MINISTRY OF MANPOWER

DIRECTORATE GENERAL OF TECHNOLOGICAL EDUCATION

NIZWA COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES

BAMK 2102 Consumer Behavior

Chapter No 5
Reference groups

Outcomes covered:
9. Recognize the various reference groups available to consumers.
10. Assess the influence reference groups have on consumers purchase.

Topics covered:
1. Introduction
2. Reference Groups
3. Importance of reference groups
4. Opinion leaders
5. Types of reference groups influence
6. Categories or types of reference groups
7. Importance of families and households on consumer behavior.

Course Tutor: Dr.V.Vishnukanth Rao, Mr.Mushtaq Ahmed.

1. Introduction
A group consists of two or more people who interact with each other accomplish some goal. Important
groups include families, close friends, co-workers, neighbours etc. Some of these groups may become
reference groups.
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2.

Reference Groups
A reference group involves one or more people whom someone uses as a basis for comparison or point of
reference in forming affective and cognitive responses and performing behavior.
Reference groups serve as direct (face to face) or indirect points of comparison or reference in forming a
persons attitudes or behavior. People are influenced by reference groups to which they do not belong.
Marketers try to identify the reference groups of their target markets.

3. Importance of reference groups

1. Reference groups expose a person to new behaviours and life styles.
2. Influence the persons attitudes and self-concept.
3. Create pressures to conform that may affect the persons product and brand choices.
4. Group influence varies across products and brands
5. Group influence tends to be strongest when the product is visible to others whom the buyer
respects.
4. Opinion leaders
Opinion leaders are people within a reference group, who because special skills, knowledge, personality or
other characteristics exerts influences on others. These consumers drive trends and influence mass
opinion. They are also called influencials or leading adopters.

Marketers try to identify opinion leaders for their products and direct marketing efforts towards them. They
use buzz marketing by enlisting or even creating opinion leaders to spread the word about their brands.
Example; mothers discuss about a new dish wash or a food item. Children talk about the taste of a new
health drink. They are the best source to capture honest word of mouth and to build a network that will
turn passionate consumers into brand evangelists.
5. Types of reference groups influence
1. Informational reference group influence transmits useful information to consumers about products,
services, and stores from other people. Consumers tend to be influenced by reference groups if the
information is perceived as reliable and trustworthy. Thus consumers reduce the risk of making a
decision. Highly credible reference groups are more likely to have informational influence on consumers.

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2. Utilitarian reference group influence on consumer behavior (affect and cognition) occurs when the
reference group controls important rewards and punishments. It concerns a degree of conformity with
the behavior or norms of a group with which the consumers want to identify. An individual may purchase
a brand because they want to comply with the expectations of others. (eg; family members or
colleagues at work etc)
Example; in some work groups, people are expected to wear formal business suits, whereas other work
groups encourage very casual dress.

3. Value expressive reference group influence can affect peoples self-concepts. As cultural units,
reference groups create cultural meanings (beliefs, values, goals, behavioual norms, life styles). People
seek desirable cultural meanings in maintaining self-concepts. By identifying with certain reference
groups, consumers can draw meanings and use it of their own.

6. Categories or types of reference groups

1. Primary groups: A primary group is a small group where there is a face to face interaction on a
regular basis. This group is composed of people we most often see like friends, family, close
colleagues.
2. Secondary groups: They are composed of people we see occasionally, with whom we have some
shared interest. Example; a trade association, sports club. These groups are less influential in
shaping attitudes and controlling behavior.
3. Aspirational groups: are the groups which the individuals want to join. These groups can be very
powerful in influencing behavior, because the individual will often adopt the behavior of the
aspirational group in the hope of being accepted as a member.
4. Dissociative group: The individual does not want to be associated with the group. This can have
a negative effect on behavior. The individuals avoids certain products or behavior rather than be
mistaken for somebody from the dissociative group.
5. Formal groups: have a known list of members. Example; professional association or a club. The
rules and structure of the group are laid down in writing. There are rules for membership and the
members behavior is constrained while they remain part of the group.

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6. Informal groups: are less structured and based on friendship. Example; individuals circle of
friends. They exist only for mutual moral support, company and sharing experiences.
7. Automatic groups: are those groups one belongs by virtue of age, gender, culture and education.
They are also called as category groups. Members have not joined voluntarily, and people are
influenced by group pressure to buy.
8. Virtual groups: On line virtual groups (communities) are created due to the wide spread growth of
the World Wide Web. New technologies permit to make direct connections with others by the
elimination of middlemen. This process is known as disintermediation.
Likeminded people come together irrespective of time and space to form groups and a variety of
networks. This process is called aggregation.
Research on internet cultures revealed that online groups are market oriented in their interest. This
is referred as virtual communities of consumption.
9. Membership reference groups: A membership reference group is one to which a person belongs
or qualifies for membership. All workers in a factory qualify for membership to the labor union.
10. Symbolic reference groups: A symbolic reference group is one which an individual aspires to
belong to, but is not likely to be received as a member.

