use
a symbolic group by using celebrities to advertise the products. The above figure shows the
classification of groups. It is important for marketeers to make a study of the behaviour of
groups and accordingly formulate strategies. Consumers use these groups as a point of
reference at different times. Primary groups exert greater and more direct influence on
purchasing behaviour, and the advertisers use family settings and family events as a means
of advertising them to influence consumers.
3. Talking about the duration of the group, primary groups are long-lasting, as they persist over
time. On the other hand, secondary groups are short-lived, because they are formed with a
specific purpose, i.e. to carry out a certain task, and once the purpose is accomplished, these
groups cease to exist.
4. The interest of members in case of a primary group is diffused, as each member may have
different interest, however, the central interest dominates the self-interest. Conversely, in case
of a secondary group, the interest of the members are common for which they join the group.
For instance: People who join a gym, have one common interest, i.e. to reduce weight and
keep themselves healthy and fit.
5. Primary Groups are commonly found in family settings, i.e. the members of the household
often share a common background, and they know each other quite well. Also, they have a
face to face contact with each other. As against, the secondary group is usually found in an
educational and employment setting, like a class, batch, work team, etc.
6. Primary Group plays a very important role in the lives of people as they tend to shape the
personality, behaviour and character of people. As against, the secondary group has a little
significance on the life of people.
7. In the case of the primary group, the focus is on the relationship, but in the secondary group,
the main focus is on the task or goal for which the group is joined.
8. The relationship between group members is direct, intimate and personal, in the primary
group. Unlike, the relationship between group members is impersonal and goal-oriented.
9. In general, people experience or become part of the primary group in their early stage of life.
But in their later stages of life, they become part of various secondary groups.
10. Primary Group works on the principle of particularism i.e. each individual is important. As
against, the secondary group works on the principle of universalism, which means that the
group is open to all and anyone can join it.
11. The structure of a primary group is informal, whereas secondary group has a formal structure.
12. In the primary group, the members know each other and they have strong bonding, so they
have direct, quick and effective communication. In contrast, communication is indirect in
case of a secondary group.
13. The best thing about the primary group is that the members have a stable role. However, in a
secondary group, the role of people is interchangeable in nature.
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 173
14. There is direct cooperation between members of a primary group, but indirect cooperation is
present in case of a secondary group.
1. Physical Proximity: People belonging to a particular primary group, share a close and
intimate relationship with one another. and that is why physical nearness, of the group
members, makes communication easy and quick.
2. Small Size: Such groups are usually small in size. For example, in a Nuclear family, the
mother, father and children are called a primary group. Further, when the group is small
in size, the members have strong emotional ties with one another and know each other
quite well. They also develop a group character.
3. Stability: Relationship between the group members can only be strong when there is some
degree of stability in the group. If the members enter and exit the group frequently,
intimacy may not be developed between them.
4. Similarity of Background: This means that the group members share a common
experience, environment, history or circumstances.
5. Limited Self Interest: People belonging to this group subordinate their self-interest to the
common interest of the group. They join the group and take part in it cooperatively.
6. Intensity of Shared Interest: Each member of the primary group share a common
interest, which is relevant for all as well as valued by all.
174 CONSUMER BEHAVIOR
Active and Inactive Members: In a secondary group, there is very little personal contact
between the members. Hence, there is a lack of intimacy and so some members are active,
while others are inactive.
Formal Rules: There is a well-established set of formal rules and regulations, which the
members are expected to follow.
Status of Individuals: The status of the members keeps changing with time and
circumstances. Moreover, the status is based on the role played by the members.
Goal-Oriented: Secondary Group is formed with a specific purpose or goal, and every
member strives to achieve that goal.
• People's daily decisions are influenced by their interactions with the main group members.
After decisions have been made, certain behaviors tend to be reinforced while others are
discouraged depending on the key group members' approval or disapproval.
SOCIALIZATION
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5.15 What is Socialization?
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When a newly born baby comes to the world, he knows that what are happening in surrounding.
An individual becomes a member of society when an individual interacts with other individuals.
For living in society an individuals requires some specific methods and techniques to effects
his/her social life and become a proper member of society. So, it is the socialization process which
molds a baby into a social person of society. When an individual comes to the new world faces
many social problems and for which social control is necessary. That individual learns various
social norms during his process which bring conformity to these norms.
Socialization is a continuous and life long process till to the end of life. An individual learns
language, culture, values, norms, attitudes and behaviors which molds his/her personality and
becomes a social-being. This is the only process which a person develops his/her personality and
self when an individual interacts with other members of his/her family and community or groups.
Individual learns more about culture and they transmit these norms to the next [Link]
is important to the socialization process because their parents affect a child personality a lot.
Parents are the source of social indemnity of their children.
3. Definition of Socialization according to Ogburn, “It is the process of learning the norms
of the group and society “
4. Maciver define Socialization as, “It is the process through which social beings develops
relationships and association with each other.”
5. Definition of Socialization according to Bogardus: “A process of learning to live and work
together is called socialization.”
