Chapter 06 - The American Society: Families and Households

Consumer Behavior Building Marketing Strategy 12th Edition

Hawkins

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Chapter 06 - The American Society: Families and Households

Instructor’s Manual by:

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&
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© 2013 McGraw-Hill Companies, Inc.

Chapter 06 - The American Society: Families and Households

Chapter 06
The American Society:
Families and Households

LEARNING OBJECTIVES
LO1: Explain the concept of household types of households and their influence on
consumption
LO2: Summarize the household life cycle’s various stages and marketing implciations
LO3: Understand the family decision process
LO4: Describe the role that households play in child socialization
LO5: Explain the sources of ethical concern associated with marketing to children

SUMMARY

LO1: Explain the concept of household types of households and their influence on consumption
The household is the basic purchasing and consuming unit and is, therefore, of great importance to
marketing managers of most products. The family household consists of two or more related persons
living together in a dwelling unit. Nonfamily households are dwelling units occupied by one or more
unrelated individuals. Family households are a primary mechanism whereby cultural and social-class
values and behavior patterns are passed on to the next generation.

LO2: Summarize the household life cycle’s various stages and marketing implciations
The household life cycle is the classification of the household into stages through which it passes over
time based on the age and marital status of the adults and the presence and age of children. The
household life cycle is a valuable marketing tool because members within each stage or category face
similar consumption problems. Thus, they represent potential market segments.

The household life cycle/occupational category matrix is one useful way to use the HLC to develop
marketing strategy. One axis is the stages in the HLC, which determine the problems the household will
likely encounter; the other is a set of occupational categories, which provide a range of acceptable
solutions. Each cell represents a market segment.

LO3: Understand the family decision process

Family decision making involves consideration of questions such as who buys, who decides, and who
uses. Family decision making is complex and involves emotion and interpersonal relations as well as
product evaluation and acquisition. Household member participation in the decision process varies by
involvement with the specific product, role specialization, personal characteristics, and one’s culture and
subculture. Participation also varies by stage in the decision process. Most decisions are reached by
consensus. If not, a variety of conflict resolution strategies may be employed. Marketing managers must
analyze the household decision process separately for each product category within each target market.

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LO4: Describe the role that households play in child socialization

Consumer socialization deals with the processes by which young people (from birth until 18 years of
age) learn how to become consumers. Children’s learning abilities are limited at birth, then slowly evolve
with experience over time. Consumer socialization deals with the learning of consumer skills,
consumption-related preferences, and consumption-related attitudes. Families influence consumer
socialization through direct instrumental training, modeling, and mediation. Young consumers appear to
go through five stages of learning how to shop. This learning takes place primarily in retail outlets in
interaction with the parents.

LO5: Explain the sources of ethical concern associated with marketing to children
Marketing to children is fraught with ethical issues. The main source of ethical concern is the limited
ability of children to process information and make sound purchase decisions or requests. There are also
concerns about the role of advertising in forming children’s values, influencing their diets, and causing
family conflict. However, ethical and effective marketing programs can be developed for children.

LECTURE TIPS AND AIDS

1) One good way to start the lecture on the household is to drive home the basic importance of the
household to marketing managers. Although it seems to be completely obvious, students need to be
reminded that in our society almost everyone is intimately involved with family and nonfamily
households. You might point out that even individual purchases, say a pair of jogging shoes, has
household implications because their purchase means that there is that much less for something else
the household wants or needs.
2) The use of the HLC, particularly in conjunction with other variables, should be emphasized in
lecture. Work through an example with students using Table 6-2.
3) It may be helpful to start this lecture off by asking students for examples of products where the actual
purchaser of the product differs from the user within a household. Men's cologne, for example, is
purchased primarily by women. In many households this is also true of men's clothing (although this
is a changing phenomenon). Therefore, a great deal of marketing effort has to be directed toward
nonusers of the product who are the purchasers.
4) Table 6-2 is very powerful. I had a colleague who ran most of his course in consumer behavior and a
successful consulting practice around this table. It is simple, does not require sophisticated analyses,
and yet is predictive and rich in strategy insights. I strongly suggest you have your students work
with it.
5) Use Student Handout 1 to direct a discussion of consumer socialization.
6) Assign and/or prepare one or more of the CB PRESS HIGHLIGHTS articles for class discussion.
The searchable CB Press Highlights Database can be found on the Instructor Online Learning Center
at www.mhhe.com/hawkins12e.
7) Build a recent news story or commercial into your PowerPoints. The searchable Video and
Commercial Links Database can be found on the Instructor Online Learning Center at
www.mhhe.com/hawkins12e.

