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Reference groups impact on consumer behavior and international growth strategy

Practical Application of Theory | Self-reference criterion | Cross-cultural comparison | Recommendations |


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Another important aspect is social interaction and its part the individual’s reference groups – the set of people to whom an individual looks for guidance in values and attitudes. Reference groups have a huge impact on people’s consumption behavior patterns. There are 3 kinds of reference groups:

§ Membership groups to which people belong;

§ Anticipatory group of which one would like to be a part;

§ Dissociative groups with which individuals do not want to be associated (3).

Knowledge on reference group patterns could provide input in formulating product positioning strategies and advertizing.

According to this theory Wal-Mart created Sam’s Club. For a great number of cultures it is really important to be involved in some group (later this topic will be discussed much in relation of «Collictivism»). For example in Mexico Sam’s Club is really popular because it is not only a shop, but place where you can meet your neighbors and friend, members of your group. These shops became an integral part of citizen’s lives. Some of them come to Wal-Mart with wish to become a part of this «family». It is the biggest achievement of Wal-Mart managers. They did not stop in making their chain popular, but now it influences on culture of «captured» countries as well.

Within every culture there is a sense what is good and beautiful and what not. Such considerations are matters of aesthetics. International marketing managers should understand the importance of visual aesthetics embodied in the color, shape and package of their product or label.

For example, Wal-Mart label was ideal for China. Its red color was perceived by Chinese consumers like a symbol of luck and happiness. In other countries, prior European, Wal-Mart also used the same label, but changed it to white (color of purity, honesty and peace).

 

Thereby, it is obvious that modern international marketing claims a really hard research pre-work, which should help company to adapt its strategy to cultural qualities, influencing consumer behavior. Wal-Mart history is an excellent example of trial-and-error method. Outstanding results in Latin America and China, mixed in UK, Canada and Japan, total fail in Germany. Further will be chosen a number of theories, explained how they were used by Wal-Mart and what results it made.

 

Managerial Implications

Next will be described some theories, which were somehow or other used by Wal-Mart. How they work and what they cause is presented later.


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