Family & Household

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Family & Household Dr. Rohit Vishal Kumar Reader, Department of Marketing Xavier Institute of Social Service

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Class Notes of Family and Household

Transcript of Family & Household

Page 1: Family & Household

Family & HouseholdDr. Rohit Vishal Kumar

Reader, Department of MarketingXavier Institute of Social Service

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Video for the Class

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What is a Family? Family

is defined as a group of two or more people (one of whom is a householder) related by birth, marriage or adoption and residing together

Household: Is a family and any unrelated person residing in the same house

and consuming food from a common kitchen at least once a day Two types of household:

Family Household Institutional Household e.g. Hostel

All families are households but all households are not families

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Types of Family Family of Orientation

Consist of one’s parents and elders Provides orientation towards

Social: Religion, Politics, Economics Emotional: Self Worth, Ambition, Love and Care

Family of Procreation Consist of one’s spouse and children Most important buying unit in a market

The influence of Family of Orientation decreases with Age

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Types of Family Traditional Family Types:

Married Couple: Simplest type of family consisting of husband and wife

Nuclear Family: Consist of Husband Wife and at least one child

Extended Family: Consist of a nuclear family with at least one grand parent

Joint Family: Blood relatives and their spouses with kids staying together

New Modes of Family Blended Family:

A family in which either or both partner were previously married Single Parent Family:

A family in which only one of the parent is present Unmarried Family:

Parents, unmarried, but living together Communal Family:

A group of families living together and sharing responsibility

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Functions of a Family Provides Economic Well Being Provides Emotional Support Provides Suitable Life Style Provides Social Relationships Provides Morals and Ethical Values Provides Religious Values Provides Interpersonal Skills

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Family Life Cycle (1/2) Bachelorhood

Few Financial Burdens Fashion and Recreation Oriented

Newly Married Couple Financially better off Highest purchase rate of consumables and durables Romantically inclined

Full Nest – I Youngest child < 6 years of age Low Liquid Assets High purchase of baby food & baby oriented products

Full Nest – II Youngest child >= 6 years of age Financially better off

Full Nest – III All children still financially dependent High family influence on purchases Major expense on higher education

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Family Life Cycle (2/2) Empty Nest – I:

Head of the family in labour force No Dependent Children Expenditure in self development

Empty Nest – II: Head of the family retired from the labor force Drastic Fall in Income Readjustment of lifestyle Increasing medical expenses

Solitary Survivor – I: Single Surviving head of family in labor force No dependent children Have high expendable income Spent on loneliness reducing products and services

Solitary Survivor – II: Single Surviving head of family retired from labor force Low levels of income and savings Expenditure on medical products, security, affection

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An Illustration Percentage Change in expenditure in Full Nest I stage Based on study by US Bureau of Labor

Income - 9.30Food at Home 11.80Eating Out - 34.70Alcohol - 43.40Adult Clothing - 28.40Health Care 7.90Toys & Pets 23.00Self Enjoyment - 48.10Personal Care Products - 8.50

Still Want to Have Children?

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Family Purchase Roles Initiator:

The family member who first recognizes a need to start the purchase process

Influencer: The person who influences the alternatives evaluated

Decider: The person in the family who makes the final decision

Purchaser: The family member who actually purchases the product

User: The ultimate consumer of the product

“Information Gathering” continues throughout the process

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Household Decision Making Process

Communication targeted at

Children

Communication targeted at

Parents

Influencer(Children)

Initiator(Parents, Children)

InformationGathering

DecisionMaker

(Parents, Children)

Purchaser(Parents)

User(Parents,Children)

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Types of Family Decisions Husband Dominated Decisions

Husband takes the purchase decisions Traditionally in products like Automobiles, Alcohol, Insurance

Wife Dominated Decisions Wife takes the purchase decisions Traditionally in products like household maintenance items, food

and kitchen appliances Joint Decision Making

Both husband and wife make the decision Traditionally in School choice, living room furniture, vacations

Child Dominated Decision Making Child makes the “final product” decision Traditionally on children related items

Unilateral Decision Making Taken by any member of the family Traditionally on Personal Care items, low priced goods

These Traditional Roles are Changing

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Conflict Resolution Family Decisions are bound to create conflict Conflicts are resolved by:

Bargaining: Reaching a compromise on which product to buy

Impression Management: Misrepresentation of facts in order to create favorable impressions

Use of Authority: Claiming superior authority to resolve the conflict

Reasoning: Using logical arguments to resolve the conflict

Playing on Emotions: Using emotions to resolve the conflict

Additional Information: Getting additional Data or Third Party Information

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Consumer Socialization

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Consumer Socialization Consumer Socialization is the process by which people acquire

skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace

Contents of Consumer Socialization: Consumer Skills:

Skills necessary for purchase and understand money, budgeting, product evaluation

Consumption Preferences: Are knowledge, attitudes and values that cause people to attach

differential evaluation to products, brands and retail outlets Consumption Attitudes:

Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc.

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Process of Consumer Socialization Family is the primary source of consumer socialization Family causes consumer socialization through:

Instrumental Training: Occurs when family members specifically and directly attempt to bring

certain responses through reasoning and / or reinforcement EG: “Chocolates are bad for your teeth”

Modeling: Occurs when a child learns appropriate or inappropriate behavior by

observing other members of the family EG: Using Lipstick because mother uses lipstick

Mediation: Occurs when a family member alters a child’s initial interpretation of a

marketing stimulus through use of authority EG: “You are too young to use a ball-pen. Use a pencil”

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Piaget’s Stages of Cognition Stage I : Sensorimotor Intelligence

Age between 0-2 years Child learns by observing

Stage II : Preoperational Thoughts: Age between 3 -7 years Child learns language and rapid conceptual development

Stage III : Concrete Operation: Age between 8 – 11 years Starts to apply logic to solve the problem

Stage IV : Formal Operations: Age between 12 to 15 years Logical in nature, Grasps abstract concepts with ease

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James McNeal’s 5 Stage Model (1/2) Developed by observing behavior in Super Markets

Stage I : Observation: Median age 2–6 months Child can process sounds and colors Environment creates stimulus and brings rewards

Stage II : Making Request: Median Age 2 years Child understands various objects and products Makes request by pointing and gesturing Request only when physical object present Mental Image of product yet difficult to carry

Stage III : Making Selection Median Age 4 years Simple request processing Ability to carry mental image develops Ability to pick up things from the shelves independently Concept of money becomes clearer

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James McNeal’s 5 Stage Model (2/2)

Stage IV : Assisted Purchase: Median age 6 years Children learn by modeling Start learning Value of Money Learning to become primary consumers

Stage V : Making Independent Purchase: Median Age 8 years Making Independent purchase Ability to visit store sections independently

Major Findings

Children Learn to Shop By Going Shopping with their ParentsLearning in stages

Utilization in Marketing

Children Clubs being started for various productsMost Retailers in USA have introduced child shopping cart

Children Given Preferential treatment in shops

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Importance of Children Market Findings from the USA

Unassisted spending by children of 4-15 is $ 35 Billion Influence indirectly $ 200 billion worth of parental purchase Brand Loyalty is extremely strong Ethical issues are ever present

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Exercise Groups to Present E and F Have a Power-Point presentation ready (4-5 pages) The group would be called to present in the class Evaluation will be out of 15 marks

Exercise E

Interview 3-4 students (class 5 – 12) and determine and describe the household decision purchase of his or her (a) clothes (b) Toiletries and (c) Hobby related items

Exercise F

Interview (a) family which has no dependent children and (b) family in Full Nest 1 stage and determine the differences in purchase of products and service