Summary chapter 8 : Social class and household influences

The family

Construc)ng and deconstruc)ng the family

Individual decision making is different when the need affects a whole family.

The conceptualiza/on of family is based on IDEOLOGY, POPULAR MYTHOLOGY and CONVENTIONS that are
firmly rooted in each country’s historical, poli)cal, religious, economic and cultural tradi)ons.
= As tradi)onal family living arrangements have declined, people are placing even greater emphasis on
the role of siblings, close friends and other rela)ves to provide companionship and social support.

Defining the modern family

Families changed from:

• A model of EXTENDED FAMILY (three genera)ons living together and oTen included not only the
grandparents, but aunts, uncles and cousins)
• To a model of a NUCLEAR FAMILY (a mother, a father and one more children (perhaps with a dog).

Þ The family is defined as: “The persons within a private or ins)tu)onal household who are related as
husband and wife or as parent and never-married child by blood or adop)on”.

A family household is more BROADLY defined as a ‘shared residence and common housekeeping arrangement”.

Non-tradi+onal family structures

The European Community Household Panel regards any occupied housing unit as a household, regardless of the
rela)onships between people living there.
→1 person living alone
→3 room-mates
→2 lovers
à all cons)tute households.

Changes in consumers’ family structures, such as cohabita/on, delayed marriage and delayed Effects of family
structure on consump/on childbirth, the return of mothers to the workforce and the upheaval caused by
divorced, oTen REPRESENT OPPORTUNITIES FOR MARKETERS.

The family lifecycle

The concept of the family life cycle (FLC) has been widely used by marketers. The FLC combines trends in
income and family composi)on with the changes in demands placed upon this income.

In many cases, our income levels tend to rise (at least un)l re)rement), so that we can afford more as well.

A lifecycle approach to the study of the family assumes that pivotal events alter role rela)onships and trigger
new stages of life that modify our priori)es.

Marital status must be relaxed to include any couple living together who are in a long-term rela)onship.
Thus, while roommates might not be considered ‘married’, a man and a woman who have established a
household would be, as would two gay men or women who have a similar understanding.

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The in,mate corpora,on: Family DM

The decision-making process within a household unit in some ways resembles a business conference.

Sex roles and decision-making responsibili)es

IDENTIFYING THE DECISION-MAKER

Researchers have paid special aaen)on to which spouse plays the role of what has been called the Family
Financial Officer (FFO), who keeps track of the family’s bills and decides how any surplus funds will be spent.

This role tends to be played jointly, and then, over )me, one spouse or the other tends to take over these
responsibili)es.

4 factors appear to determine the degree to which decisions will be made jointly or by one or other spouse:

Women are s)ll primarily responsible for the con)nua)on of the family’s kin network system: coordina)ng
visits among rela)ves, phoning and wri)ng to family members, sending gree)ng cards, making social
engagements...

Heuris)cs in joint decision-making

Spousal decision-making is oTen characterised by theuse of influence or methods that are likely to reduce
conflict.
This process has been described as ‘muddling through’.

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Children as DM: Consumer-in-trainig

PARENTAL YIELDING: It occurs when a parental decision maker is influenced by a child’s request and
‘surrenders’.

The strategies children use to request purchases were documented in one study.
- While most children simply asked for things, other common tac)cs included saying they had seen it on
television, saying that a sibling or friend had it or burglarizing it.
- Other less innocuous ac)ons are placing the object in the trolley and con)nuous whining-oTen a
‘persuasive’ behavior.

Consumer socializa/on
Consumer socializa)on has been defined as the process ‘by which young people acquire skills, knowledge,
and aitudes relevant to their func)oning in the marketplace’.

Sex-role socializa/on
Some toy companies perpetuate the stereotype of boy and girl by promo)ng gender-linked toys with
commercials that reinforce sex-role expecta)ons through their cas)ng, emo)onal tone and copy.

Cogni/ve development
The ability of children to make mature, ‘adult’ consumer decisions obviously increase with age. Children can be
segmented by age in terms of their stage of cogni)ve development, or ability to comprehend concepts of
increasing complexity.

Age and consumer iden,ty

Cogni/ve development: The era in which a consumer grows up creates for that person a cultural bond with the
millions of others born during the same )me period.
Þ As we grow older, our needs and preferences change, oTen in unison with others who are close to
our own age.
o For this reason, a consumer’s age exerts a significant influence on their iden)ty.

Age cohorts: ‘my genera/on’

An age cohort consists of people of similar ages who have undergone similar experiences.

The appeal of nostalgia

Because consumers within an age group confront crucial life changes at roughly the same )me, the values and
symbolism used to appeal to them can evoke powerful feelings of nostalgia.

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The teen market: it totally rules

ADOLESCENCE : Can be the best and the worst of )me. They cannot understand themself. Therefore, they try to
look for informa)on. In order to behave and look as everyone by looking at adver)sing (vulnerable people)

Puberty & adolescence can be both the best of )mes and the worst of )mes. Many exci)ng changes happen.

Genera,on X, Y, Z

Baby Boomers
The baby boomers (1946 - 1964) are the source of many fundamental cultural and economic changes. Þ The
reason: POWER IN NUMBERS.

The Grey Market → A lot of businesses are beginning to replace the old stereotype of the poor recluse.
Older adults have large amounts of discre)onary income, since they have paid off their mortgage and no longer
have the expense of raising and educa)ng children.

Perceived age: you are as old as you feel = Age is more a state of mind than of body.
A beaer yards)ck to categorize the elderly is perceived age, or how old a person feels.
For this reason, marketers emphasize product benefits rather than age appropriateness, since many consumers
will not relate to products targeted to their chronological age. Some authors talk about consumer iden/ty
renaissance: this refers to the redefini)on process people undergo when they re)re.

