Reference groups are people to whom an individual looks as a basis for self-appraisal
or as a source of personal standards. Reference groups affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer’s standards. For example, one of the first questions one asks others when planning
to attend a social occasion is, “What are you going to wear?” Reference groups influence
the purchase of luxury products but not necessities—reference groups exert a strong
influence on the brand chosen when its use or consumption is highly visible to others.