What is the definition of 'reference groups'?

The term 'reference groups' refers to groups that individuals look to for self-evaluation and for making decisions about their own behavior, values, or attitudes. These groups can influence an individual's perceptions and aspirations, acting as a benchmark for their own beliefs and choices. For instance, a person might compare themselves to a peer group in order to gauge their own status or to shape their choices regarding lifestyle, fashion, or professional goals.

Reference groups do not have to be formally organized and can include a wide range of influences, such as friends, family, colleagues, or even celebrities whose opinions are valued. Understanding this concept is crucial in analyzing social behavior and consumer decisions, as individuals often seek to align themselves with the norms and standards set by these reference groups.