Personality:- Personality can be defined as those inner
psychological characteristics that both determine and reflect how a
person responds to his or her environment. Inner characteristics
here means those specific qualities, attributes, traits, factors,
and mannerisms that distinguish one individual from other
individuals. These deeply ingrained characteristics that we call
personality are likely to influence the individuals product
choices. They affect the way consumers respond to marketers
promotional efforts, and when, where, and how they consume
particular products or services. Hence, the identification of
specific personality characteristics associated with consumer
behavior has proven to be highly useful in the development of a
firms market segmentation strategies. The Nature of Personality:-
In the study of personality, three distinct properties are of
central importance:Personality reflects individual differences;
Personality is consistent and enduring; Personality can change.
1. 2. 3.
1.
Personality Reflects Individual Differences:- Because the inner
characteristics that constitute an individuals personality are
unique combination of factors, no two individuals are exactly
alike. Nevertheless, many individuals may be similar in terms of a
single personality characteristic but not in terms of others. Ex:-
some people can be described as high in consumer ethnocentrism
(e.g., willingness to accept a foreign made product), whereas
others can be described as low in ethnocentrism (e.g., afraid or
reluctant to buy a foreign made product). Personality is a useful
concept because it enables us to categorize consumers into
different groups on the basis of one or even several traits. If
each person were different in terms of all personality traits, it
would be impossible to group consumers into segments, and there
would be little reason for marketers to develop products and
promotional campaign targeted to particular segments.
2.
Personality is Consistent and Enduring:- An individuals
personality tends to be both consistent and enduring. Ex:- The
sibling who comments that her sister has always cared a great deal
about her clothes from the time she was a toddler is supporting the
contention that personality has both consistency and endurance.
Both qualities are essential if marketers are to explain or predict
consumer behavior in terms of personality. Although marketers
cannot change consumers personalities to conform to their products,
if they know which personality characteristics influence specific
consumer responses, they can attempt to appeal to the relevant
traits inherent in their target group of consumers. Even though
consumers personalities may be consistent, their consumption
behavior often varies considerably because of the various
psychological, socio-cultural, environmental, and situational
factors that affect behavior. Ex:- Although an individuals
personality may be relatively stable, specific needs or motives,
attitudes, reactions to group pressures, and even responses to
newly available brands may cause a change in the persons behaviour.
Personality is only one of a combination of factors that influence
how a consumer behaves.
3.
Personality Can Change:- Under certain circumstances
personalities change. Ex:- An individuals personality may be
altered by major life events, such as marriage, the birth of a
child, the death of a parent, or a change of job and / or
profession. An individuals personality changes not only in response
to abrupt events but also as part of a gradual maturing process He
is more mature, and now he is willing to listen to points of view
other than those he agrees with, says an uncle after not seeing his
nephew for several years. There is also evidence that personality
stereotypes may change over time. More specifically, although it is
felt that mens personality has generally remained relatively
constant over the past 50 years, womens personality has deemed to
become increasingly more masculine and should continue to do so
over the next 50 years. This prediction indicates a convergence in
the personality characteristics of men and women. The reason for
this shift is that women have been moving more and more into
occupations that have traditionally been dominated by men and,
therefore, have increasingly been associated with masculine
personality attributes.
1. 2. 3.
Theories of Personality:- There are three major theories of
personality:Freudian Theory. Neo Freudian Theory. Trait Theory.
These theories have been chosen from among many theories of
personality because each has played a prominent role in the study
of the relationship between consumer behaviour and personality.
1.
Freudian Theory:- Sigmund Freuds psychoanalytic theory of
personality is one of the cornerstones of modern psychology. This
theory was built on the premise that unconscious needs or drives,
especially sexual and other biological drives, are at the heart of
human motivation and personality. Freud constructed his theory on
the basis of patients recollections of early childhood experiences,
analysis of their dreams, and the specific nature of their mental
and physical adjustment problems.
Id, Superego, & Ego:- Based on his analysis, Freud proposed
that the human personality consists of three interacting systems:
the id, the superego, and the ego. The id was conceptualized as a
warehouse of primitive and impulsive drives basic physiological
needs such as thirst, hunger, and sex for which the individual
seeks immediate satisfaction without concern for the specific means
of satisfaction. In contrast to the id, the superego is
conceptualized as the individuals internal expression of societys
moral and ethical codes of conduct. The superegos role is to see
that the individual satisfies needs in a socially acceptable
fashion. Thus, the superego is a kind of brake that restrains or
inhibits the impulsive forces of the id. Finally, the ego is the
individuals conscious control. It functions as an internal monitor
that attempts to balance the impulsive demands of the id and the
socio-cultural constraints of the superego. In addition to
specifying a structure for personality, Freud emphasized that an
individuals personality is formed as he or she passes through a
number of distinct stages of infant and childhood development.
