family decision making
TRANSCRIPT
CONSUMER BEHAVIORCONSUMER BEHAVIOR
Family Decision MakingFamily Decision Making
Learning ConceptsLearning Concepts
Family & householdFamily & household
Types of familiesTypes of families
Family Decision Family Decision MakingMaking
The Family Life CycleThe Family Life Cycle
Family Decision Family Decision Making ConflictsMaking Conflicts
Gender Roles & Gender Roles & Decision MakingDecision Making
Four Mother TypesFour Mother Types
Children as Decision Children as Decision MakersMakers
Consumer Consumer SocializationSocialization
Stages of Consumer Stages of Consumer DevelopmentDevelopment
Marketers & Marketers & SocializationSocialization
Families and HouseholdsFamilies and Households
Households are Households are composed of all those composed of all those people who occupy a people who occupy a living unitliving unit– The Nuclear FamilyThe Nuclear Family– The Extended Family The Extended Family – The Detached Nuclear The Detached Nuclear
FamilyFamily
Non Family Households:Non Family Households:
Men Living Men Living AloneAlone
Women Living Women Living AloneAlone
Other Non Other Non familiesfamilies
Differences between Families & Other GroupsDifferences between Families & Other Groups
Families are formed by marriage or birth whereas other Families are formed by marriage or birth whereas other groups are formed by job or taskgroups are formed by job or taskFamilies have permanent relations, other groups have Families have permanent relations, other groups have relationships based on contractsrelationships based on contractsFamilies are oriented towards interpersonal relationship, Families are oriented towards interpersonal relationship, whereas other groups are more goal orientedwhereas other groups are more goal orientedFamilies have emotional ties, whereas other groups have Families have emotional ties, whereas other groups have more rational tiesmore rational tiesFamilies are more oriented towards intrinsic values, Families are more oriented towards intrinsic values, other groups seek more extrinsic rewardsother groups seek more extrinsic rewardsFamilies seek cooperative relationships, other groups Families seek cooperative relationships, other groups are more competitive and self orientedare more competitive and self oriented
Family Decision MakingFamily Decision Making
Relative Influence of decision makersRelative Influence of decision makers
1.1. Wife dominated decisionsWife dominated decisions
2.2. Husband dominated decisionsHusband dominated decisions
3.3. Autonomic Decisions: Decisions of lesser Autonomic Decisions: Decisions of lesser importance that either husband or wife importance that either husband or wife may make independently of each othermay make independently of each other
4.4. Syncratic Decisions: Husband & wife Syncratic Decisions: Husband & wife participate jointlyparticipate jointly
Low
High
Wife role load
lowHigh
Husband role load
Husband overloaded
Wife over loaded: Information-acquisition activities are shortened; joint decision making is minimal. Use convenience items extensively
Husband under-loaded
Wife overloaded:
Information-acquisition activities carried out by husband
Husband overloaded
Wife under-loaded:
Information-acquisition activities carried out by wife
Husband Under-loaded
Wife under-loaded: Joint decision making
““Certain things are hard to Certain things are hard to swallow.”swallow.”
FolgersFolgersAppealing to a Appealing to a Smaller Smaller Household of Household of Just One PersonJust One Person
A family’s needs and expenditures are affected by factors A family’s needs and expenditures are affected by factors such as the number of people (children and adults) in the such as the number of people (children and adults) in the family, their ages, and whether one, two or more adults are family, their ages, and whether one, two or more adults are employed outside the home.employed outside the home.
Two important factors that determine how a couple spends Two important factors that determine how a couple spends time and money are whether they have children and whether time and money are whether they have children and whether the woman works. the woman works.
Recognizing that family needs and expenditures change over Recognizing that family needs and expenditures change over time, the concept of the time, the concept of the Family Life Cycle (FLC) Family Life Cycle (FLC) has been has been widely used by marketers.widely used by marketers.
Concept that combines trends in income and family Concept that combines trends in income and family composition with the changes in demands placed upon this composition with the changes in demands placed upon this income to segment households.income to segment households.