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Student Handout 1: Consumer Socialization and Birthday Parties

A study of birthday parties for children aged three to five revealed that the mothers used the situation to
(1) teach children how to plan a party, (2) indicate approval or disapproval of certain themes (e.g.,
Barbie, Ninja Turtles), (3) teach sharing and other positive values, and (4) instill social skills. The
following examples indicate the instrumental nature of the process.
Planning Skills
 She was involved in choosing some of the little prizes and the cake. We took her with us when we
went to the store... that has a bakery and they make these birthday cakes on various themes .... [She]
was allowed to choose which one.
 He was pretty involved . . . he knew what he wanted on his cake ....I knew that if I just went and got
something and he knew how he wanted it, it just did not work. So we did a lot together.
Theme Approval
 [Explaining why she would not let her son have a commercial theme at his party.] It is not so much
the money but the values I have about it ...but I have to explain to Carl that we decided to do it this
way because we think birthdays are very special, but we celebrate them differently than other people
. . . that’s what we think is important that is the lesson we try to show.
 We don’t encourage [Jake] to be into Ninja Turtles . . . in fact we discourage him. [When he
requested a Ninja Turtle theme for his party] I was fighting it all the way ....I think I gave him some
other options. I think they are too aggressive.
Positive Values
 [I use] outdoor games . . . something where everybody wins. [In a treasure hunt] they all got in like
one big cohort, and they all helped each other ....It was really nice, they really liked it, and everyone
got a prize in the end.
 [My daughter] has a class with 9 or 10 girls and I made it very clear that if it was a big group, we’d
invite all of the girls even if we had to sacrifice. Rather than exclude three or four. It has been very
hurtful to her in the last year where, you know, the majority is invited and a few are excluded.
Social Skills
 I am petrified they are going to say something like, “Hey, I already have this.” My eight-year-old
would never do this because he knows I’ll take all his toys and give them to the Salvation Army if I
find out....With the four-year-old, I worry.
 I think [birthday parties] should teach them to be good .... I’ve always emphasized the importance of
thank-you notes.

Source: Otnes, M. Nelson, and M. A. McGrath, “The Children’s Birthday Party,” in Advances in Consumer
Research, vol. 22, eds. F. R. Kardes and M. Sujan (Provo, UT: Association for Consumer Research, 1995), pp. 622–
27.

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INTERNET EXERCISES
BE SURE TO CHECK THESE SITES BEFORE ASSIGNING THESE PROBLEMS. WEBSITES CAN
AND DO CHANGE, SUCH THAT SOME SITES MAY NO LONGER EXIST OR CONTAIN THE
DATA NEEDED TO ANSWER THE QUESTION.

1) Prepare a report on the information available on the Internet concerning the percent of the U.S.
population that is in each stage of the household life cycle Provide the addresses for all sites used.
Although there is much data for free from the Census site (www.census.gov), including household
occupancy characteristics, the specific data tables which would enable students to complete the
Figure 6-2 grid to its completion is not accessible for free. This can be quite frustrating and is a good
representation of how much of this data has become a “for sale” item.
2) Search Canadian government Websites and compare the U.S. Census household definitions with
those of the Canadian government. Which country seems to be best adapting to the evolution of
household structures?
In short, it appears Canada is adapting more quickly to the ever-changing makeup of households.
Students will quickly realize the differences that exist in language and approach toward defining a
given population between the two countries. One website that provides a vast amount of information
relative to Canada and how it defines its population is www.statcan.ca.
As of its last census in 2006, the Canadian government differentiates between a family household
and a non-family household structure. The family household includes married couples, common law
couples (this includes both opposite sex and same sex couples), and single.
3) Visit the Federal Trade Commission (www.ftc.gov) and Better Business Bureau (www.bbb.org) sites.
What ethical and legal issues involving marketing to children appear?
Each site needs to be scanned to see what is currently on their agendas.
4) Visit one of the sites listed below. Evaluate the effectiveness of the site in terms of marketing to
children and the degree to which it represents an ethically sound approach to marketing to children.
a) www.kelloggs.com
b) www.fritolay.com
c) www.warnerbros.com
d) www.crayola.com
e) www.nabisco.com
f) www.barbie.com
These sites change rapidly. When visited in 2008, some of the sites were targeting both children and
parents. Students may use various criteria in evaluating effectiveness including age-appropriate
tactics and so on. Ethical considerations might be judged by considering the typical age of the target
segments and examining the marketing efforts as a function of Piaget’s stages of cognitive
development.

