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The Concept of Reference Groups and Their Implications on Branding

  • Sachin Tendulkar appeared in the Palio sports car advertisements;
  • Amitabh Bachchan endorsed the BPL brand;
  • The traditional Indian grandma endorsed Ayurvedic Concepts (now Himalaya brand), which offer a number of over-the-counter remedies based on the traditional Indian medicinal system of Ayurveda;
  • Lux soap has been in the Indian market for decades using a topical celebrity;
  • Gold Flake (and Charms during the eighties) projects the brand as being popular among young people. Bacardi also used the “group” to market its brand of liquor.

The above-mentioned appeals use what is called the reference group concept. A reference group is a set of people with whom individuals compare ...

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