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Influence of Familiy

onConsumer Behaviour

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INTRODUCTION

Consumer behaviour is influenced not only by consumer

personalities and motivations, but also the relationships with

in the families.

From the marketing point of view there are several types offamilies and their buying requirements also differ in nature.

1. Nuclear Family consisting of husband, wife andtheir offspring's.

2. Extended Family beyond nuclear family, including

aunts, uncles grandparents, etc.

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The Reciprocal Nature of

Family Influence

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Intergenerational Influences

It refers to what is passed along

from grandparents to parents,

from the parents to their

children, and from the children

to their children.

Including religious and cultural

values, lifestyles, attitudes,

social-life, etc.

The marketers try to get

consumers who are highly

brand loyal for many decades

Concept known as

Intergenerational carryover.

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Consumer SocializationConsumer Socialization is the process by which people acquire

skills, knowledge and attitudes relevant to their functioning as

consumers in the marketplace

Contents of Consumer Socialization:

Consumer Skills:

Skills necessary for purchase and understand money,

budgeting, product evaluation

Consumption Preferences:

Are knowledge, attitudes and values that cause people to attachdifferential evaluationto products, brands and retail outlets

Consumption Attitudes:

Are cognitive orientation towards market place stimulus such

as advertising, sales persons, warranties etc.

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Family Role Structure The Initiator This is the person who first suggests the idea of a

product or service and initiates the buying process.

The Influencer This is someone whose opinion is valued in the

decision-making process. An influencer may be a friend, brother,

sister, spouse, etc.

The Decider This is the person who makes the final decision on whatbrand or make to but, after all aspects such as price, quality, etc, have been

thought over.

The Purchaser This is the individual who actually purchases theproduct and pays for it. Very often, the purchaser and the decider are the

same person.

The Consumer He is the user of the goods or services.

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Types of Family Decisions Husband Dominated Decisions

Husband takes the purchase decisions

Traditionally in products like Automobiles, Alcohol, Insurance

Wife Dominated Decisions

Wife takes the purchase decisions

Traditionally in products like household maintenance items, food and kitchen

appliances

Joint Decision Making

Both husband and wife make the decision

Traditionally in School choice, living room furniture, vacations

Child Dominated Decision Making Child makes the final product decision

Traditionally on children related items

Unilateral Decision Making

Taken by any member of the family

Traditionally on Personal Care items, low priced goods

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Conflict ResolutionFamily Decisions are bound to create conflict

Conflicts are resolved by:

Bargaining:

Reaching a compromise on which product to buy

Impression Management:

Misrepresentation of facts in order to create favorable impressions

Use of Authority:

Claiming superior authority to resolve the conflict

Reasoning:

Using logical arguments to resolve the conflict Playing on Emotions:

Using emotions to resolve the conflict

Additional Information:

Getting additional Data or Third Party Information

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Family Decision Making

Process

Problem Recognition

Search for Information

Evaluation of alternatives

Final Decision

Purchase

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The Elements of Power Which

Influences Family Decision Making

Economic Resources: Here the person making the greater economiccontribution tends to have the most power.

Cultural Norms: The prevailing culture may decide which partner has the

most power. eg,. In many cultures the male is the dominant partner.

Expert Power: One partner has more knowledge about the product.

Bargaining Power: This involves inducing one member to make a decisionfavourable to another on the basis of give and take.

Reward Power: One spouse may reward the other by doing something theother will like.

Emotional Power:The direction of purchase decision may be influenced by

one partner by making use of non-verbal emotional pressure on the other.

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Bachelorhood

Newly Married Couple

Parenthood

Post Parent Hood

Dissolution

Family Life Cycle

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Stage 1 :Bachelorhood

Few Financial Burdens

Fashion and Recreation Oriented

Stage 2: Newly Married Couple Financially better off

Highest purchase rate of consumables and durables

Romantically inclined

Stage 3 : Parenthood

Elementary school stage Youngest child < 6 years of age

Low Liquid Assets

High purchase of baby food & baby oriented products

High school stage

Youngest child >= 6 years of age Financially better off

College Phase

All children still financially dependent

High family influence on purchases

Major expense on higher education

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Stage 4: Post Parent Hood

Head of the family in labour force

No Dependent Children

Expenditure in self development

Stage 5 :Dissolution :

Solitary SurvivorII

Single Surviving head of family in labor force

Supported by family and friends

Have high expendable income

Spent on loneliness reducing products and services

Solitary SurvivorII:

Single Surviving wife/husband

Low levels of income and savings

Expenditure on medical products, security, affection