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5) Visit one of the sites listed below. Evaluate the effectiveness of the site in terms of marketing to
children and the degree to which it represents an ethically sound approach to marketing to children.
What ages is it best suited for?
a) www.kids.gov
b) www.pbskids.org
c) www.disney.com
d) www.nick.com
e) www.cartoonnetwork.com
f) www.mtv.com
These sites change rapidly. As was true in question #4, students may use various criteria in
evaluating effectiveness including age-appropriate tactics and so on. Ethical considerations might be
judged by considering the typical age of the target segments and examining the marketing efforts as a
function of Piaget’s stages of cognitive development. Clearly some sites target older children and
students can be asked how these sites differ from the others in terms of the marketing used.
6) Find and describe two sites targeting children under six. What is your evaluation of these sites?
Many of the sites targeted at children under six are educational in nature. These sites are most often
targeted at children of all ages, not specifically at those under six. An example of this type of site is
www.pbskids.org. Sites such as these are generally designed to be used by a parent and a child.
However, targeting younger children can have its pitfalls. Students should be encouraged to think of
the ethical and public relations aspects of targeting younger children and to what extent parent
involvement helps. Barbie has a social network site (Barbie Girls) aimed at young girls (not clear
just how young, though reading and writing required). Have students consider this site from a
parental point of view. What are the PR risks involved? What are the marketing benefits? A source
of information about what appeals to children at different stages in an online context is C. Bennet,
“Keeping Up With Kids,” Young Consumer, 7 (3), 2006, p. 28.

DDB LIFE STYLE STUDYTM DATA ANALYSES

NOTE: OUR RULE WAS TO LOOK FOR 10% + DIFFERENCES. WHEN THIS WASN’T
PRACTICAL FOR AN OUTCOME VARIABLE WE LOOKED FOR THE “HIGH” CATEGORY TO
BE ROUGHLY TWICE THE “LOW.” OBVIOUSLY OTHER RULES COULD BE USED.
NOTE: FOR FEMALE SPOUSE’S WORK LEVEL, WE DISREGARDED THE CATEGORY “FULL-
TIME HOMEMAKER” DUE TO THE EXTREMELY SMALL (N = 5) SAMPLE.
GENERAL NOTE: Answers to the “why” questions below linking specific demographics to behaviors
and attitudes may include: Household size can relate to greater demand and different HLC stages;
marital status can relate to differences in HLC stage, purchase power, lifestyle, and age; number of
children at home can relate to HLC stage, purchase power, lifestyle, traditional gender roles, and
increased emphasis on family.

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1) Using the data in Table 1A examine which of the following vary the most by household size. Why is
this the case?
a) Heavier user (general, consumption, and shopping)
Low High
Visited fastfood restaurant 1 (46.6) 6+ (74.7)
Rented a DVD 1 (7.5) 6+ (22.9)
Attended church/ place of worship 2 (38.4) 6+ (54.8)
Chocolate bars 1 (22.9) 6+ (35.7)
Premium icecream 1 (4.7) 6+ (15.9)
Shopped at a convenience store 1 (25.3) 6+ (41.2)
Purchased items for home at discount retailer 1 (16.5) 3-5 (30.5)

b) Product ownership
Low High
DVD 1 (49.0) 6+ (88.5)
Personal computer 1 (46.4) 3-5 (71.2)
Cellular phone 1 (56.9) 3-5 (82.4)
Individual retirement account 6+ (24.0) 2 (40.1)
Car 1 (72.5) 2 (86.4)
Home 1 (58.5) 2 (74.0), 3-5 (74.0)
Dog 1 (26.3) 3-5 (47.9)
Cat 1 (27.4) 3-5 (38.4)

c) Types of TV shows watched

Low High
Children’s shows 1 (6.5) 6+ (41.4)
Home improvement 1 (35.4) 3-5 (46.3)
Weather 6+ (49.6) 1 (59.1)

