Week 11 12 Family and Houseold Influences

The Importance of Families and

Households on Consumer

Behavior



Behavior

Many products are purchased

by a family unit

Individuals buying decisions may be heavily influenced by

other family members



Behavior

How families make purchase

decisions depends on the roles

of the various members in the

purchase, consumption, and

influence of products

Families and Households

Family: a group of two or more

persons related by blood,

marriage, or adoption who reside

together

Nuclear family: immediate group

of father, mother, and child(ren)

living together


Extended family: nuclear family,

plus other relatives such as

grandparents, uncles and aunts, cousins, and parents-in-law

Family of orientation: family into

which one is born

Family of procreation: family

established by marriage

Some families are extending these

definitions to include pets

Pets Are Family Members Too


Household: all persons, both

related and unrelated, who occupy

a housing unit


Nonfamily households include:

Elderly persons living with

nonfamily members

Persons of the opposite sex

sharing living quarters

Friends living together

Same-sex couples


Families are the largest single

category of households

Rapid rise in the number of

nontraditional families and non-

family households

Any of these types of households

may or may not include children

Buying behavior is best described

by the term consumer unit (CU) or

minimal household unit (MHU)


Structural variables affecting

families and households:


Age of head of household or family

Marital status

Presence of children

Employment status




Marketers monitor these variables

to predict changes in demand for

specific products and categories

Age of head of household

Marital status

Presence of children

Employment status




Sociological variables affecting



Cohesion: emotional bonding between

family members

Adaptability: ability of a family to change

its power structure, role relationships,

and relationship rules in response to

situational and developmental stress

Communication: facilitating dimension,

critical to movement on the other two

dimensions

Sociological variables affecting


Families Celebrations and

Gift Giving

Marketers frequently refer to

resilient families who emphasize

time spent together through family

traditions, rituals, and celebrations

Families Celebrations and

Gift Giving

Gift giving and family holidays are

increasing in importance

Traditional holiday spending and

promotions have shifted to other holidays

throughout the year

Physical movement of large gifts have

become difficult leading to increase sales

of gift certificates, gift cards, and Internet

gift purchases

Appeal to Different Ways Market

Segments Celebrate Holidays

Who Determines What the

Family Buys?


Family Buys?

Instrumental roles: financial,

performance, and other functions

performed by group members

(also known as functional or

economic roles)


Family Buys?

Expressive roles: involve

supporting other family members

in the decision-making process

and expressing the familys aesthetic or emotional needs

including upholding family norms

Role Behavior Individual roles in family purchases


Initiator/gatekeeper: initiator of family

thinking about buying products and

gathering information to aid decisions

Influencer: individual whose opinions

are sought concerning criteria and

which products or brands most likely to

fit those criteria

Decider: person with the financial

authority or power to choose how the

familys money will be spent on which products and brands


Buyer: person who acts as the

purchasing agent by visiting the store,

calling suppliers, writing checks,

bringing products into the home and so

on

User: person or persons who use the

product

Role Behavior

Different family members will

assume different roles depending

on the situation and product

Children may be influencers and

users for items (such as cereals

and toys) while parents may be the

decider and the buyer

Role Behavior

Family marketing focuses on the

relationships between family

members based on the roles they

assume, including the relationship

between purchaser and family

consumer and between purchaser

and purchase decision maker

Role Behavior

Family marketing differentiates

scenarios in which some

purchases may have more than

one decision maker from those

that have more than one consumer

Role Behavior

Identifying different purchaser-

consumer relationships:

Role Behavior

Whos buying for whom?

Who are the principal characters?

Whats the plot for the purchase?

Who wants what when?

What can we assume?

Identifying different purchaser-

consumer relationships:

Role Behavior

Spousal roles in buying decisions

Role Behavior


Autonomic: an equal number of

decisions is made by each spouse, but

each decision is individually made by

one spouse or the other

Husband dominant: the husband or

male head-of-household makes a

majority of the decisions

Role Behavior


Wife dominant: the wife or female head-

of-household makes a majority of the

decisions

Joint: most decisions made with equal

involvement by both spouses

Influences on the Decision Process

Marketers evaluate which types of

products are typically purchased by

wives, husbands, or jointly

Marketers can determine which

attributes of specific products to

advertise to different household

members

Which media will best reach the

most influential family member?

Which ad appeals are most effective?


