CONSUMER BEHAVIORFamily Decision Making

Learning ConceptsFamily & householdTypes of familiesFamily Decision MakingThe Family Life CycleFamily Decision Making ConflictsGender Roles & Decision Making

Four Mother TypesChildren as Decision MakersConsumer SocializationStages of Consumer DevelopmentMarketers & Socialization

Families and HouseholdsHouseholds are composed of all those people who occupy a living unitThe Nuclear FamilyThe Extended Family The Detached Nuclear Family

Non Family Households:Men Living Alone

Women Living Alone

Other Non families

Differences between Families & Other GroupsFamilies are formed by marriage or birth whereas other groups are formed by job or taskFamilies have permanent relations, other groups have relationships based on contractsFamilies are oriented towards interpersonal relationship, whereas other groups are more goal orientedFamilies have emotional ties, whereas other groups have more rational tiesFamilies are more oriented towards intrinsic values, other groups seek more extrinsic rewardsFamilies seek cooperative relationships, other groups are more competitive and self oriented

Family Decision MakingRelative Influence of decision makersWife dominated decisionsHusband dominated decisionsAutonomic Decisions: Decisions of lesser importance that either husband or wife may make independently of each otherSyncratic Decisions: Husband & wife participate jointly

LowHighWife role loadlowHighHusband role loadHusband overloadedWife over loaded: Information-acquisition activities are shortened; joint decision making is minimal. Use convenience items extensivelyHusband under-loadedWife overloaded:Information-acquisition activities carried out by husband Husband overloaded Wife under-loaded:Information-acquisition activities carried out by wifeHusband Under-loadedWife under-loaded: Joint decision making

Certain things are hard to swallow.

Folgers Appealing to a Smaller Household of Just One Person

A familys needs and expenditures are affected by factors such as the number of people (children and adults) in the family, their ages, and whether one, two or more adults are employed outside the home.

Two important factors that determine how a couple spends time and money are whether they have children and whether the woman works.

Recognizing that family needs and expenditures change over time, the concept of the Family Life Cycle (FLC) has been widely used by marketers.

Concept that combines trends in income and family composition with the changes in demands placed upon this income to segment households. The Family Life Cycle

Effects of Family Structure onConsumptionThe Family Life Cycle (FLC) Combines Trends in Income and Family Composition with the Changes in Demands Placed Upon this Income. Four Variables are Necessary to Describe these Changes:AgeChildrens Ages (if any)Marital StatusPresence or Absence of Children in the Home

Family LifecycleBachelor I:Unmarried under age of 35Bachelor II:Unmarried under age 65Newly wed:Married without children under age 35Single parent: Single parent under age 35 Full Nest I:Couple with female under 35,with children under 6Delayed Full Nest: Couple with female over 35, & with children under 6Full Nest II & III: Couple with children under or over 6Empty Nest I: Couple under age 65, with no childrenEmpty Nest II: Couple age 65 or over no childrenBachelor III:Unmarried, age over 65

Family Life Cycle: An Updated View Age of Head of Household Under 35 35 - 64 Over 641 Adult in Household Bachelor I Bachelor II Bachelor III

2 Adults in Household Young Childless Older Couple Couple Couple

2 Adults + Children in Full Nest I Delayed Full Nest Household Full Nest II Full Nest III

What Changes Affect the FLC?AgeFamily Size & CompositionIncome & AssetsStock of GoodsCommitments/Leisure TimeHealthInterests

Ethan Allen Advertisement Referring to stages in the Family Life Cycle

Insurance Ad Reminding us that Children are often Eventually put in the Position of Caring for their Parents

Family Circle Magazine: Emphasizing that Traditional Family Values Persist Among Young People Today

Family Decision MakingAccommodativeGroup Members Have Different Preferences and Cant Agree on a Purchase That Will Satisfy Everyone.Types of Purchase Decisions Made by Families

ConsensualGroup Agrees on the DesiredPurchase, Differing Only in Terms of How It Will Be Achieved.

Household Decisions

There are two basic types of decisions made by families:1). In a consensual purchase decision, the group agrees on the desired purchase, differing only in terms of how it will be achieved. 2). In an accommodative purchase decision, group members have different preferences or priorities and cannot agree on a purchase that will satisfy the minimum expectations of all involved.

Family Decision ConflictConflict Occurs When There is Not Complete Correspondence in Family Members Needs and Preferences.Some Specific Factors Determining the Degree of Family Decision Conflict Include the Following:Interpersonal NeedsProduct Involvementand UtilityResponsibilityPersons Level of Involvement in the GroupDegree to Which the Product in Question Will Be Used or Will Satisfy a NeedFor Procurement, Maintenance, Payment, etc.PowerOne Family Members Influence Over the Others in Making Decisions

Gender Roles and Decision-Making ResponsibilityAutocratic DecisionsMade by One Spouse or the OtherSyncratic DecisionsDecisions Made Jointly

Gender Roles and Decision-MakingAutonomic DecisionWhen one family member chooses a productSyncratic DecisionWhen the family jointly makes a decisionThere is a shift in decision making toward more compromise and turn-taking.Spouses typically exert significant influence on decision making.

