Notes on Bearden and Etzel (1982)– Reference Group Influence on Product and Brand Purchase Decisions

Paper: “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research, 9 (2), 183–94.

Main Topic or Phenomenon

This paper examines how reference groups influence consumer purchase decisions, specifically investigating whether the type of influence varies systematically across different product categories based on two key dimensions of product conspicuousness: public vs. private consumption and luxury vs. necessity classification.

Theoretical Construct

The paper builds on Bourne’s (1957) framework of reference group influence, operationalizing it through three distinct types of influence identified by Park and Lessig (1977):

• Informational influence: Based on desire to make informed decisions by seeking information from credible sources with presumed expertise or significance
• Value-expressive influence: Characterized by need for psychological association with a person or group, reflected in acceptance of positions to resemble the reference group or express attachment/liking
• Utilitarian influence: Reflected in attempts to comply with others’ wishes to achieve rewards or avoid punishments from significant others

The framework combines 2 dimensions of product conspicuousness:

• Public vs. Private consumption: Whether the product is seen/identified by others
• Luxury vs. Necessity: Whether the product has exclusivity (not owned by virtually everyone)

Key Findings

1. Luxury-necessity dimension primarily affects product decisions: Luxuries show stronger reference group influence than necessities for product purchase decisions across all three types of influence.

2. Public-private dimension primarily affects brand decisions: Publicly consumed products show stronger reference group influence than privately consumed products for brand choice decisions.

3. Different types of influence operate differently:

   • Informational influence was most sensitive to the luxury-necessity dimension
   • Value-expressive and utilitarian influences were more affected by the public-private dimension

4. Support for Bourne’s framework: The study largely confirmed the predicted patterns, with 22 of 36 comparisons consistent with hypotheses across both studies.

5. Brand decisions generally show higher absolute influence values than product decisions, suggesting reference groups play a larger role in selective demand (brand choice) than primary demand (product category choice).

Boundary Conditions and Moderators

1. Product configuration effects: Different combinations of specific products within each category affected perceptions of value-expressive and utilitarian influence, suggesting the specific products chosen matter.

2. Decision type moderator: Whether respondents evaluated product vs. brand decisions simultaneously (followup study) vs. separately (main study) affected the strength of reference group influence, particularly for value-expressive and utilitarian dimensions.

3. Product-specific variations: Clothing items (public necessities) showed different patterns than other products, being involved in more disconfirmed hypotheses.

4. Sample characteristics: Previous research (Park & Lessig 1977) found students more susceptible to reference group influence than housewives, suggesting demographic moderators.

Building on Previous Work

This paper significantly extends Bourne’s (1957) conceptual framework by:

• Providing empirical testing of the theoretical predictions
• Operationalizing three distinct types of reference group influence rather than treating it as unidimensional
• Using a more systematic product selection methodology
• Testing across a broader range of products (16 products across 4 categories)

The study challenges some assumptions by finding that:

• Public necessities sometimes showed unexpectedly high influence (fear of embarrassment from not owning “required” products)
• The three types of influence don’t always operate in the same direction or magnitude

Major Theoretical Contribution

The paper provides the first comprehensive empirical validation of Bourne’s influential but previously untested framework. It demonstrates that reference group influence is not uniform across all purchase situations but varies systematically based on product characteristics. The identification of three distinct types of influence operating through different mechanisms represents a significant theoretical advancement in understanding how social influence affects consumer behavior.

Major Managerial Implication

Marketers should tailor their reference group appeals based on product characteristics:

• For luxury products: Focus on product ownership appeals regardless of consumption context
• For publicly consumed products: Emphasize brand differentiation and social visibility
• For publicly consumed luxuries: Use both product ownership and brand choice appeals
• For privately consumed necessities: Reference group appeals are likely ineffective

The findings suggest that celebrity endorsements, social proof, and aspirational marketing will be most effective for publicly consumed and luxury products, while functional appeals may be more appropriate for private necessities.

Unexplored Theoretical Factors

Several potentially important moderators were not explored:

1. Individual difference variables: Self-esteem, need for uniqueness, susceptibility to interpersonal influence, social anxiety, public self-consciousness
2. Situational factors: Purchase occasion (gift vs. self), social setting of consumption, presence of reference group members during shopping
3. Product-related factors: Perceived risk, product involvement, price level, product complexity, symbolic vs. functional benefits
4. Social context variables: Strength of reference group ties, reference group expertise, cultural individualism/collectivism
5. Temporal factors: Product lifecycle stage, seasonal influences, timing relative to reference group exposure
6. Communication factors: Source credibility, message framing, channel of influence (direct observation vs. verbal communication)

Key Takeaways

Main Insight: Reference group influence isn’t random - it follows predictable patterns based on what you’re buying.

Core Pattern:

• Luxury vs. Necessity affects whether you buy the product
• Public vs. Private affects which brand you choose

Reference Group Influence Framework

Three Types of Influence

Managerial Implications by Product Type

Reference

Bearden, William O. and Michael J. Etzel (1982), “Reference Group Influence on Product and Brand Purchase Decisions,” Journal of Consumer Research, 9 (2), 183–94.