UNIT 3 – GROUP INFLUENCE: ROLE, STATUS, NORMS

Group Influence on Consumer Behavior

Each consumer in society is a member of different groups depending on their
culture, various subcultures or even social class can influence their consumer
purchase. A group can be formed when two or more individuals share a set of
norms and beliefs. A group becomes a reference group when an individual
recognizes with the group and takes on many of the values, attitudes or
personal standards of group members and use it as the base of his/her day to
day behavior. Reference group is defined as having significant relevance upon
an ‘individual’s evaluations, aspirations or behavior influencing the
consumer. The nature of reference group influence can take three forms, this
is because some groups and individuals are able to influence greater than
others and affect a range of consumption.

1. Informational influence: This is when the reference group is used as a

knowledgeable source in the different parts of the buyer’s decision
process. This type of influence emerges when an individual or the
member uses the behaviors and beliefs of the reference group as
dependable sources. This influence is based either on the similarity of
the buyer’s desires with the ones of the group members. For example in
the biker subculture the members all share similar desires for
purchasing Harley Davidson products therefore influencing the
individual decision process in selecting certain products. The members
in baby boomer subculture are also likely to purchase similar latest
fashion products.
 2. Normative influence known as (utilitarian influence): The reference
group creates a level of values and norms of an individual, in the
process of purchasing brands or products. For example both the Harley
Davidson biker subculture and baby boomer subculture will have an
influence on the member’s decisions on which types of products to
consumer to fit in with the values and attitudes of the subculture.
Harley Davidson subculture values can affect the characteristics of the
member’s lives such as their ‘social, political and spiritual’ aspects.
3. Identification influence known as (value-expressive influence): The
reference group is used to confirm the consumer’s attitudes, norms and
actual behavior. The individual behaves reliable with the group’s norms
and beliefs because the individual’s and the group’s norms, attitudes
and beliefs are the same. For example this can be seen in Harley
Davidson subculture in which the members view the subculture as a
‘religious icon’ sharing the same values and norms as other members.

The group’s power of influence on consumer’s behavior will depend on a

number of factors. For example degree of visibility of the product or
trademark used by the group members. The group’s power of influence is
higher for the products used visibly such as shoes, cars and fashion products
compared to non-visibly products. In the Harley Davidson subculture their
power to influence other members is through visible displays such as tattoos
and motorcycle customization, this is done to emphasize the commitment to
the group. The product’s degree of necessity for example the group’s power of
influence is higher for the luxury products such as jewels, fashion etc and
lower for necessity products. For example the baby boomers subcultures are
likely to influence other members in purchasing luxury products than
necessity products.

The group’s power of influence will depend on the individual’s degree of

involvement for example if an individual is reliant to a group; it is more likely
to conform to the group. The group’s influence will depend on the degree of
confident of the buyer during the buying process. The group influence is
noticeable when there are specialized products such as PC sets or mobiles.
These are the products for which the buyer depends on the expert knowledge
of the reference group. The influence of the reference groups is not influential
for all types of products or services that consumers purchase. For example
products that are not complex, that are low in perceived risk are unlikely to
be influenced by the reference groups. The impact of the reference groups can
vary. Reference group might determine the choosing of a certain kind of
product instead of others. It can further influence the option of a brand or
trademark of a product such as Iphone or Blackberry. An individual will
want to belong to a group because of their significance and position they
obtain. They will want to be associated with groups that have an attractive
social position. Due to the unique characteristics certain groups are seen to
have a greater social power influence than other groups.

Groups have power due to their ability to influence individuals to become

members. The group’s ability to influence the behavior of various individuals
that are members or non-members of the group is called social power and can
have a number of types. These social powers can influence the consumer
behavior in buying certain products and brands. Research found that
reference groups are very important for marketers. This is because they can
influence and inform members to purchase specific products and brands. It
can provide the members with factors to compare with their own values, with
the values and behavior of the group. This can therefore influence the
members to adopt the groups’ values and attitudes

