We know that the influence of reference groups on consumers’ purchase behaviour
ID: 449846 • Letter: W
Question
We know that the influence of reference groups on consumers’ purchase behaviour is not equal for all goods. The public-private and luxury-necessity nature of goods are significant moderating variables in the relative strength of the relationship between reference groups and purchase decisions. Explain how brand and product choice are affected based on the private-public and luxury-necessity nature of goods. Provide an example of a particular good that fits each category of the model, and explain how the strength of reference group influence affects the brand/product choice for that good.
Explanation / Answer
Answer :
Yes I am agree with the statement. Brand and Product choice are affected based on the private-public and luxury-necessity nature of goods.
Public Choice :As this is public case , mostly this is happening at a society level or common level. People have tremendous social impact, they try to use , follow , wants ,need the goods which used by public.In common gathering or even through observation may be on road , or in mall the public goods , their choices , perception . availability of various brands have been observed by public.& Finally they try to follow or use the same.
Private Choice :
This is mostly associated with friends , families , close references. People are going for function , attending ceremony with their close acquaintances. Where they find the products , goods , brands etc.AS being a close relationship with the guest that create a major impact on the people & they also try to buy same brand , same model , same features by doing inquiry.
Strength of Public Goods:
Example mentioned : Car, Digital Camera, Laptop , Computer etc
As people are moving around they observe the situation , judge the people .analyse the brands , products.Now all above examples that are affecting on public mind very strongly & creates a impact.
Eg.If majority of the CAR in market are from General Motors , then automatically that creates positive perception in public mind by his / her observation.
Strength of Private Goods : Water Purifier, Bath tub, Microwave
As we are going to our friends , close references , in that case we find more close or interior observation of the family.In that case people perception moves automatically to words interior parts .& Brand affection is created about that product.
Eg. If the most of the family that we visited uses the SAMSUNG microwave then in that case our opinion or perception created about the SAMSUNG is positive & we prefer the same.
Group Influence on Brand Choice Strength Weak Group Influence Product Choice Strength Publicly Consumed Luxuries(Car, Digital Camera, Laptop
computer) Privately Consumed Luxuries
(Water Purifier, Bath tub,
Microwave) Weak Publicly Consumed Necessities
(Two Wheeler's, Dress,
Wristwatch) Privately Consumed Necessities
(Refrigerators, Mattress, Pain
balm)
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