HTM 3103

CONSUMER BEHAVIOR FOR

HOSPITALITY & TOURISM
CH6. The influence of reference groups on Hospitality consumers
 INTRODUCTION
Consumers are influenced by other people (whom they
interact), and the effect of that influence can be extremely
important.

In generally we consume hospitality as part of a social group.

Ex: Interact with other consumers.

Many people intervene in the purchase and consumption

process.

Thus, we need to consider the role that groups take in the

consumption of hospitality products.
REFERENCE GROUPS
Group:
Two or more people who share a set of norms and whose relationship makes their
behavior independent.

Can be formed for a number of reasons, depends upon the context for the groups
development.
 REFERENCE GROUPS
For Consumer Behavior: Focus on reference group
A person or group of people that significantly influences
an individuals behavior.

By providing standards and norms by which consumers

judge their attitudes and behavior.

Effect that behavior is influenced in different ways and to

different degrees by other people.
 CATEGORIES OF REFERENCE GROUPS
Primary groups
Most closely associated

Share beliefs and values and similar consumption behavior.

Identify with goods and services in similar ways

Family, close friends and colleagues.

 CATEGORIES OF REFERENCE GROUPS
Secondary groups
Only see on occasions and less influential.

Shared interests.

Ex: Members of the same sport club, general friends at

school.
 THE NATURE OF PRODUCTS, GOODS AND SERVICES
Aspirational groups
Individual aspire to belong to.

Can be very powerful motivators

Adopt the characteristics of the group and behaving

in ways that are seen as more likely to result in
membership.

It can be used as a means of influencing consumer

behavior
 THE NATURE OF PRODUCTS, GOODS AND SERVICES
Dissociative groups
Opposite from aspirational group

Individuals seek to avoid being associated with.

What is aspirational to one person will indeed be

dissociative to another, and vice versa.
 THE NATURE OF PRODUCTS, GOODS AND SERVICES
Formal groups
Comply with certain rules dress code

Behavior is constrained by the group

Ex: Dress code
 THE NATURE OF PRODUCTS, GOODS AND SERVICES
Informal groups

Unstructured groups, formed from the circle of people that surround individuals

Automatic groups

Belong to by virtue of the categories into which they fall.

Ex: Age, gender, cultural, education

REFERENCE GROUPS
These groups are not mutually exclusive.

People generally belong to several different groups.

They will behave in ways that make acceptance more likely, and where
membership is indicated by observable consumption.

Reference groups influence aspiration levels and thus play a part in producing
satisfaction or frustration and influence kinds of behavior they produce
conformity.
TYPES OF INFLUENCE EXERTED BY
REFERENCE GROUPS
Informational influence

Comparative influence

Normative influence
TYPES OF INFLUENCE EXERTED BY
REFERENCE GROUPS
Informational influence
Operates through the value consumers place on those that they
consider credible sources of information of expertise.

Depends on a risk in buying a product and limited product

knowledge.
TYPES OF INFLUENCE EXERTED BY
REFERENCE GROUPS
Comparative influence
Compare themselves with reference groups which they consider
important, thus they align with groups.

Largely self-maintaining to support their own attitudes and

behaviors.

Ex: Use celebrities and sales person that consumers perceived as

having similar attitudes to their own.
TYPES OF INFLUENCE EXERTED BY
REFERENCE GROUPS
Normative influence
The extent a reference group exerts its norms and values on its
members.

Ex: Nightclub culture VS Library culture

Focus on those who act as the models for the group

 FAMILY AS A REFERENCE GROUP

It is the fundamental social unit.

Extensive intimate contact, so allows families to interact and behave as advisers,

information providers, and decision-making groups.

Share much of their consumption.

Tend to have one member responsible for activities on behalf of the family, and that
member tend to be responsible for the purchases.
 ROLES OF A FAMILY IN CONSUMER BEHAVIOR

Initiator
The person responsible for originating the idea

Influencers
Those who either directly or indirectly play a part in directing the decision process

Decision Makers
The people who make the evaluation and choose from among the range of
products of offer
 ROLES OF A FAMILY IN CONSUMER BEHAVIOR

Buyer
A person who makes the actual transaction

User
The person who consumes the product
 THE FAMILY LIFE CYCLE

Young Singles no longer living with parents

Limited income, fashion, entertainment

Young married with no children

Increasing incomes, homemaking, leisure

Married couple with children under six

Reduced incomes, increased spend for larger property & children

Married couple with children over six

Financially improves, school, outdoor activities
 THE FAMILY LIFE CYCLE

Older couples with children

Financially at ease, larger house, second car, health & education as
dominate spending.

Older couples without children, head of household

working
Financial at peak, luxury products, travel, leisure

Older couples without children, head of household

retired.
Income decline, increase spending on health
THE FAMILY LIFE CYCLE
Older single working person
High income, spending on travel, leisure, and health

Older single retired person.

Income decline, spending on affection and security
CONTEMPORARY CHARACTERISTICS OF THE
FAMILY

Decreases in household size are the result from many factors:

Birth rate decrease

Decline in number of marriage

Marriage at a later stage of life

Increasing divorce

EFFECT
Impact on consumer behavior in hospitality in terms of marketing family
market, single group market.
THE INFLUENCE OF CHILDREN ON HOSPITALITY
CONSUMPTION

They influence is one of the most important

decision-making and consumption units, the
family both through direct and indirect
mechanisms. PESTER POWER

Consumer socialization the process by which

young people acquire skills, knowledge, and
attitudes relevant to their functioning in the
marketplace

Family is responsible for teaching children.

 THE INFLUENCE OF CHILDREN ON HOSPITALITY
CONSUMPTION

Five stages of children to develop their

purchase

1) Observing: 6 months.
Construct images of products and brand symbols

Begin to recognize

2) Making requests: 2 yrs.

Make specific requests for products n the presence of
things that remind them

Stimuli from media image

 THE INFLUENCE OF CHILDREN ON HOSPITALITY
CONSUMPTION

5) Making independent purchases: 8 yrs

Mature enough to buy products without parental
assistance

Good understanding of money

RESOLVING CONSUMPTION CONFLICT WITHIN THE
FAMILY
When two or more people are making decision, there is always the potential of
conflict.

The techniques to resolve consumer conflict are:

1) Coercion - assumed expertise, authority, threats, reward & punishment.

Involved a more detailed information and often employ the expertise of members outside the
family

Consulted a travel agent.

2) Persuasion - Use of reasoned arguments

RESOLVING CONSUMPTION CONFLICT WITHIN THE
FAMILY
3) Bargaining
Strategies of give & take

Exchanging a decision now for one later

4) Manipulation
Psychological strategies to pressure others into agreement.

E.g. withdrawal, sulking, silence, etc.

CONCLUSIONS
The reference group can influence consumer behavior within hospitality
consumption.

Consumers are aspired to behave in certain ways as a result of:

Family norms

Aspiration

Conformity
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