ABSTRACT

SUMMARY. Although widely acclaimed as one of the most important determinant of an individual’s behavior, reference group influence is hardly explored in the services sector. This study investigated reference group influence on services using a research paradigm originally proposed by Bearden and Etzel (1982), who recognized that social visibility and exclusivity were important factors influencing reference group influence. In addition, perceived risk of services on consumer behavior was also explored. The study was conducted on working women in Singapore, who, due to their affluence and spending power, are the focus of marketers in the region. Results indicated that informational reference group was the most pervasive form of influence for all types of services studied. Further, publicly consumed services were found to have higher 44reference group influence than privately consumed services. However, in some services, certain unique perspectives were noted due to the nature of the service in question. Luxury services were also found to have higher reference group influence and financial and psychological risk than necessity services. Implications for service marketers are discussed. [Article copies available for a fee from The Haworth Document Delivery Service: 1-800-342-9678. E-mail address: <getinfo@haworthpressinc.com> Website: < https://www.HaworthPress.com > © 2001 by The Haworth Press, Inc. All rights reserved.]