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Product and Brand Decisions
Product and Brand
Decisions

Context

Context • Bourne (1957) originally proposed that reference group influence on product and brand decisions is

Bourne (1957) originally proposed that reference group influence on product and brand decisions is a function of two forms of “conspicuousness”. The first condition affecting product decisions The second condition affecting brand decisions.

Condition 1

Condition 1 • Product Decisions – • The item must be “exclusive” in some way •
• Product Decisions – • The item must be “exclusive” in some way • No matter
• Product Decisions –
• The item must be “exclusive” in some way
No
matter how
visible a
product is,
if virtually
everyone owns it, it is not conspicuous
Necessities are possessed by virtually everyone, while
• This is operationalized as the distinction between
1.
Luxuries and
2.
Necessities
Luxuries have a degree of exclusivity

Condition 2

Brand Decisions –

Condition 2 • Brand Decisions – • For reference group to affect brand decisions, the item

For reference group to affect brand decisions, the item must be “seen or identified by others”.

This is operationalized in terms of where an item is consumed.

  • 1. Publicly consumed products are seen by others

  • 2. Privately consumed products are not

Those brand decisions involving products which can be noticed and identified are more susceptible to reference group influence.

Combining Condition 1 & 2

Combining Condition 1 & 2 • Combining the concepts of • PUBLIC –PRIVATE consumption • LUXURY-NECESSITY
• Combining the concepts of • PUBLIC –PRIVATE consumption • LUXURY-NECESSITY items provides the following four
• Combining the concepts of
• PUBLIC –PRIVATE consumption
• LUXURY-NECESSITY items
provides the following four conditions
Publicly Consumed luxuries
(PUL)
Publicly consumed necessities
(PUN)
Privately consumed luxuries
(PRL)
Privately consumed
necessities (PRN)
When applied to product and brand decisions, these conditions create a total of 8 relationships that

When applied to product and brand decisions, these conditions create a total of 8 relationships that are the basis underlying this study.

PUL

PUL • A product consumed in public view and not commonly owned or used. • Example
• A product consumed in public view and not commonly owned or used. • Example –
• A product consumed in public view
and not commonly owned or used.
• Example – golf clubs, sail boat, Tennis
racket
a. Because it is a luxury, influence for the product should be strong.
• Whether or not the product is owned
and also what brand is purchased is
likely to be influenced by others.
b. Because it is seen by others, influence for the brand of the
product should be strong.
• Relationships with reference group
influence:

PRL

PRL • A product consumed out of public view and not commonly owned or used. •
• A product consumed out of public view and not commonly owned or used. • Example
• A product consumed out of public view
and not commonly owned or used.
• Example – trash compactor, Pool table,
Videogame
• The brand is not conspicuous or
a. Because it is a luxury, influence for the product should be strong.
socially important and is a matter of
individual choice, but ownership of the
product does convey a message about
b. Because it will not be seen by others, influence for the brand of
the product should be weak.
the owner.

Relationships with reference group influence:

PUN

PUN • A product consumed in public view that virtually everyone owns. • Example – wristwatch,
• A product consumed in public view that virtually everyone owns. • Example – wristwatch, Man’s
• A product consumed in public view
that virtually everyone owns.
• Example – wristwatch, Man’s suit,
Automobile, women’s dress
• This group is made up of products that
a. Because it is a necessity, influence for the product should be
essentially all people or a high
proportion of people use, although
weak.
differing as to type of brand.
b. Because it will be seen by others, influence for the brand of the
product should be strong.
• Relationships with reference group
influence:

PRN

PRN • A product consumed out of public view that virtually everyone owns. • Example –
• A product consumed out of public view that virtually everyone owns. • Example – mattress,
• A product consumed out of public view
that virtually everyone owns.
• Example – mattress, Refrigerator,
lamp, Blanket
• Purchasing behaviour is largely
a. Because it is a necessity, influence for the product should be weak.
governed by product attributes rather
than by the influences of others.
b. Because it will not be seen by others, influence for the brand of the
Neither products nor brands tend to be
product should be weak.
socially conspicuous and are owned by
all consumers.

Relationships with reference group

Thank You
Thank You