Reference Group and Opinion Leadership

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Reference Group and Opinion

Leadership
Defining Reference Group
 A group of individuals whom one refers to or
who serves as a point of reference, with regard
to formation of behavior, beliefs, attitudes and
aspirations
 Marketers view reference groups as people who
are consulted or who influence an individual’s
purchase decisions
Reference Group Influence
 Important Consumer Reference Groups
Family
Own Culture Selected Sub-culture

Peers Individual Friends


Customer

Other Culture Aspirational Reference


Groups and Role Models
Social Class
Reference Group Influence
 Informational Influence
 Utilitarian Influence
 Value-expressive Influence
 Reference Groups and Conformity
◼ Action or behavior in correspondence with socially accepted
standards, conventions, rules or laws.
◼ Conformity is a result of many factors like
 Cultural pressure
 Fear of penalty
 Commitment to the group
 Group unanimity, size and expertise
 Personal influences
Important Reference Group and Appeals
 Friends
 Shopping Group
 Work Groups
 Virtual Communities
 Brand Communities
 Consumer-Action Groups
 Celebrities
 The Expert
 The Common Man
 The Effective and Employee Spokesperson
 Other Reference Groups Appeals
Defining Opinion Leadership
 We seek advice in their respective area of expertise form such
people around us whom we perceive as experts in one thing or the
other
 Such people are known as Opinion Leaders and people seeking
advice are known as Opinion Seekers
 A social word-of-mouth communication between the opinion giver
and opinion seeker
 Opinion leadership takes place under 3 situations
◼ When an individual actively seeks advice from others
◼ When an individual voluntarily provides information to others
◼ When information is generated in the course of normal interactions
of a group
Dynamics of Opinion Leadership
 Credibility
 Information and Advice
 Category-specific
 Two-way Communication
The Motivation behind Opinion Leadership
 Opinion Leader
◼ Self-involvement
◼ Product-involvement
◼ Social-involvement
◼ Message-involvement
 Opinion Seeker and Receiver
◼ Reduction in perceived risk associated with product
purchase
◼ Reduction of searching for information
A Profile of an Opinion Leadership
Willingness to talk and share
information and experiences
Regular Subscriber of
Special-interest Media Knowledgeable

Highly Confident High Product-category


Opinion Leader Involvement

Innovative Willingness to try


Communications New Products
Socially Active
Communication and Opinion Leadership
 Word-of-mouth – A two-step flow of
communication theory
 Multi-step flow of communication theory
Two-step Flow of Communication
Theory

Marketing Activities (Mass


Media, Special-interest Media,
etc

Opinion Leader Opinion Leader

Opinion Receiver
Multi-step Flow of Communication
Theory
Marketing Activities (Mass Media, Special-interest Media, etc

Information Receivers Opinion Leader

Opinion Leader

Opinion Receiver/Seeker

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