The Family Life Cycle
Effects of Family Structure Effects of Family Structure onon
ConsumptionConsumption
Effects of Family Structure Effects of Family Structure onon
ConsumptionConsumptionThe Family Life Cycle (FLC) Family Life Cycle (FLC) Combines Trends in Income and Family Composition with the Changes in
Demands Placed Upon this Income.
Four Variables are Necessary to Describe these Changes:
AgeAge
Children’s Ages (if any)Children’s Ages (if any)
Marital StatusMarital Status
Presence or Absence of Children in the Home
Presence or Absence of Children in the Home
Family LifecycleFamily Lifecycle
Bachelor I:Bachelor I: Unmarried under age of 35Unmarried under age of 35Bachelor II:Bachelor II: Unmarried under age 65Unmarried under age 65Newly wed:Newly wed: Married without children Married without children
under age 35under age 35Single parent:Single parent: Single parent under age 35 Single parent under age 35 Full Nest I:Full Nest I: Couple with female under 35,with Couple with female under 35,with
children children under 6under 6Delayed Full Nest:Delayed Full Nest: Couple with female over 35, & with Couple with female over 35, & with
children under 6children under 6Full Nest II & III: Full Nest II & III: Couple with children under or over 6Couple with children under or over 6Empty Nest I:Empty Nest I: Couple under age 65, with no Couple under age 65, with no
childrenchildrenEmpty Nest II: Empty Nest II: Couple age 65 or over no childrenCouple age 65 or over no childrenBachelor III:Bachelor III: Unmarried, age over 65Unmarried, age over 65
Family Life Cycle: An Family Life Cycle: An
Updated ViewUpdated View
Family Life Cycle: An Family Life Cycle: An
Updated ViewUpdated View Age of Head of Household
Under 35 35 - 64 Over 64
1 Adult in Household Bachelor I Bachelor II Bachelor III
2 Adults in Household Young Childless Older Couple Couple Couple
2 Adults + Children in Full Nest I Delayed Full Nest Household Full Nest II Full Nest III
What Changes Affect What Changes Affect the FLC?the FLC?
AgeAge
Family Size & Family Size & CompositionComposition
Income & AssetsIncome & Assets
Stock of GoodsStock of Goods
Commitments/Leisure Commitments/Leisure TimeTime
HealthHealth
InterestsInterests
AgeAge
Family Size & Family Size & CompositionComposition
Income & AssetsIncome & Assets
Stock of GoodsStock of Goods
Commitments/Leisure Commitments/Leisure TimeTime
HealthHealth
InterestsInterests
Ethan AllenEthan AllenAdvertisement Advertisement Referring to stages Referring to stages in the Family Life in the Family Life CycleCycle
Insurance Ad Reminding us that Children are often Insurance Ad Reminding us that Children are often Eventually put in the Position of Caring for their ParentsEventually put in the Position of Caring for their Parents
Family Circle Magazine: Emphasizing that Traditional Family Values Persist Among Young People Today
AccommodativeAccommodativeGroup Members Have Different Preferences and Can’t Agree
on a Purchase That Will Satisfy Everyone.
AccommodativeAccommodativeGroup Members Have Different Preferences and Can’t Agree
on a Purchase That Will Satisfy Everyone.
Types of Purchase Decisions Made by Families
Types of Purchase Decisions Made by Families
ConsensualConsensualGroup Agrees on the DesiredPurchase, Differing Only in
Terms of How It Will Be Achieved.
ConsensualConsensualGroup Agrees on the DesiredPurchase, Differing Only in
Terms of How It Will Be Achieved.
Family Decision MakingFamily Decision MakingFamily Decision MakingFamily Decision Making
Household DecisionsHousehold Decisions
There are two basic types of decisions made by There are two basic types of decisions made by families:families:
1). In a 1). In a consensual purchase decisionconsensual purchase decision, the , the group agrees on the desired purchase, differing group agrees on the desired purchase, differing only in terms of how it will be achieved. only in terms of how it will be achieved.
