REFERENCE GROUPS

Person or group that serves as a point of

comparison (or reference) for an individual in forming general or specific values, attitudes or specific guide for behaviour

 Comparative reference groups - Benchmark for specific attitudes Normative reference groups - Influence general or broadly defined values or behaviour i.e. immediate family

 Types of reference groups - Contactual - Aspirational - Disclaimant - Avoidance

 Factors that affect reference group influence - Information and experience - Credibility, attractiveness, power - Conspicuousness of product - Reference groups and consumer conformity - Selected consumer-related reference groups - Celebrities and other reference group appeals

SOCIALIZATION OF FAMILY MEMBERS

Imparting to children and other family

members the basic values and modes of behaviour consistent with cultures
Manners, goals, values and other qualities

imparted through instruction and observation

 Consumer socialization - Process where people acquire skills, knowledge, attitudes and preferences relevant to their own functioning and participation in the marketplace
Child consumer socialization - Family is instrumental in teaching children the fundamental aspects of purchasing and consumption

 Child consumer socialization (`contd..) - Parent types in socialization process

Authoritarian parents Neglecting parents Democratic parents Permissive parents Tactical families Easygoing families Autocratic families Malleable families

Family types in socialization process

 Adult consumer socialization - Transition process from childhood to adolescence - Intergenerational consumer behavior as a cross between generations i.e. parents to children and vice versa

Young Person

Other Family Members

Friends

Influence more basic values/behaviour Moral/Religious principles Interpersonal Skills Dress/Grooming standards Manners and speech Educational motivation Occupational/career goals Consumer behaviour norms

Influence more expressive attitudes/behaviour

Style Fashion Fads `In/Out Acceptable consumer behaviour

Pre-adolescent

Adolescent

Teens

Older

A simple model of the socialization process

THE FAMILY LIFE CYCLE (FLC)

Concept based on progression of stages which

majorities of families pass through in life FLC is a strategic tool of marketers to segment families into a series of stages spanning the life course of a family unit and thereby understand their purchase and consumption behaviour

 Traditional family life cycle - Singles - Marriage - Family growth - Family contraction
Spending patterns vary by type of household

depending on the age of household members, marital status and number of children at home Spending patterns change during each stage of the FLC

Stage 1: Young Singles

Young single men and women who have established households apart from their parents Have own income Most likely have sufficient disposable income Engaged and soon-to-be-married couples are the target for many products and services i.e. bridal services)

Stage 2: Young Marrieds

Start immediately after marriage vows and continues until the birth of the first child High combined disposable income that permits a pleasureseeking lifestyle Have considerable start-up expenses in establishing new home i.e. appliances, furniture) Stable environment

Stage 3: Parenthood

Young married stage moved to a close Referred to full-nest stage Can be divided into pre-school, primary, high school and tertiary phases Child-rearing and educational responsibilities gradually increase then decrease as children become self-supporting

Stage 4: Post-parenthood

Empty nest stage Traumatic or liberating rebirth Financial freedom The opportunity to pursue new freedom i.e. travel more frequently

Stage 5: Dissolution

Dissolution of basic family unit with death of one spouse Dissolved family experience distinct changes in consumption behaviour More economical lifestyle

FAMILY DECISION MAKING

Marketers examine attitudes and behaviour of whom

they believe would be the major decision maker Marketers also examine the person most likely to be primary used of the product or service

FAMILY DECISION MAKING

How family members interact and divide roles Eight roles in the family decision-making process: - Influencers - Gatekeepers - Deciders - Buyers - Preparers - Users - Maintainers - Disposers

FAMILY DECISION MAKING

Roles vary from family to family Western families encourage individuality and

individual decision making The larger the family the greater concentration of purchases

HUSBAND/WIFE DECISION MAKING

1.

Family consumption decisions are husbanddominated/wife-dominated/joint decisions (equal or syncratic) or individual (autonomic) Three-step decision model:
2. 3.

Search for information Shortlist Final decision

HUSBAND/WIFE DECISION MAKING

1. 2. 3. 4. 5.

Influencing spouses and resolving conflict through six influence strategies:

Expert Legitimacy Bargaining Reward Emotional Impression

6.

CHILDREN
Children attempt to influence their parents to

make a purchase (to yield)

Children attempt to influence their parents in - Purchases of special interest to them - Purchases of remote interest

 Children and television - Children with greater media exposure tend to recall more advertising slogans - Youngsters are influenced by actions of adults on television - Older children recognize symbolism on television

 Latchkey kids - Children home alone for part of school day when parents are at work - Exposed to more television - This group are more self-sufficient in use of various household appliances

 Teenagers and post teens - Ability to spend rather than save University students - consume wide range of goods and services i.e. personal clothing, petrol etc and are more opinionated