CONSUMER BEHAVIOUR AND FAMILY

Definition• Consumer behavior can be said to be the study of how

individual’s make decision on how to spend their available resources (time , money and efforts) on various consumption related items.

Groups affecting consumer behavior• Family • Friends • Social class • Ones’ own culture and others customs• Price • Psychology• Substitute or near available alternative

Family• Traditionally, Family is defined as two or more persons

related by blood , marriage or adoptions who reside together .

• In simple words the individuals who constitute a family might be described as member of the most basic social group who live together and interact to satisfy their personal and mutual needs…

• Family is one of the most trusted reference group for any consumer

Eight Roles in the Family Decision-Making Process

ROLE DESCRIPTIONInfluencers Family member(s) who provide information to other members about a

product or service

Gatekeepers Family member(s) who control the flow of information about a product or service into the family

Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service

Buyers Family member(s) who make the actual purchase of a particular product or service

Preparers Family member(s) who transform the product into a form suitable for consumption by other family members

Users Family member(s) who use or consume a particular product or service

Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.

Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

The Traditional Family Life-Cycle

1. Young Singles: Single people under the age of 35. Incomes are low since they are starting a career, but they have few financial burdens and a high level of discretionary – income.

2. Newly Married: Newly married couple without children. High level of discretionary income because the wife is usually working.

3. Full Nest I: Married couples with the youngest child under 6. Greater squeeze on income because of increased expenses for child care.

4. Full Nest II: Married couples with children from 6 to 12. Better financial position since parents income is rising. Most children are “latchkey kids” because both parents are working.

5. Full Nest IIl: Married couples with teenage children living at home. Family’s financial position continues to improve. Some children work part-time. Increasing educational costs.

6. Empty Nest I: Children have left home and are not dependent on parental support. Parents are still working. Reduced expenses result in greatest level of savings and highest discretionary income.

7. Empty Nest Il: Household head has retired, so couple experiences sharp drop in income. Couple relies on fixed income from retirement plans.

8. Solitary Survivor: Widow or widower with lower income and increasing medical needs.

Family Life Cycle in India Young Singles

Newly Married Couple

Young Married Couple With Small Children/Child

Married Couple With Teenage/Grown Up Children

Middle Age Couple With Independent(Working Children)

Post Retirement

Sequence In Non-Traditional Household Life Cycles

Sequence 1:o Young Married couple with childreno Single parent with older children

o Young divorced parento Older, unmarried

Sequence 2:o Young divorced couple without childreno Older married couple without children

o Middle-aged married couple without children

Sequence 3:o Young married couple with children o Middle-aged married parent with children and step-children

o Middle-aged divorced parent

Sequence 4:o Young unmarried couple without childreno Older married couple without children

o Middle-aged married couple without children

o Widow

Tactics used by childern Pressure tactics The child makes demands

uses threats or intimidation to persuaded you to comply with their request

Ingratiating child seeks to get you in a good mood or think favorably of him or her be fore asking you to comply with a request

Exchange tactics The child makes an explicit or implicit promise to give you some sort of service in return for a favor

Inspirational appeals The child makes an emotional appeal or proposal that arouses enthusiasm by appealing to your values and ideals

Consultation tactics The child seeks your involvements in making a decision

The house hold decision making process for children s products

Communications targeted children

(taste, image)

Communications targeted at

parents.(nutrition)

Influences(children)

Initiators(parents)

Information gathers

(parents)

Decision makers (parents, children)

Purchasers (parents) Users

(Children)

• Different family members are often involved at different stages of decision process..

• Different family members often evaluate the attributes of a product or a brand…

Thank you• Group 2• Nabajit sarma• Avinendra• Nishta • Aakash Kunwar• KLS Sekhar• Aryab Kumar pal