DECA Hospitality Services Team Decision Making Practice Exam

The influence of an older brother and his friends on your purchasing decisions is an example of what?

1. Peer pressure

2. Cultural influence

3. Reference group

4. Social status

The correct answer is: Reference group

The concept illustrated in the scenario is a "reference group," which refers to a group of people that influences an individual's behaviors, beliefs, and purchasing decisions. In this case, the older brother and his friends serve as a reference group, as their opinions, behaviors, and lifestyles can affect your choices and preferences in a significant way. Reference groups can include family, friends, or any group with which a person identifies, serving as a benchmark for personal attitudes and actions. In the context of consumer behavior, reference groups can create a framework that shapes one’s desires for products or brands, especially among younger individuals who may look to older siblings or peers to determine what is considered desirable or acceptable. This mechanism helps explain why certain products or trends gain popularity within specific demographics, as individuals often strive to align with the values and norms observed in their reference groups. While peer pressure may also involve influence from friends, it typically implies a more forceful or negative connotation, whereas reference groups include a broader range of influences that can be both positive and constructive. Cultural influence, on the other hand, pertains to the broader societal norms and values that inform purchasing behavior, and social status relates to one's rank within society, which affects purchasing behavior in a more indirect manner.