How Reference Groups Influence Consumer Behavior

Reference groups are referred to the groups that have direct or indirect influence upon a consumer’s behavior and attitude (Tamboli, 2008). According to Činjarević & Alić (2011), reference group also defined as “a person or group of people that significantly influences an individual’s behavior”. They also stated that reference groups can be typically defined as “groups, persons and institutions whom one looks for guidance for one’s own behavior and values, and whose opinion about oneself is valued”.

There are five type of reference group which are primary groups/secondary groups, affiliation groups/dissociative groups, official groups/informal groups, implicit groups and virtual groups (Carmen, 2010).

(i) Primary groups/ secondary groups

The

According to Gherasim (2013), these groups of consumers can influence within the formal social relationship and common activity such as trade association and club and society.

(ii) Affiliation groups/ dissociative groups

According to Carmen (2010), these groups of consumers are wished to belong. Since the consumers will follow the groups’ behavior in the hope of affiliation as member, so these groups will be very powerful in influencing behavior. According to Carmen (2010), these groups of consumers are does not wished to belong but they are no difficulty accept by the group (Gherasim, 2013). Regarding to Carmen (2010) and Gherasim (2013), the tendency of individuals likely to avoid these groups will bring negative influence on consumers. They will avoid to purchase or consume some products so as to not be comprehended by the dissociative groups.

(iii) Official groups/ informal groups

Official groups are form by a list of members registered in one form or recorded in a way such as society, club and association (Carmen, 2010). According to the Gherasim (2013), these groups of members are required to follow the written statute but they can also enjoy some special

In the process of purchasing products, this reference group built the level of aspirations, values and norms of individuals. It is accessible when consumers follow the expectations and rules of a group so as to avoid a sanction and gain the reward (Carmen, 2010).

(iii) Value-expressive influence

Value-expressive influence is referred the consumers will purchase the products if the particular products will let the consumers feel that the particular brand of products increases their image (Nagarkoti, 2009). Regarding to the Činjarević & Alić (2011), value-expressive influence can be best defined as when the consumer accept the behavior, attitudes and opinions so as to identify themselves and build a good relationship with other groups or peoples.

There are several roles had been analyze within a reference group that will influences the consumer purchasing behavior (Rani, 2014).

The initiator: The person who commend to purchase a