Influence of reference groups in purchase

1. Normative influence:
This influence is one, 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
2. Comparative influence:
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 celebrities, sportsmen and other popular personalities.

7. The Importance of Families and Households on Consumer Behavior

1. Many products are purchased by a family unit.
2. Individuals buying decisions may be heavily influenced by other family members.
3. Purchase decisions of families depend on the roles of the various members in the purchase,
consumption, and influence of products.
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References:
Martin Evans, Ahmad Jamal, & Gordon Foxall, Consumer Behaviour, 2006, John Wiley & Sons, England.
Paul J. Peter and Jerry C Olson, Consumer Behaviour and Marketing Strategy, Eighth edition, 2008, Mc
Graw Hill International edition, Singapore
Philip Kotler, Marketing Management, Analysis, Planning, Implementation and Control, Prentice Hall of
India Pvt Ltd.
Gary Armstrong and Kotler Philip, Marketing, An Introduction, 8th edition, 2007, Pearson Prentice Hall,
New Jersey
Jim Blythe, Principles and Practice of Marketing, 2008, Thomson Learning, London
http://www.marketing91.com/reference-groups-in-consumer-buying/

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MINISTRY OF MANPOWER
DIRECTORATE GENERAL OF TECHNOLOGICAL EDUCATION
NIZWA COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES

BAMK 2102 Consumer Behavior

Chapter No 6

Personality and Psychographic factors

Outcomes covered:
7. Recognize the role of personality in individual behavior and apply various perspectives to that role.
8. Identify those attributes of consumer lifestyle and psychographics that affect consumer behavior
Topics covered:
1. Personality
2. Brand personality
3. Impact of personality on consumer behavior
4. Types of personality
5. Age and life cycle stage
6. Occupation
7. Economic situation
8. Life style
Course Tutor: Dr.V.Vishnukanth Rao, Mr.Mushtaq Ahmed.
1. Personality
Personality refers to the unique psychological characteristics. It is described in terms of traits such as selfconfidence, dominance, sociability, autonomy, defensiveness, adaptability and aggressiveness. Personality
consists of mannerisms, habits and actions that make a person as an individual and makes different from
other people. Personality is a function of inner drives, learned motives and experience.

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2. Brand personality
Brand personality is the specific mix of human traits that may be attributed to a specific brand. The brand
personality traits are;
1. Sincerity (honest, cheerful)
2. Excitement (daring, imaginative)
3. Competence (reliable, intelligent and successful)
4. Sophistication (Upper class and charming)
5. Ruggedness (Tough)
Examples; Levis with ruggedness, MTV with excitement, BBC with Competence, Campbells with
sincerity

3. Impact of personality on consumer behavior

Personality can be useful in analyzing consumer behavior for certain products or brand choices. For
example; coffee marketers have found that heavy coffee drinkers tend to be high on sociability. Thus, to
attract consumers, coffee houses create environments in which people can relax and socialize over a cup
of coffee.

4. Types of personality
1. Compliant consumers
Compliant individuals are anxious to be with others, to receive love, recognition, help and
guidance.
They are over-generous and over-sensitive. They shy away from criticism and allow others
to dominate them
They are essentially conformists
2. Aggressive consumers
They tend to be achievement-oriented and desire status
They seek the admiration of others through being outgoing in their behaviour.
They exhibit leadership qualities

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3. Detached consumers
They try to separate themselves from others both emotionally and behaviourally
They do not seek responsibility or obligations
They do not try to impress other people

5. Age and life cycle stage

People change the goods and services they buy in their life time. Tastes in food, clothes, furniture are age
related. Marketers define their target markets in terms of life cycle stage and develop appropriate products.
6. Occupation
A persons occupation affects the purchase of goods and services. Blue collar workers tend to buy more
rugged clothes. Executives or white collar job seekers buy more business suits.
7. Economic situation
A persons economic situation will affect product choice. Marketers analyse the trends in consumers
personal income and savings. For example, Rolex positions its luxury watches as a tribute of elegance and
an object of passion. Timex makes more affordable watches.
8. Life style
Life style is a persons pattern of living. It involves measuring consumers;
1. Activities (work, hobbies, shopping, sports)
2. Interests (food, fashion, family)
3. Opinions (themselves, social issues, business, products)
Marketers try to understand the relationship between products and life style groups.
References:
1. Martin Evans, Ahmad Jamal, & Gordon Foxall, Consumer Behaviour, 2006, John Wiley & Sons, England.
2. Paul J. Peter and Jerry C Olson, Consumer Behaviour and Marketing Strategy, Eighth edition, 2008, Mc
Graw Hill International edition, Singapore
3. Philip Kotler, Marketing Management, Analysis, Planning, Implementation and Control, Prentice Hall of
India Pvt Ltd.
4. Gary Armstrong and Kotler Philip, Marketing, An Introduction, 8th edition, 2007, Pearson Prentice Hall,
New Jersey
5. Jim Blythe, Principles and Practice of Marketing, 2008, Thomson Learning, London
Page 8 of 12
BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17