Group influence is “non controllable” by the marketer but must be taken into
consideration when designing new products. The marketer will need to seek
out to understand all the group influences that affect consumers so that
the marketing mix can be adjusted to give the maximum effect. Consumer
behavior is greatly influenced by cultural, social, personal, and psychological
factors. Culture is the most fundamental determinant of a person’s wants and
behavior. Culture contains smaller subcultures or groups of people with
shared values systems based on common life experiences and situations. These
subcultures can influence the consumer behavior. Subcultures include
nationalities, religions, racial groups and geographic regions. Age subculture
(age cohort) is an example of how consumers cultural bond with each other.
This is because these consumers are more likely to face similar experiences
and share common memories by growing up and living in the same time
frame. Many subcultures make up important market segments and marketers
often need to design products and marketing programmers’ tailored to their
needs and want. For example the automobile industry are taking on the baby
boomer subculture market and dealing with boomers changing needs in the
industry. Toyota’s campaign of the redesign of the new Avalon was to provide
a youthful image that reminds the baby boomers of the late 1960s.

Baby Boomers and Harley Davidson Subculture

The baby boomers age group subculture consists of individuals who were
born in the time frame of 1946-1964. The consumers are in their mid-thirties
and fifties. Members are likely to influence other baby boomers to purchase
similar products. In the US market 78-80 million consumers account for the
baby boomer market. Baby boomers are important to marketers since they
are the largest demographic in western countries age group therefore more
companies and brands are focusing on the baby boomer market. The
demographic qualities of the baby boomers include a wide range of factors
such as, use of technology, looking young, their health and personal well-
being. The baby boomer consumer will want the very latest fashions in the
market and innovative products. Baby boomers have many subgroups which
can be catered very easily in terms of each demographic factor. Companies
are targeting baby boomer consumers because they generate a good source of
revenue. For example L’Oreal concentrated on the ‘self-indulgent’ aspect of
baby boomers in looking young, their slogan for the brand “Because I’m
worth it” was appealing to the baby boomers in capturing their youth side.
Pepsi also realized how youth is important as many baby boomers wish to see
themselves as youthful again. In 1961 Pepsi slogan was “for those who think
young.” The slogan was perfect for baby boomers as it helped to capture the
image and message of looking and thinking young, exactly what the boomers
would want to believe. In 2001 Pepsi “Joy of Pepsi” campaign used a celebrity
endorsement such as Britney Spears to promote and incorporate the young
joy and entertainment of Pepsi. The commercial showed how Britney was able
to grow through the time frame that started from the 1950s to the present day.
This can be seen how baby boomers can reminisce with her. Baby boomers
are more vulnerable to nostalgia appeals, especially the products and items
associated with their childhood or adolescence memories. Therefore it can be
seen that Pepsi had an advantage in creating this nostalgia appeal to the baby
boomers, influencing the consumer behavior purchase.
Harley Davidson is an example of a biker subculture group that unites and
bonds consumers for the love of motorcycles. The subculture consists of many
different subgroups that own Harleys within different social categories. The
Harley Davidson subculture established a community of solidarity among
individuals who own Harleys. The Harley Owners Group (HOG) is a
successfully group that has over 1 million members around the world. The
members unite in sharing their obsession for the Harley-Davidson lifestyle.
The subculture is a ‘sacred’ feature in which the Harley owner is surrounded
by everyday. This therefore can show how the subculture can influence the
consumer behavior. Such as influencing their buying patterns in looking the
part of the traditional biker subculture by purchasing products such as the
Harley jackets, sunglasses, riding pants and other Harley accessories. There
was a strong sense of brand identification among the Harley owners that then
transformed to extraordinary brand loyalty. For example they found that the
most members of HOG group loyalty included purchasing the Harley-
Davidson tattoos, bumper stickers and the frequent wearing of Harley apparel
at work or to other social activities. The Harley Davidson members include
males and females from the age range of 18-88. The subculture consists of
many different subgroups that own Harley’s within different social categories.

On the other hand Brand communities groups are different to subcultures but
can also influence the consumer behavior and their buying decision process.
Studies of consumer culture have found that brands have become a way for
consumers to communicate and form brand communities groups with other
similar consumers. Brand community is a bond relationship of brand
admires. Brands have become an essential part of culture. This is because
consumers rely upon brand names as substitute for information about the
products they purchase. They consider their own brand usage, in terms of
product value and a statement about themselves, their values, and their life
choices. Research on brand communities has shown that these communities
have positive effects on the consumers brand attitude, loyalty and attachment
to a brand. Therefore influencing consumer behavior and buying patterns on
what brands and products to purchase. Harley Davidson and Apple brands
have created brand communities that represent the rebel consumers.

