The extent to which the product is considered to be a necessity or a luxury affects the level of reference group influence.

Question

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When a product is considered to be a necessity, the reference group influence is likely to be higher because people will rely on the opinions and behaviors of others to make sure they are meeting their basic needs. On the other hand, if a product is considered to be a luxury, the reference group influence may be less significant as people may make purchasing decisions based on their own preferences rather than external factors.

The Extent to Which the Product Is Considered to Be