These are the oral, anal, phallic, latent, and genital stages.
Freud labeled four of these stages of development to conform to the
area of the body on which he believed the childs sexual instincts
are focused at the time.
Gratification
ID System 1
EGO System 3
SUPEREGO System 2
Fig:- A Representation of the Interrelationships Among the Id,
Ego, and Superego According to Freudian theory, an adults
personality is determined by how well he or she deals with the
crises that are experienced while passing through each of these
stages (particularly the first three). Ex:- If a childs oral needs
are not adequately satisfied at the first stage of development, the
person may become fixated at this stage and as an adult display a
personality that includes such traits as dependence and excessive
oral activity (e.g., gum chewing). When an individual is fixated at
the anal stage, the adult personality may display other traits,
such as excessive need for neatness.
Freudian Theory and Product Personality:- Researchers who apply
Freuds psychoanalytic theory to the study of consumer personality
believe that human drives are largely unconscious and that
consumers are primarily unaware of their true reasons for buying
what they buy. These researchers tend to see consumer purchases and
/ or consumption situations as a reflection and an extension of the
consumers own personality. i.e. they consider the consumers
appearance and possessions grooming, clothing, jewelry, and so
forth as reflections of the individuals personality. The below
table presents the results of a study of 19,000 consumers that
examines the link between snack food perceptions and selected
personality traits:-
SNACK FOODS Potato Chips Tortilla Chips Pretzels Snack
Crackers
PERSONALITY TRAITS Ambitious, successful, high achiever,
impatient with less than the best. Perfectionist, high
expectations, punctual, conservative, responsible. Lively, easily
bored with same old routine, flirtatious, intuitive, may
over-commit to projects. Rational, logical, contemplative, shy,
prefers time alone.
Cheese CurlsNuts
Conscientious, principled, proper, fair, may appear rigid but
has great integrity, plans ahead, loves order.Easygoing,
empathetic, understanding, calm, even tempered.
PopcornMeat Snacks
Takes charge, pitches in often, modest, self confident but not a
show off.Gregarious, generous, trustworthy, tends to be overly
trusting.
Table:- Snack Foods and Personality Traits
Neo Freudian Personality Theory:- Several of Freuds colleagues
disagreed with his contention that personality is primarily
instinctual and sexual in nature. Instead these neo Freudians
believe that social relationships are fundamental to the formation
and development of personality. For instance, Alfred Adler viewed
human beings as seeking to attain various rational goals, which he
called style of life. He also placed much emphasis on the
individuals efforts to overcome feelings of inferiority (i.e. by
striving for superiority). Harry Stack Sullivan, another neo
Freudian, stressed that people continuously attempt to establish
significant and rewarding relationships with others. He was
particularly concerned with the individuals efforts to reduce
tensions, such as anxiety. Like Sullivan, Karen Horney was also
interested in anxiety. She focused on the impact of child parent
relationships and the individuals desire to conquer feelings of
anxiety. Horney proposed that individuals be classified into three
personality groups: Compliant, Aggressive, and Detached.
1. 2. 3.
Complaint individuals are those who move toward others. (They
desire to be loved, wanted, and appreciated). Aggressive
individuals are those who move against others. (They desire to
excel and win admiration). Detached individuals are those who move
away from others. (They desire independence, self reliance, self
sufficiency, and individualism or freedom from obligations). A
personality test based on Horneys theory (the CAD) has been
developed and tested within the context of consumer behavior. The
initial CAD research uncovered a number of tentative relationships
between college students scores and their product and brand usage
patterns. Ex:- Highly compliant students were found to prefer name
brand products such as Bayer aspirin; students classified as
aggressive showed a preference for Old Spice deodorant over other
brands (seemingly because of its masculine appeal); and highly
detached students proved to be heavy tea drinkers (possibly
reflecting their desire not to conform). More recent research has
found that children who scored high in selfreliance who preferred
to do things independently of others (i.e., detached personalities)
were less likely to be brand loyal and were more likely to try
different brands.