It also teaches children how to interact with people who are different from them in terms of
race, ethnicity, social class, and religion. For example, children learn that it is polite to speak
quietly in the library, but they can be loud when they are playing with friends at the park.
4. Peers (mnKg©x): People learn from their peers (the people of their own age and similar social
status) how to dress, talk, and behave. People also learn about what is important to one's peer
group and what is not. During adolescence, peers become even more important as
agents of socialization. This is because adolescents are exploring their identities and trying
to figure out who they are and where they fit in the world. Peers provide support and
guidance during this time, and help people learn about the norms and values of their culture
— as well as what to wear, eat, watch, and where to spend time.
5. Mass Media (MYgva¨g): The media works by providing information to a wide audience via
television, newspapers, radio, and the Internet. This broad dissemination of information
greatly influences social norms. The media teaches people about material objects, current
events, and fashion, but also enforces nonmaterial culture: beliefs, values, and norms. It also
teaches people how to think about and react to political events, such as elections. In
addition, it provides information about what is happening in other parts of the world, how
people in other cultures live, and how people from a particular society should perceive the
way that others live.
6. Religion (ag©): Religions can be both formal and informal institutions, any is an important
avenue of socialization for many people.
Synagogues, temples, churches, mosques, and similar religious communities teach
participants how to interact with their religioon's material culture — for example, the
mezuzah, a prayer rug, or a communion wafer. Today, religion continues to shape people's
socialization experiences. For instance, some religions encourage members to protest wars
and volunteer to help the poor. In all of these cases, religious institutions socialize people to
behave in a way that favors once vulnerable groups.
7. Government (miKvi): The government is another agent of socialization. It enacts laws that
uphold social norms and values, and it also provides institutions and services that support
citizens. Government is notable in that it can fund a number of institutions that encourage
socialization. For example, the government funds public schools, which play a key role in
children's socialization. The government also funds other programs that provide opportunities
for social interaction, such as after-school programs, parks, and recreation centers. The
military is another example of how the government can influence people's socialization
experiences.
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 179
The government can also create roles through legislation. For example, governments usually
define an “adult” as being at least eighteen years old, the age at which a person becomes
legally responsible for themselves.
2. Establishing values (g~j¨‡eva cªwZôv Kiv): Values are our ideas about what is right and what is
wrong by which we guide ourselves. As human beings we should have some values. Values
are taught in the family to discipline children. Every society has certain values. Being a
member of a particular society, a person should uphold those values so that his behavior is
acceptable to others. Many values are taught to children by the elder members of the family.
Sharing some values, caring, showing respect to seniors, being affectionate to younger ones
etc. We, for example, teach our children to share their toys and other belongings with others
of their age.
3. Developing Role Behavior (f~wgKv AvPi‡Yi weKvk): Children learn behavior from his family
members. Being a member of society, a person has to play different roles depending on the
situation. It is not suitable for every situation. The family teaches its members to play different
roles in different situations. You can allow your children to behave in a certain way when
they are at home. But you expect them to behave differently when they are in the marketplace
or to a relative's house.
180 CONSUMER BEHAVIOR
Moreover, we teach our children through our behaviour. We teach that men and women have
different roles, and as a result they should behave differently. This will affect the child as he
grows up. And this influence is necessary for the child to learn his/her appropriate behavior
to socialize with others in the society. As the child interacts with his/her family members.
This interaction helps the child develop self-image as he learns about others and compares
him with others in the family.
The structure of self is subsequently shaped through interaction with the environment,
particularly the environment composed of significant others ( e.g. parents, siblings, relatives). In
other words, as the child becomes socially sensitive and as his or her cognitive and perceptual
abilities mature. The self concept becomes increasingly differentiated and complex. To a large
extent, then the content of one’s self concept is a social product.
For example, a person is friendly and easy going, thus, experiences positiveness more. This will,
in turn, affect his / her perception of oneself positively. Therefore, that person is very likely to be
an optimist.
1. Real self (self-image): Real self is what we actually are. It is very important for good
psychological health. A teenager may perceive himself as beautiful or ugly, good or bad
person. Self-image directly affects how a person feels, thinks and acts in this world.
The real self, which is created and developed through the actualizing tendency, it is the self
that one can become.
It is our inner personality. It may not be perfect but it is our real part (Grice, 2007).
2. Ideal self: It is what we want to be. For example, a girl may want to be a dancer or a boy may
want to be a cricketer. It represents our dynamic ambitions and goals.
By Ideal self, Rogers meant some goals which are beyond our reach. Rogers is suggesting
something not real, the standard we cannot meet. It is basically equivalent to the superego in
Freudian Theory. (Hjelle & Ziegler, 1992)
This may result in the gap between real self and ideal self.
If ideal self and real self are similar, our self-concept is accurate. High
congruence between real self and ideal self leads to greater sense of self-worth and
a healthy, productive life. When there is large gap or incongruence between them, it leads
to maladjustment.