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2) Repeat Question 1 for marital status?

a) Heavier user (general, consumption, and shopping)
Low High
Visited gourmet coffee bar or Widowed (0.9) Single (never married)
cafe (12.6)
Visited fastfood restaurant Widowed (34.1) Single (never married)
(66.3)
Worked in the garden Separated (10.5) Married (21.7)
Jogged Separated (1.3) Single (never married)
(10.2)
Rented a DVD Widowed (1.4) Single (never married)
(22.4)
Attended church/ place of Single (never married) 29.5) Widowed (53.4)
worship
Chocolate bars Widowed (22.5) Separated (38.2)
Shopped at a convenience store Widowed (12.9) Separated (40.0)
Purchased items for home at Widowed (12.3) Single (never married)
discount retailer (30.3)
Bought a store’s own brand Separated (40.0) Married (54.3)
Used a price coupon Separated (38.7) Married (48.9)

b) Product ownership
Low High
DVD Widowed (34.5) Married (77.0)
Personal computer Widowed (32.0) Married (71.4)
Cellular phone Widowed (46.4) Married (80.1)
Individual retirement account Separated (22.9) Married (40.6)
Car Separated (69.6) Married (86.9)
Home Single (never married) (44.9) Married (79.8)
Dog Single (never married) (31.7) Married (45.1)

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c) Types of TV shows watched

Low High
Children’s shows Widowed (6.9) Separated (35.1)
Comedy Widowed (58.3) Single (never married) (78.7)
Home improvement Widowed (33.3) Married (46.2)
News/political Separated (41.6) Widowed (58.8)
Religious programming Married (12.7) Widowed (23.6)
Sports Widowed (35.7) Married (48.0)
Weather Separated (46.8) Widowed (73.6)

3) Repeat Question 1 for number of children at home.

a) Heavier user (general, consumption, and shopping)
Low High
Visited fastfood restaurant 0 (51.8) 2-3 (72.7)
Rented a DVD 0 (11.8) 2-3 (22.9)
Attended church/place of worship 1 (39.4) 4+ (61.5)
Dessert 1 (14.0) 4+ (25.9)
Chocolate bars 0 (23.0) 4+ (39.7)
Shopped at a convenience store 0 (27.7) 4+ (40.0)
Purchased items for home at discount retailer 0 (22.0) 2-3 (31.3)

b) Product ownership
Low High
DVD 0 (63.2) 2-3 (85.8)
Personal computer 4+ (58.0) 2-3 (71.3)
Cellular phone 0 (70.1) 2-3 (82.0)
Home 4+ (61.1) 2-3 (74.9)
Dog 4+ (31.9) 2-3 (47.8)
Cat 4+ (24.7) 2-3 (39.3)

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c) Types of TV shows watched

Low High
Children’s shows 0 (7.0) 2-3 (41.8)
Comedy 4+ (56.8) 1 (75.6)
Religious programming 1 (12.9) 4+ (26.1)

4) Using the data in Table 1B examine the relationship between number of children at home with each
of the following statements. For each explain the possible underlying cause(s).
a) Religion is a big part of my life.
b) When making family decisions, consideration of the kids comes first.
c) Willing to pay more for better service.
d) Our family is in too much debt.

Number of Children at Home

Statement 0 1 2-3 4+

a) Religion is a big part of my life 52.2 51.7 55.2 72.4

b) When making family decision, consideration of the 34.5 47.0 51.4 54.0
kids comes first

c) Willing to pay more for better service 34.3 34.3 32.9 34.5

d) Our family is in too much debt 21.2 29.9 32.9 34.2

REVIEW QUESTIONS
1) The household is described as “the basic consumption unit for consumer goods.’’ Why?
Household units, not individuals, consume most consumer products. Additionally, the consumption
patterns of individual household members are seldom independent of the other household members.
2) What is a traditional family? Can a single-parent family be a nuclear family?
The traditional family refers to a married couple and their own or adopted children living at home.
The single-parent family is a variation of the traditional family.
3) How does a nonfamily household differ from a family household?
A family household consists of at least two members related by birth, marriage, or adoption, one of
who is the householder (householder owns or rents the residence). A nonfamily household is a
householder living alone or exclusively with others to whom he or she is not related.