Consumers are a tribal bunch, and the groups they choose to belong to are
significant to how those consumers view themselves and live their lives.
Much the way they pick like-minded friends, consumers also purchase
brands they believe represent standards they relate to. This is a key
component of reference group marketing. Convincingly associating your
product or service with a group your target market admires is how you can
use group influence to boost your brand's sales.

1. Consumers Trust Reference Groups

Consumers are influenced by different types of reference groups they believe

they are a part of or aspire to be. Group influence goes both ways; sometimes,
consumers avoid brands they believe would put them into a group they don’t
want to be included in. People buy things to help form and express their self-
concept and their connections with like-minded people. Many things a person
buys, especially showy items such as clothing, accessories, vehicles, restaurants or
club memberships, are symbolic of what he thinks is acceptable to a certain
reference group such as his family, social circle, workplace, community or
culture.
An individual buyer might make purchases that appeal to a few different types of
reference groups. For example, a consumer who wants to appear eco-friendly
may purchase a Toyota Prius. That same consumer might also feel connected to
Nintendo's gaming community and opt to buy Nintendo consoles over Sony or
Microsoft products. Group influence comes from many directions and in most
cases, different types of reference groups do not clash in the buyer's mind
because the products that signify them are in completely separate categories.

2. Branded Upbringings Make Lifetime Buyers

Kids influence their parents’ purchases, and reference group marketing can be
quite effective with children and teenagers. Marketers aim their messages at
children via television, apps and internet to establish early brand familiarity and
inspire direct sales. While parents may refer to other parents and groups for the
final decision on household purchases, teens and children are typically driving
forces behind their parents' purchasing decisions.

3. Consumers Buy Peer Status

Wealthy consumers influence non-wealthy consumers. Certain brands keep

luxury consumers believing they’re part of an elite club. The trick for marketers
of high-end luxury goods and services is to appeal to the wealthier consumers
who want to feel distinguished from the non-wealthy while at the same time
appealing to the larger audience of consumers who want to emulate the wealthy,
according to research on consumer behavior. For example, a high-end
watchmaker may release a limited edition luxury watch for its targeted
consumers followed by a more affordable version of the product, under the same
brand name, for a wider market.
4. Cause Affiliations and Purchasing

Movements in society can influence consumer behavior. Media reports associated

with a brand can fuel consumer activism for or against it, making social media
an important asset for any brand engaging in reference group marketing. For
example, an injustice involving a manufacturer that is publicized in the media
may trigger a consumer to join a boycott of the manufacturer’s brand.
Conversely, a company’s association with a charitable cause or heroic deed may
compel the consumer to purchase the company’s brand just to show support.
People favor brands that resonate with what they believe in and what they think
like-minded believers accept.

Norms, Values , Status and Roles

Norms
The Macmillan Dictionary of Anthropology defines norms as “a prescribed or expected
pattern or standard of behavior in a given social group or social context”. Norms are
concerned with social rules which relate to social needs, problems and collective reaction. It
is an attitudes and behaviors common to members of a particular group. There are specific
laws that compel to do. The rule breakers are punished. The way we talk, listen, treat and
gestures related to norms. Every society is governed through the norms. Norms differs place
to place, and culture to culture. Norms are influenced by the different kinds of religious
ideologies, mores, taboos and rituals.

Oxford Dictionary of Sociology defines, “norms are a shared expectation of behavior that
connotes what is considered actually desirable and appropriate”. Norms are both formal and
informal. Formal norms are written forms- an individual should punish or reward as per
codified laws of the society, whereas informal laws are unwritten and based on the
customary laws and traditional value system.

Value
The term value is concerned with dignity and price. It is an important issue for sociologist
and anthropologists. Value associated with rights, patriotism, respect, human dignity,
rationality, sacrifice, and education qualification. According to H.M. Johnson “values are
general standard and may be regarded as higher order norm”. In short, it should be measured
in goodness and desirability. It is a form of standard behavior which derives through the
long process of social interaction and socialization process. It encompasses or evaluates the
human behavior and actions. Values are not specific as norms, however, it is commanding.
Values as a social data, it is standard desirability which is independent. The value provides
certain goals and ends to the member of the society and establishes the stabilities and
uniformities. Value also contributes to hold the society together and establish the sense of
belonging. It creates the legitimacy and governs the society and it also contributes to form
the rules and regulations. The value provides judgment. The structuralists and functionalists
theorists both are interpreting about the values.