Positive statements about a product reinforces both perceptions of a product and a consumer’s self-
concept. Self-concept is how a consumer sees and feels about him / herself, both the actual self
and the ideal self he or she would like to become.
Self-concept also relates to how consumers want others to see them. Self-concept is a self-image
or identity made up of a subjective collection of thoughts, perceptions, and feelings. It includes
personality, abilities, occupation, and the various personal and professional roles the consumer
takes on.
Consumers use products to support their self-concepts. Products and brands are an important way
consumers reflect and shape their identities.
When prospects perceive that a product reflects an aspect of their self-concept, they form an
emotional, personal connection with that product. An emotional connection with a product is the
foundation of lifetime customer relationships.
Self-concepts fall into two categories:
Actual self – How the consumer actually is. This is less subjective than the other types of
self-concept and includes facts like occupation, age, gender, income, etc.
Marketing to the actual self involves showing that you understand the consumer and “where
she / he’s at.” You target your marketing messages based on facts about your prospects. What
are the facts of your consumer’s life, and how does he see and feel about them? How does
your product fit into his life?
Where do your prospects live? Do they have lots of disposable income, or is money tight?
Are they single or married? Do they have kids? Does their age mean they are concerned about
acne, or dentures?
Ideal self – The consumer’s perception of who she would ideally like to be.
Prospects measure their actual self against their ideal self. They want to achieve the ideal self.
The gap between the actual and ideal self can create strong motivation to buy products to
bring the actual self closer to the ideal self.
How do your products help prospects achieve their ideal selves? Does your market want to
be wealthier, thinner, and more attractive? How will you help them feel that buying your
product brings them closer to their ideal selves?
Self-concepts of the actual and ideal selves also fall into two further categories:
1. Private self: Who the consumer is or wants to be for him/ herself (for example: adventurous,
friendly, happy), rather than how he or she wants others to see them.
Your marketing messages can appeal to the private self with internal benefits like happiness,
health, and spirituality.
2. Public self: How the consumer thinks other people see him, and how he wants to be seen (for
example: intelligent, attractive, and successful).
186 CONSUMER BEHAVIOR
Your marketing can appeal to how prospects want others to see them by portraying the
benefits they want to achieve, and showing other people’s reactions.
Thus ask: What is your target market’s self-concept? How do they see themselves? What is their
ideal self? What is their Private self? What is their Public self?
Your market research survey will help you uncover hidden self-concepts. This will allow you to
position your company and products to support consumers’ self-concepts so they connect with
your product emotionally and develop loyalty.
Here are some ways that self-concepts affect buying:
Every market has different self-concepts: Use market research to find out how your
prospects see themselves so you can position your product to support their self-concepts. Do
they feel successful, or like failures? Are they more focused on parenting, career, or romance?
Self-concept is a work in progress: Self-concepts are always developing and consumers are
always striving to achieve them. The drive to support self-concept is always active.
Support, rather than change, self-concept: People tend to oppose change to their self-
concept, and a conflict or inconsistency with self-concept can be seen as threatening. The
more important a belief is to a prospect’s self-concept, the more he will resist changing it.
Position your product to support self-concept, rather than try to change it.
Self-concept defends self-esteem: When a product supports a consumer’s self-concept, she
feels understood and validated, and that she has gained some control over her emotions by
buying the product.
any customer, can be linked to owning the promoted product with the help of a clever
promotion campaign.
The significance of a self-concept as a part of the branding process is huge. The subject matter
defines the choice of the images that will, later on, be used to create a strong connection
between a company and its customers. The case of Nike can be used as one of the most
graphic examples of a successful incorporation of a self-concept into the marketing strategy.
Indeed, the consistent emphasis on being a winner and pushing the envelope by exploring the
boundaries of one’s abilities are very inspirational ideas.
It is essential to create the marketing strategy based on a positive self-concept. However, it is
even more important to add the elements that will allow for the further development of the
identified image. As a result, the target population will receive a powerful impetus for
purchasing the product since they will link it to the notion of personal development and the
consistent growth (Posavac 2015).
Role of Self-Concept: Shaping Buyers’ Behavior: Seeing that a self-concept implies the
desirable state that people strive to achieve, it will be legitimate to assume that, by altering
the buyers’ perception of their selves, one will be able to alter their behaviors to a considerable
degree. As a result, an impressive change in the choices that they make when purchasing
specific products is likely to be observed. Once a certain company designs the brand image
that will be viewed by the intended audiences as the essential attribute of their self-concept,
a rapid increase in sales and the following rise in the said organization’s profit margins will
be expected. Therefore, the self-concept may be incorporated into the range of strategies used
by firms to build a connection with their intended audiences to increase the demand rates for
their products and fuel customers’ enthusiasm.
