Here is a possible presentation on the topic you provided: Title: The influence of reference groups and opinion leaders on social media platforms Introduction: - Social media platforms have become an integral part of people's lives, especially among younger generations - These platforms enable people to connect with friends, family and like-minded individuals online - Communities form around shared interests, locations, activities etc on different social media Body: - Instagram is heavily influenced by fashion/lifestyle reference groups and opinion leaders - "Influencers" with thousands of followers shape trends and buying decisions in their niche - People aspire to the lifestyles portrayed and seek recommendations from influencers they follow - Brands partner with

1. SIMPLE MODEL OF CONSUMER BEHAVIOR
Motives
Attitudes
Needs Consumer
Purchase
Decision Learning
Family
Business
Perception
Personality
Internal Factors
Economic External Factors

2. External Influences in
Consumer Behavior
PREPARED BY
MATHEW LAWRENCE

3. INTRODUCTION
 Consumer purchasing decisions are often affected by factors that are
outside of their control but have direct or indirect impact on how we live
and what we consume.
 Consumers are faced with many external influences, including an
individual’s culture, subculture, household structure, and groups that
he/she associates with.
 Marketers and business owners call these external influences because
the source of the influence comes from outside the person rather than
from inside.
 Today consumers are faced with an array of product selection, and
competition is fierce among companies. This is why your understanding
of consumer behaviour is vital to the success of your business.
 Both internal and external factors are inter connected and work together
to assist the consumer decision making process.

4. INFLUENCING FACTORS IN CONSUMER DECISION MAKING

5. GROUP BEHAVIOR
 Man is social animal who loves to be in groups. Groups
represent two or more individuals who share a set of norms,
values, or beliefs and interact to accomplish individual or mutual goal.
 Almost all consumer behavior takes place in a group setting of some sort.
 A group's norms cover usually all the important behavioural aspects for
the functioning of that group and breaking those rules can bring up
penalties.
 When do Group Exert Influence?- The group influence on an individual’s
buying behavior depends on three factors-
 Attitude towards the group: This includes Pride, Status, etc.
 Nature of the group: This includes, Cohesive, Frequently interacting,
Exclusive membership.
 Nature of the Product: This includes visibility of the product, Uniqueness
of the product.
 Examples: Hardly Davidson Bike group, Friends connection, Aluminas of an
institute, etc.

6. TYPES OF GROUPS

7. REFERENCE GROUP
 A reference group is any person or group that serves as a
point of comparison for an individual in forming either
general or specific values, attitudes, or a specific guide for behavior.
 In marketing prospective, reference group are groups that serve as a
frames of reference for individuals in their purchase or consumption
decisions.
 Often a distinction is made between group and reference group. Group
is defined as two or more individuals who share a set of norms, values,
or beliefs and have certain implicit and explicit relationship. Where as
reference group is one whose presumed perspective or values are being
used by an individual to take decisions.
 Examples: Shopping with friends, family, educational
decisions.

8. NATURE OF REFERENCE GROUP
Status is the
Norms’ are
achieved or
generally rules and
ascribed position
standards of
that the individual
behavior.
holds.
Norms Status
Values are shared A groups influence
beliefs among on its member
group behavior is closely
related to it power.
Values
Power
Socialization refers
to the process by Roles are functions
which new that an individual
members learn the hold in a group.
groups system.
Roles

9. TYPES OF REFERENCE GROUP
Membership Non-membership
Positive Aspiration group
membership
Disclaimant group Dissociative group
Types of Membership
Informal Formal
Positive Aspiration group
Primary
membership
Secondary Disclaimant group Dissociative group
Types of aspiration group
Anticipatory
Symbolic

10. TYPES OF REFERENCE GROUP
 An individual can be a member of a reference group such as the family
and would be said to be part of a membership group
 The same individual may aspire to belong to a cricket club and would be
said to be part of an aspiration group.
 A disclaimant group is one to which an individual may belong to or join
then reject the group’s values.
 Also an individual may also regard the membership in a specific group
as something undesirable and to avoidable. Such a group is a
dissociative group.
 Primary Informal group: It includes family, peer group, friends etc.
 Primary formal group: Business group, working colleagues etc.
 Secondary Informal group: Women kitty party, sports group, etc.
 Secondary formal: Only frequently meet are not so cohesive in nature.

11. CULTURE
 Culture influences consumers through the norms and values established
by the society in which they live.
 It is the broadest environmental factor that influences consumers
behavior.
 Culture is inculcated- It is passed down from one generation to another
through institutions such as family members and religion.
 As culture evolves, it may be possible to associate benefits of a product
or brand with new values or it may be necessary to change the product if
that value is no longer gratifying the society. Example: Movies, TV
serials, etc.
 Definition: “Culture as the complex whole that includes knowledge,
beliefs, art, law, morals, customs and any other capabilities and habits
acquired by humans as a member of a society.”

12. CHARACTERISTIC OF CULTURE
 Culture is invented: It cannot be viewed as something that
just exists and is waiting to be discovered. People are
responsible for inventing their culture.
 Culture is learnt: It is not biological feature or instinctive.
The process of learning cultural values begin early in life
largely through social interactions among families, friends etc.
 Culture is Shared: Culture by at large is shared by huge
group of human beings, generally religion, language, etc.
 Culture satisfies needs: Culture offers order, direction and guides
societies in all phases of life by providing tried and trusted ways of
meeting physiological, personal and social needs.
 Cultures are similar but different : There are certain similarities
among all cultures and many elements are present in all societies such
as cooking, dressing, etc.
 Culture is not static: Culture do change gradually and continuously.
These change however may be very slow or very fast.