Many marketers use some of these neo Freudian theories
intuitively. For Ex:- Marketers who position their products or
services as providing an opportunity to belong or to be appreciated
by others in a group or social setting would seem to be guided by
Horneys characterization of the compliant individual. To
illustrate, imagine an ad for sleepwear that is created to appeal
to a compliant individual when it suggests that wearing the
sleepwear will lead to counting compliments, since compliant
individuals particularly wish to be complimented and
appreciated.
Trait Theory:- Trait theory constitutes a major departure from
the qualitative measures that typify the Freudian and neo Freudian
movements (e.g., personal observation, self reported experience,
dream analysis, projective techniques). The orientation of trait
theory is primarily quantitative or empirical; it focuses on the
measurement of personality in terms of specific psychological
characteristics, called traits. A trait is defined as any
distinguishing, relatively enduring way in which one individual
differs from another. Trait theories are concerned with the
construction of personality tests (or inventories) that enable them
to pinpoint individual differences in terms of specific traits.
Selected single trait personality tests (which measure just one
trait, such as self confidence) are often developed specifically
for use in consumer behaviour studies. These tailor made
personality tests measure such traits as consumer innovativeness
(how receptive a person is to new consumer related experiences),
consumer materialism (the degree of the consumers attachment to
worldly possessions), and consumer ethnocentrism (the consumers
likelihood to accept or reject foreign made products). Trait
researchers have found that it is generally more realistic to
expect personality to be linked to how consumers make their choices
and to the purchase or consumption of a broad product category
rather than a specific brand. Ex:- There is more likely to be a
relationship between a personality trait and whether or not an
individual regularly eats peanut butter and jelly sandwiches than
between a personality trait and the brand of peanut butter
purchased. A study of over 1,000 U.S. adults found very different
traits among soup lovers having preferences for different types of
soups.
Chicken Tomato Soup Vegetable / Noodle soup Lovers Minestrone
Lovers Soup Lovers Watch a lot of TV. Passionate about reading.
Enjoy the outdoors.
Chili Beef Soup Lovers Generally preferred by males.
New England Clam Chowder Lovers Most conservative of all soup
lovers.
Are family oriented.Have a great sense of humor.
Love pets.
Usually love to go for trying new things.
Are the most social of all soup lovers.
Pride themselves on being realistic and down-to-earth.Can
occasionally be cynical.
Like meeting people for coffee.
Spend more Are the life of money than the party. any other group
dining in fancy restaurants. Likely to be physically fit. Gardening
is often a favorite hobby. Love telling jokes. Watch sporting
events. Watch sitcoms on TV.
Are outgoing and loyal. Like daytime talk shows. Most likely to
go to church.
Arent usually the life of the party.
Personality & Understanding Consumer Behaviour:- Marketers
are interested in understanding how personality influences
consumption behavior because such knowledge enables them to better
understand consumers and to segment and target those consumers who
are likely to respond positively to their product or service
communications. Consumer Innovativeness & Related Personality
Traits:Marketing practitioners try to learn all they can about
consumer innovators those who are open to ideas and to be among the
first to try new products, services, or practices for the market
response of such innovators is often a critical indication of the
eventual success or failure of a new product or service.
Personality traits that have been useful in differentiating between
consumer innovators and no-innovators include consumer
innovativeness, dogmatism, social character, need for uniqueness,
optimum stimulation level, sensation seeking, and variety
seeking.
1.
a.
Consumer Innovativeness:- Consumer researchers have endeavored
to develop measurement instruments to gauge the level of consumer
innovativeness, as such measures of personality traits provide
important insights into the nature and boundaries of a consumers
willingness to innovate. While previous studies of consumer
innovativeness have treated this construct as a single personality
trait, a recent research effort examining high technology products,
developed a hierarchical modes consisting of three levels of
personality, i.e.:Global Innovativeness:- A personal trait that
exists independent of any context; one that represents the very
nature of consumers innovativeness. Domain Specific
Innovativeness:- A more narrowly defined activity within a specific
domain or product category. Innovative behavior:- A pattern of
actions or responses that indicate early acceptance of change and
adoption of innovations (e.g., being among the first to purchase
new and different products or services).
b.
c.