2). In an 2). In an accommodative purchase decisionaccommodative purchase decision, , group members have different preferences or group members have different preferences or priorities and cannot agree on a purchase that priorities and cannot agree on a purchase that will satisfy the minimum expectations of all will satisfy the minimum expectations of all involved. involved.
Family Decision ConflictFamily Decision ConflictFamily Decision ConflictFamily Decision ConflictConflictConflict Occurs When There is Not Complete
Correspondence in Family Members’ Needs and Preferences.
Some Specific Factors Determining the Degree of Family Decision Conflict Include the Following:
Interpersonal NeedsInterpersonal Needs
Product Involvementand Utility
Product Involvementand Utility
ResponsibilityResponsibility
Person’s Level of Involvement in the GroupPerson’s Level of Involvement in the Group
Degree to Which the Product in Question Will Be Used or Will Satisfy a Need
Degree to Which the Product in Question Will Be Used or Will Satisfy a Need
For Procurement, Maintenance, Payment, etc.For Procurement, Maintenance, Payment, etc.
PowerPower One Family Member’s Influence Over the Others in Making Decisions
One Family Member’s Influence Over the Others in Making Decisions
Gender Roles and Gender Roles and Decision-Decision-
Making ResponsibilityMaking Responsibility
Gender Roles and Gender Roles and Decision-Decision-
Making ResponsibilityMaking Responsibility
Factors Influencing Joint or Individual Family Decisions
Factors Influencing Joint or Individual Family Decisions
Spousal ResourcesSpousal Resources ExperienceExperience
Sex-Role StereotypesSex-Role Stereotypes Socioeconomic StatusSocioeconomic Status
Autocratic Decisions
Made by One Spouse or the
Other
Syncratic Decisions
Decisions Made
Jointly
Gender Roles and Decision-MakingGender Roles and Decision-Making
Autonomic DecisionAutonomic Decision– When one family member chooses a productWhen one family member chooses a product
Syncratic DecisionSyncratic Decision– When the family jointly makes a decisionWhen the family jointly makes a decision
There is a shift in decision making toward There is a shift in decision making toward more compromise and turn-taking.more compromise and turn-taking.
Spouses typically exert significant Spouses typically exert significant influence on decision making.influence on decision making.
Who is the decision maker?Who is the decision maker?
Family Financial Officer (FFO):Family Financial Officer (FFO): – The individual who keeps track of the family’s The individual who keeps track of the family’s
bills and decides how much surplus funds will bills and decides how much surplus funds will be spent.be spent.
Four Mother Types (LeoShe):Four Mother Types (LeoShe):– June Cleaver, the SequelJune Cleaver, the Sequel– Tug of WarTug of War– Strong ShouldersStrong Shoulders– Mothers of InventionMothers of Invention
Four Mother TypesFour Mother Types
June Cleaver, the SequelJune Cleaver, the Sequel– Traditional, stay-at-home moms.Traditional, stay-at-home moms.
Tug of WarTug of War– Working moms who would rather not; may pick well-Working moms who would rather not; may pick well-
known brands as cognitive shortcut.known brands as cognitive shortcut.
Strong ShouldersStrong Shoulders– Lower-income with a positive view. Often single Lower-income with a positive view. Often single
moms who may be willing to try new brands.moms who may be willing to try new brands.
Mothers of InventionMothers of Invention– Love being mothers and working. Hubbies help.Love being mothers and working. Hubbies help.
Who is that Decision Maker?Who is that Decision Maker?Four Factors Determine the Degree to Which Four Factors Determine the Degree to Which Decisions will be Made Jointly by One or the Other Decisions will be Made Jointly by One or the Other SpouseSpouse– Sex-role stereotypesSex-role stereotypes– Spousal resourcesSpousal resources– ExperienceExperience– Socioeconomic StatusSocioeconomic Status
Kin-Network System:Kin-Network System:Ties among family members, both immediate and Ties among family members, both immediate and extended. Despite recent changes in decision-making extended. Despite recent changes in decision-making responsibilities, women still are primarily responsible for responsibilities, women still are primarily responsible for the continuation of the family’s the continuation of the family’s kin-network systemkin-network system..They perform the rituals intended to maintain ties among They perform the rituals intended to maintain ties among family members.family members.
