Consumer Behavior

Family & Its Types

• It is defined as two or more persons related by
– blood, marriage or adoption who reside together.
• Families sometimes are referred to as
households
– but not all households (unmarried couples,
roommates) are families.
 Family & Its Types
In most western societies, 4 types of families
dominate:
– The married couple –
• a husband and a wife
– The nuclear family –
• a husband and a wife with one or more children
constitute a nuclear family
– The extended family –
• the nuclear family together with at least one grandparent
living within the household is called an extended family.
– Single parent family –
• one parent and at least one child
 Family – Important primary group
• Family is an important primary group having
major influence
– on the consumer buying decisions and behavior.
• E.g.
– Should Cadbury advertise to mothers or to children
• Should Amul focus on the entire family or on the
housewife
• What is the role and influence of family
members
– in shaping a product purchase decision.
 Family – Consumer decision making unit
• Family is the most consumer decision making
unit
– so major decision maker as well as primary user’s
• attitude and behavior needs to be examined.
• E.g. Primary user for Inner T-shirt is -
– Men and Children,
• Purchaser or Decision maker –
– Wife
• Therefore, marketer should consider the views
of both
– i.e. user and decision maker
• to obtain a right picture of the consumption process.
Illustration – Macho Ad
 Decision Making in the Family
• Types of family decision making
– Husband Dominant
– Wife Dominant
– Syncratic or Joint
– Autonomic or independent
• Marketer through their consumer research
should determine the type of decision making
– in their specific target market that a typical family uses
– in terms of specific product purchases.
 Decision Making in the Family – Based on
• Thus, family decision making regarding specific
product is based on
– individual members’ judgment or
– need or
– on consensus or
– compromise among members
• Therefore it is important for a marketer to
understand that
– the individual may play a certain role in the process of
making purchases.
• Lets understand what are these roles.
 Decision Making in the Family – 9 Roles
• Key family consumption roles that family members take
on in the process of making purchases are:
– Initiator
– Information collector
– Influencer (S)
– Decision maker (S)
– Purchaser (S)
– Preparers
– Consumer (S)
– Maintainer
– Disposer
• The objective is to provide
– how family members interact in their various consumption related
roles,
• however it depends upon family to family and from product to
product.
 Decision Making in the Family
• Initiator – Need recognizer
– Who recognizes the unsatisfied need for a specific product or brand to
be purchased. This person originates the idea.
– E.g.
• A child may initiate the idea that the family subscribe to a
children’s magazine
– E.g.
• A father or mother may initiate the idea to send a child to school.
• Information Collector – Max. Interested
– Who has the maximum interest, time and responsibility
• to purchase the specific product or brand.
– This role is on sharing basis.
– E.g. In case of a purchase of a video game, it’s the child of the family
• who will generally collect the information with the help of his
parents.
 Decision Making in the Family
• Influencer (Information provider who can modify our
decision)
– It depends on the family decision making structure applying the
specific item and purchase situation.
– Usually the decision maker in the specific product purchase
situation in the final analysis is the primary influencer. (Child for
toy purchase)
• E.g. Toy purchase situation,
– a father may influence the budget,
– mother may influence the child’s development related choice and
– if provided the opportunity to choose, the child for whom the toy
is being chosen will influence the purchase by voicing his or her
wants.
 Decision Making in the Family
• Decision Maker (Who have power whether to
buy or not)
– This is the individual or individuals in the family who
have a direct bearing
• on what is purchased in the specific situation.
– It actually depends on different purchases and
situations
• as different members in the family could individually or
jointly be decision makers in specific product or brand
– E.g. In purchase of a car,
• father is the decision maker for budget,
• children will decide about the color, features etc.
 Decision Making in the Family
• Purchaser (Actual buyer)
– One or more of the members of the family may finally
purchase the product or brand decided on.
– The purchaser may be given very specific brand,
product and retail outlet guidelines or
• may have the greater latitude or freedom in selecting the
item. (Refer example on next slide)
– This also vary in different situations and depends on
• how family arrived at the particular purchase decision and
– who was delegated the role of the purchaser.
 Decision Making in the Family
• Purchaser (Actual buyer) - Examples
– E.g. Child – Purchaser, Brand – Tata Tea,
• Mother – Directed him or her to buy this specific brand from
Mohan’s shop with specific size and amount of money.
– In this situation the purchaser has no latitude.
– E.g. Mother – Purchaser, Brand – Tata Tea, Size –
• She can decide depending upon the POP information
– such as discounts, premiums offered, Bargain between nearest
shops.
» In this situation the mother has the greater latitude or
freedom.