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4) Describe the multigenerational family?

A family household containing (a) at least two adult generations, or (b) a grandparent and at
least one other generation.
5) How has the distribution of household types in the United States been changing? What are the
implications of these shifts?
Table 6-1 provides a good breakdown of the types of households. There is a trend toward smaller and
nonfamily households with continued growth in the number of households. In addition, there is an
increasing number of singles as a result of delayed marriage as well as in sole survivors of the 65 and
over population. This means that smaller sizes of many products will be important. The single-parent
households will need products and services to support their demanding lifestyles.
6) What is meant by the household life cycle?
The HLC is the classification of a household into stages over time based on adult age, marital status,
and the presence and age of children.
7) What is meant by the following statement: “Each stage in the household life cycle poses a series of
problems that household decision makers must solve’’?
Marital status and the presence and age of child place requirements on households such as the need
for particular types of recreation, shelter, food, and so forth. Many of these problems are resolved by
purchasing products and services.
8) Describe the general characteristics of each of the stages in the household life cycle.
a. Single I: (Under 35) live alone or, more typically, with parents or with others they are not
related to. The younger members of this group have limited incomes but limited expenses;
those who are older tend to have more disposable income.
b. Young Couples, No Children: young couples (under 35) both generally working and are
relatively affluent.
c. Full Nest I: married couples (under 35) with young children. Wife often does not work
resulting in a decrease in family income.
d. Single Parent I: single parents (under 35) living with one or more young children. Generally a
female head of house hold. Time and finances are scarce. However, as many as 40 percent
may be from cohabitating unmarried parents.
e. Middle-aged Single: (35-64) live alone or sometimes with others they are not related to, high
income to expense ratio.
f. Empty Nest I: middle-aged (35-64) couples with no children living at home. Most have dual
careers with busy lifestyles, but have free time and the money to spend on expensive
vacations, second homes, luxury care, and time saving services.
g. Delayed Full Nest I: middle aged couples (35-64) with young children living at home. This
group has significantly more income than the younger new parents.

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h. Full Nest II: middle-aged (35-64) parents with children living at home. The children in this
group are older and more independent, thus with different consumption needs, such as
additional cars and more living space.
i. Single Parent II: middle-aged (35-64) single parents with child/children living with them. This
group often faces serious financial pressures. However, choosing to have children (adoption
or conception) is increasingly viewed as a lifestyle choice for older, more financially secure
women.
j. Empty Nest II: older couples over 64 without children living in their household. This group
has ample time on their hands.
k. Older Single: older adults (over 64) living alone or with another person not related to them,
creating unique needs for housing, socialization, travel, and recreation.
9) Describe the HLC/Occupational Category matrix. What is the logic for this matrix?
Table 6-2 outlines the different stages of the household life cycle and different occupational
categories. Each cell represents unique combinations that correspond to unique household needs. The
theory is that the stages of the HLC pose problems, while occupation, income, education, or social
class provides a range of acceptable solutions. One could apply the matrix to automobiles or
vacations to illustrate its influences in understanding household needs.
10) What is meant by family decision making? How can different members of the household be involved
with different stages of the decision process?
Decision making about consumption that involves all or part of the household (i.e., more than one
household member). Different members become involved at different stages because of degree of
involvement with the product, and so forth. They usually focus on different product attributes. For
example a child may recognize the need for a new computer, both parents may join the child in
gathering information, the child may “insist” on certain features, the parents may set price limits and
select the store and brand. Each family member may use it for different reasons.
11) How does family decision making differ from most organizational decision making?
Organizations have relatively objective criteria such as profit maximization which guide purchases.
Families lack such explicit, over-arching goals. Most industrial purchases are made by strangers or
have little impact on those not involved in the purchase. Most family purchases directly impact the
other members of the family. Most importantly, many family purchases are inherently emotional and
affect the relationships between the family members. The decision to buy a child a requested toy or
new school clothes is more than simply an acquisition. It is a symbol of love and commitment to the
child. The decision to take the family to a restaurant for a meal or to purchase a new television has
emotional meaning to the other family members. Disagreements about how to spend money are a
major cause of marital discord. The processes families use to make purchase decisions and the
outcomes of those processes have important impacts on the well-being of the individual family
members and the family itself.
12) The text states that the marketing manager must analyze the family decision-making process
separately within each target market and for each product. Why?
First, household members make specific sub-decisions or evaluations within the overall decision and
this varies by product category and by household characteristics such as stage in the HLC, subculture
membership, and demographics. Thus, who within a household makes which decisions with respect
to a purchase depends on the product and the characteristics of the household.