Available consumer research indicates a positive relationship
between innovative use of the Internet and buying online. Other
research exploring the association between personality traits and
innovative Internet behaviour has reported that Internet shoppers
tend to see themselves as being able to control their own future,
using the Internet to seek out information, enjoying change, and
not being afraid of uncertainty. One study has found that while
online banking is positively associated with Internet related
innovativeness (i.e., domain specific innovativeness), more general
consumer innovativeness was negatively related to embracing online
banking, thus highlighting the importance of domain specific
innovativeness. Innovativeness may be a useful consideration while
marketing FMCGs and durables. It enables marketers to identify and
target innovators who are receptive to new product categories.
Additionally, consumer innovativeness can be an important
consideration when firms contemplate brand extensions. Ex:- A
toothpaste brand begins marketing a line of toothbrushes under the
same brand name.
2.
Consumer Dogmatism:- Many marketers are keenly interested in
managing consumers responses to distinctively unfamiliar products
or product features, especially marketers of technologically rich
products. Within this context consumer dogmatism is a personality
trait that measures the degree of rigidity (versus openness) that
individuals display toward the unfamiliar and toward information
that is contrary to their own established beliefs. A person who is
highly dogmatic approaches the unfamiliar defensively and with
considerable discomfort and uncertainty. At the other end of the
spectrum, a person who is low dogmatic will readily consider the
unfamiliar or opposing beliefs. Ex:- in a recent print ad,
McDonalds ask potential consumers to Be open to new possibilities,
a concept that should be appealing to low dogmatic consumers.
Consumers who are low in dogmatism (open minded) are more likely to
prefer innovative products to established or traditional
alternatives. In contrast, highly dogmatic (closed minded)
consumers are more likely to choose established, rather than
innovative, product alternatives.
Exploring dogmatism in a target segment is useful to marketers,
especially before they formulated broad communication. Ex:Among the
target segment for water purifiers, there may be some who strongly
believe that the process of purification is likely to be hazardous
to health. This kind of belief has to be carefully dealt with,
using a combination of promotional methods like advertisements,
personal selling and, perhaps, demonstration with sophisticated
methods and research data. Permission marketing, which involves
creating an involvement of the consumer (by obtaining his consent
toward receiving information about the companys offering), is
likely to be effective in providing a foundation for communication
and reducing dogmatism. From among the target segment for water
filters, it may be useful to gather data on how many are interested
in obtaining information on the brand, which also includes
information addressing misconceptions. If the brand is able to
communicate effectively to the selected cross-section of consumers,
there are chances that word of mouth will take over and the
positive effects of word of mouth will be associated with the
brand. This approach is likely to be more effective than a high
visibility campaign that directly attacks the dogmatic beliefs of
consumers.
Researching Dogmatic Beliefs
Getting the Involvement of Consumers Demonstration Research
Results Credibility Models customizing Communication
Reducing Dogmatism & Changing Beliefs
Triggering Word of Mouth Fig:- Dealing with Dogmatism
3.
Social Character:- The personality trait known as social
character has its origins in sociological research, which focuses
on the classification of individuals into distinct socio-cultural
types. As used in consumer psychology, social character is a
personality trait that ranges on a continuum from inner
directedness to other directedness. Inner directedness consumers
tend to rely on their own inner values or standards in evaluating
new products and are likely to be consumer innovators. Conversely,
other directed consumers tend to look to others for guidance as to
what is appropriate or inappropriate; thus, they are less likely to
be consumer innovators. Inner directed people seem to prefer ads
that stress product features and personal benefits (enabling them
to use their own values and standards in evaluating products),
whereas other directed people prefer ads that feature an approving
social environment or social acceptance (this is in keeping with
their tendency to look to others or to act as part of a group).
Thus, other directed individuals may be more responsive to appeals
that are based on social or group affiliations, rather than the
informational content of an advertisement.
4.
Need for Uniqueness:- For these people, conformity to others
expectations or standards, either in appearance or in their
possessions, is something to be avoided. Moreover, it is easier to
express or act uniquely if one does not have to pay a price in the
form of others criticism. Supporting this perspective, research
indicates that when consumers with a high need for uniqueness are
asked to explain their choices, and are not concerned about being
criticized by others, they are more receptive to making unique
choices. Seeing the importance of need for uniqueness, other
consumer researchers have developed an inventory to measure the
trait within the context of consumer behaviour. Optimum Stimulation
Level:- Some people seem to prefer a simple, uncluttered, and calm
existence, whereas others prefer an environment crammed with novel,
complex, and unusual experiences. Research has found that high
optimum stimulation levels (OSLs) are linked with greater
willingness to take risks, to try new products, to be innovative,
to seek purchase related information, and to accept new retail
facilities than low OSLs.
