As individuals, we are often guided in our behavior in a situation by our reference groups, these being the groups of people whose presumed perspectives or values are used as the basis for our behavior. Keep in mind; this is a bit different from “peer pressure”, ie because those in the reference group may not even be aware of their influence (hence no pressure).
Looking at myself, for example, one could say that I have the following reference groups: immediate family, extended family, friends (which could be further broken down into city friends, college friends, neighborhood friends…), colleagues etc .
Are all reference groups the same? In most cases, they certainly are not. Usually, only one group serves as a person’s main point of reference.
4 Criteria for classifying reference groups:
- Membership
- Strength of social ties (closeness of members)
- Type of contact (direct or indirect)
- Attraction
Attraction is a difficult criterion to understand. This is because it is about desirability. The attraction can be negative or positive. Negative attraction to a group can lead to dissociated reference groups. For example, if you don’t like your boss, then you may seek to differentiate your lifestyle outside of work from that of your boss. If he drives a Hummer, maybe you’ll stick with the sports car. On the other hand, the Thanksgiving table peer group can be a very positive influence (assuming you like your family or value their opinions).
In marketing we never want to rule out the influence of our consumers’ benchmarks. Marketers will often look to tap into a market’s referral groups. One notable way is through sponsorships. This is exploited by finding the “token aspiration group” of consumers. For example, there is a good reason why Lacoste selected Andy Roddick, currently the number 1 male tennis player in the US (ATP Ranking), to use his brand. Andy’s attractions, both on and off the court, can influence not only his fans but also the tennis community at large.
Market intelligence, which should include consumer market research and consumer profiling, is essential to identify target groups that may be influencing your market. Ask yourself, who is influencing your market? If you don’t know the answer, find out!