Role of Family in consumer decision making

Why is it
Important ?
⮚ Influential in consumption decisions

⮚ Influential in purchase decisions

⮚ Make several joint purchase decisions

⮚ Prime target market for goods and

services

⮚ It helps to devise our marketing strategies

 Family Lifecycle
(FLC)
• The family life cycle concept attempts to explain consumer
behaviour
patterns of individuals as they age, marry, have children and retire
Family Life-cycle Changes Over Life-Cycle
⮚ bachelor ⮚ financial situation
⮚ newly married, no kids
⮚ Product categories
⮚ young couple, kids < 6
considered
⮚ young couple, kids >6
⮚ interests
⮚ old couple
⮚ primary decision maker
⮚ working
⮚ retired ⮚ Free time
⮚ widow - working, not working
Role Behavior
Individual roles in family purchases
• Initiator: initiator of family thinking about buying products and
gathering information to aid decisions
• Influencer: individual whose opinions are sought concerning criteria and
which products or brands most likely to fit those criteria
• Decider: person with the financial authority or power to choose how
the family’s money will be spent on which products and brands
• Buyer: person who acts as the purchasing agent by visiting the store,
calling suppliers, writing checks, bringing products into the home and so
on
• User: person or persons who use the product
Buying a
car!!
 Identifying different
purchaser- consumer
relationships
• Who’s buying for whom?
• Who are the principal
characters?
• What’s the plot for the purchase?
• What can we assume?
Joint Decision Making

• When the level of perceived risk is high

• Purchase of High Involvement item

• When there are few or no time pressure

 Changing Roles of
Women
Marketing to Women
• Appealing to the “mother” category
• Different segments exist and they look at advertising,
the Internet, products, time, and brands differently
• Depending on career orientation, responsibilities in and out
of the home, time pressures, messages, and ads need to be
adapted
• Retailers can appeal to women with special services
or extended hours
 Example!
! women in a campaign to persuade
⮚Nivea For Men targeted
them of the benefits of buying male grooming products for
their partners.
⮚The company organized a six-month campaign targeting over
42,000 women with the purpose of educating them about their
partners' skincare habits and handing out samples.
⮚Results?
⮚55% purchased at least one Nivea For Men product, and 20%
purchased two or more products. 58% of men recommended
the product to their friends and family.
 Changing Masculine
Roles
• Roles of men in families are changing substantially as well
• Men are more involved in family functions and
household activities
• Men may buy items traditionally purchased by women
(groceries)
• Many men are achieving gender role transcendence and
use products previously seen as “feminine”
Children and Household
Consumer Behavior
 Children and
Household
• Consumer
Children change Behavior
dramatically how the family functions, in terms of
relationships, employment, and purchases
• Children reduce parents’ participation in the labor force, change how
families spend their money and reduce the amount of time and
money available for leisure
• Children influence about $1.88 trillion of purchases globally
each year
• Children exert direct influence over parental spending when they
request specific products and brands
• They exert indirect influence when parents buy products and brands
that they know children prefer without being asked or told to make
a specific purchase
 Advertising and
•
children
Children’s TV watching Behavior :
• Children ages 2-11 watch an average of
22 hours of TV per week and see 30,000 commercials per
year
• 80% of all advertising targeted to children falls in four
product categories: Toys, cereal, candy & fast food
restaurants
Changing trends in
youth
 Recent
trends
Online shopping :

⮚ Shop 14/7
⮚ Comfort of own home
⮚ A lot of strokes within a click away
⮚ Comparison made easier
⮚ Discounts
⮚ Payments made Easier
 Other
Trends
• Celebrity influence
 Other
Trends
• Quality oriented outlet
 Other
Trends
• Eco friendly products
THANK
YOU