There are four types of values:

(1) It exists at different levels of generality or abstraction

(2) value tends to be hierarchically arranged

(3) Value are explicit and implicitly varying degree

(4) Values often are in conflict with one another.

Status
Status normally associates with “prestige” and “position” within the social structure. The
“position” of an individual put in the hierarchical order. Paul B. Horton and Chester L. Hunt
argued that “status is usually defined as a rank or position of a person in a group, or of a
group in relation to the other groups (105)”. The status could be achieved two ways ascribed
and achieved. If anyone achieve the “position” through the inheritance basis rather than
choice, effort and ability is known as ascribed status, for instance, “king”-whether he is
“brilliant” or “dull”, “handsome” or “ugly”, “uneducated”, “wise” and “foolish”. In the
achieve position, one can receive his/her status through the competition, choice, effort, and
capacity, for example, the prime minister and professor and banker. “Sex” and “age” are
ascribed position-which is determined through the “race”, “nationality”, “social class”, and
“religion”. Individual role differ across the time and socialization process. It may change
state rules, used technologies, mass-media and education. The status of an individual
determines through the age i.e. children, adult and aged. For instance, American youth work
in company or industries and farm house as per his skill while Nepali youth engage in the
agriculture and live in the joint family. In the primitive society senior citizen is highly
honored, taken as the source of knowledge and family member look after them. Today we
can observe quasi ascription by merit-the position of an individual determine through the
merit. Likewise, in achievin status, an individual secured his/her position through the
individual choice, competition and capacity. In industrial society the status of an individual
determines through their qualification, expertise, ability, choice and talent. The personal
ability would recognize and it is away from the nepotism and favoritism. The status would
change in accordance with their social mobility.

Role
It is a set of norms, behavior and personality that has the attachment with status. The role of
an individual derives in accordance with status that they acquire through their experiences
and qualifications for example; student follows the teacher, participating in the discussion,
attending seminars and exams. Each society had given roles to the people as per rules and
regulations. The function of an individual is known as role. Individual have varieties of
roles-father, mother, businessman, clerk, professor and leader.

“The term role is used to designate the sum total of the cultural pattern associated with
particular status”
-Linton

In fact, it has relation with attitudes, values and behavior that has been assigned in
accordance with the position. The role of the people socially determine i.e. a single person
has different roles-whose role is differ as per time and context-he might be father, farmer
and social worker. The role of an individual is change as he/she grows up. The
functionalists interpretation regarding the role has been heavily criticize because they only
dealt in the sense of consciousness, static and passive in its kind.
Groups are composed of individuals. Hence, the group behaviour means behaviour of its members.
In practice, each member of the group affects the behaviour of other members and, in turn, is also
affected by them. The nature and patterns of reinforcement the members receive through their
interaction with one another is also determined by the group itself. This is because the behaviour of
individual members in a group becomes different than their behaviour outside the group situation.
Therefore, while studying group behaviour, the factors that should be understood are group norms,
group cohesion, group role, group conflict and group decision-making.

GROUP NORMS

A norm is accepted by group members. It is a rule of conduct that has been established by group
members. They are standardized generalizations concerning expected behaviour in matters that are
of some importance of the group.

A rule dictates what must be done by another whereas norm refers to what should be done. Group
norm is a standard of behaviour. In other words, group norm is a rule that tells the individual how to
behave in a particular group. Thus, group norms identify the standards against which behaviour of
group members will be evaluated and help the group members know what they should not do.
Norms could be formal or could be informal.

Example

In a group that drinks tea together every evening a norm arises. Every day a different member
buys tea for the other members of the group.

The individuals are expected to comply with group norms.

The factors responsible for the emergence of group norms are of two kinds:

1. Members of the group seek to validate their beliefs.

2. If the group wants to maintain its identity there must be uniformity in attitudes and actions of the
members. While showing problems the interactions of members of the group must be coordinated.
Then only the group can survive.

