Reference Group

Posted in Marketing and Strategy Terms, Total Reads: 2417

Definition: Reference Group

A reference group is the group considered as the datum or standard. It is the preferences or opinions of this group that a person considers while making a judgement.

It may be a consumer who considers the views of the people around him before making a purchase decision. He uses this group to evaluate his own beliefs or choices. A reference group may serve as a positive or a negative standard. Reference groups are of two types – primary and secondary. Primary group includes members with whom the individual interacts frequently and whose views are of importance to him. Family, close friends, colleagues form a part of this group. Secondary group includes members with whom the individual doesn’t interact that frequently and their opinions don’t matter much to him. Distant relatives, shopkeepers, acquaintances, etc form a part of this group.


Eg–Suppose while buying a cell phone, an individual considers the opinions of his group of friends. He even takes into account the cell phone models that they have and then finally makes a choice.

Hence, this concludes the definition of Reference Group along with its overview.

Browse the definition and meaning of more terms similar to Reference Group. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin