What are the two basic purposes of references groups?

1. Career development
2. What Is a Reference Group? (With Tips for Creating One)

By Indeed Editorial Team

Published May 6, 2022

In sociology, a reference group is a collection of people who act as a baseline that individuals or other groups use for comparison. Reference groups are important in social science research, but they also matter to marketing professionals who can use them to understand and predict consumer behaviors. Learning about reference groups can help you apply this concept when researching social groups and patterns.

In this article, we define what reference groups are, explain why they're important and provide tips on how to create reference groups in research settings.

What is a reference group?

A reference group is a collection of people to whom other groups or individuals can compare themselves. For example, a student moving to a new school may notice that their classmates prefer playing hockey over baseball. To generate this conclusion, they observe that most of their classmates wear hockey-themed clothing, talk about hockey between classes and play in their local hockey league after school. By observing the social behaviors and preferences of the majority group, the student develops a reference point for the expected interests at the school and can compare this information to their past experiences.

In more formal settings, researchers can use reference groups to understand social behaviors. Sociologists may use them to understand how individuals adapt to or reject the influence of reference groups. Those who conduct market research may study reference groups to gain insight into how dominant cultural values and preferences affect consumer trends. Through understanding the influences of reference groups, social scientists can learn more about human behaviors and use that data to inform marketing strategies, social policies and future research questions.

Related: Research Methods in Sociology: Definitions and Examples

Why are reference groups important?

Reference groups are important for understanding human behaviors. When social scientists understand how groups influence the behaviors of people, they can apply that knowledge to answer important scientific questions and solve specific problems. Here are some reasons why reference groups are important:

They demonstrate natural social behaviors

When used in social science research, reference groups help researchers learn about human behaviors. In particular, researchers want to understand how people interpret the traits of reference groups, compare themselves to those groups and adapt their attitudes based on that influence. While people often adapt their own behaviors and interests to better fit in with the majority group, there are many times when individuals reject the majority or form groups that deviate from the reference. For example, subcultures often develop in response to a rejection of the dominant reference group, and researchers may study the development of these cultures.

Related: What Is Social Research? Types and Methods

Researchers can use them in experimental designs

Although researchers often use reference groups that occur naturally, they can also create reference groups in laboratory settings in order to conduct experimental research. In experimental research, researchers use control groups as a baseline for comparison. The control group typically expresses an influence over the experimental group, which is the group the researcher measures to produce data for analysis. By measuring the influence the control group has over the experimental group, researchers can learn about group interactions.

For example, a researcher may design a study to measure the influence of peer pressure on teenage drivers. During the study, they might divide a class of teenage driver's education students into two groups. One group watches a video in which adult actors talk about the importance of wearing a seatbelt. The second group watches the same video but with teen actors instead. The researchers then measure how often the students in each group wear a seatbelt while driving. This allows them to determine whether peer reference groups have a stronger effect on teen behavior than non-peer reference groups.

Related: What Is a Control Group in an Experiment? (With Definition and Guide)

Marketing specialists can use them to improve sales strategies

Market researchers can also use reference groups to understand how consumers operate. These researchers apply their understanding of human behaviors and social influences to understand purchasing patterns and advise businesses on their marketing strategies. Similar to social science researchers, marketing researchers design studies that help them gain insight into how social groups influence people into making decisions. More specifically, they examine how the influence of reference groups affects the decisions customers make when purchasing products or services.

For example, a marketing specialist may want to understand how the popularity of their product within their primary market affects buying habits of consumers outside their target demographic. To do so, they identify the characteristics of their primary market, and they develop a method of measuring its influence on customers outside the primary market. If the product's target market includes mothers from middle-class households, the researcher may assess how the product's popularity in this market affects the buying decisions of mothers from other socioeconomic backgrounds. Based on their findings, they may change their marketing strategy to expand their market.

Related: Market Research: 8 Pros and Cons (Plus Definition and Methods)

Tips for creating a reference group

If you're planning on using reference groups to conduct social science or marketing research, here are some tips to consider:

Determine whether you need formal or informal groups

A reference group can either be formal or informal. A formal group is one that has an established system, hierarchy or rules that define it as a group. For example, a committee is a formal group because it's a structured collection of people who likely meet at consistent intervals and have a set of rules that dictate behaviors within the group. A family may be an example of an informal group. Although a family unit may have an internal structure, its members are less likely to define it through formal systems, like a committee.

Researchers may need formal or informal groups for different types of research. For example, a social scientist may want to understand the natural behaviors of family units, so they may work with an informal group that already exists as their subject of study. By comparison, a market researcher may create a reference group by inviting current customers to participate in a focus group. The focus group might meet consistently under the conditions the researcher determines, making it a formal group.

Identify common characteristics that make up the reference group

If you're looking to form a reference group, it's important to consider what characteristics define the group. In particular, when developing a reference group to use in a scientific study, having a well-defined system for choosing who to include in the reference group can contribute to the group's success. For example, as a researcher, you may decide that all participants in the reference group need to share an age range, socioeconomic status or another identity category. By defining the parameters of the group, researchers can help with the development of a cohesive group identity.

Related: What Is Segmentation? Definition and How To Use It

Create a plan for collecting and analyzing data

Before creating a reference group, researchers need to define their strategy for forming the group, collecting data, storing data and analyzing it. Defining each step of the research process helps scientists account for potential biases and avoid them. Additionally, preparing the study makes it easier for researchers to communicate their goals and expectations to research participants. Making sure all participants are well-informed about the research process is important for upholding their rights during the study. Good planning and design ensure the research process goes smoothly.