It should be noted, though, that the attempt to appeal of buyers’ individual perception of their
self must be balanced with the necessity to help them feel a part of a specific group. Indeed,
studies show that there is a propensity among buyers to be affected by the influence of social
media and, thus, shape their concept of self accordingly. The said trend can be observed in
the realm of child products, especially as far as toys and clothes are concerned since the
identified environment is defined by the continuous branding archetypes involving customer
differentiation based on gender.
reported among guards in American prisons was due to the sadistic personalities of the guards
(i.e., dispositional) or had more to do with the prison environment (i.e., situational).
4. Ingratiational- Man (1969) identified an additional type of conformity: This is when a
person conforms to impress or gain favor/acceptance from other people. It is similar to
normative influence, but is motivated by the need for social rewards rather than the threat of
rejection.
5. Changing Eating Habits- For instance, we become vegetarian by getting influenced by the
other members of our group because we too think that becoming vegan is helpful to the
society and we will not cause any harm to the animals around us.
6. Education and Career-Most the students nowadays end up opting for science, though they
dont have any interest in that subject. They choose it because of the peer pressure or the
parents forcing them to do so, because it is believed that, student having a science stream is
more intelligent than the student of the art or any other stream. It is the social norm, that
straightway after completing senior secondary education, we have to go to university for
higher education like others are doing.
7. Marriage- Marriage is one of the major and compulsory conformity of society. If a person
at 27 years is married, have children, home and a car is considered as a well organized and
settled person in the community.
8. Attending Parties- Whenever you go to a party, you try to imitate other dinners’ behavior
the first time you ate at a French restaurant because you didn’t know which cutlery to use for
each course.
9. In Class– Majority Wins! is the well-said phrase in every area of life, be the elections or in
the class. When we asked for an opinion in the class, we mostly agree with what the majority
is saying. Though we might have any other idea, we agree with the majority because we don’t
want to feel different from other students.
10. Adopting Habits– Adopting habits may be good or bad are also part of the conformity.
Youngster mostly gets involved in bad habits like drinking and smoking because their
groupmates are doing the same. People join them because no one wants to be the one that is
a goody two shoes and doesn’t join in.
The involvement of members in a group can range anywhere between a simple one or one with
high dedication levels. It can be divided into:
• Compliant
• Identity
• Internalization
Compliant - This type of group members remain in a group paying the set membership fees,
participating in the meetings and other get together in the instructed manner and adhere to
things like dress code etc. during all occasions. They do not undergo any change as far as
their attitude and personality is concerned just because they are the members of the group. In
a typical consumer scenario, being one of the members of the group, people tend to go in for
the brands and products when the same is suggested by another group member.
Identity - People of this type tend to mend their attitudes and ideas to suit the objectives of
the organization they associate themselves with. They will be more inclined towards attaching
themselves with the group through services and other such activities. They express their pride
in being one of the group members and show this as their key identity. In a real life purchase
decision making scenario, any consumer who identifies himself with the group he is
associated with, respects the opinion of the group members more than any other thing
Internalization - The involvement levels of people who fall in this category are very high.
Not only they act highly dedicated to the group but they pull in others into the group. They
motivate other members of the group to get involved in a deeper manner. They become one
with the group. Anyone with such high levels of involvement in groups will go in for
recommendations from other in the group with respect to their purchase decisions. They try
to influence the purchase decision of others also basing the same on the recommendations of
other group members.
Many factors pertaining to Reference Groups tend to influence consumers and their purchase
related decisions. Three factors concerned with Reference Groups are Norms, Status and
Roles.
(1) Norms are rules set by Reference Groups in writing. People who belong to the Group are
expected to adhere to the same at all points of time. Norms force consumers to go in for
certain options as a part of their adherence process.
(2) Status of members in the reference Groups matter the most when it comes to decision making
pertaining to purchase. Member who are highly positioned within a group have the power to
194 CONSUMER BEHAVIOR
take the final decision of purchase. For instance, in the case of a family, the Father holds an
upper hand in decision making pertaining to purchases.
(3) Roles here refer to the part played by every member of the reference group. In a typical family
environment, each family member plays a different role like gatekeeper, initiator, decision
maker, influencer and many more.
SOCIAL CHANGE
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5.36 Social Trends - Their Effects on Consumption
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In some ways, the demographic profile of a population can show how modernization has caused
changes. As societies become more modern, people's views and preferences change about things
like where they live, what they do for a living, and how big their families are. All of these have a
big effect on how people buy things and should get extra attention from marketers. Here, as
marketers or people who want to be marketers, we will focus on four things in particular. They
are changes in the family structure, the way people of different ages live together, where people
go to school, and how people move around the country. Let's look at each of them in turn:
• Changes in the way families are put together: Modernization has made people's lives more
complicated, but it has also given them more ways to keep their families small so they can
deal with it. The traditional role of a woman has changed because of social and cultural trends.
She used to be a happy homemaker, but now she is a professional career person. Together,
this change in women's roles and the availability of effective birth control helped bring down
the birth rate by a lot. The market opportunities for companies that make products for babies
also went down. People are living longer, so families are getting smaller over time. When
there are more divorces and separations, family structures also change. Smaller families now
have more money to spend on luxuries, travel, and entertainment because they make more
money. As the family structure changes, there are also whole new markets for women's
fashion, cosmetics, clothing, durable goods, and easy-to-make foods. Marketers should pay
close attention to these trends and change their plans accordingly.