 Decision Making in the Family
• Preparer: transformed for usage
– Family members who transform the product into a
form suitable
• for consumption by other family members.
 Decision Making in the Family
• Consumer (who actually consume)
– Final user of the product or brand in the family.
– In certain specific situations,
• there are primary, secondary and general users.
– E.g. A toy bought as a birthday gift for Naveen is the
primary user
• where as other children in the family are secondary users.
– E.g. Toothpaste is used by all the family members so
they are called general users.
 Decision Making in the Family
• Maintainer – who repairs
– Family Member(s) who repair the product for continual
usage
• Disposer
– Family member(s) who initiate the disposal of a
particular product or service.
Note:
- Discuss True value case here.
 Decision Making in the Family
• Certain roles that family members take on in the process of making
purchases are:
– Initiator
– Information collector
– Influencer (S)
– Decision maker (S)
– Prepares
– Purchaser (S)
– Consumer (S)
– Maintainer
– Disposer
• The above role can be taken by non family members as well depending
upon
– What the need is
– Who has the expertise
– How the purchase is made
– Where and how it is used
– Who uses it etc.
 Examples
• Product consumed by entire family
– Tooth paste
– Soap
– Shampoo
– Orange Juice
– A.C
– Art glass collection etc.
• Product consumed by single user
– Razor
– Tooth brush
– Towel etc.
 Decision Making in the Family – H&W
• Husband wife decision making
– The relative influence of husband and wife can be
classified as
• Husband dominated
• Wife dominated
• Joint
• Autonomic (Independent)
– It depends in part on the product and service
– E.g.
• Automobile – Husband Dominated
– E.g.
• Food and financial decisions – Wife Dominated
 Decision Making in the Family – H&W
• Husband wife decision making
– It is also related to cultural influence.
– E.g. China culture in Rural areas
• Husband dominated decisions for many household purchases
– E.g. China culture in larger cities such as Beijing
• Joint decision making is followed
– E.g. China’s one child policy and custom of treating a
single child as a little emperor
• Many parents purchase decision are influenced by the input of
their child
– E.g. Asian Indians in India
• Wife dominated decisions
 Decision Making in the Family – Child role
• Role of children: Children are active performer in
the decision making process these days due to
the following reasons:
– Fewer Children (1 or 2)
– Dual income to satisfy children wants
– Media encouragement to allow children to express
themselves
• E.g. A research shows that Kids in
supermarkets with a parent make
– an average of 15 request
• out of which half are typically granted
 Decision Making in the Family – Tactics by
children
• Tactics used by children to influence their parents:
• Pressure tactics
– The child make demands, uses threats (not having food)
• Upward appeal
– Which is supported by an approval of some other person such as teacher or older
member of the family (Grandfather)
• Exchange tactics
– Promise to serve some sort of service like taking care of the baby in return
• Coalition tactics
– Others support such as uncle or friend to support his request
• Ingratiating tactics
– Child seeks to get you in a good mood before asking for something
• Rational Persuasion
– Child uses logical arguments and factual evidence such as Baby laptops
• Inspirational appeals
– Child makes a proposal that arouses enthusiasm by appealing to your ideals like
attending dancing class and participate in TV shows.
• Consultation tactics
– The child seeks your involvement in taking a decision such as admission in
college.
 Decision Making in the Family
• The amount of influence children perceive they have w.r.t. their
family’s purchasing of a variety of items
• Casual clothes for me – 91%
• Trainers for me – 88
• CDs for me – 84%
• Sweets for me – 83%
• Computers for me – 83%
• Soft drinks for me – 83%
• School shoes for me – 80%
• A family trip to the cinema – 73%
• Food for me for lunch at the weekend : 73%
• A holiday I would go on with the family: 63%
• Going out for a family meal: 52%
• A family car: 37%
 Decision Making in the Family
• Another research shows that children influence
is directly related to family’s communication
patterns with them.
• E.g. Pluralistic parents – Highest influence
– Parents give support to their children for their
individual preferences and purchases
• E.g. Consensual parents – Medium influence
– Who encourage children to seek harmony
• E.g. Protective parents – Lowest influence
– Parent makes their own Judgment for purchase and
does not allow their children to have their own
preferences.
 Decision Making in the Family
• Another research shows teen internet maven
contribute significantly to family decision making
• E.g. Children spending more time on internet for
specific product information, features, where to
buy and pricing related information.
– This helps in researching and evaluating family
purchases
• E.g. Laptop purchase.
• E.g. Washing Machine Purchase
 Family Life Cycle – Series of stages
• It is defined as a predictable series of stages
– through which most families progressed.
