Family and Household

Influences in consumer
behavior

Chapter 3
 What is what makes
a family? a family?
 Popular definition on Wikipedia
says,

In the context of human society,

a family (from Latin: familia) is
a group of people related either
by recognized blood/ birth, by
marriage or other relationship, or
co-residence, could be called as
family.
 Families and Households: family
• Nuclear family: immediate group of father,
mother, and child(ren) living together
• Joint family: 2 or more nuclear families living
together or sharing same residence.
• Extended family: nuclear family, plus other
relatives such as grandparents, uncles and
aunts, cousins, and parents-in-law
• Family of orientation: family into which one is
born
• Family of procreation: family established by
marriage
Some families are extending these definitions to include pets
Pets Are Family
Members Too
Household: all persons, both related
and unrelated, who occupy a
housing unit or share meal.
Nonfamily households include:

Elderly persons living with nonfamily

members, i.e nursing homes.
Group of opposite gender/ same
gender sharing living quarters i.e.
college dorms.
Unmarried Friends living together i.e
bachelor pad.
Same-sex couples.
Families are the largest single category of
households
Rapid rise in the number of nontraditional
families and non-family households is taking
place
Traditional family consists of a husband and
wife, plus their children, whether biological or
adopted.
Non-traditional or alternative include single
parenthood, cohabitation (the state of living
together and having a sexual relationship
without being married), same-sex couples, and
polygamy (multiple marriages).
 The Importance of Families and
Households on Consumer Behavior
The culture we live in is family oriented.
Many products are purchased by a
family units.
Individual’s buying decisions may be
heavily influenced by other family
members in terms of purchase,
consumption, and product choice.
Consumer insights..

One consumer says, I was from convent background, my family was really
strict and old school. When I was initially married, I realized my family and
my husband’s lifestyle are to an extend different on a great level. The
values we follow or they follow are change. He is working in a multinational
company, and has a good PR. He told me after our first social hangout
together to wear more modernized clothes, to ‘Fit-in’, so I ditched kurta
suit and bought jeans and dresses. I even have to approve my haircut now.
Key factors affecting the families &
households and helps Marketers to
monitor or predict changes in demand
for specific products and categories:

Age of head of household

Marital status
Presence of children
Employment status
Explanatory Notes for students (Self study): reference
to previous topic culture.
What an individual imbibes from his parents becomes his/her culture. In countries
like India, where children are supposed to stay with their parents till the time they
get married, the influence of parents on an individual’s buying decisions can not
be ignored. What he sees from his childhood becomes his habit or in other words
lifestyle. A female from an orthodox (old school / conventional) background would
prefer shalwar suits, saris instead of westerns or short outfits. In India, parents
expect their children to dress up in nice, colorful outfits during marriages,
festivals or other auspicious occasions. Even if children want to buy something
else, their parents would always prompt them to buy traditional attire, thus
influencing their buying decision.
The moment an individual enters into wedlock, his/her partner influences his
buying decisions to a great extent. In most families, wife accompanies her
husband for shopping be it grocery, home appliances, furnishings, car etc. An
individual would always discuss with his/her partner before any major purchase.
After marriage, individuals generally do not like spending on himself/herself;
rather they do it for their partner or family.
And it goes on and on…
A young bachelor would not mind spending on alcohol, attending night parties,
casinos but the moment he has a wife at home, he would instead spend on
household and necessary items. No bachelor likes to invest money on mutual funds,
insurance policies, med claims etc but for someone who is married buying an
investment plan becomes his first priority. Women generally are inclined towards
buying toiletries, perfumes, dresses, household items, furnishings, food products
while men would rather love to spend on gadgets, cars, bikes, alcohol etc.Both have
different tastes but when they come together, they mutually decide on what to buy
and what not to buy. A Bachelor would never purchase Women’s Horlicks or
Kellogg’s K special or a female perfume but when he has a wife at home; he would
love to purchase them for his wife. A young girl who has never purchased shaving
creams or men’s perfume all through her life for herself would not mind purchasing
for her husband, father or father in law. A working woman would have different
needs as compared to a housewife. A woman who goes to office would prompt her
husband to buy formal trouser and shirt, office bag, make up products etc for her
while a house wife would not like spending on all these as she does not require an
office bag and so on. Children also influence the buying decisions of individuals. An
individual spends happily on toys, candies, ice creams, chocolates. sweets when he
has children at home. Children in the family prompt their parents to subscribe to
Disney Channel, Cartoon network and so on. Individuals do not mind spending on
medicines, health supplements, vitamin tablets, protein drinks if they have ailing
parents at home.
 Consumer insights
A fellow friend(as consumer) says, we are 4 people (including my father) earning at home, we
all have to contribute our share to run our household. We divide the load: Our gross monthly
earning of each individual will have a fixed percentage of money to contribute. Whoever earns
the highest, Contributes most and vice versa.
Who Determines what the Family Buys?