• Changes in how people of different ages are spread out. Demographic change is partly
caused by evolution. Because of cheaper and more effective birth control and better medicine,
birth rates are going down and people are living longer. This means there are more older
people and fewer children. Because of technological progress and modernization, the average
age of people has gone up by a lot. As the population as a whole gets older, demand for some
products, like diet food, Medicare services, and homes for older people, goes up while
demand for others goes down. Again, as the number of children goes down, it will be hard
for companies that sell baby products to sell their products. Smart businesses know this and
take marketing steps to deal with it. They might make different kinds of products or make
products in ways that are good for both babies and adults.
• Changes in the areas of education: As the birth rate goes down, fewer kids will go to school.
As the birth rate goes down, people who work in elementary education will face a serious
problem that will get worse over time. A lot of teachers who work in elementary and
secondary schools will lose their jobs. Companies that sell to students in elementary and
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 197
secondary schools will also see a drop in sales. This means that these companies need to start
marketing right away. On the other hand, more people will be able to go to college or
university. Which means that institutions that offer higher education have better prospects.
• Geographic Mobility Pattern: We've already said that as cities grow, people move around
more. This pattern is likely to keep going for a long time. For rural immigrants,
industrialization and the growth of cities mean jobs and higher wages. As machines make
farming more efficient, fewer farmers are needed to feed everyone. So, people are moving to
cities because of how technology has changed and because economic opportunities have
moved around. This is by far the most important thing in marketing goods and services.
Marketers should keep a close eye on these mobility trends and look for ways to take
advantage of the ways people are moving around.
2. Reference Group: A reference group is a group with which an individual likes to get
associated, i.e. want to be called as a member of that group. It is observed, that all the
members of the reference group share common buying behavior and have a strong influence
over each other.
The marketers should try to identify the roles within the reference group that influences the
behavior of others. Such as Initiator (who initiates the buying decision), Influencer (whose
opinion influences the buying decision), Decision-Maker (who has the authority to take the
purchase decision) and Buyer (who ultimately buys the product).
3. Roles and Status: An individual’s position and role in the society also influences his buying
behavior. Such as, a person holding a supreme position in the organization is expected to
purchase those items that advocate his status. The marketers should try to understand the
individual’s position and the role very much before the endorsement of the products.
Thus, The social factors play a crucial role in building the behavior of an individual, and the
marketers should understand it properly before designing their marketing campaigns.
her financial situation. This will obviously change what she buys and how she lives. The
woman will now be able to buy things she couldn't even think of when she lived in a village
and couldn't make money on her own.
2. Modernization changes the way people are put into groups in society. Social stratification is
when people in a society are put into upper and lower social positions by other people in the
same society. This creates a hierarchy of respect or prestige. When people were less mobile
geographically and socially than they are now, we used to rank people by where they came
from. People are becoming more mobile in terms of where they live and who they hang out
with, so they are now separated into groups based on their income and jobs. No matter how
well-known your family is, if you have enough money or work in a white-collar job, you will
be put in a higher social class. Your status now is based on what you own and what you do
for a living. Because of modernization, birth and family ties are now seen as less important.
3. Modernization also affects how families are put together. As technology keeps getting better,
societies become more and more industrialised. To fit into today's complex industrial society,
people need to have small families. People in modern society are busy with a lot of different
things that leave them with less time for their families. As a result, the traditional idea of an
extended family is becoming less common. So, people think that a nuclear family is made up
of parents and children.
4. As people become more modern, their roles in the family also change. People who are very
old or very young are thought to be unproductive because they can't do jobs that require a lot
of skills.
5. Modernization also makes it possible for a lot of women to find work. As women do more
things to make money, they don't have as much time to spend with their kids and do other
things around the house. This also changes how the husband and wife are together now.
Modernization has led to the idea of a "househusband." More and more husbands are doing
things that used to be the wives' job, like buying things for the house. Now, husbands are
found to be more helpful and less bossy than ever before. Now, a person doesn't think of his
family as the centre of all his activities.
6. Modernization also makes religion less important in our daily lives. Before, religion was
important in every part of our lives. As people become more urbanised in their thoughts and
ways of life, they slowly drift away from their religions. As society becomes more modern,
religions have less of an effect on how people act. People in modern societies tend to be led
by science, reason, and secular beliefs, not by religious arguments.
7. Because of the changes in technology that go along with modernization, mass culture tends
to be the most important thing. With the progress of technology, different messages, whether
200 CONSUMER BEHAVIOR
they are commercial, social, or political, can be sent to a large number of people as quickly
as possible through different advanced media. So, it becomes very easy for innovations to
spread. Education also becomes something that everyone does. The arts, culture, products,
and marketing appeal are all made the same by these. The same kinds of products can be
easily sold all over the country in the same ways.