5.
A recent research investigating college students willingness to
select mass customization of fashion items (e.g., a pair or jeans
that are especially measured, cut, and sewn so they offer a better
fit or appearance), found that OSL predicted two factors students
openness to experimentation with appearance (e.g., I try on some of
the newest clothes each season to see how I look in the styles) and
enhancement of individuality (e.g., I try to buy clothes that are
very unusual). OSL scores also seem to reflect a persons desired
level of lifestyle stimulation. Ex:- Consumers whose actual
lifestyles are equivalent to their OSL scores appear to be quite
satisfied, whereas those, whose lifestyles are under-stimulated
(i.e., their OSL scores are greater than the lifestyle they are
currently living) are likely to be bored. Those whose life styles
are over-stimulated (i.e., their OSL scores are lower than current
reality) are likely to seek rest or relief. This suggests that the
relationship between consumers lifestyles and their OSL scores is
likely to influence their choices of products or services and how
they manage and spend their time. For instance a person who feels
bored is likely to be attracted to a vacation that offers a great
deal of activity and excitement. In contrast, a person who feels
overwhelmed is likely to seek a quiet, isolated, relaxing, and
rejuvenating vacation.
6.
Sensation Seeking:- Sensation seeking(SS) is closely related to
the OSL concept, which has been defined as a trait characterized by
the need for varied, novel, and complex sensations and experience,
and the willingness to take physical and social risks for the sake
of such experience. Research evidence indicates that teenage males
with higher SS scores are more likely than other teenagers to
prefer listening to heavy metal music and to engage in reckless or
even dangerous behaviour. Variety or Novelty Seeking:- Still
another personality driven trait quite similar to and related to
OSL is variety or novelty seeking. There appear to be many
different types of consumer variety seeking: exploratory purchase
behavior (e.g., switching brands to experience new, different, and
possibly better alternatives), vicarious exploration (e.g.,
securing information about a new or different alternative and then
contemplating or even daydreaming about the option), and use
innovativeness (using an already adopted product in a new or novel
way). FMCGs like soaps, shampoos, and biscuits have a number of
variants, and exploratory purchase is very common in these
categories, though there may be loyalists in some of them.
7.
An example of vicarious exploration may be Kinetic Honda, the
gearless scooter launched several years back, which came out with a
Himalaya Rally campaign that emphasized the durability of the
product under trying conditions. Using washing machines for making
lassi and paints / dyes to paint cows during festivals are examples
of use innovativeness. Consumers with high variety seeking scores
are also more likely to be attracted to brands that claim to have
novel features or multiple uses or applications. Still further,
there appears to be a relationship between variety seeking and time
of day, with greater variety seeking behaviour occurring when the
consumer is experiencing arousal lows (as opposed to arousal
peaks). And during the time of day when arousal seeking is
relatively minimal, leader brands fare better, while follower
brands do better during periods of the day when variety seeking is
heightened. Interestingly, there is also research evidence to
indicate that variety seeking is greater when individuals are
making choices for others, rather than for themselves.
Recent research has also found evidence that variety seeking can
be domain specific, such as fitness group participants choosing a
larger variety of fruit juice drinks or members of a travel group
selecting a wider variety of alternative holiday activities. (e.g.,
beach, sports, nature). And, in general hungry consumers opt for
more variety in their food choices hunger and visual food cues
increase variety seeking with respect to food items. A knowledge of
such personality differences should help marketers select target
segments for new products and then to design distinctive
promotional strategies for specific segments.
Cognitive Personality Factors:- In particular two cognitive
personality traits need for cognition and visualizers versus
Verbalizers have been useful in understanding selected aspects of
consumer behaviour.
1.
Need for Cognition:- A promising cognitive personality
characteristic is need for cognition (NFC). It measures a persons
craving for or enjoyment of thinking. Research indicates that
consumers who are high in NFC are more likely to be responsive to
the part of an ad that is rich in product related information or
description; whereas consumers who are relatively low in NFC are
more likely to be attracted to the background or peripheral aspects
of an ad, such as an attractive model or well known celebrity.
