CHAPTER 6 THE AMERICAN SOCIETY: FAMILIES AND HOUSEHOLDS 6-1.

CHAPTERCHAPTER 66THE AMERICAN THE AMERICAN

SOCIETY: SOCIETY:

FAMILIES AND FAMILIES AND HOUSEHOLDSHOUSEHOLDS

6-1

HouseholdHousehold Family HouseholdFamily Household Nonfamily HouseholdNonfamily Household

HouseholdHousehold Family HouseholdFamily Household Nonfamily HouseholdNonfamily Household

Consumer socializationConsumer socializationConsumer socializationConsumer socialization

Marketing to ChildrenMarketing to ChildrenMarketing to ChildrenMarketing to Children

Consumer Behavior In The News…Consumer Behavior In The News…

Today, there are more dual-income households and Today, there are more dual-income households and single-parent households than in the 1960’s.single-parent households than in the 1960’s.

Compared to 1960, do you think that the amount of Compared to 1960, do you think that the amount of time parents spend with their kids has: time parents spend with their kids has:

IncreasedIncreased

DecreasedDecreased

Stayed the sameStayed the same

Source: R. Pear, “Married and Single Parents Spending More Time with Children, Study Finds,” The New York Times, October 17, 20066-3

Consumer Behavior In The News…Consumer Behavior In The News…

If you said If you said increasedincreased you are correct! you are correct!

Many factors seem to be at work:Many factors seem to be at work:

Parents spend less time on housework/ Parents spend less time on housework/ maintenancemaintenance

Parents include children in their leisure timeParents include children in their leisure time

Smaller families mean more time per childSmaller families mean more time per child

Social norms put pressure on parents to spend Social norms put pressure on parents to spend more time with kidsmore time with kids

What marketing opportunities exist?What marketing opportunities exist?

Source: R. Pear, “Married and Single Parents Spending More Time with Children, Study Finds,” The New York Times, October 17, 20066-4

The Nature of American HouseholdsThe Nature of American Households

The Household Influences Most Consumption DecisionsThe Household Influences Most Consumption Decisions

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The Nature of the American HouseholdThe Nature of the American Household

Types of Households1

HouseholdHousehold

Consists of all the people who occupy a housing unit (a house, apartment, group of rooms, or single room designed to be occupied as a separate living quarters).

Family HouseholdFamily Household

One having at least two members related by birth, marriage, or adoption, one of whom is the householder (householder owns or rents the residence).

Nonfamily HouseholdNonfamily Household

A householder living alone or exclusively with others to whom he or she is not related.

1 U.S. Census Bureau definition of a household.6-6


Family and Nonfamily Households

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The blended familyblended family is a family consisting of a couple, one or both of whom were previously married, their children, and the children from the previous marriage of one or both parents.

The traditional familytraditional family refers to a married couple and their own or adopted children living at home.

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The Household Life CycleThe Household Life Cycle

1. 1. People married People married by their early by their early

20s20s

2. 2. Couple had Couple had

several several childrenchildren

3. 3. Their children Their children grew up and grew up and started their started their own familiesown families

6.6. A few years A few years later the female later the female

would diewould die

5. 5. The male The male

would would eventually dieeventually die

4. 4. The original The original

couple retiredcouple retired

The Traditional Family Life Cycle

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American households follow much more complex and varied cycles today. Therefore, researchers have developed several models of the household lifecycle household lifecycle (HLC)(HLC).

Each HLC stage presents unique needs and wants as well as financial conditions and experiences.

HLCHLC provides marketers with relatively homogeneous household segments that share similar needs with respect to household-related problems and purchases.

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Household Life CycleHousehold Life Cycle

Stages of the Household Life Cycle

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Younger (< 35)

Single I

Young Couples: No Children

Full Nest I

Single Parent I

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Middle Aged (35 – 64)

Middle-Aged Single

Empty Nest I

Delayed Full Nest I

Full Nest II

Single Parent II

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Older (> 64)

Empty Nest II

Older Single

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Marketing Strategy Based on the Marketing Strategy Based on the Household Life CycleHousehold Life Cycle

HLCHLC can be an important segmentationsegmentation variable.

The purchase and consumption of many products are driven by the HLC, with each stage posing unique problems and opportunities.

The stage in the HLC causes many of the problems or opportunities individuals confront as they mature, but it does not provide solutions.

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Factors such as income, occupation, and education heavily influence how an individual meets his/her needs.

So, it makes sense to combine stage in the HLC with one of these variables to aid in market segmentation and strategy formulation.

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HLC/Occupational Category Matrix

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Family Decision MakingFamily Decision Making

Family decision makingFamily decision making is the process by which decisions that directly or indirectly involve two or more family members are made.

