Reference Group Influences on Consumer's Product and Brand Decisions

Abstract

This research study aims to examine the influences of three types of reference groups on consumer’s product and brand decisions. Quantitatively, self-administered questionnaires were used to collect survey data from 400 undergraduate students who are studying in public and private institutions in Bangkok Metropolitan Areas, Thailand. Three product categories were tested and selected to represent a) publicly-consumed, luxurious product (handbags), b) publicly-consumed, necessary product (mobile phones), and c) privately-consumed, luxurious product (perfumes). As result, informational influence is found to be the most outperformed approach shown to impact on all product and brand selections. Meanwhile, normative influence shows less impact on young adults since they are likely to be an influencer rather than being influenced by others. However, value-expressive influence presents non-significant evidence to explain its power on consumer product and brand decisions. Therefore, this research supports Deutsch and Gerard’s (1955) original work with the non-U.S. samples that there should be only two types of reference group influences.