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13) What factors influence involvement of a household member in a purchase decision?

How family members 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 the personal characteristics of the family
members. Relative income of spouses has emerged as an important determinant of who is the
dominant decision maker for major household purchases and finances.

14) How do family members attempt to resolve conflict over purchase decisions?
A recent study revealed six basic approaches that individuals use to resolve purchase conflicts after
they have arisen (most couples generally seek to avoid open conflicts): (1) Bargaining: trying reach a
compromise; (2) Impression management: misrepresenting the facts in order to win; (3) Use of
authority: claiming superior expertise or role appropriateness (the husband/wife should make such
decisions); (4) Reasoning: using logical argument to win; (5) Playing on emotion: using the silent
treatment or withdrawing from the discussion; and/or (6) Additional information: getting additional
data or a third party opinion. While this study did not include children, it seems likely that they
would use the same set of strategies.
15) What is consumer socialization? How is knowledge of it useful to marketing managers?
Consumer socialization is the process by which young people acquire skills, knowledge, and attitudes
relevant to their functioning as consumers in the marketplace. The role marketing plays in shaping
the socialization of young consumers is important to both public officials and marketers. There is a
fine line between what is effective marketing and potentially harmful influence on young children
during their socialization.
16) What are Piaget’s stages of cognitive development?
There are four stages: (1) the period of sensori-motor intelligence (ages 0-2) - primarily motor
behavior, (2) the period of preoperational thought ages (2-7) - development of language and rapid
growth in conceptual capabilities, (3) the period of concrete operations (ages 7-11) - able to apply
logical thought to concrete problems, and (4) the period of formal operations (ages 12-15) - able to
apply abstract logic.
17) What do we mean when we say that children learn consumer skills, consumption-related attitudes,
and consumptions-related preferences?
Consumer skills are those capabilities necessary for purchases to occur such as understanding money,
budgeting, product evaluation, etc.
Consumption-related preferences are the knowledge, attitudes, and values that cause people to attach
differential evaluations to products, brands, and retail outlets.
Consumption-related attitudes are cognitive and affective orientations toward marketplace stimuli
such as advertisements, salespeople, warranties, etc.
So, directly relevant behavior relates to learning necessary skills that involve shopping, buying,
budgeting, evaluating, etc. Children also learn indirectly relevant behavior that relates to their
attitudes, preferences, and values. This may lead them to prefer a prestigious brand (e.g., Calvin
Klein) because it represents a certain status association they have learned.

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18) What processes do parents use to teach children to be consumers?

Children learn about becoming consumers from their parents, friends, classmates, and the media.
While many parents provide explicit instructions to the children related to consumption (instrumental
training and mediation), most learning probably involves observing one’s parents and/or siblings
behaviors (modeling).
19) Describe each of the five stages children go through as they learn to shop at stores.
Stage I: Observing. Parents begin taking children to the store with them at a median age of 2 months.
During this stage, children make sensory contact with the market place and begin forming mental
images of marketplace objects and symbols. In the early months, only sights and sounds are being
processed. However, by 12 to 15 months, most children can begin to recall some of these items. This
stage ends when children understand that a visit to the market may produce rewards beyond the
stimulation caused by the environment.
Stage II: Making Requests. At this stage (median age is two years), children begin requesting items
in the store from their parents. They use pointing and gesturing as well as statements to indicate that
they want an item. Throughout most of this stage, children make requests only when the item is
physically present, as they do not yet carry mental images of the products in their minds. In the latter
months of stage II, they begin to make requests for items at home, particularly when they are seen on
television.
Stage III: Making Selections. Actually getting an item off the shelf without assistance is the first act
of an independent consumer (median age is three and a half years). At its simplest level, a child’s
desire is triggered by an item in his or her immediate presence and this item is selected. Soon,
however, children begin to remember the store location of desirable items, and they are allowed to go
to those areas independently or to lead the parent there.
Stage IV: Making Assisted Purchases. Most children learn by observing (modeling) that money needs
to be given in order to get things from a store. They learn to value money given to them by their
parents and others as a means to acquire things. Soon they are allowed to select and pay for items
with their own money. They are now primary consumers (median age is five and a half years).
Stage V: Making a purchase without a parent to oversee it requires a fairly sophisticated
understanding of value as well as the ability to visit a store, or a section of a store, safely without a
parent. Most children remain in stage IV a long time before their parents allow them to move into
stage V (median age is eight years).
20) What ethical issues arise in marketing to children?
The major issue focuses on the limited ability of younger children to process information and to
make informed purchase decisions. There are also concerns that marketing activities, particularly
advertising, produces undesirable values in children, results in inappropriate diets, and causes
unhealthy levels of family conflict.

