In: Economics
Locate two advertisements that use references groups to target you as a consumer.
What types of reference groups are they using?
Are they effective?
Why or why not?
Consumers are a tribal people, and the communities to which they want to belong are vital to how these customers see themselves and live their lives. Consumers often choose products that they feel reflect values to which they adhere, almost the way they choose like-minded mates. This is a central aspect of the marketing of comparison categories. How you can leverage group power to improve the sales of your brand is a persuasive affiliation of your product or service with a group your target market admires.
Consumers are impacted by multiple kinds of comparison classes that they think are part of or hope to be. Community effect works both ways; people often reject products that they think will place them in a community in which they do not want to be included. To help shape and articulate their self-concept and their relationships with like-minded individuals , people purchase stuff. Many objects that a person buys, especially showy items such as clothes, shoes, cars, restaurants or club memberships, are indicative of what he feels a certain reference category, such as his family , social network, job, society or culture, is appropriate.
Purchases that cater to a few different categories of comparison groups could be made by an particular customer. For example, a Toyota Prius may be bought by a customer who wishes to appear eco-friendly. The same customer can also feel related to the gaming culture of Nintendo and prefer to purchase Nintendo consoles over Sony or Microsoft items.Group control comes from many ways and, in most situations, various forms of comparison classes do not conflict in the view of the consumer and the goods that represent them are in entirely separate categories.
Wealthy customers impact non-wealthy customers. Some brands hold premium shoppers feel that they're part of an exclusive club. The trick for high-end luxury goods and services advertisers is to cater to affluent customers who want to feel differentiated from the non-rich while at the same time appealing, according to customer behaviour studies, to the broader audience of customers who want to imitate the rich. A high-end watchmaker, for example, may release a limited edition premium watch for its targeted buyers, followed by a more affordable version of the product for a broader market under the same brand name.