Who is the decision maker?Family Financial Officer (FFO): The individual who keeps track of the familys bills and decides how much surplus funds will be spent.Four Mother Types (LeoShe):June Cleaver, the SequelTug of WarStrong ShouldersMothers of Invention

Four Mother TypesJune Cleaver, the SequelTraditional, stay-at-home moms.Tug of WarWorking moms who would rather not; may pick well-known brands as cognitive shortcut.Strong ShouldersLower-income with a positive view. Often single moms who may be willing to try new brands.Mothers of InventionLove being mothers and working. Hubbies help.

Who is that Decision Maker?Four Factors Determine the Degree to Which Decisions will be Made Jointly by One or the Other SpouseSex-role stereotypesSpousal resourcesExperienceSocioeconomic StatusKin-Network System:Ties among family members, both immediate and extended. Despite recent changes in decision-making responsibilities, women still are primarily responsible for the continuation of the familys kin-network system.They perform the rituals intended to maintain ties among family members.

Determinant FactorsSex-role stereotypesBelievers in the traditional sex-roles tend to make individual decisions for sex-typed products.Gender role orientation: Bem Sex Role inventory:Masculine role: Strength, forcefulness, aggression, and decision makingFeminine Role: Passivity, nurturance, kindness, expressivenessPsychologically Androgynous Role: Taking on characteristics appropriate to the situationSpousal resourcesHe (or She) who has the money often makes the decisions.

The Apparel Manufacturer Placed Menswear Ads in About a Dozen Womens Magazines After Its Research Found That Women Exert Influence Over Mens Clothing Choices

Determinant FactorsExperienceCouples who have gained experience making joint decisions also make individual decisions more frequently.Socioeconomic StatusThe middle class cooperates more than higher or lower class families in decision making.

Children as Decision MakersChildren are recognized as consumers that deserve attentionKids ages 4 - 12 spend or influence their parents to spend about $188 billion a year (McNeal, 1998)Children are particularly influential in purchasing:Fruit snacksFrozen noveltiesKids beauty aids and fragrancesToys

Children as Decision Makers: Consumers-In-Training

Children make up three distinct markets:1). Primary market: Kids spend a lot on their own wants and needs. 2). Influence market: Parental yielding occurs when a parental decision maker is influenced by a childs request and surrenders. This is somewhat dependent on family dynamics.3). Future market: The web surfers or those who are taking increased responsibility at home because of working parents

Some Effects of Birth OrderZajoncs Theory of Birth Effects2 adults (100+100)/2 = 1002 adults, 1 age 0 (100+100+0)/3 = 672 adults, 1 age 2, 1 age 0 (100+100+4+0)/4 = 512 adults, 1 age 4, 1 age 2, 1 age 0 (100+100+15+4+0)/5 = 442 adults, 1 age 12, 1 age 0 (100+100+80+0)/4 = 70

Consumer Socialization

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

1) Parents influence in the socialization process is both direct and indirect.

2) The process begins with infants when they accompany their parents on shopping trips.

Consumer Socialization

Three dimensions combine to produce different segments of parental styles:1). Authoritarian parents restrictive with negative view about ads.2). Neglecting parents detached from kids and exercise little control.3). Indulgent parents less restrictive and want children to learn about buying.One of the strongest influences on children is television. It teaches children about cultural values and myths. Television is often called the electronic baby-sitter.

Stages of Consumer Development

Marketers and SocializationFun with BarbieBarbie LaptopBarbie 35mm CameraLittle KidsBaby Einstein SeriesBacklash

Sex-Role Socialization

Children pick up on the concept of gender identity at an earlier age than was previously believed (sometimes at age one or two).One function of childs play is to rehearse for adulthood.Often traditional gender roles are stressed in childrens products; the same item might be positioned and designed differently for boys and girls.

Cognitive Development

The ability of children to make mature, adult consumer decisions obviously increases with age (not that grownups always make mature decisions!).

Kids can be segmented by age in terms of their stage of cognitive development, or ability to comprehend concepts of increasing complexity.

Cognitive DevelopmentChildren Differ in Abilities to Store and Retrieve Information From Memory:LimitedCuedStrategic12 and Older, Children Spontaneously Employ theseStrategies.

Below Age 6, Children do notEmploy Storage and RetrievalStrategies.

Between 6 and 12, Children Employ these Strategies --when Prompted.

Figure 12-4: The Sketches Used to Measure Childrens Perception of the Intent of Commercials

Kids and Marketing ResearchProduct Testing:A particularly helpful type of research with children.Involves watching kids play with toys or involving them in focus groupsMessage Comprehension:Children differ in their ability to process product-related informationEthical issues must be considered when directing advertising appeals at children