Expressive roles: involve supporting other

family members in the decision-making
process and expressing the family’s aesthetic
or emotional needs including upholding family
norms. Different family members will assume
different roles depending on the situation and
product.
(Remember consumer role?)
Family marketing: focuses on the relationships between
family members based on the roles they assume,
including the relationship between purchaser and family
consumer and between purchaser and purchase
decision maker
 Role Behavior: Individual roles in
family purchases

Initiator/gatekeeper: 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 and bringing products into the home

User: person or persons who use the product

Family dynamics: Spousal roles in
decision making process
Autonomic/ Unilateral: an equal number of decisions is
made by each spouse, but each decision is individually
made by one or another (i.e. egg, newspapers, milk, daily
bills etc)
Husband dominant: the husband or male head-of-
household makes a majority of the decisions ( i.e.
property, cars, fees etc)
Wife dominant: the wife or female head-of-household
makes a majority of the decisions (i.e. grocery, food, home
décor etc)
Joint: most decisions made with equal involvement by
both spouses ( i.e. vacation, school for kids, family trips
etc)
Influences on the Decision Process

Marketers evaluate which types of products

are typically purchased by wives,
husbands, or jointly
Marketers can determine which attributes
of specific products to advertise to
different household members
Which media will best reach the most
influential family member?
Which ad appeals are most effective?
‘..talk to your kids about art school: college of…’
Featuring the
right user of
the product
Mother’s best
friend pampers,
(baby diapers).
Features
mothers on
covers as they
are main buyers.
‘..for child in
the back an
old in the
front…’

This car is for

everyone.
…………Keep the pets healthy……….
Family Life Cycles (FLC)

Family life cycle

(FLC) is the
process of
families passing
through a series
of stages that
change them
over time.
• Family life cycle marketing model was
created in the 1960s by Wells and Gruber.
• The concept (FLC) may need to be
changed to household life cycle (HLC) or
consumer life cycle (CLC) to reflect
changes in society.
• Eleven primary stages have been
identified.
• Which stages families go through is based
in part on their lifestyle choices.
 Family Life Stage

• Young Singles
• Newly Married Couples
• Full Nest I, II, III
• Married, No Kids
• Empty Nest I, II
• Older Singles
• Solitary Survivor
• Retired Solitary Survivor
Newly weds:
Families with no kids, both partners working.
Decent saving, luxurious spending.
Full Nest 1:
Families in the Full Nest 1 classification have more
children in the home than adults. The kids in the house
are all younger than 6, the parents rely primarily on
credit for purchases and buy mainly household
necessities. People purchase home-related items the
most during the Full Nest 1 stage.
Full Nest 2:
Full Nest 2 families have children 6 and older.
The house is still dominated with children, but these
individuals tend to have a little more control over their
finances, as wives who took off work to raise children
are likely returning to work around this time.
Necessities, such as groceries and children's
clothing, are still the main purchases in these homes.
Full Nest 3
Full Nest 3 status, its children are older, and in many
cases, the children in the family are also working or in
college. A large portion of the family's money goes to
fund the children's education, and parents are more likely
to buy high-end furniture items and purchase vacation
packages.
Empty Nest 1
Empty Nest 1 families have adult children who are no longer
living at home. Home ownership is very common for this group.
Those in the Empty Nest category are very likely to spend
money on vacations and hobbies and have plenty of retirement
money saved.
Empty Nest 2
Empty Nest 2 families have taken a reduction in income, as the
breadwinner is retired. People in this category most likely
spend significant money on medical care and prescriptions
and will often assist their children and grandchildren
financially.
Solitary Survivor and Retired 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.
Implications of Family Life Cycles
FLC affects demand for many products
Descriptions of life stages can be combined with
additional information about consumer markets
to analyze consumer's needs, identify niches,
and develop consumer-specific marketing plans
Family and household spending The FLC is an
important predictor of family or household
spending
In the last decade, consumers have changed
their household spending from “things” to
“services”
You’ve got 5 mins? Watch these
Family based commercials and
understand how marketers
influence buying behaviors:
https://www.youtube.com/watch?v=cz
HhfzH0gss&has_verified=1
The end!