Doing research on consumers need for cognition is useful for
marketers as the insights gained will help formulate communication
strategies. This aspect of the consumers personality is useful in
the case of consumer durables. Ex:- In the category of washing
machines, a semi automatic machine is likely to attract a target
segment that is not interested in the upper end fuzzy logic washing
machines. Research information can give insights on the need for
cognition across these segments. If the company finds that a
particular segment is not interested in certain product related
information, a different kind of appeal can be used in
advertisements. This can be backed up by customer friendly
information provided at retail outlets.
When a brand like Mercedes is positioned for a niche market, the
research on the need for cognition can be very useful in deciding
promotional methods. If the target segment is not interested in
specific features, the company can provide a visual demonstration
of the brand and customize information through personal selling or
the Internet instead of running a high visibility advertising
campaign with information on product features. In this realm,
research among adolescents compared the effectiveness of a cartoon
message and a written message. For those, who are low in NFC, the
cartoon message was more effective in changing attitudes and
subjective norms, whereas the written message was more effective
for those high in NFC. Another study revealed that, consumers who
are high in NFC are likely to spend more time processing print
advertisements, which results in superior brand and ad claim
recall. Still another study using a Taiwanese sample shows that the
inclusion of diagnostic product information in advertising (e.g.,
information that allows consumers to evaluate product quality and
distinguish between brands) increase ad persuasion for high NFC
consumers, but not for low NFC consumers.
Need for cognition also seems to play a role in an individuals
use of the Internet. NFC has been positively related to using the
Internet to seek product information, current events and news, and
learning and education all activities that incorporate a cognitive
element.
Other studies have found that people high in NFC are able to
better filter out distractions in order to concentrate on their
online activities and are more motivated to learn online, and that
the addition of interactive properties to a companys Web site will
increase information processing for low NFC individuals.Such
research insights provide advertisers with valuable guidelines for
creating online advertising messages that appeal to a particular
target audience groupings need for cognition.
2.
Visualizers Versus Verbalizers:- It is fairly well established
that some people seem to be more open to and prefer the written
word as a way of securing information, whereas others are more
likely to respond to and prefer visual images or messages as
sources of information, accordingly cognitive personality research
classifies consumers into two groups: Visualizers or Verbalizers.
Some marketers stress strong visual dimensions in order to attract
visualizers; others feature a detailed description or point by
point explanation to attract Verbalizers. Ex:- Dalda launched Dalda
Light vanaspati, detailing how the new brand has attributes that do
not raise cholesterol levels. After a few years, the sub brand was
renamed as Dalda Activ, with advertisements built around visuals
rather than attributes. A recent research effort consisting of four
separate studies found that there are two distinctly different
types of Visualizers: Object Visualizers (encode and process images
as a single perceptual unit) and Spatial Visualizers (process
images piece by piece). Individuals scoring high on object
visualization tend to score low in spatial visualization, and vice
versa. Further, while visual artists generally excel in object
imagery, scientists and engineers do best with Spatial imagery.
1.
Interpersonal Influence:- Besides personality and cognitive
traits, outside influences are also important in consumers choosing
certain products over others. Marketers should take note of three
kinds of interpersonal influence:Information Influence is the
tendency of a consumer to accept information from others about
reality. This aspect may be useful in developing word-of-mouth
strategies. Ex:- In the category of durables, demonstration at
retail outlets may spread product benefits among the target segment
through consumers attending such demonstrations. Value Expressive
Influence is the tendency of consumers to enhance their social
standing by attempting to be similar to those with whom they
compare themselves. Ex:- Reference group appeals in several
categories. Utilitarian Influence is the tendency of consumers to
conform to the wishes of others in order to obtain rewards (or
avoid punishment). This aspect may be indirectly reflected in the
behavior of consumers. The peer pressure to buy a brand of car
within a price range is an example of such influence.
2.
3.
Reference Groups:- From a marketing perspective, reference
groups are groups that serve as frames of reference for individuals
in their consumption decisions because they are perceived as
credible sources. Reference groups influencing broadly defined
values or behaviour, are called Normative Reference Groups. Ex:- A
childs normative reference group is the immediate family, which
plays an important role in molding the childs general consumer
values and behavior (such as which food to select for good
nutrition, appropriate ways to dress for specific occasions, how
and where to shop, or what constitutes good value). Reference
groups serving as benchmarks for specific or narrowly defined
attitudes or behavior are called Comparative Reference Groups. Ex:-
Upper level executives at ones place of employment whose lifestyle,
clothing, and other possessions appear to be admirable and worthy
of imitation by a person holding a lower managerial position.
