Question

Which of the following statements is true of reference groups and their influence on product selection?

A) Their influence on decisions like how much grocery to buy is high.
B) For necessities, reference group influence is strong for product selection.
C) For luxuries, reference group influence is strong for product selection.
D) Their influence is unaffected by the type of product being selected.

Answer 1

Reference groups have varying influence on product selection depending on the type of product. For luxuries, their influence is strong.

Step-by-step explanation:

Reference groups are groups that people compare themselves to and use as a standard of measurement. They can include peers, athletes, musicians, and other groups that individuals may observe and compare themselves to. The influence of reference groups on product selection can vary depending on the type of product being selected. For necessities like food and groceries, reference group influence is strong because individuals may compare their choices to those of their peers. For luxuries, reference group influence can also be strong as individuals may aspire to the social norms and behaviors of their reference groups. Therefore, option C) For luxuries, reference group influence is strong for product selection is the correct statement.