Reference Group -2

Reference groups are used in advertising to appeal to different market segments. Group situation with which potential customers can identify are used to promote products and services. Hidden in this appeal is the subtle inducement to the customer to identify himself with the user of the product in question. The three types of reference group appeals most commonly used are:

a) celebrities,
b) experts, and
c) the ‘common man’.

Celebrities are well known people (in the specific field of activity) who are admired and their fans aspire to emulate their behavior. Film stars and sports heroes are the most popular celebrities. Soft drinks (Thums Up), shaving cream (Palmolive), toilet soap (Lux), textiles (Dinesh, Graviera) are advertised using celebrities from the sports and film fields. Experts such as doctors, lawyers, accountants and authors are sued for establishing the benefits of the products. Colgate and Forhans toothpastes are examples of products which use the expert reference group appeal for promotion.

Another reference group appeal is that which uses the testimonials of a satisfied customer. It demonstrates to the prospective customer that someone just like him uses and is satisfied with the product.

Direct reference groups which exert a significant influence on consumer’s purchase decision and behavior can be classified into six categories. These are:

i) The family,

ii) Friendship groups,

iii) Formal social groups,

iv) Formal shopping groups,

v) Consumer action groups,

vi) work groups.

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