These changes and developments have a big effect on how people buy things and need serious
marketing attention.
There are opinion leaders who mediate the transmission of information from mass media to
the general public:
Firstly, the Mass Media transmits information to the general public.
Mass Media →Transmission of Information →General Public
Secondly, Media may send through opinion leaders to general public. Mass Media
→Opinion Leaders →General Public (Target Customers)
Thirdly, there is interaction between people and information goes forward and
backwards, interaction and positive and negative discussions are made, attitudes are made,
and thus information goes to the general public.
Mass Media →Opinion Leader →General Public (Target Customers)
The opinion leaders transmit the products relative information, which consists of:
use of specific product, e.g., washing machine, vacuum cleaner, electric shaver etc.
which of several brands is the best Whirlpool, Kelvinator, BPL, etc.
which is the best place to shop from, which dealer, locality, etc.
Opinion leaders for one specific product may not be the opinion leaders for other products,as
well. An opinion leader for infants foods may not be the opinion leader for kitchenware,
etc. Opinion leaders in one area may not necessarily influence other areas.
Characteristics of Opinion Leaders: Opinion leaders are more knowledgeable, and
have a keen level of interest.
More involved in the product category.
Have more self-confidence, are more sociable and cosmopolitan, can rake risks.
Opinion leaders are activated greatly to reduce distance process for the products they have
bought; may want to influence neighbours and friends. They involve themselves, to confirm
their own judgement.
They are younger, have more education, have a higher income, and higher occupational status.
They are exposed to media. See more movies and television. Also read information
magazines and technical publication devoted to the product category. Having greater
knowledge about the product, they can disseminate more and true information about the
202 CONSUMER BEHAVIOR
products and their usage. Opinion leaders are therefore a case of study to marketeers and their
strategies are evaluated and formed, keeping the opinion leaders and their roles in [Link]
figure shows that the opinion leaders seek relevant information from the mass media and
other sources, and transmit the same to members of the group. The dashed line show the
feedback from the group to the opinion leaders.
5. Gate-keepers: They may be distinct from opinion leaders. They introduced ideas and
information, but are not able to influence the group.
6. Market Maven: Maven is an expert having knowledge and information over many kinds of
products. Shopping places and other facts of the markets. Their expertise is of a general
market rather than of a product specific market. They enjoy browsing and shopping and
participate in marketing activities. They are well read, they read classified newspapers mail
advertising etc. Communication can be source initiated or recipient initiated and may have
one or two way influence.
7. Source Initiated: The marketeer or the user transmits information to the user e.g., Mohan
told me how good is the performance of his washing machine so I bought one.
8. Receiver Initiated: (One way influence) The receiver makes an effort to get the information:
I asked the salesman which mixiedoes he recommend.
9. Source Initiated: (2 way influence) I showed my expensive set of crockery to Mohan and he
now plans to buy one for himself. He felt that it was a good set. This made me feel better and
offset my anxiety of having bought an expensive one.
10. Receiver Initiated: (2 way influence) Mohan asked me to show my collection of arms to
him. We had an interesting discussion on the subject and both learnt from the comments of
each other.
11. Word of Mouth Communication to be Effective: For communication to be effective the
following points must be considered:
1. The product is visible and purchase behaviour is apparent.
2. The product is distinctive and can be matched with life style, taste and personal likes.
3. The product is newly introduced and the consumers have not formed any opinion about
it.
4. The product is important to the reference group’s norms and belief systems. Sugar free
coca cola for diabetic patients or low cholestrol foods for older people prone to disease.
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 203
5. When consumers have doubt about the product and considered it risky and initiate a lot of
discussion and product related discussions (Maruti Van) risky from the accident point of
view.
12. Marketing Strategy and Opinion Leadership: There are different opinion leaders for
different products. The marketeer must determine through research, experience or logic, the
role an opinion leader plays in the existing situation for product or [Link] talk to
each other about their experiences and performance of the product. If their experiences do
not meet expectations then there is cause for concern, and the marketer must take relevant
steps to redress their complaints. When the product falls short of the customer’s expectations,
dissonance occurs, which has to be reduced or removed by the marketeer. This can be reduced
by utilizing the knowledge of opinion leaders, which are rather difficult to identify. Opinion
leaders are gregarious and tend to belong to clubs and associations. Some product categories
have professional opinion leaders who are also very influential.
Hairstylists serve as opinion leaders for hair-care products. For healthcare products
pharmacists are important opinion leaders. Computer professionals can give an opinion about
the purchase of personal computers. The idea is to identify the opinion leaders, and then
undertake a marketing research on them and formulate a marketing strategy.
The marketing research conducted on opinion leaders gives ideas of the likes and dislikes of
the product users and their categories. Various tests should include the product use test, the
pre-testing of the advertising copy, the media preferred for customers to respond favourably
to the firm’s marketing mix. The sampling should be done from amongst the opinion leaders.
