Page 132 - DMGT506_CONSUMER_BEHAVIOUR

Unit 9: Reference Group Influences

Notes

Notes Reference Groups and Marketing Implications
Marketers employ informational, comparative and normative group influences to develop
marketing communication strategies.

Advertising often makes use of informational influence through expert spokespersons
who communicate information about product features and performance. One approach
employed is to use a character posing as an expert, such as a doctor for commonly used
remedies, or the engineer for technical products. Another approach is to use a real celebrity
who has expertise in the product area. Consumers are likely to believe a testimonial from
Agassi for the product category as credible.
Advertising applies comparative influence by using either an actual referent in the form
of a "typical consumer" or use a celebrity as a symbolic referent with whom consumers
identify because she/he is likeable or attractive. The ad for ICICI used Amitabh Bachchan
as a symbolic referent.

Marketers frequently use normative influence approach by showing group approval in
ads for a particular brand. Commercials of Orient PSPO, Coca Cola, etc. are examples of
advertising's simulation of social approval. Typically, the ad shows an individual who is
important to the consumer such as spouse, friend, neighbour, or business associate etc.
and expresses approval or praise of the consumer's choice.

Caselet Celebrities Aid Brand Recall, but may not
Influence Buying: A Study

hat has the recent Pepsi ad that features tinsel town's real-life pair Ranbir
Kapoor and Deepika Padukone along with Shah Rukh Khan done? While the
Wcouple has received oodles of accolades for their on-screen chemistry, the brand
Pepsi is somewhere lost in the throng of celebrities. IMRB, an international research
agency, along with PR firm IPAN, conducted a research across Mumbai, Delhi, Kolkata
and Chennai, mid size towns like Indore and Lucknow, as well as the small size towns like
Ajmer, Madurai, Ranchi and Cuttack to understand whether people believe in brands
because of their celebrity endorsers or not and to what extent celebrities influence
consumers' buying decisions.
Here's what the research reveals. Although almost 8 out of every 10 say that the most
prominent ad that they remember are the ones with celebrities in it, it doesn't influence
their purchase pattern. It does not affect consumer-buying decision at any point of time.
Since a celebrity is endorsing many brands/product, more than assistance, it creates
confusion for the consumer on the recall.
So what works for the consumer? Apparently, what matters the most is the quality of the
product that can be provided to the consumers.
Across India, 78% of people feel that the most important factor while buying any product
is 'quality of the product', followed by 'price', whereas only 3% consider a celebrity as an
important factor before buying a particular product.
Contd....

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