ECONOMICS

Detailed explanation-1: -A reference group consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups influence consumers’ attitudes and aspiration levels which are very effective in many purchase decisions.

Detailed explanation-2: -Primary groups are generally small and include intimate relationships, while secondary groups are larger and more impersonal. Reference groups provide a standard for guiding and evaluating our attitudes and behaviors.

Detailed explanation-3: -A reference group is two or more people from whom an individual takes social and economic cues for appropriate behaviour. A group is two or more persons who share a set of norms and whose relationship makes their behaviour interdependent.

Detailed explanation-4: -small informal groups with which individuals have face-to-face contact and membership, and whose norms and values have an influence on their buying behaviour; direct reference groups can be primary (for example, the family) or secondary (clubs and societies to which the individuals belong).

Detailed explanation-5: -Three types of reference group influences are studied-informational, value expressive and utilitarian.