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Chapter 06 - The American Society: Families and Households

DISCUSSION QUESTIONS
21) Respond to the questions in Consumer Insight 6-1.
Whether or not the growth slows substantially will depend on the countervailing cultural factors
listed. It seems possible that ongoing immigration, delay in marriage, and sense of obligation for
elder care will continue to drive this trend. The opportunities seem to cut across any household
purchases where one or more family members are affected so this should be a great question to
generate class discussion. The challenges are also there. Marketers have likely been conditioned to
think about households as much more homogenous. Multiple generations under one roof mean
changes in who is influencing, deciding, buying, and paying for purchases. It also means that
targeting such households will be more challenging since there will be considerably more variation in
tastes, preferences, and lifestyle within the same household.
22) Canada has legislation giving cohabiting couples who have been living together for one year or more
the same federal rights and responsibilities as married couples. Should the United States have similar
legislation?
This issue will be based fundamentally on the beliefs and values of the students in class. In order to
stimulate discussion you may have students discuss the rights and responsibilities of married couples
in the U.S. Push students to consider the impact of similar legislation on the American society.
23) Rate the stages of the household life cycle in terms of their probable purchase of the following.
Justify your answers.
a) Designer jeans d) Breakfast bars
b) Trip to Cancun e) Contributions to SPCA
c) Diapers f) Golf clubs
a b c d e f
Stage of HLC
Single I 5 5 1 5 1 3
Young couples 5 5 1 2 2 2
Full nest I 2 2 5 5 3 1
Single parent I 1 1 5 2 1 1
Middle-aged single 5 2 1 5 5 5
Empty nest I 3 5 1 4 5 4
Delayed full nest I 2 1 4 3 3 2
Full nest II 2 3 2 2 5 4
Single parent II 1 1 2 4 3 2
Empty nest II 2 5 1 5 4 4
Older Single 1 2 1 5 4 5

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Chapter 06 - The American Society: Families and Households

1 = Very low probability of buying item, to 5 = Very high probability.

These are the subjective feelings of the authors; and your class should challenge them.
24) Pick two stages in the household life cycle. Describe how your marketing strategy for the
following would differ depending on which group was your primary target market.
a) Minivan c) Broadway show
b) Razors d) Casino
For each product and HLC stage mentioned, the marketer would have to stress the benefits
generally sought. For example, a minivan targeted at the full nest I should stress roominess,
safety, and value-for-the-money benefits.
A useful approach is to have teams of two or three students prepare and present a marketing
strategy of one of the products for one stage of the HLC. Different teams are assigned
different stages. After the presentations, discussion focuses on the reasons for any differences
across the strategies targeting the various stages.
25) Do you think the trend toward nonfamily households will continue? Justify your response.
Table 6-1 summarizes the size of the family and nonfamily households. As indicated in the
text the traditional family has declined over time. The class can discuss the various causes
for this shift, e.g., divorce, life expectancy, and preferences for living alone or with a
companion. The aging of society, increased evidence of the benefits of families for the
individuals involved, and a shift toward more conservative social attitudes suggests that this
trend may not continue.
26) What are the primary marketing implications of Table 6-1?
Both family and non-family households are important considerations for marketers, which in
some instances changes the demand for many products and services. For example, many
residential developers plan their communities with diversified family needs in mind, i.e.,
offering various sized homes with several layout and spacing options such as separate living
areas for teens or older relatives.
27) How would the marketing strategies for the following differ by stage of the HLC (assume
each stage is the target market)?
a) Cell phone d) Children’s toys
b) Scuba gear e) Detergent
c) Power tools f) Colleges
Assign either individual students or small groups a stage of the HLC and have them prepare
and present a marketing strategy for one of the products. Their strategies should include a
product position and the appropriate marketing mix (product, price, promotion, and place).
Discussion should then focus on the reasons for the strategy differences across the HLC
stages. Then challenge the students to develop a core strategy that will work for all or most
of the segments.
28) What are the marketing implications of Figure 6-4?
Women are increasingly the more educated and higher-earning partner in marriages. This is
influencing decision making such that wife-dominated decisions are more common when a

