CONSUMER PSYCHOLOGY (5X4Z0014_2021_1)
STUDENT ID NUMBER: 20013435
QUESTION 2: Explain the ways in which reference groups influence
consumption behaviour. Is the degree of reference group influence
the same for every product that we buy? Use current marketplace
examples to support your answer.
A reference group can be defined as an actual or imaginary individual or group whose
behaviours and perspectives are used as a point of comparison focused to influence and
guide the consumption of an individual and its behaviours (Solomon et al., 2004). Foxhall
and Goldsmith (1994) define a group as a gathering of people that share common goals,
purpose and respects equal norms. Each member of a group is perceived by others as a
member and all of the members are brought together by patterns of communication
(Foxhall and Goldsmith, 1994). According to Raven (1992), influence is the result of the
action of an influencing agent- such as a parent- on a target- a child for example- which is
subject to a change of behaviour or attitude (Raven, 1992).
Reference groups’ influence on consumers is shown in different forms: informational,
utilitarian and value-expressive (Solomon et al., 2019). Informational influence occurs when
values, norms and behaviours are used by an individual in order to influence a consumer.
Utilitarian or normative influence occurs when a consumer’s decision-making process is
affected by the wish to satisfy the expectations that someone else have of us. Value-
expressive influence, or identificational influence, occurs when a consumer wants to
emulate someone they admire or respect in society (Solomon et al., 2019). However,
reference group’s influence is not the same for every product on the market. As examined
by Bearden and Etzel in 1982, group’s influence varies in relation to where the consumption
occurs- thus whether the consumption is in private or public situations- and the worth of
the product- whether it is considered a necessity or a luxury product (Bearden and Etzel,
1982). Although the definition of necessity and luxury goods changes overtime and varies
depending on the culture, the behaviour towards consumption of products in public or
private is essential in the research of consumer psychology (Solomon et al., 2019). Products
and services consumed in public are more subject to reference group’s influence than goods
that are consumed in private. Public necessities are the types of purchases that are weakly
influenced by reference groups on the product purchase, but strongly affected regarding the
brand- for example, the purchase of a smartphone, which is influenced by the popularity of
certain brands, like Apple or Android, that ensure a statement more than offering a specific
feature (Bearden and Etzel, 1982). Private necessities are those products or services that are
weakly influenced by reference groups both regarding the product and the brand, since the
good is meant to be consumed in private- such as mattress, washing machine or other low-
involvement products (Bearden and Etzel, 1982). Public luxuries are those goods subject to
strong reference group’s influence, both for product and brand since those goods will be
seen and used in public- such as leisure items like boats and snow skis (Bearden and Etzel,
1982). Finally, private luxuries represent those goods that are subject to a strong influence
STUDENT ID NUMBER: 20013435
QUESTION 2: Explain the ways in which reference groups influence
consumption behaviour. Is the degree of reference group influence
the same for every product that we buy? Use current marketplace
examples to support your answer.
A reference group can be defined as an actual or imaginary individual or group whose
behaviours and perspectives are used as a point of comparison focused to influence and
guide the consumption of an individual and its behaviours (Solomon et al., 2004). Foxhall
and Goldsmith (1994) define a group as a gathering of people that share common goals,
purpose and respects equal norms. Each member of a group is perceived by others as a
member and all of the members are brought together by patterns of communication
(Foxhall and Goldsmith, 1994). According to Raven (1992), influence is the result of the
action of an influencing agent- such as a parent- on a target- a child for example- which is
subject to a change of behaviour or attitude (Raven, 1992).
Reference groups’ influence on consumers is shown in different forms: informational,
utilitarian and value-expressive (Solomon et al., 2019). Informational influence occurs when
values, norms and behaviours are used by an individual in order to influence a consumer.
Utilitarian or normative influence occurs when a consumer’s decision-making process is
affected by the wish to satisfy the expectations that someone else have of us. Value-
expressive influence, or identificational influence, occurs when a consumer wants to
emulate someone they admire or respect in society (Solomon et al., 2019). However,
reference group’s influence is not the same for every product on the market. As examined
by Bearden and Etzel in 1982, group’s influence varies in relation to where the consumption
occurs- thus whether the consumption is in private or public situations- and the worth of
the product- whether it is considered a necessity or a luxury product (Bearden and Etzel,
1982). Although the definition of necessity and luxury goods changes overtime and varies
depending on the culture, the behaviour towards consumption of products in public or
private is essential in the research of consumer psychology (Solomon et al., 2019). Products
and services consumed in public are more subject to reference group’s influence than goods
that are consumed in private. Public necessities are the types of purchases that are weakly
influenced by reference groups on the product purchase, but strongly affected regarding the
brand- for example, the purchase of a smartphone, which is influenced by the popularity of
certain brands, like Apple or Android, that ensure a statement more than offering a specific
feature (Bearden and Etzel, 1982). Private necessities are those products or services that are
weakly influenced by reference groups both regarding the product and the brand, since the
good is meant to be consumed in private- such as mattress, washing machine or other low-
involvement products (Bearden and Etzel, 1982). Public luxuries are those goods subject to
strong reference group’s influence, both for product and brand since those goods will be
seen and used in public- such as leisure items like boats and snow skis (Bearden and Etzel,
1982). Finally, private luxuries represent those goods that are subject to a strong influence
