Exploring the role of homophily in purchase behaviour

Homophily is a well-researched phenomenon around the world contributing to the understanding of why certain people form social groups. Most of the dimensions including race and age homophily are often studied in isolation. However, since humanity is complex, so too is the study of human behaviour, and as such, requires an exploration of all the dimensions of homophily present in specific social groups to understand how these social groups interact and influence group behaviour and purchase decisions. This was an exploratory, qualitative study of 17 higher-income black South African women, the composition and nature of their social groups both offline and on social media, and the influence of the group on individual purchase behaviour. This study found the presence of multidimensional homophily in social groups which were formed offline, although homophily also exists on social media. In fact, groups interact over social media more than face-to-face, and while social comparison is a common behaviour both offline and online, it was not a predictor of purchase behaviour. It was also affirmed that groups are effective at nudging individuals and influencing their purchase behaviour. Group-based brand experiences are recommended for more effective brand engagement for advertisers. The implications and recommendations for further research have also been discussed.Mini Dissertation (MBA)--University of Pretoria, 2018.dm2019Gordon Institute of Business Science (GIBS)MB