Influence of Decision Stage

Spouses exert different degrees of

influence when passing through the

different stages of the decision process

Movement from information search to

final decision may be minimal for many

low-involvement goods and more

pronounced for goods that are risky or

have high involvement for the family


Influence of Decision Stage

The decision process tends to more

toward joint participation and away

from autonomic behavior as a final

decision nears


Influence of Employment

More women working outside the home

Changing spousal roles has affected

how couples divide their buying

responsibilities


As the gender gap narrows, decisions

are increasingly made jointly

Due to waning gender identification of

products, marketers are transitioning

gender-dependent products to a dual-

gender positioning

Influence of Gender


Family Life Cycles

Family Life Cycles

Family life cycle (FLC) : the

process of families passing

through a series of stages that

change them over time

The concept may need to be

changed to household life cycle or

consumer life cycle to reflect

changes in society

Family Life Cycles

Eleven primary stages have been

identified, but households do not

necessarily go through all stages

Which stages families go through

is based in part on their lifestyle

choices

Young Singles

Newly Married Couples

Full Nest I, II, III

Married, No Kids

Older Singles

Empty Nest I, II

Solitary Survivor

Retired Solitary Survivor

Life Stage

Activities and

Behaviors

Family Life Cycles

FLC affects demand for many products

Family Life Cycles

FLC affects demand for many products

Descriptions of life stages can be

combined with additional information

about consumer markets to analyze

consumer's needs, identify niches, and

develop consumer-specific marketing

plans

Family Life Cycles

Individuals may repeat family stages if

their family situations change or they

may be in stages different from most

people their age

Family Life Cycles

Individuals may repeat family stages if

their family situations change or they

may be in stages different from most

people their age

FLC helps explain how families change

over time and can identify core target

markets when modified with market data

Family Life Cycles

Family and household spending

The FLC is an important predictor

of family or household spending

In the last decade, consumers

have changed their household

spending from things to services

Changing Family and

Household Structure

Marketers must evaluate how

changes in family and household

structures affect marketing

strategy

Changing Family and

Household Structure

What is the structure of

contemporary families?

How is that structure changing?

How does structure affect the

various stages of the consumer

decision process?

Are the changing realities of

family structure a problem or an

opportunity for growth?

Changing Family and

Household Structure

Marriage Trends

Delaying age of marriage

Increased incidence of cohabitation

before marriage

Over half of marriages end in divorce

As a result, individuals shift between

married and single status

Changing Family and

Household Structure

Marriage Trends

What are the affects on markets for

household products, homes,

counseling, travel, etc.?

Changing Family and

Household Structure

The Singles Boom

Rise in number of single households in

developed nations

Co-habitating singles are the fastest

growing segment of singles market

Changing Family and

Household Structure

The Singles Boom: Mature Singles

In the U.S., 61 percent of the singles

market is made up of women, with a

median age of 66 years

Older women living single are often

widows; older men living single are

usually divorced or were never married

Marketers have targeted the mature

singles market with travel, financial

services, entertainment, social activities

Changing Family and

Household Structure

Gay and Lesbian Markets

This market is gaining attention

because of its recent growth (often

because people are now classifying

themselves as gay when they may not

have in the past)

This market tends to be urban, has

above average income, travels more

than average consumers, and express

more interest in the arts

Changing Family and

Household Structure

Gay and Lesbian Markets

Marketers are having more success

reaching this market with relationship

building marketing activities

Sponsoring gay-oriented events

Advertising in gay-oriented media

Changing Family and

Household Structure

Household Characteristics

The average household size has

fallen in most industrialized

countries

Nonfamily households are projected

to grow more rapidly than families

over the next few decades, but the

highest incomes are found among

family households

Changing Family and

Household Structure

Changing Roles of Women


Female consumers now

outnumber male consumers as

women tend to liver longer than

men do

Women represent a greater

proportion in the population,

improved purchasing ability, and

assume greater importance in the

workplace


Female employment

Female employment is increasing

around the world

Employment outside the home

increases income and family buying

power, but it may also increase

expenditures for specific items such

as child care, clothing, food away

from home, and gasoline

Working Families Want Fashion


Career or just-a-job orientation

Reach segments in different media

Career Orientation


As roles outside the home increase,

women have less leisure time

Marketers have developed time-

saving products to appeal to women,

including convenience foods

Marketers have also developed

products to help women enjoy the

leisure time they do have

Women and Time


Exists when the total demands on

time and energy associated with

prescribed activities of multiple roles

are too great to perform roles

adequately or comfortably

As women contribute more to the

family income, they expect in return

a more equal division of the

household responsibilities

Role Overload

Relaxation or Self-Indulgence


Marketing to Women


Marketing to Women

Appealing to the mother category

Different segments exist and they look

at advertising, the Internet, products,

time, and brands differently

Depending on career orientation,

responsibilities in and out of the

home, time pressures, messages, and

ads need to be adapted

Retailers can appeal to women with

special services or extended hours

Changing Masculine Roles

Changing Masculine Roles

Roles of men in families are

changing substantially as well

Men are more involved in family

functions and household activities

Men may buy items traditionally

purchased by women (groceries)

Many men are achieving gender

role transcendence and use

products previously seen as

feminine

Personal Care Products for Men

Children and Household

Consumer Behavior


Consumer Behavior

Children change dramatically how

the family functions, in terms of

relationships, employment, and

purchases

Children reduce parents participation in the labor force,

change how families spend their

money and reduce the amount of

time and money available for leisure


Consumer Behavior

Children exert direct influence

over parental spending when they

request specific products and

brands

They exert indirect influence when

parents buy products and brands

that they know children prefer

without being asked or told to

make a specific purchase


Consumer Behavior

Children also make their own

purchases with family money or

with their own

Children like to shop for candy,

toys, clothing, school supplies,

and other personal use items

Retailers study ways to adapt

specific departments to these

young, but significant, consumers


Consumer Behavior

Childhood Socialization

Children learn their consumer

behaviors through socialization

Children learn shopping behaviors

from shopping with parents


Consumer Behavior

Childhood Socialization

Co-shoppers explain to their

children why they buy certain

products over others, thereby,

teaching their children how to

shop

Research Methodology for

Family Decision Studies



Measuring Influences



Measuring Influences

Who was responsible for initial need

recognition?

Who was responsible for acquiring

information about the purchase

alternatives?

Who made the final decision on which

alternative should be purchased?

Who made the actual purchase of the

product?

Debate Describe Peruvian Families

Talk about the roles of family members

Trends in peruvian families

Compare to western families

Week 11 12 Family and Houseold Influences

Documents

Transcript of Week 11 12 Family and Houseold Influences