Family & Household

Consumer Behaviour

Family - household
Definition
Household Structure
Stages of Household Life Cycle
Traditional & Segmentwise
Household Decision Making
Consumer Socialization- Children
Gender Roles

https://www.youtube.com/watch?v=IVyeQmvOpRQ

The Household Influences Most Consumption Decisions

The Household Life Cycle

The Traditional Family Life Cycle
6.
A few years
later the female
would die

1.
People married
by their early
20s

5.
The male
would
eventually die

2.
Couple had
several
children

4.
The original
couple retired

3.
Their children
grew up and
started their
own families

Family Lifecycle and

Consumption Patterns

Young singles
Newlyweds
Young couples without children
Married couples with children
Households with teenagers
Mature couples

The Household Life Cycle_ Segment

Younger (< 35)

Middle Aged (35 64)

Single I

Middle-Aged Single

Young Couples: No Children

Empty Nest I

Full Nest I

Delayed Full Nest I

Single Parent I

Full Nest II
Single Parent II

Older (> 64)

Empty Nest II
Older Single

Max Life Insurance

http://www.youtube.com/watch?v=9uei5L
1eA0Y

Family Decision Making

Family Purchase Roles
Determinants of Family Purchase Roles
Conflict Resolution
Marketing Strategy and Family Decision Making
Consumer Socialization and Marketing to Children

HP Printers
https://www.youtube.com/watch?v=IMxLO8gZaec
(Audio only)

Family Decision Making

The Household DecisionDecision-Making Process for Childrens Products

Family Decision Making

https://www.youtube.com/watch?v=zdVZNmqLA-s

How families interact in a purchase decision is largely dependent on the

culture and subculture in which the family exists

the role specialization of different family members
the degree of involvement each has in the product area of
concern, and
their personal characteristics of the family members

How do you resolve Conflict ?

Husband and Wife..

Conflict Resolution- Example

Example Flat Purchase

We will buy a Car first and then buy Flat

Interest rates are low and Bank has agreed to give the Loan for fifteen years
I am the boss of the House or I had already helped my Friend in buying a flat.
I will be retiring in twenty years or Children need special attention for education.
Using the silent treatment or withdrawing from the discussion
Let us check out with other buyers or take the opinion of the Senior Manager in
my office.

Purchase Conflict Resolution

Approach

Description

Bargaining

Trying to reach a compromise.

Impressions
Management

Misrepresenting the facts in order to win.

Use of Authority Claiming superior expertise or role appropriateness (the

husband/wife should make such decisions).
Reasoning

Using logical argument to win.

Playing on
Emotion

Using the silent treatment or withdrawing from the

discussion.

Additional
Information

Getting additional data or a third-party opinion.

1C.

Kim and H. Lee, A taxonomy of Couples Based on Influence Strategies, Journal of Business Research, June 1996, pp. 157-68.

Consumer Socialization
The family provides the basic framework in which consumer socialization
occurs.
Consumer socialization is the process by which young people acquire skills,
knowledge, and attitudes relevant to their functioning as consumers in the
marketplace.

Consumer socialization content

what children learn about consumption
Consumer socialization process
how they learn it.

Consumer Socialization
Piagets Stages of Cognitive Development
Stage

Description

Stage 1

The period of sensorimotor intelligence (0-2 yrs.)

- behavior is primarily motor
- the child does not yet think conceptually, though
cognitive development is seen

Stage 2

The period of preoperational thoughts (3-7 yrs.)

- Characterized by the development of language and
rapid conceptual development

Stage 3

The period of concrete operations (8-11 yrs.)

- the child develops the ability to apply logical
thought to concrete problems

Stage 4

The period of formed operations (12-15 yrs.)

- the childs cognitive structures reach their greatest
level of development, and the child becomes able
to apply logic to all classes of problems.

Consumer Socialization
Stages
Stage I: Observing.
Stage II: Making Requests.
Stage III: Making Selections.
Stage IV: Making Assisted Purchases.
Stage V: Making a purchase without a parent

Consumer Socialization
Stages
Stage I: Observing.
Stage II: Making Requests.
Stage III: Making Selections.
Stage IV: Making Assisted Purchases.
Stage V: Making a purchase without a parent

Consumer Socialization
The Content of Consumer Socialization

Consumer skills
money, budgeting, evaluation
Consumption--related preferences
Consumption
knowledge, attitudes, values
Consumption--related attitudes
Consumption
advertisements, salespeople,

Decisions Influenced by Children

Children influence family decision to an
alarming degree
Children plead, whine,
and bargain with
their parents to get
what they want

Marketing to Children
Children are a large and growing market.
However, marketing to children is fraught with ethical
concerns, including:
The limited ability of younger children to process
information and to make informed purchase decisions.
Marketing activities, particularly advertising, can produce
undesirable values in children, resulting in inappropriate
diets, and cause unhealthy levels of family conflict.