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Chapter 06 - The American Society: Families and Households

wife earns more than her husband. Traditional views of who controls the finances and
spending in a family need to be challenged and examined in marketing research specific to
the product or service being marketed.
29) What type of the following would be best suited for each cell in Table 6-2?
a) Hotel c) Restaurant for the entire household
b) Television d) Lawn mower
program
Have the students speculate on the level of consumption, brands/activities consumed, reasons for
consumption, and appropriate marketing strategies for each cell. For example, while many full
nest I families have lawns to mow, decisions about whether to buy a lawn mower or hire a service
will be affected by occupation (executive probably more likely to hire service). Decision about
brand and price level would also likely be affected by occupation level which is influenced by
income, education, and influences lifestyle.
30) Name two products for which the horizontal axis in Table 6-2 should be the following. Justify
your response.
a) Occupational category c) Education
b) Income d) Social class
Having different students work on different HLC stages and then present brief reports can
produce interesting insights and discussion on the interaction of factors like income, education,
and occupation and HLC influences.
31) How can a marketer use knowledge of how family members seek to resolve conflicts?
Understanding what causes conflicts can lead to products and communications strategies that are
designed to minimize their occurrence. Knowing how they may be resolved can help marketers
design promotional campaigns and train sales personnel in a manner that will increase the
likelihood that the resolution will result in a purchase.
32) Describe a recent family purchase in which you were involved. Use this as a basis for
completing Table 6-3 for a marketer attempting to influence that decision.
Students should recognize and discuss the key household influences and their motivation at
different stages of the decision process. For example, consider the decision to purchase a
personal computer for a child:

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Chapter 06 - The American Society: Families and Households

Stage of Decision Household Motivation and Interest

Process Member
Problem Parents Help children educationally
recognition
Child Computer
games/Internet/homework
Information search Parents Minimize costs for needed
features
Alternative Family Cost versus features
evaluation
Purchase Parents Price and terms
Use/consumption Child Play computer games, access
Internet, do homework
Disposition Parents Who to sell/give to
Evaluation Parents Did child use it/learn
Child Was it fun/useful

33) Describe four types of activities or situations in which direct instrumental training is likely to
occur.
This would most commonly involve high involvement products or products that directly affect
children's health and safety such as expensive toys, snacks, pets, and restaurant meals.
34) Describe four types of activities or situations in which modeling is likely to occur.
This would involve activities adults perform in front of children without thinking about their
influence on the children such as smoking, consuming alcohol, shaving, eating breakfast, and so
forth.
35) Describe four types of activities or situations in which mediation is likely to occur.
This would most commonly involve high involvement products or products that directly affect
children's health and safety such as expensive toys, snacks, pets, and restaurant meals.

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Chapter 06 - The American Society: Families and Households

36) Respond to the questions in Consumer Insight 6-2.

This can initiate some fruitful class discussion, as many students will most probably see
themselves as being the Teen Internet Maven in their household before going off to college. In
general, as the level of parental online savvy increases, the overall power level of the teen family
member will diminish. The parents are more able and confident in searching out their own
information and answering their own questions; thus making them less reliant on their teen’s
expertise. However, if the decision involves a product or service that will be shared by the whole
family, many parents take an active and whole-hearted approach toward including all members in
portions of the decision process. Marketers must be able to provide information accessible and
valued by all members including the teen Internet mavens, including ads targeted specifically
toward this group.
37) Are Piaget’s stages of cognitive development consistent with the five stages of learning to shop
that McNeal identified?
They are quite consistent. The big difference is that McNeal’s work indicates the wide variation
in the age at which children acquire different capabilities while Piaget’s theory is often
interpreted to have fairly fixed time periods.

Part V 6-18