Family and Household Influences

Made By:

Azam Mashkoor (FC-10137)Karan Arora (FC-10141)Shagun Dwivedi (FC-10162)Rakesh Roshan (FC-10155)Tuhin Shome (FC-10174)

Family and Household Influences

Examining how families and households are changing lends insight into the reasons for the astounding growth experienced by the industry in recent years…

Evolution of new retail market such as:

PETs MART

Importance of families and household on consumer behavior..

There are 2 reasons-

1) Many products are purchased by a family unit.

2) Individuals buying decisions may be heavily influenced by other family members.

Types of Families:-

1)Nuclear Family:- Immediate group of father, mother and children living together.

2)Extended:- Nuclear family + Relatives living together.

3)Family of Orientation:- The family into which one is born.

4)Family of Pro-creation:- Family as one established by marriage.

Household:- Refers to all persons, related or unrelated, who occupy a house in unit.

It comprises of Non traditional families and Non family households.Some marketing Pundits consider Family as same as household. So to avoid confusion we simply use the term CONSUMER UNIT (CU) or MINIMAL HOUSEHOLD UNIT(MHU).

Structure variables affecting Families and Households:-

1)Age of head of household or family.

2)Marital Status.

3)Presence of Children.

4)Employment Status.

Sociological variables affecting Families and Households:-

1) Cohesion: Refers to the emotional bonding between the family members.

2) Adaptability: Ability to change power structure, role relationships and relationships rule in response to situational and developmental stress.

3) Communication: It is a facilitating dimension, critical to movement on the other 2 dimensions.

Family Celebrations and Gift Giving :-

Marketers have used sociological research on ‘resilient’ families – those that are better able to negotiate their way through transitions and tragedies because they affect consumer demand for many products.

Role Behavior:-

According to sociologist- TALCOTT PARSONS there are 2 types of role behaviors:-1)Instrumental Roles – Involve financial, performance and other functions performed by group members.2) Expressive Roles – Involves supporting other family members in the decision making process and expressing the families aesthetic or emotional needs, including upholding family norms.

Individual Roles In Family Purchases:-

1) Initiator/Gatekeeper.2) Influencer.3) Decider.4) Buyer.5) User.

Family marketing focuses on the relationships between family members based on the role they assume, including the relationship between the purchaser and family consumer and between purchaser and purchase decision maker.

Spousal Roles In Buying Decisions

1) Autonomic: An equal number of decision is made by each spouse, but each decision is individually made by one spouse or the other.

2) Husband Dominant: The husbands or the male head-of-household makes majority of decisions.

3) Wife Dominant: The wife or the female head of household makes majority the decisions.

4) Joint(syncratic): Most decisions are made by both husband and wife.

Consumer Activities Occurring In Various Life Cycles

1) Young Singles: Earnings tend to be relatively low, these

consumers don’t have any financial obligations and don’t feel the need to save for their futures.They mostly spend on cars, furnishings, food, vacations, fashion, recreation, etc.

2) Newly married Couples: They tend to spend a substantial amount

on cars, clothing, vacations, and other leisure activities. They also have the highest purchase rate and highest average purchases of durable goods.

3) Full Nest I :- In this stage families are more likely to move into their first homes, purchase furniture and furnishings for the child, buy a washer and a dryer and purchases new items such as baby items, etc.

4) Full Nest II :- In this stage the child has reached school. Consumption pattern continue to be heavily influenced by the children since the family tends to buy large sized packages of food and cleaning supplies, bicycles, music lessons, clothing, etc.

5) Full Nest III :- Income of family improves. Depending on where children go to college and how many are seeking higher education, the financial position of family may be tighter than other instances.

6) Married, no kids:- Couples who marry and donot have children are likely to have more disposable income to spend on charities, travel, and entertainment. Not only do they have fewer expenses, these couples are more likely to be dual wage earners.

7) Older singles:- Singles, age 40 or older, may be single again(ending married status because of divorce or death of spouse) or never married (because they prefer to live independently).This group now has more available income to spend on travel and leisure.

8) Empty Nest I:- At this stage, the family is more satisfied with its financial position. In this stage discretionary income spent on what the couple wants rather than on what the children need.

9) Empty Nest II:- By this time the income earners have retired, usually resulting in a reduction in income and disposable income. Expenditures become health oriented, centering on such items as medical appliances and health, sleep and digestion medicines.

10) Solitary Survival:- Expenditures for clothing and food usually decline with income spent on health care, sickness care, travel, entertainment, and services such as house cleaning.

11) Retired Solitary Survival:- They follow the same general consumption pattern as solitary survivors, however their income may not be as high. Depending on how much they have been able to save throughout their lifetime, they can afford to buy a wide range of products.

Thank you