In retailing and personnel selling various techniques can be adopted to attract customers like,
one meal extra for every three meals or, pay for two and take three or, a ‘‘fashion advisory
board’’ can be constituted in clothing stores. An automobile dealer can provide a free wash
or afree servicing or oil change to the customers and opinion leaders who send customers to
their workshop. Estate agents may offer a free stay in attractive locales for people who
promote or bring in customers for real estates.
In advertising, people of prominence and, owners can be used and their experiences and
satisfaction received can be projected through conversation and, by giving their impression
to the general public and non-owners of the product. Opinion leaders can be used effectively
in commercials to promote the product to the masses.
identify lifestyle characteristics of a certain group and then design effective advertising strategies.
The designing of advertising is done by:
1. Using Celebrities: Celebrities who endorse the product to the consumer, e.g., film stars for
beauty products including soaps (Lux), etc. sports people for the use of healthy
204 CONSUMER BEHAVIOR
products, e.g., Kapil Dev for Boost; Shahrukh Khan for Smoodles; Pierce Brosnan for Reid
and Taylor; Cindy Crawford for Revlon.
2. Use of Experts and Professionals: Experts in various fields are used to promote the
products. The prospective customers evaluate the products advertised by experts and are
affected by these experts and [Link] are used to promote tooth-
pastes, e.g., Forhans, Sachin Tendulkar promoting Visa Cards, etc.
3. Use of Spokesman: For product endorsements, spokesmen for a particular product refer to
the appeal for the common man. It is propagated that somebody from the common man uses
the product and is satisfied. Lalitaji of the Surf advertisement.
4. Opinion Leaders: These are key persons in a group who influence their group and are
innovators or early buyers. The marketeer focuses his strategies on key persons in the group,
some are opinion leaders, and others are opinion seekers. Thus, key persons are
knowledgeable with a lot of experience. They are also known as influencers and others are
receivers. They consist of friends, associates, neighbours, etc. In this group, persuasive
communication is more fruitful, as opinion leaders can affect and influence the behaviour of
others in a group.
There are opinion leaders who mediate the transmission of information from mass media to
the general public:
Firstly, the Mass Media transmits information to the general public.
Mass Media →Transmission of Information →General Public
Secondly, Media may send through opinion leaders to general public. Mass Media
→Opinion Leaders →General Public (Target Customers)
Thirdly, there is interaction between people and information goes forward and
backwards, interaction and positive and negative discussions are made, attitudes are made,
and thus information goes to the general public.
Mass Media →Opinion Leader →General Public (Target Customers)
The opinion leaders transmit the products relative information, which consists of:
use of specific product, e.g., washing machine, vacuum cleaner, electric shaver etc.
which of several brands is the best Whirlpool, Kelvinator, BPL, etc.
which is the best place to shop from, which dealer, locality, etc.
Opinion leaders for one specific product may not be the opinion leaders for other products,as
well. An opinion leader for infants foods may not be the opinion leader for kitchenware,
etc. Opinion leaders in one area may not necessarily influence other areas.
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 205
Have more self-confidence, are more sociable and cosmopolitan, can rake risks.
Opinion leaders are activated greatly to reduce distance process for the products they have
bought; may want to influence neighbours and friends. They involve themselves, to confirm
their own judgement.
They are younger, have more education, have a higher income, and higher occupational
status. They are exposed to media. See more movies and television. Also read information
magazines and technical publication devoted to the product category. Having greater
knowledge about the product, they can disseminate more and true information about the
products and their usage. Opinion leaders are therefore a case of study to marketeers and their
strategies are evaluated and formed, keeping the opinion leaders and their roles in [Link]
figure shows that the opinion leaders seek relevant information from the mass media and
other sources, and transmit the same to members of the group. The dashed line show the
feedback from the group to the opinion leaders.
5. Gate-keepers: They may be distinct from opinion leaders. They introduced ideas and
information, but are not able to influence the group.
6. Market Maven: Maven is an expert having knowledge and information over many kinds of
products. Shopping places and other facts of the markets. Their expertise is of a general
market rather than of a product specific market. They enjoy browsing and shopping and
206 CONSUMER BEHAVIOR
participate in marketing activities. They are well read, they read classified newspapers mail
advertising etc. Communication can be source initiated or recipient initiated and may have
one or two way influence.
7. Source Initiated: The marketeer or the user transmits information to the user e.g., Mohan
told me how good is the performance of his washing machine so I bought one.
8. Receiver Initiated: (One way influence) The receiver makes an effort to get the information:
I asked the salesman which mixiedoes he recommend.
9. Source Initiated: (2 way influence) I showed my expensive set of crockery to Mohan and he
now plans to buy one for himself. He felt that it was a good set. This made me feel better and
offset my anxiety of having bought an expensive one.
10. Receiver Initiated: (2 way influence) Mohan asked me to show my collection of arms to
him. We had an interesting discussion on the subject and both learnt from the comments of
each other.
