What are reference groups?

Reference groups are formal or informal groups whose shared attitudes and beliefs influence the opinions, behaviors, and decision-making processes of consumers. These groups can significantly impact consumer choices, as individuals often look to the attitudes and actions of others within these groups when forming their own opinions about products or brands. For example, friends, family, and colleagues can serve as reference groups that sway a person's buying habits or brand loyalty.

These groups can be categorized into primary and secondary reference groups. Primary groups, such as family and close friends, have a direct impact on a person’s behaviors and choices. Secondary groups, such as social or professional organizations, also provide guidance and norms but may not have as immediate or intense an influence.

In contrast, options discussing groups conducting market research, demographic segments, or types of segmentation analyses refer to different marketing concepts that do not encapsulate the essence of what reference groups are. While they are relevant to the broader context of marketing, they do not define the nature and function of reference groups within consumer behavior.