According to Edgar Henry Schein (born in 1928) there are pivotal and relevant group norms. While
the pivotal norms are confirmed by every member of the group, the relevant norms are desirable to
be confirmed by the members. With increase in the size of the group, the acceptability of norms
tends to lessen. Small deviation of norms is allowable. However, in case of extreme deviation, the
deviator gets punished. For example, when the union is on strike, its members attending to work
punished by being boycotted by the group. Thus, the group norms have following characteristics :

1. As personality reveals an individual, so group norms do for groups.

2. Norms serve as the basis for behaviour of group members.

3. They predict and control the behaviour of members in groups.

4. Norms are applied to all members of the group, though not uniformly.

GROUP ROLE

A role means a set of expected behaviour pattern attached to a

position or post in a social unit. In an organization, an employee's
role is briefly indicated by a position title and elaborately
specified by a job description. As regards group roles, these are
designated and assigned in formal groups. These roles are
prescribed by the organization with a view to make division
among workers and assign them responsibility. But, group roles
are usually not explicitly prescribed in informal groups. That is
why in informal groups, one group member may perform several
roles or several members may also perform the same role.

Types of Group Roles

In practice, the group members may be expected to perform a

variety of different roles. A complete listing of these group roles
would be very lengthy. However, the three most relevant group
roles are discussed as follows :

(i) Work Roles : These roles relate to task-oriented activities

 involved in accomplishing the group tasks or group goals.
Developing a strategy for accomplishing the task, assigning jobs,
evaluating work progress and clarifying the group goals are the
examples of work roles related to task-oriented activities.

(ii) Maintenance Role : These roles relate to social-emotional

activities of group members that help maintain their involvement
and commitment to group. Examples of these roles may be
encouraging other fellow members to participate, praising and
rewarding other members for their excellent contribution and
similar other activities designed to maintain a friendly group
atmosphere.

(iii) Blocking Roles : These are the activities that disrupt or

destroy the group. These activities may

include such things as dominating the discussion, attacking

other group members, disagreeing unreasonably with other
group members and distracting group by unnecessary humor.

Family Life cycle in Consumer Behaviour

The family life cycle in consumer behaviour are given below

1. The bachelor stage—young and single.

2. The newly married couples—young, no children.
3. Full nest 1—young, married, with child.
4. Full nest 2—older, married, with children.
5. Full nest 3–older, married, with dependent children.
6. Empty nest—older, married, with no children living with them.
7. Solitary survivor—older, single, retired people.
1.Young Singles
Young singles may live alone, with their nuclear families, or with friends, or they may co-
habitate with partners-translating into a wide range of how much disposable income is spent on
furniture, rent, food, and other living expenses in this stage .Although earnings tend to be
relatively low, these consumers usually don’t have many financial obligations and don’t feel the
need to save for their futures or retirement. Many of them find themselves spending as much as
they make on cars, furnishings for first residences away from home, fashions,
recreation,alcoholic beverages, food away from home, vacations, and other products and services
involved in the dating game. Some of these singles may have young children, forcing them to
give up
2. Newly married couples:
Newly married couples without children are usually better off financially than they were when
they were single, since they often have two incomes available to spend on one household. These
families tent to spend a substantial amount of their income son cars, clothing, vacations, and
other leisure activities. They also have the highest purchase rate and highest average purchases
of durable good (particularly furniture and appliances) and appear to be more susceptible to
advertising.
3. Full Nest I:
With the arrival of the first child, parents being to change their roles in the family, and decide if
one parent will stay to care for the child or if they will both work and buy daycare services
.Either route usually leads to a decline in family disposable income and a change in how the
family spends its income. In this stage, families are likely to move into their first home;purchases
furniture and furnishings for the child; buy a washer and dryer and home maintenance items; and
purchase new items such as baby food, cough medicine, vitamins, toys, sleds,and skates. These
requirements reduce families’ ability to save,and the husband and wife are often dissatisfied with
their financial position.
4. Full Nest II
In this stage, the youngest child has reached school age, the employed spouse’s income has
improved, and the other spouse often returns to part-or full-time work outside the home.
Consequently, the family’s financial position usually improves,but the family finds itself
consuming more and in larger quantities. Consumption patterns continue to be heavily
influenced by the children, since the family tends to buy large-sized packages of food and
cleaning suppliers, bicycles, music lessons, clothing, sports equipment, and a computer. Discount
department stores (such as Cost co and Sam’s Club) are popular with consumers in this stage.
5. Full Nest III
As the family grows older and parents enter their min-40s, their financial position usually
continues to improve because the primary wage earner’s income rises, the second wage earner is
receiving a higher salary, and the children earn spending an education money from occasional
and part-time employment.The family typically replaces some worn pieces of furniture,purchases
another automobiles, buys some luxury appliances,and spends money on dental services (braces)
and education .Families also spend more on computers in this stage, buying additional PCs for
their older children. Depending on where children go to college and how many are seeking
higher education, the financial position of the family may be tighter than other instances
6. Empty nest
Older married with no children living with them. Financial position stabilizes and there is no
expense on children. The couple is free to enjoy their own pursuits and spend on luxury or self-
improvement items and medical care.
7. Solitary survivor
Older single retired people. Retired people living alone after the death of a partner. Life becomes
lonely and income may reduce due to retirement. This again changes the consumption pattern
and living style of old people.
Another point to note, is that the family life cycle concept segments the families on the basis of
demographic variables, and ignores the psychographics variables (families interest and opinions)
of family members. Family life cycle is also related to the spare time and the available income,
education, etc. A marketer has to take these elements into consideration.