11. Word of Mouth Communication to be Effective: For communication to be effective the
following points must be considered:
6. The product is visible and purchase behaviour is apparent.
7. The product is distinctive and can be matched with life style, taste and personal likes.
8. The product is newly introduced and the consumers have not formed any opinion about
it.
9. The product is important to the reference group’s norms and belief systems. Sugar free
coca cola for diabetic patients or low cholestrol foods for older people prone to disease.
10. When consumers have doubt about the product and considered it risky and initiate a lot of
discussion and product related discussions (Maruti Van) risky from the accident point of
view.
12. Marketing Strategy and Opinion Leadership: There are different opinion leaders for
different products. The marketeer must determine through research, experience or logic, the
role an opinion leader plays in the existing situation for product or [Link] talk to
each other about their experiences and performance of the product. If their experiences do
not meet expectations then there is cause for concern, and the marketer must take relevant
steps to redress their complaints. When the product falls short of the customer’s expectations,
dissonance occurs, which has to be reduced or removed by the marketeer. This can be reduced
by utilizing the knowledge of opinion leaders, which are rather difficult to identify. Opinion
leaders are gregarious and tend to belong to clubs and associations. Some product categories
have professional opinion leaders who are also very influential.
CHAPTER 05: SOCIALIZATION, REFERENCE GROUPS, AND SOCIAL CHANGE 207
Hairstylists serve as opinion leaders for hair-care products. For healthcare products
pharmacists are important opinion leaders. Computer professionals can give an opinion about
the purchase of personal computers. The idea is to identify the opinion leaders, and then
undertake a marketing research on them and formulate a marketing strategy.
The marketing research conducted on opinion leaders gives ideas of the likes and dislikes of
the product users and their categories. Various tests should include the product use test, the
pre-testing of the advertising copy, the media preferred for customers to respond favourably
to the firm’s marketing mix. The sampling should be done from amongst the opinion leaders.
In retailing and personnel selling various techniques can be adopted to attract customers like,
one meal extra for every three meals or, pay for two and take three or, a ‘‘fashion advisory
board’’ can be constituted in clothing stores. An automobile dealer can provide a free wash
or afree servicing or oil change to the customers and opinion leaders who send customers to
their workshop. Estate agents may offer a free stay in attractive locales for people who
promote or bring in customers for real estates.
In advertising, people of prominence and, owners can be used and their experiences and
satisfaction received can be projected through conversation and, by giving their impression
to the general public and non-owners of the product. Opinion leaders can be used effectively
in commercials to promote the product to the masses.
EXERCISE
1. What is social organization? (Point 5.01 , Page 165) BBA 2010
2. Define social organizations. (Point 5.02 , Page 165) BBA 2009
3. Explain the marketing process in social organization
(Point 5.03 , Page 166) BBA 2010
4. What is reference group? (Point 5.04 , Page 167) BBA 2018
5. What are the characteristics of reference group? (Point 5.05, Page 168)
6. What are the natures of reference group? (Point 5.06 , Page 168)
7. Explain different levels of reference group. (Point 5.07 , Page 169)
8. What are the different types of reference group? (Point 5.08 , Page 169)
9. Defines and classify reference group.
(Point 5.04 , Page 167 and Point 5.08 , Page 169) BBA 2014
10. Define primary reference groups (Point 5.09 170)
11. Define secondary reference groups. (Point 5.10 , Page 171)
208 CONSUMER BEHAVIOR
12. What are the differences between primary and secondary reference groups?
(Point 5.11 , Page 171)
13. What are the characteristics of primary reference group? (Point 5.12 , Page 173)
14. What are the characteristics of secondary reference group?
(Point 5.13 , Page 174) BBA 2018
15. Explain the functions of primary reference group. (Point 5.14, Page 175)
16. What is socialization? (Point 5.15 , Page 176)
17. Define socialization? (Point 5.16 , Page 176)
18. What are the important agents of socialization? (Point 5.17, Page 177)
19. Explain the marketing significance of self-concept. (Point 5.19 , Page 180)
20. What is Self-Concept? (Point 5.20 , Page 181) BBA 2016
21. Explain the parts of self-concept. (Point 5.22, Page 182)
22. What are the nature of self concept? (Point 5.23 , Page 182)
23. Explain the theories of Self Concept. (Point 5.25, Page 183)
24. Explain consumer behaviour based on self-concept. (Point 5.26 , Page 184)
25. Describe the role of self-concept in marketing. (Point 5.27 , Page 186)
26. Define conformity. (Point 5.28 , Page 187)
27. Explain different types of conformity. (Point 5.29 , Page 188)
28. What are the factors that affecting conformity? (Point 5.31 , Page 190)
29. Why conformity to group norms s required and what decide the scale of conformity to
group norms? (Point 5.33 , Page 192) BBA 2018
30. Factors Determining the Degree of Conformity to Group (Point 5.35 , Page 195)
31. Outline the inferences of reference group influence for the marketers.
(Point 5.39, Page 200) BBA 2018