Determinant FactorsDeterminant FactorsSex-role stereotypesSex-role stereotypes– Believers in the traditional sex-roles tend to make individual Believers in the traditional sex-roles tend to make individual
decisions for sex-typed products.decisions for sex-typed products.
Gender role orientation: Bem Sex Role inventory:Gender role orientation: Bem Sex Role inventory: Masculine role: Strength, forcefulness, aggression, and Masculine role: Strength, forcefulness, aggression, and
decision makingdecision making Feminine Role: Passivity, nurturance, kindness, Feminine Role: Passivity, nurturance, kindness,
expressivenessexpressiveness Psychologically Androgynous Role: Taking on Psychologically Androgynous Role: Taking on
characteristics appropriate to the situationcharacteristics appropriate to the situationSpousal resourcesSpousal resources– He (or She) who has the money often makes the He (or She) who has the money often makes the
decisions.decisions.
The Apparel Manufacturer Placed Menswear Ads in The Apparel Manufacturer Placed Menswear Ads in About a Dozen Women’s Magazines After Its About a Dozen Women’s Magazines After Its
Research Found That Women Exert Influence Over Research Found That Women Exert Influence Over Men’s Clothing ChoicesMen’s Clothing Choices
Determinant FactorsDeterminant Factors
ExperienceExperience– Couples who have gained experience making Couples who have gained experience making
joint decisions also make individual decisions joint decisions also make individual decisions more frequently.more frequently.
Socioeconomic StatusSocioeconomic Status– The middle class cooperates more than The middle class cooperates more than
higher or lower class families in decision higher or lower class families in decision making.making.
Children as Decision MakersChildren as Decision MakersChildren as Decision MakersChildren as Decision Makers
Children are recognized as consumers Children are recognized as consumers that deserve attentionthat deserve attention– Kids ages 4 - 12 spend or influence their Kids ages 4 - 12 spend or influence their
parents to spend about $188 billion a year parents to spend about $188 billion a year (McNeal, 1998)(McNeal, 1998)
– Children are particularly influential in Children are particularly influential in purchasing:purchasing:
Fruit snacksFruit snacks
Frozen noveltiesFrozen novelties
Kids’ beauty aids and fragrancesKids’ beauty aids and fragrances
ToysToys
Children as Decision Makers: Children as Decision Makers: Consumers-In-TrainingConsumers-In-Training
Children make up three distinct markets:Children make up three distinct markets:1). 1). Primary marketPrimary market: Kids spend a lot on their : Kids spend a lot on their
own wants and needs. own wants and needs. 2). 2). Influence marketInfluence market: : Parental yieldingParental yielding occurs occurs
when a parental decision maker is influenced by when a parental decision maker is influenced by a child’s request and “surrenders.” This is a child’s request and “surrenders.” This is somewhat dependent on family dynamics.somewhat dependent on family dynamics.
3). 3). Future market:Future market: The web surfers or those who The web surfers or those who are taking increased responsibility at home are taking increased responsibility at home because of working parentsbecause of working parents
Some Effects of Birth Some Effects of Birth OrderOrder
Some Effects of Birth Some Effects of Birth OrderOrder
Zajonc’s Theory of Birth EffectsZajonc’s Theory of Birth Effects– 2 adults (100+100)/2 = 1002 adults (100+100)/2 = 100– 2 adults, 1 age 0 (100+100+0)/3 = 672 adults, 1 age 0 (100+100+0)/3 = 67– 2 adults, 1 age 2, 1 age 0 2 adults, 1 age 2, 1 age 0
(100+100+4+0)/4 = 51(100+100+4+0)/4 = 51– 2 adults, 1 age 4, 1 age 2, 1 age 0 2 adults, 1 age 4, 1 age 2, 1 age 0
(100+100+15+4+0)/5 = 44(100+100+15+4+0)/5 = 44– 2 adults, 1 age 12, 1 age 0 2 adults, 1 age 12, 1 age 0
(100+100+80+0)/4 = 70(100+100+80+0)/4 = 70
Consumer SocializationConsumer Socialization
Consumer socializationConsumer socialization is defined as the is defined as the process by which young people acquire process by which young people acquire skills, knowledge, and attitudes relevant to skills, knowledge, and attitudes relevant to their functioning in the marketplace.their functioning in the marketplace.
