Group Influences Official

Have you ever wondered how other people affect
your purchasing decisions? For years, researchers have found multiple
ways to understand how our consumption corresponding with people around us. In the Journal of advertising, Lessig and
Park suggest that we are influenced by the Reference group. A reference group includes “individual or
group conceived of having significant relevance upon an individual’s evaluations, aspirations,
or behavior “.They often serve as role models and inspiration. Marketers view reference groups as important
because they influence how consumers interpret information and make purchasing decisions. There are 3 motivational influences of reference
groups: informational, utilitarian and value expressive influence. Firstly, Informational influence occurs when
an individual uses the behaviors and opinions of reference group members like experts, friends,
family or suppliers as potentially useful bits of information when making purchasing
decisions. For example: When a person wants to buy a
smartphone, he or she seeks guidance from a friend who is a tech-savvy. Secondly, Utilitarian influence (also known
as a normative influence) is the compliance of an individual with perceived expectations
of others in order to achieve rewards or avoid punishments. For example, a person decides to follow the
latest fashion trend to gain acceptance from friends. And lastly, Value-expressive influence
occurs when individuals have internalized the group’s values and norms. This means that an individual may purchase
a product to demonstrate or enhance self-image to others. For example, a person may want to buy a Rolls-Royce
car to show others that he or she is wealthy and successful. Reference group, in fact, is considered to
be one of the external influences that affect consumer behavior. The study about reference group has sparked
our interest, so this video will show you How young adults are influenced by different
reference groups in hospitality services? Research has been conducted by interviewing
students who are currently living in HCMC and a survey was opened for 3 days, collecting
76 responses from young adults about 18 to 30 years old. This video is brought to you by The Elements: From the survey, we have found out that Informational
influence has the most significant impact all over 3 areas: Accommodation, Food and
Beverage, and Tourism. Accommodation is also the area in Hospitality
that people are affected the most by Informational influence. 77.63% of respondents agree or totally agree
that they look for reviews on social media and ask for recommendations from friends and
family where they will stay during their trips. On the other hand, F&B is also influenced
by this factor among the three as only 62.28% of respondents search reviews before eating
out. Ly, an ISB student have explained more about
this in an in-depth interview. She said: “Because I will spend most of the
time at the accomodation, I have to make sure that it is suitable, clean and well-equiped” This one has exerted the most significant
impact on Tourism because about 63% of respondents agree that their destination choices are influenced
by family and friends. However, in F&B, only 46.71% of respondents
concur the same thing. About this, Ly said:” If my family members
have been there already, I’ll consider their recommendations more than online reviews” Ranking at the final position in our survey
results, Value-expressive tends to have the least effect on consumer behavior in the three
areas. The area that this factor impacts the most
is Tourism that nearly 54% of respondents in the survey think that their destination
choices reflect and enhance their self-image to others. However, only about 33% of respondents think
that their Accommodation choices do the same. To answer the question that we put at the
beginning of this video: From the data we get, the Informational influence is
the most influential on the whole Hospitality industry. Utilitarian influence and Value-express influence
also significantly affect consumer behavior in Tourism. Although the reference group has some impact
on the Food & Beverage group, consumer behavior just slightly changes. So what marketers should do to utilize the
information you just found out? We recommend marketers in Accommodation business
should provide full and detailed information of their
service, run promotions on social media, booking apps
have good customer service to encourage and response to customer feedback Moreover, for the Hospitality Industry in general, marketers should focus on customer service to meet demands of consumers, retain them and develop quality of the service. Thank you so much for watching!

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