Reference groups are also classified by membership status. A
group to which a person either belongs or would qualify for
membership in is called a Membership Group. Ex:- the group of men
with whom a young executive plays cricket weekly would be
considered, for him, a membership group. There are also groups in
which an individual is not likely to receive membership, despite
acting like a member by adopting the groups values, attitudes, and
behaviour. Each such group is considered as a Symbolic Group. Ex:-
Professional cricket players may constitute a symbolic group for an
amateur cricket player who identifies with certain players by
imitating their behaviour whenever possible (e.g., purchasing a
specific brand or cricket gears). However, the amateur cricket
player does not (and probably never will) qualify for membership as
a professional cricket player because he has neither the skills nor
the opportunity to compete professionally.
Reference Groups & Branding:- India produces the maximum
number of movies in the world, and celebrity advertising is used
extensively across segments of consumers and product categories.
Celebrity and common man appeals are some of the popular reference
group concepts that are used in India. Celebrities from the world
of Cricket & Movies have the most appeal: Sachin Tendulkar,
Amitabh Bachchan etc. Amitabh Bachchan was associated with Parker
pens to add grace to the product; endorsed Herbal Chyawanprash of
Dabur, ICICI bank, Navratna Hair Oil, to name a few. Sachin
Tendulkar took the testimonial route when he endorsed Boost is the
secret of my energy. He endorsed the TVS Victor bike and Colgate
Total toothpaste for its 12 hour protection. Cricketer M.S.Dhonis
association with Sonata watches and TVS bikes, may have appealed to
rural consumers, while Santro used Shah Rukh Khan and Preity Zinta
to position itself as a sunshine car after it established its
functional attributes. Priyanka Chopra with the Hero Honda Pleasure
brand of scooter positioned toward the urban, contemporary, and
tradition breaking woman, heralded a self concept with which the
consumer segment may have identified themselves.
Decades back, Surf used Lalitaji, a stereotype of a typical
bargain oriented housewife who advocated lower use of the quantity
of the brand in comparison with a competitive brand. This was a
common man appeal that would enable the consumer to connect with
someone like her. Celebrity associations, psychographics of the
target segment and the objective of the celebrity use are important
considerations while building long-term brand associations through
reference group concepts.
Opinion Leadership:- Informal sources such as friends,
neighbors, relatives, and others consumers, a person meets online
in social networks, chat rooms, and other places, have a strong
influence on that persons consumption behaviour because they are
perceived as having nothing to gain from their purchase
recommendations. Such informal groups also serve as comparative and
normative frames of reference for a persons overall values and
behaviours. Sociologists who studied the informal communication
process named it Opinion Leadership and defined it as the process
by which one person (the opinion leader) informally influences the
actions or attitudes of others, who may be opinion seekers or
opinion recipients. The key characteristic of the influence is that
it is interpersonal and informal and takes place between two or
more people, none of whom represents a commercial selling source
that would gain directly from the sale of something. Later on,
marketers realized that informal communications are a two way
process and named such interaction word of mouth (WOM).
A word-of-mouth encounter may indeed start by one party offering
advice or information about a product to another party. However,
this opinion leader may become an opinion receiver later on. Ex:- A
new father contemplating the purchase of a baby car seat sought
information and advice from other people in deciding which brand to
select. Once the car seat was purchased, he experienced
post-purchase dissonance and was compelled to talk favorably about
the purchase to other people, thus confirming the wisdom of his own
choice. In the first instance, he was an opinion receiver; in the
second, he assumed the role of opinion leader. In word-of-mouth
communications, the parties involved perceive each other as highly
credible sources of information because they view one another as
objective concerning the product or service information or advice
they dispense. Opinion receivers view the intentions of opinion
leaders as being in their best interests because the opinion
leaders receive no material gain for the advice; therefore, their
opinion receivers are likely to consider such recommendations more
seriously. Moreover, since opinion leaders often base their product
comments on firsthand experience, their advice reduces the opinion
receivers perceived risk or anxiety inherent in buying new
products.
Opinion leadership tends to be category specific; that is,
opinion leaders often specialize in certain product categories
about which they offer information and advice. When other product
categories are discussed, however, they are just as likely to
reverse their roles and become opinion receivers.