Have you ever wondered why you chose that particular brand of watch or decided to splurge on a new set of golf clubs? The answer may lie not just in your personal preferences, but in the subtle influence of the people around you. A groundbreaking study by William Bearden and Michael Etzel sheds light on how reference groups shape our product and brand choices in ways we may not even realize.

Bearden, William & Etzel, Michael. (1982). Reference Group Influence on Product and Brand Purchase Decisions. Journal of Consumer Research. 9. 183-94. 10.1086/208911.

Key Findings: The Power of Social Influence

Bearden and Etzel’s research, published in the Journal of Consumer Research in 1982, explored how different types of products are affected by reference group influence. They examined three key types of social influence:

  1. Informational influence: Seeking information from knowledgeable others
  2. Value-expressive influence: Choosing products to express values or improve self-image
  3. Utilitarian influence: Complying with others’ preferences to gain rewards or avoid punishments

The study found that the degree of reference group influence varies significantly depending on two key factors:

  1. Whether the product is publicly or privately consumed
  2. Whether the product is considered a luxury or a necessity

The Product Matrix: Four Categories of Influence

The researchers created a 2×2 matrix of product types based on these factors:

  1. Publicly consumed luxuries (e.g., golf clubs, sailboats)
  2. Publicly consumed necessities (e.g., wristwatch, automobile)
  3. Privately consumed luxuries (e.g., home theater system, trash compactor)
  4. Privately consumed necessities (e.g., mattress, refrigerator)

Each of these categories was found to be subject to different levels and types of reference group influence.

Key Insights: How Reference Groups Shape Our Choices

1. Publicly Consumed Luxuries: The Ultimate Status Symbols

Products in this category, like golf clubs or sailboats, were found to be most susceptible to reference group influence. Both the decision to purchase the product and the choice of brand were strongly influenced by others. This makes sense intuitively – these items are visible to others and not commonly owned, making them powerful signals of status and group membership.

2. Publicly Consumed Necessities: Brand Matters

For items like watches or cars that are publicly visible but widely owned, reference group influence was strong for brand choice but weaker for the decision to purchase the product itself. This suggests that while most people feel they need these items, the specific brand they choose is often influenced by social factors.

3. Privately Consumed Luxuries: The Hidden Indulgences

Interestingly, products used privately but not commonly owned (like a home theater system) were subject to strong reference group influence for the purchase decision, but less so for brand choice. This implies that while others may influence whether we buy these luxury items, the specific brand is more a matter of personal preference.

4. Privately Consumed Necessities: The Least Influenced

As one might expect, items used privately and owned by most people (like mattresses or refrigerators) were least affected by reference group influence. Both the purchase decision and brand choice were more likely to be based on individual needs and preferences.

Types of Influence: Information, Values, and Conformity

The study also revealed interesting patterns in the types of influence at play:

  • Informational influence was particularly strong for luxury items, regardless of whether they were used publicly or privately. This suggests people are more likely to seek advice and information from others when considering expensive or unfamiliar purchases.
  • Value-expressive influence was most prominent for publicly consumed products, especially luxuries. This highlights how visible products are often chosen to communicate something about our identity or values to others.
  • Utilitarian influence showed a similar pattern to value-expressive influence, indicating that people are more likely to conform to others’ expectations for products that will be seen and judged by their social groups.

Implications for Marketers and Consumers

This research has profound implications for both marketers and consumers:

For Marketers:

  • Advertising strategies should be tailored to the type of product being promoted. For publicly consumed luxuries, emphasizing social approval and status may be effective. For privately consumed necessities, focusing on product attributes and individual benefits is likely to be more persuasive.
  • Influencer marketing may be particularly effective for publicly consumed products and luxury items, where reference group influence is strongest.
  • For privately consumed luxuries, marketing efforts might focus on legitimizing the purchase decision rather than promoting specific brands.

For Consumers:

  • Being aware of these influences can help us make more conscious, deliberate choices. Are we buying something because we truly want or need it, or because of social pressure?
  • For important purchases, especially of luxury items, it may be worth seeking information from knowledgeable sources rather than relying solely on social influence.
  • Recognizing that our brand choices for public items are often influenced by others can help us evaluate whether those choices align with our personal values and needs.

Limitations and Future Directions

While groundbreaking, the study had some limitations. The researchers noted that other factors, such as perceived risk and product familiarity, could also play a role in reference group influence. Additionally, the study was conducted in the early 1980s, and consumer behavior has likely evolved with changes in technology and social norms.

Future research could explore how these patterns of influence have changed in the age of social media and online shopping. It would also be interesting to examine how cultural differences might affect the strength and types of reference group influence across different societies.

Conclusion: The Social Nature of Consumption

Bearden and Etzel’s study reveals that our purchasing decisions are far from being purely individual choices. Instead, they are deeply embedded in our social contexts. From the luxury items we display to signal our status, to the everyday products we use in private, our consumption choices are shaped by the groups we belong to and aspire to join.

By understanding these influences, we can become more conscious consumers, making choices that truly reflect our needs, values, and identities. At the same time, marketers can use these insights to create more effective, targeted campaigns that resonate with the social nature of consumption.

The next time you find yourself drawn to a particular product or brand, take a moment to consider: Is this truly your own preference, or are you being subtly influenced by the invisible hand of your reference groups? The answer might surprise you – and change the way you think about shopping forever.