Case Study 9.1:

Responding to the growth in lone-person household in Australia.

Presentation by:Alice ScottCharles ThorneHongyi Shi

Overview

• Proportion of lone person households rose from 19.3% in

1991 to 25.29% in 2011 and will continue to grow to 3.2

million, i.e. 28% of all households by 2031.

• Reasons:

Population ageing and longer life expectancy

Delay of marriage while seeking flexibility and freedom

Relationship breakdown or becoming widowed

• Implications for marketers who target families, as families are

getting smaller but more in number. (ABS year book 2012; Rindfleish 2014)

Overview (cont.)

1991 2011 20310

3

6

9

12

19.3% 25.29% 28%

Figure 1: Past and Projected Lone-Person Households

Lone-Person Total

(Mil

lion

)

Source: ABS 1993, Census of Population and Housing, Table B34; ABS 2010,  Household and Family Projections, Australia, 2006 to 2031

How is Consumer Decision-Making Affected?

(Schiffman et al. 2014)

• Input:

Marketing inputs: companies adjust strategies accordingly

Sociocultural environment: due to different demographic composition

• Process:

Role in decision making: only for me

Psychological concepts, e.g. needs and

motivation

In turn influence the acts of making a

decision

How is Consumer Decision-Making Affected? (cont.)

• Output:

Single person in post-purchase

evaluation

Not only to purchase but also to

judge

Companies be more careful in

dealing with their expectation

Judger

Influencer

etc.

BuyerUser

Decider

Types of Goods and Services in Higher Demand?

• Adult education classes

e.g. for cooking meals, spending a weekend alone (divorcees or widows)

• Spontaneous travel

no dependants, higher disposable income - need for flexibility and freedom

• Entertainment

e. g. alcohol, movies, health treatments, books

Types of Goods and Services in Higher Demand? (cont.)

• Takeaway food and single serve

meal options

e.g. Cup a soup, frozen meals, McDonalds,

Subway

• Impulse purchases on luxury goods

e.g. gourmet ice cream

How can Marketers Communicate with, and Appeal to Them?

• Have more time

Company create and organise brand

communities, encourage online and social

networks

• Less influenced by families

Information of products focusing on life

shared with friends and colleagues, etc.

(Hawkins & Mothersbaugh 2011)

Freedom!

Flexibility

Most Influential Reference Groups?

Reference group:

• Person or group that serves as comparison (or reference) for forming values,

attitudes or a specific guide for behaviour of individuals.

• Frames of reference for either their purchase or consumption decisions

• Influence to the extent that

attitudes, values and behaviours

of its members represent

standards which are voluntarily

used in making judgements and

evaluations

(Schiffman et al. 2014)

(Schiffman et al. 2014, Figure 8.3)

Most Influential Reference Groups? (cont.)

• Family is less of an influence in

buying decisions

• Friendship groups highly important

(share tastes, shop together)

• Work groups - informal friendships

formed (during coffee or lunch

breaks- movies, restaurants and

forms of entertainment are

discussed).

How can Marketers Utilise these Reference Groups?

• Friendship groups will most likely be the most influential

reference group to single household dwellers

• Luxuries and publicly consumed necessities are most influenced

by friendship groups

• The following advertisement for an automobile (publicly

consumed necessity) is a good example of how marketers can

utilise this reference group to appeal to single household dwellers

http://www.youtube.com/watch?v=d60VGritY_k

Marketing Communications Messages Appealing to Single Household Dwellers

The following advertisement for McCain Healthier Choice is a

good example of a marketing communication message which

appeals to those living in single person households.

http://www.youtube.com/watch?v=WwPoppH1vVk Q&A