What is a reference group? How do reference groups enhance a firm's marketing efforts?

What will be an ideal response?

Reference groups are a category of non-media connector. Reference groups serve as an authority for consumers in the purchase decision-making process. Reference groups can be formal organizations - professional and otherwise - that consumers turn to for direction and guidance. Reference groups can also be informal in nature. In either cases, reference groups help to influence and anchor consumers' ideas about products and companies. Reference groups allow marketers to engage customers and their use encourages the propagation of word-of-mouth communication.