MINISTRY OF MANPOWER
DIRECTORATE GENERAL OF TECHNOLOGICAL EDUCATION
NIZWA COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
BAMK 2102 Consumer Behavior
Chapter No 7
Perception and Attitude
Outcomes covered:
13. Analyze the role perception plays in consumer behavior
14. Recognize how consumers form attitude
15. Identify appropriate methods to measure consumers attitude.
Topics covered:
8. Consumer perception
9. Influence of consumer perception on buying behavior
10. Learning
11. Beliefs
12. What is Attitude?
13. Levels of attitude concepts
Course Tutor: Dr.V.Vishnukanth Rao, Mr.Mushtaq Ahmed.
1. Consumer perception
Perception is the process by which people select, organize, and interpret information to form a meaningful
picture. There are three perceptual processes;
1. Selective attention: tendency of the people to screen out most of the information to which they are
exposed.
2. Selective distortion: tendency of people to interpret information in a way that will support what they
actually believe.
3. Selective retention: consumers tend to retain information that supports their beliefs and attitudes.

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2. Influence of consumer perception on buying behavior

Marketers should attract the consumers attention. They must understand the mindset of the consumers
and how they interpret advertising and sales information. Because of selective retention, consumers are
likely to remember good points of their favorite brand and forget good points of competing brands.
3. Learning
Learning describes changes in an individuals behavior arising from experience. Human behavior is
learned. Learning is defined as the behavioral changes that occur over time to an external stimulus
condition.
Learning occurs through the interplay of drives, stimuli, cues, responses and reinforcement.
1. Drive: A drive is a strong internal stimulus.
2. Stimuli: is an object or a product. A drive becomes a motive when it is directed towards a particular
stimulus object.
3. Cues: Cues are minor stimuli that determine when, where and how the consumer responds.
4. Response: Influencing a consumers response in buying the product
5. Reinforcement: If the experience is satisfying the consumer uses or buys more and more.
4. Beliefs
A belief is a descriptive thought that a person has about something. Beliefs may be based on real
knowledge, opinion or faith. Marketers are interested in the beliefs that people formulate about products
and services because these beliefs make up product and brand images that affect buying behaviour.
5. What is Attitude?
Attitude describes a persons consistent evaluations, feelings and tendencies toward an object or idea.
Attitudes put people into a frame of mind of liking or disliking things.
An attitude has three components;
1. Cognitive (beliefs): a consumers beliefs or knowledge about a product.
2. Affective (emotions): consumers feelings or emotions about the product. These feelings can be
positive or negative.
3. Conative (behavioral/ intentions): consumers readiness to respond behaviorally to the product.
An attitude describes a persons favorable or unfavorable cognitive evaluations, emotional feelings, and
action tendencies toward a product.
Consumers have attitudes towards physical and social objects (products, brands, models, stores and sales
people). Consumers can also have attitudes towards their own behaviors or actions.
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6. Levels of attitude concepts

Consumers have different attitudes towards different attitude concepts. The following example shows
several attitude concepts that vary in their levels of specificity, even though all products are in the same
product domain.

Examples

Levels class
of attitude concept
Product

Television
Product form

LED

LCD

Brand
Sony

Samsung

LG

Model
32 inch

40 inch

72 inch

Brand/model
General situation
Lulu Hyper market, Nizwa

Lulu Hypermarket, ALKuwair

Brand/model
Specific situation
Buying from Lulu Hypermarket,
AlKuwair, before Ramdan
Purchase/
Specific situation
With friends
Purchase/
Specific situation

Cash

BAMK 2102/Consumer Behavior/ Semester-1/ 2016-17

Buying from Lulu

Hypermarket, AlKuwair,
during Ramdan (offers)

With family
members

Loan

Alone

Debit
card

Installment
payment
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References:
Martin Evans, Ahmad Jamal, & Gordon Foxall, Consumer Behaviour, 2006, John Wiley & Sons, England.
Paul J. Peter and Jerry C Olson, Consumer Behaviour and Marketing Strategy, Eighth edition, 2008, Mc
Graw Hill International edition, Singapore
Philip Kotler, Marketing Management, Analysis, Planning, Implementation and Control, Prentice Hall of
India Pvt Ltd.
Gary Armstrong and Kotler Philip, Marketing, An Introduction, 8th edition, 2007, Pearson Prentice Hall,
New Jersey
Jim Blythe, Principles and Practice of Marketing, 2008, Thomson Learning, London

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