• FLC is an important marketing tool to segment the
families into 5 basic stages for market segmentation:
– Bachelorhood
• Young single adult living apart from parents
– Honeymooners
• Young married couple
– Parenthood
• Married couple with at least one child living at home
– Post-parenthood
• An older married couple with no children at home
– Dissolution
• One surviving spouse
 Bachelorhood – Preferred purchase
• They are young single men and women
– who have established households apart from their
parents.
• E.g. College students
• They spend their money on
– rent, basic home furnishings, purchase and
maintenance of automobiles, travel and entertainment,
clothing and accessories, clubs etc.
• E.g. Playboy is for single male audience
• E.g. Cosmopolitan is for young single females.
 Honeymooners – Preferred purchase
• This stage starts immediately after the marriage
and
– generally continues until the arrival of the couple’s first
child.
• Honeymooners have a considerable start up
expenses when establishing a new home such
as
– Major and minor appliances, bedroom and living room
furniture, carpeting, dishes, jewellery, travel to hill
stations and a host of utensils and accessory item.
 Parenthood or Full nest stage I – 5 year
child
• This stage starts when a couple has its first child
and
– continues over more than a 20 year period.
• During this period the interrelationship of the
family members and the structure of the family
gradually change.
• E.g. Diaper, Lectogen, Horlics, Cerelec, Bourn
vita, Complan, toys etc.
• E.g. Insurance for children or family
• E.g. Investments, saving plans etc.
Parenthood or Full nest stage II – 6 years -
teenage
• This stage starts when a couple’s youngest child
is at least six years old.
• By now the father figure has advance in his
profession and
– child oriented consumption decisions tend to shift from
small toys to product like bi-cycles.
• Family now devote greater attention to the
education of the children
 Parenthood or Full nest stage III –
Supporting dependent children
• In this stage the couple is older
– but is still supporting dependent (teenaged) children.
• Education and other expenses around the
development of the children continue.
• However, renovations and major purchases and
houses etc are typically undertaken.
Post-Parenthood Or Empty nest stage I & II
• This stage starts when older married couple
without any dependent children living with them
(Nest I) or when all the children have left home
(Nest II) and the children have become self
supporting.
• This a time for parents to do all the things such
as
– travel, leisure, refurnish their home or sell it in favor of
a condominium/apartment.
Post-Parenthood Or Empty nest stage I & II
• They have higher disposable incomes
– because of savings and investments and they have
fewer expenses.
• Therefore, families in the post-parenthood stage
are an important market for
– luxury goods, new automobiles, expensive furniture,
religious items and vacations to far off places or
temples.
• E.g. Senior citizen discount in hotels, airlines,
banks.
 Dissolution Or Solitary Survivor stage
• This stage starts with the death of one spouse.
• When the surviving spouse is in good health and
has
– adequate savings, family and friends then adjustment
is easier.
• Usually the surviving spouse tends to follow a
more economical life style.
• Many surviving spouses seek each other for
companionship and other enter into second
marriages.
– E.g. Matrimonial sites covering the second marriage
option.
Marketing and the FLC – Matching Interest
• FLC is an important marketing tool
– to segment the families into 5 basic stages for market
segmentation
• It also indicates the type of products and
services
– that a household or family might be interested in at
each stage.
• Consumer demographics are available from
government or other published sources with
consumption rates,
– marketing strategist can forecast market demand,
market potential etc.
 Expanded model of FLC
• As traditional FLC model had some limitations
therefore expanded FLC model has been
introduced
– which includes divorce and later marriages
– with and without the presence of children.
• Scan Pg 368
 Non Traditional FLC Stages
• These nontraditional stages include
– not only family households but also non family households as
well.
 Non Traditional FLC Stages
• Family households includes
– Childless couples
• It includes career oriented married women and delayed marriages
– Couples who marry later in their life (30s or later)
• It includes more career oriented men and women who are likely to have
fewer or ever no children
– Couples who have first child later in life (30s or later)
• It includes couples who are like to have fewer children and stress quality
life
– Singles parents I - Divorcee
• High divorce rates contribute to a portion of single parent households.
– Single parents II
• Couple who has one or more children
– Single parents III - Adopts
• A single person who adopts one or more children
– Extended family
• It includes young studying children, divorced daughter or son, grandchild,
newlyweds living with in-laws.
 Non Traditional FLC Stages
• Non Family households includes
– Unmarried couples
– Divorced persons (no children)
– Single Persons (most are young)
• A result of delaying first marriage who never get married.
– Widowed persons (most are elderly)