Product and Brand

Decisions

Context
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
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
Luxuries have a degree of exclusivity
2. Necessities

Condition 2
Brand Decisions
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 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 are the basis
underlying this study.

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

PRL
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
b.product
Because it willdoes
not be seen
by others,ainfluence
for the brand
of
convey
message
about
the product should be weak.
the owner.
Relationships with reference group
influence:

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

PRN
A product consumed out of public view
that virtually everyone owns.
Example mattress, Refrigerator,
lamp, Blanket
a. Purchasing
behaviour is largely
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
norbebrands
tend to be
product should
weak.
socially conspicuous and are owned by
all consumers.
Relationships with reference group

Thank You