The stages at which families find themselves, affect the nature of the goods and services
required, their wants and consumption patterns, as well as the volume of consumption on specific
products. The traditional view of the family life cycle has been criticized for failing to recognize
that a single family unit may not exist throughout the life of an individual. Families may be
created by second marriages, and these may involve children from prior marriages. The
traditional model also ignores the existence of single parent households. The modern family
lifecycle which takes into account the existence of working women, is a more complex and more
useful model than the traditional model.

Marketing strategy for family decision-making

It is realized that various purchasing tasks are performed by various members of the family.The
products are bought for joint use of the family. Refrigerator, TV, sofa set, car, etc. The product is
to be purchased by family funds where more than one person may be contributing to the fund.
Sometimes the funds are not enough and other products may have to be sacrificed town an
expensive product.
ct. Some family members may not be agreeable to the choice made for the
product, and may consider it as a profligate expenditure. These are the main influences in the
family decision making, which are the outlets preferred by the family members for the purchase
pur
of the product. All the above considerations are important, and once all this is known strategy
can be formulated in a better manner.

FAMILY LIFE CYCLE

In 1960’s, based on their research Wells and Gruber came up with a new concept
of segmentation, called the family life cycle. Family life cycle can be a part of the
segmentation targeting and positioning triangle or even the consumer buying behavior study
as it concerns itself with the various phases and generations of people present within
an individual family and how to target them with your marketing efforts.

Thus, in a joint family, there might be youngsters, parents, grand parents, uncles and aunts,
all in different phases of their life. By taking each of them as a target market or a target
demography, what can be the marketing strategies that you can adopt, can be answered by
Family life cycle.

The concept has grown in popularity in the last few decades because of being applied in
different kind of industries with successful results. Until now you might have heard
about product life cycle or customer life cycle. However, the family life cycle is focusing on
shopping styles, information use and decision making differences by a person in the
different stages of his life.

As we grow older, we are moving steadily from one stage to another, moving from an initial
buying behavior focusing only on ourselves to a more mature and responsible one, by
taking into consideration not only our needs but also the needs of our families. By
understanding in which stage a person is in the family life cycle, marketers can anticipate
their needs, and determine the products and services they can provide him.

Basically, the family life cycle model describes the stages through which consumers pass
through their lives when they have families. There are different versions of the
categorization of the stages but the most common are: bachelor stage, new married couple,
fully nest 1, fully nest 2, empty nest, solitary survivor.

Stages in the Family life cycle

1) Bachelor stage in the family life cycle –

During the bachelor stage people are usually characterized by being interested mainly in
appearances. Therefore, people at this stage tend to invest more in fashionable clothing
and vehicles. Impulsive buying as well as premium buying is a common characteristic of the
Bachelor stage.