Family purchases are often compared to organizational buyingorganizational buying decisions. However, with family purchasing, there is usually less explicit criteria, and most family purchases directly affect the other members of the family.

Most important, many family purchases are inherently emotional and affect the relationships between the family members.

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Family Purchase Roles(6 roles with 4(6) dominant types)

Determinants of Family Purchase Roles

Conflict Resolution

Marketing Strategy and Family Decision Making

Consumer Socialization and Marketing to Children

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The Household Decision-Making Process for Children’s ProductsThe Household Decision-Making Process for Children’s Products

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Husband/Wife Decision Roles for ServicesHusband/Wife Decision Roles for Services

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Determinants of Family Purchase Roles

How families interact in a purchase decision is largely dependent on the

cultureculture and subculturesubculture in which the family exists

the role specializationrole specialization of different family members

the degree of involvementinvolvement each has in the product area of concern, and

their personal characteristicspersonal characteristics of the family members

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Conflict ResolutionOne study revealed six basic approaches that individuals use to resolve purchase conflicts1.

Approach Description

Bargaining Trying to reach a compromise.

Impressions Management

Misrepresenting the facts in order to win.

Use of Authority Claiming superior expertise or role appropriateness (the husband/wife should make such decisions).

Reasoning Using logical argument to win.

Playing on Emotion

Using the silent treatment or withdrawing from the discussion.

Additional Information

Getting additional data or a third-party opinion.

1C. Kim and H. Lee, “A taxonomy of Couples Based on Influence Strategies,” Journal of Business Research, June 1996, pp. 157-68.6-23

Marketing Strategy and Family Decision MakingMarketing Strategy and Family Decision Making

Family Decision-Making Grid

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Consumer SocializationConsumer Socialization

The family provides the basic framework in which consumer socialization occurs.

Consumer socializationConsumer socialization is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace.

Must understand both the content and the process of consumer socializationconsumer socialization.

Consumer socializationConsumer socialization content refers to what children learn with respect to consumption.

Consumer socializationConsumer socialization process refers to how they learn it.

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Piaget’s Stages of Cognitive Development

Stage Description

Stage 1 The period of sensorimotor intelligence (0-2 yrs.) - behavior is primarily motor - the child does not yet “think” conceptually, though cognitive development is seen

Stage 2 The period of preoperational thoughts (3-7 yrs.) - Characterized by the development of language and rapid conceptual development

Stage 3 The period of concrete operations (8-11 yrs.) - the child develops the ability to apply logical thought to concrete problems

Stage 4 The period of formed operations (12-15 yrs.) - the child’s cognitive structures reach their greatest level of development, and the child becomes able to apply logic to all classes of problems.

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Consist of three categories:

1.1. ConsumerConsumer skillsskills—are those capabilities necessary for purchases to occur such as understanding money, budgeting, product evaluation, etc.

2.2. Consumption-related preferencesConsumption-related preferences—are the knowledge, attitudes, and values that cause people to attach differential evaluations to products, brands, and retail outlets.

3.3. Consumption-relatedConsumption-related attitudesattitudes—are cognitive and affective orientations toward marketplace stimuli such as advertisements, salespeople, warranties, etc.

The Content of Consumer Socialization

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Consumer socializationConsumer socialization occurs primarily through family, as well as through a number of avenues including advertising and friends.

Parents socialize their children through the following:

The Process of Consumer Socialization

1.1. Instrumental trainingInstrumental training—occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement.

2.2. ModelingModeling—occurs when a child learns appropriate, or inappropriate, consumption behaviors by observing others.

3.3. MediationMediation—occurs when a parent alters a child’s initial interpretation of, or response to, a marketing or other stimulus.

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Marketing to ChildrenMarketing to Children

Children are a large and growing market.

However, marketing to children is fraught with ethical concerns, including:

The limited ability of younger children to process information and to make informed purchase decisions.

Marketing activities, particularly advertising, can produce undesirable values in children, resulting in inappropriate diets, and cause unhealthy levels of family conflict.

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Discussion Questions

24) Pick two stages in the household life cycle. Describe how your marketing strategy for the following would differ depending on which group was your primary target market.a) Minivanb) Razorsc) Broadway showd) Casino

Discussion Questions

25) Do you think the trend toward nonfamily households will continue? Justify your response.

32) Describe a recent family purchase in which you were involved. Use this as a basis for completing Table 6-3 for a marketer attempting to influence that decision.

CHAPTER 6 THE AMERICAN SOCIETY: FAMILIES AND HOUSEHOLDS 6-1.

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