Segmen/ng seniors
The mature market has different sub-segments:
Some basic guidelines have been suggested for
effec)ve adver)sing to the elderly:
➔ Keep language simple
➔ Use clear, bright pictures
➔ Use ac)on to aaract aaen)on
➔ Speak clearly, and keep the word count low
➔ Use a single sales message, and emphasizes brand extensions to tap consumer’s familiarity

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The social power of groups

How other people influence on our purchase decisions?

Our desire to ‘fit in’ or to iden)fy with desirable individuals or groups is the primary mo)va)on for many of our
consump)on behaviors.

Social iden/ty theory: argues that each of us has several ‘selves’ that relate to groups. These linkages are so
important that we think of ourselves not just as ‘I’, but as ‘we’.

Why are groups so persuasive? SOCIAL POWER: Describes the capacity to alter the ac)ons of others. To the
degree to which you are able to make someone else do something, regardless of whether that person does it
willingly, you have power over that person.

1. Referent Power
Referent power is important to many marke)ng strategies because consumers voluntarily modify what they do
and buy in order to iden)fy with a referent. Some examples:

2. Informa/on power
A person possesses informa)on power simply because she know something other would like to know

3. Legi/mate power
Some)mes we grant power by virtue of social agreements, such as the authority we give to police officers,
soldiers, and even professors.

4. Expert Power
Marketers want to generate trust. Example: Stephen Hawking

5. Reward Power
A person or group with the means to provide posi)ve reinforcement has reward power.

6. Coercive Power
We exert coercive power when we influence someone because of social or physical in)mida)on.

Reference groups

A REFERENCE GROUP is an actual or imaginary individual or group conceived of having significant relevance
upon an individual’s evalua)ons, aspira)ons, or behaviour.

Reference groups influence consumers in 3 ways:

• Informa/onal: Consumers are likely to be influenced if the informa)on is perceived as enhancing their
knowledge of the environment or their ability to cope with some aspect of it. That is, if they believe it will
help them to achieve some goal, they will respond.

• U/litarian: Occurs when a person complies with perceived expecta)ons of what others want in order to
achieve rewards or avoid punishments. Product and/or brand purchases may be influenced.

• Value-expressive: Individuals can use reference groups to enhance or support their own self-concepts.
They may accept a reference group posi)on to bolster their self-concepts through associa)on with the
group, or to affiliate or associate with group members that represent desirable values

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When are reference groups important?

Reference group influences don’t work the same way for all types of products and consump)on ac)vi)es.

Reference group effects are more robust for purchases that are luxuries (yachts) rather than necessi)es
because: products that we buy using discre)onary income are subject to individual tastes and preferences

And socially conspicuous or visible to others (living room furniture, clothing...), because we do not tend to be
swayed as much by the opinions of others if no one but ourselves will ever see what we buy.
Þ Some people influence us simply because we feel similar to them.

Norma+ve influence = reference group helps to set and enforce fundamental standards of conduct.

Compara+ve influence = occurs when the reference group provides the means by which consumers compare
their beliefs, aitudes, and behavior.

Iden4fica4onal reference groups

How can we predict which people you know will become part of your iden+fica+onal membership reference
group? Several factors make it more likely:

PROPINQUITY:
➔As physical distance between people decreases and opportuni)es for interac)on increase, rela)onships are
more likely to form.

MERE EXPOSURE:
➔We come to like persons or things simply as a result of seeing them more oTen.

GROUP COHESIVENESS:
➔Refers to the degree to which members of a group are aaracted to each other and how much each values
their group membership.

Reference groups may exert either a posi/ve or a nega/ve influence on consump)on behaviours.
= Some)mes, we do the opposite if we want to distance ourselves from other people or groups who work as
avoidance or dissocia/ve groups.

When reference groups are important

People in larger groups tend to behave differently from individuals.

You may have observed that people some)mes behave more wildly at fancy dress par)es or partying than they
would normally do. This phenomenon is known as DEINDIVIDUATION.

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Conformity

Conformity
Refers to a change in beliefs or ac)ons as a reac)on to real or imagined group pressure.

Reasons for conformity → Conformity is not an automa)c process. Among the factors that affect the likelihood
of conformity are the following:

• Cultural pressures:
Different cultures encourage conformity to a greater or lesser degree.

• Fear of deviance
The individual may have reason to believe that the group will apply sanc)ons to punish non-
conforming behaviors.

• Commitment
The more people are dedicated to a group and value their membership in it, the more mo)vated they
are to do what the group wants.

• Group unanimity, size and exper/se

As groups gain in power, compliance increases. It is oTen harder to resist the demands of a large
number of people than just a few.

• Suscep/bility to interpersonal influence

This trait refers to an individual’s need to have others think highly of them.

• Environmental cues
A study reported that people are more likely to conform when they make decisions in a warm room.

Resistance to influence

➔ An/-conformity vs interdependence: in an)conformity, defiance of the group is the actual object of

behaviour. Independent people are oblivious to what is expected; they march to the beat of their own drum.

➔ Brand communi/es and consumer tribes: A brand is a set of consumers who share a set of social
rela)onships based upon usage of or interest in a product. Such brand communi)es can range from core
members of ‘social clubs’ or organisa)ons to ‘felt’ memberships of some imagined community.

Targe,ng your stakeholders

Demographic Variables
Birth rate, mortality, fer)lity, immigra)on, schooling rate, GDP, GDP per capita, life expectancy, HDI (Human
Development Index), etc ...

Socio-demographic Variables
Age, sex, race, sexual orienta)on, educa)on, income, size of the family nucleus, housing, etc ...

Psychographic Variables
Psychological, sociological and anthropological factors.

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