13. SUB CULTURE
 A sub culture is a segment within a culture that share a set if meanings,
values or activities that differ in certain respects from those of the overall
culture.
 Sub culture analysis enables the marketing manager to focus on beliefs,
values, and customs shared by member of a specific sub group make
them desirable candidates for special marketing attention.
 Sub culture therefore can be defined as a distinct culture group that
exists within a layer, complex society as an identifiable segments in
terms of its beliefs customs and values.
 Therefore sub culture are relevant units of analysis for marketing
research.
 Sub culture tend to transfer their beliefs and values
from generation to generation. Example: Youths

14. EXAMPLES FOR SUB CULTURE
Category Sub- Culture
Geography North Indian, South Indian, East Indian
Regional Gujarati, Marathi, Punjabi, Tamilians,
Malayalees, etc.
Age Children, Teenagers, Youth, Working
professional, etc.
Elderly 50 Plus.
People
Women Children, Teenagers, Youth, Married women,
etc.
Caste Muslims, Christians, Hindu, etc.

15. FAMILY
 Family is defined as a group of two or more
people related by birth, marriage or adoption
and residing together.
 House hold is a family and any
unrelated person residing in the same house
and consuming food from a common kitchen
at least once a day. Eg: Hostel
 All families are households but all households are not families.
 An individual’s immediate family members play an essential role in
influencing his/her buying behaviour.
 Family consists of Parent, Siblings, Spouse, Grandparents, Relatives, etc.
 What an individual imbibes from his parents becomes his/her culture. What
he sees from his childhood becomes his habit or in other words lifestyle.
 Family by far is the most important reference group. It is also the most basic
consumption unit for most consumer goods.

16. FUNCTIONS OF FAMILY
Economic Interpersona
Well Being l Skills
Provides
Emotional Religious
Support Values
Morals and
Suitable
Ethical
Life Style
Values
Social
Relationships

17. FAMILY LIFE CYCLE STAGE
Bachelor stage Young, single person <35
Income Expense
Newly married Young couples no children
Income Expense
Full Nest I Young couples with <6 yrs
children Income Expense
Full Nest II Young couples with 6-12 yrs
children Income Expense
Full Nest III Old married couples with
dependent teenage Income Expense
Empty Nest I Old married couples with no
children living Income Expense
Solitary Older single person
Survivor Income Expense

18. FAMILY/HOUSEHOLD DECISION MAKING PROCESS
Influencer
(Children)
Communication
targeted at Children
Initiator Decision
(Parents, Maker Purchaser
Children) (Parents, (Parents)
Children)
Communication
targeted at Parents
User
(Parents,
Information Children)
Gathering

19. SOCIAL CLASS
 Some form of class structure or social stratification
has existed in all societies throughout human history.
 A consumer's social class refers to his or her standing
in society. It is determined by a number of factors,
including education, occupation and income.
 While income is an important indicator of social class,
the relationship is far from perfect since social
class is also determined by such factors as place
of residence, cultural interests and world-view.
 Social Class is “defined as the division of members of a society into a
hierarchy of distinct status classes, so that members of each class have
relatively the same status and members of all other classes have either
more or less status.
 Social Class is often measured on the bases of: relative
wealth, Power, prestige.

20. SOCIAL CLASS CATEGORY
Life-style Orientations & Purchasing Tendencies of the Different Social
Classes.
Social Class Life-style Orientation Purchasing Tendencies
Upper Class Good taste Quality merchandise
Graceful living Expensive hobby and recreation
Good Things in life equipment
Individual expression Travel
Interest in arts and culture Art
Middle Class Respectability Items in fashion
Conformity Items related to self presentation
social esteem Nice clothing, and home items.
Working Class Fun oriented Newest appliances
Focus on Possessions Sporting events
Work related life Food items
Lower Class Close family relationships Readily available products
Not interested in world affairs Status symbols
Neighborhood oriented

21. “UPWARD PULL STRATEGY “- TARGETED AT MIDDLE CLASS
Positionin
Aspiration g
Prefer
s
Upper
Products
To belong class
consumed
Middle to symbolism
by upper-
Class upper- for middle
middle
middle class
class
class products

22. OPINION LEADERS HIP
 Opinion leaders are those people who, in a given situation, are able to exert
personal influence.
 They are the ones most likely to influence others through word-of-mouth
communication because others seek advice and information from them.
 Opinion leaders can influence the behavior
of consumers positive and negative towards
to the product.
 “Opinion leadership is the process by which
one person (the opinion leader) informally
influences the actions or attitudes or others,
who may be opinion seekers or merely opinion recipients.
 In marketing context opinion leaders are those people who have used the
product by them self.
 Young consumers often take the assistance of opinion leaders in there
purchase.
 Opinion leadership is category specific – an opinion leader in one product
category is often an opinion seeker in others.

23. OPINION LEADERSHIP FLOW OF INFORMATION

24. SITUATION IN WHERE OPINION LEADERS ARE CONSIDERED

25. Assignment- Presentation
Identify a social media platform which is influenced by certain reference
groups
and opinion leaders?
Further also attempt to analyze how social networking communities are
providing beneficial- compared to conventional advertising strategies in
creating brand awareness in the market?