1) Parents’ influence in the socialization 1) Parents’ influence in the socialization process is both direct and indirect.process is both direct and indirect.
2) The process begins with infants when 2) The process begins with infants when they accompany their parents on shopping they accompany their parents on shopping trips.trips.
Consumer SocializationConsumer Socialization
Three dimensions combine to produce Three dimensions combine to produce different segments of parental styles:different segments of parental styles:
1). Authoritarian parents – restrictive with negative 1). Authoritarian parents – restrictive with negative view about ads.view about ads.
2). Neglecting parents – detached from kids and 2). Neglecting parents – detached from kids and exercise little control.exercise little control.
3). Indulgent parents – less restrictive and want 3). Indulgent parents – less restrictive and want children to learn about buying.children to learn about buying.One of the strongest influences on children is One of the strongest influences on children is television. It teaches children about cultural television. It teaches children about cultural values and myths. values and myths. Television is often called Television is often called the “electronic baby-sitter.”the “electronic baby-sitter.”
Stages of Consumer DevelopmentStages of Consumer Development
Marketers and SocializationMarketers and Socialization
Fun with BarbieFun with Barbie– Barbie Barbie LaptopLaptop– Barbie 35mm Barbie 35mm CameraCamera
Little KidsLittle Kids– Baby Einstein Baby Einstein SeriesSeries
BacklashBacklash
Sex-Role SocializationSex-Role Socialization
Children pick up on the concept of gender Children pick up on the concept of gender identity at an earlier age than was identity at an earlier age than was previously believed (sometimes at age one previously believed (sometimes at age one or two).or two).One function of child’s play is to rehearse One function of child’s play is to rehearse for adulthood.for adulthood.Often “traditional” gender roles are Often “traditional” gender roles are stressed in children’s products; the same stressed in children’s products; the same item might be positioned and designed item might be positioned and designed differently for boys and girls.differently for boys and girls.
Cognitive DevelopmentCognitive Development
The ability of children to make mature, The ability of children to make mature, “adult” consumer decisions obviously “adult” consumer decisions obviously increases with age (not that grownups increases with age (not that grownups always make mature decisions!).always make mature decisions!).
Kids can be segmented by age in terms of Kids can be segmented by age in terms of their their stage ofstage of cognitive developmentcognitive development, or , or ability to comprehend concepts of ability to comprehend concepts of increasing complexity.increasing complexity.
Cognitive DevelopmentCognitive DevelopmentCognitive DevelopmentCognitive Development
Children Differ in Abilities to Store and Retrieve Information From Memory:
LimitedLimited
CuedCued
StrategicStrategic 12 and Older, Children Spontaneously Employ these
Strategies.
12 and Older, Children Spontaneously Employ these
Strategies.
Below Age 6, Children do not Employ Storage and Retrieval
Strategies.
Below Age 6, Children do not Employ Storage and Retrieval
Strategies.
Between 6 and 12, Children Employ these Strategies --
when Prompted.
Between 6 and 12, Children Employ these Strategies --
when Prompted.
Figure 12-4: The Sketches Used to Measure Children’s Figure 12-4: The Sketches Used to Measure Children’s Perception of the Intent of CommercialsPerception of the Intent of Commercials
Kids and Marketing ResearchKids and Marketing Research
Product Testing:Product Testing:– A particularly helpful type of research with A particularly helpful type of research with
children.children.– Involves watching kids play with toys or Involves watching kids play with toys or
involving them in focus groupsinvolving them in focus groups
Message Comprehension:Message Comprehension:– Children differ in their ability to process Children differ in their ability to process
product-related informationproduct-related information– Ethical issues must be considered when Ethical issues must be considered when
directing advertising appeals at childrendirecting advertising appeals at children