1. REFERENCE GROUP
Definition: A group of people or organization of which an individual respects, identifies with, or
aspires to join, e.g., membership or associative groups.
Group, class, or category of people to which individuals believe they belong, whether or not they
actually do. Their relationship to their reference group may influence their buying behavior.
•For example, if a man buys a more expensive car than he normally would because his neighbors
drive that particular model, his buying behavior is seen to be influenced by his reference group.
Reference groups act as a frame of reference to which people always refer to evaluate their
achievements, their role performance, aspirations and ambitions. A reference group can be either
from a membership group or non-membership group.
•An example of a reference group being used would be the determination of affluence. An
individual in the U-S with an annual income of $80,000, may consider himself affluentif he
compares himself to those in the middle of the income strata, who earn roughly $32,000 a year, If,
however, the same person considers the relevant reference group to be those in the top 0.1% of
households in the US, those making $1.6 million or more, then the individual's income of $80,000
would make him or her seem rather poor.
A reference group is a concept referring to a group to which an individual or another group is
compared.
Sociologists call any group that individuals use as a standard for evaluating themselves and their
own behavior a reference group.
Reference groups are used in order to evaluate and determine the nature of a given individual or
other group's characteristics and sociological attributes. It is the group to which the individual
relates or aspires to relate himself or herself psychologically. It becomes the individual's frame of
reference and source for ordering his or her experiences, perceptions, cognition, and ideas of self. It
is important for determining a person's self-identity, attitudes, and social ties. It becomes the basis
of reference in making comparisons or contrasts and in evaluating one's appearance and
performance.
DATE: 15th October 2010
2. ASSIGNMENT
REFERENCE GROUP
PRINCIPLES OF MARKETING
SUBMITTED BY:
•SYED ARIF ALI SHAH (7922)
•UMBREEN GUL ABRO (14518)
•ZUNAIRA ABRO (10028)
SUBMITTED TO:
ATIF SHAHAB BUTT