2) The newly married couples –

In the family life cycle, the new married couples are considered to be in a better financial
position in the initial stage due to the absence of children. It might be possible that both, the
husband and wife, are earning members. Thus, the buying decisions focus on quality and
not quantity. A family person will always think about savings and insurances, and at the
same time, they will invest in long term products like good furniture, new home, etc. Once
married, they are less prone to impulsive decisions.

3) Families in full nest 1 and 2 (and in some version also 3) –

This segment of the family life cycle consists of families already having children. The
number of children may vary and hence they are categorised in Nest 1, Nest 2 etc. The
purchases of these people are dominated by the children’s needs mostly. Thus, people
having 2 kids are likely to save money and spend more in the future of their children (this is
most targeted by insurance companies and products like Boost and Complan).
In the empty nest category, children are going away from home. This type of segment may
be targeted for investing in their children who are away from home or to start spending
money for their own vacations and hobbies and also focusing on savings for the retirement
period.

4) The last category in the family life cycle is the solitary

survivor.
This can consist of either a widow/widower who are still working or who are retired. Their
main focus is on savings and their purchases are dominated by accommodation and
medication mostly.

What all these stages have in common are the criteria based on which they are formed
involving age, marital status, career, disposable income and either presence or absence of
children. Thus, based on all four type of segments, the typical demography can be made
and targeting can be carried out accordingly.

Considered to be a useful method for segmenting the market, the model provides an
understanding in customer behavior by looking into various stages of the family life resulting
in different buying patterns. It takes into account changes in family structures and behavior
accompanying progression from birth to death.

As companies go through different stages such as early entrance, growth, maturity and
decline, consumers spending habits are also passing through different stages according to
its development depending on the consumer’s ability and willingness to consume various
items and undertake the financial burdens involved with their preferences. Thus, a
youngster may be more likely to purchase a product during its entry stage than a person in
family nest 2.

Related: Key Differences between Qualitative Research and Quantitative Research

Advantages of Family life cycle
The main two advantages of the family life cycle concept is

 It provides a technique of anticipating the market growth through market estimation,

by forecasting the number of persons entering into each stage of a cycle in one year.
 It provides an overview of the variables which affect the entry of a family into the different
stages of life.

Focusing on the demographic patterns and social trends of people, the family life cycle
concept describes the effect of time on a family through the different stages of life focusing
on their patterns of consumption and spending based on their income.

Product life cycle vs Family life cycle

The product life cycle deals mainly with the process that the product goes through in its life.
Both, Product life cycle and Family life cycle are parts of Marketing strategy. However,
Family life cycle concerns itself more with Segmentation, targeting and positioning whereas
the Product life cycle is more connected with the Planning and tactical thinking for the
product. Thus, though the core concept of Product and family life cycle is to study different
phases of a product or a family, the end analysis and its result are completely different.

Family Decision Making Model

In a family decision-making model, it is important to understand how the family
members interact with each other in the context of their consumer decision-making.
There are different consumption roles played by various members of the family. These
roles are as follows:
(i) Influencers
The members who influence the purchase of the product by providing information to the
family members, the son in a family may inform the members of a new fast food joint.
He can influence the family members to visit the joint for food and entertainment.
(ii) Gate keepers
These members control the flow of information for a product or brand that they favour
and influence the family to buy the product of their choice. They provide the information
favourable to themselves and, withhold information about other product which they do
not favour.
(iii) Deciders
These are the people who have the power or, money and authority to buy. They play a
major role in deciding which product to buy.
(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the house etc. Father
buying crayons for his children.
Preparers
Those who prepare the product in the form it is actually consumed. Mother preparing
food by adding ingredients to the raw vegetable. Frying an egg for consumption, sewing
clothes for the family, etc.
User
The person who actually uses or consumes the product. The product can be consumed
individually or jointly by all members of the family. Use of car by the family, use of
refrigerator,TV, etc.
The roles that the family members play are different from product to product. Some
products do not involve the influence of family members vegetables bought by the house
wife.
She can play many roles of a decider, preparer as well as the user. In limited problem
solving or extensive problem solving there is usually a joint decision by family members.
The diagram shows the predisposition of various family members, which when influenced by
other factors leads to joint or individual decisions. These factors are shown in the diagram and
consist of social class, lifestyle, role orientation, family life-cycle stage, perceived risk, product
importance and time pressure.