Influence of Social Reference Group on Buying Behavior, a Comparative Study of Working and Non Working Women in Bangalore-A Pilot Study Analysis

Abstract

Reference Group Construct: The various types of reference group include primary groups, secondary groups, formal groups, informal groups, membership, aspirational groups and the different types of influences which affect consumer decisions include Normative influence, Value-expressive influence and Informational influence 2 . Identification of Problem: Due to the new developments and the changing scenario of Liberalization, Privatization and Globalization, there has been a huge shift in the earnings of women and hence reference groups to a greater extent help in their consuming behaviors 14 . The research paper would study the working women segment viz-a-viz non-working women and analyze the influence of reference groups on their buying behavior with reference to the three types of influence. Methodology: As this study is an exploratory study, a pilot study of 50 sample each for working women and housewives would be administered using convenience and judgment method. The data would be collected through a structured questionnaire involving statistical techniques like Anova and t- test. Importance of the Study: 1. Contribution to the body of knowledge utility to academicians a. The findings of the study will help to understand consumer behavior b. The comparison between the two segments with respect to the influence of reference groups may result in developing new models of consumer behavior 2 . Utility to Practitioners a. Identification of new segments to market their products b. Better understanding of these segments will result in better STP (segmentation, targeting and positioning) Conclusion: Today the female market as a topic is discussed the world over. A global study in 2009 by BCG (Boston Consulting group Matrix) indicates women control $12 trillion in global spending. The 12000 women BCG interviewed provide the following information - on their spending and saving preferences, their work and home habits, their buying behavior. The consumer- economy seems to be female, the business-world seems to be male, and therein lays the dichotomy.