familysocialclasslifecycle-111016170143-phpapp01
TRANSCRIPT
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Family
&Family Life cycle
SocialClass
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What is a Family? Family
is defined as a group of two or more people (one of whom is a
householder) related by birth, marriage or adoption and residingtogether
Household:
Is a family and any unrelated person residing in the same house
and consuming food from a common kitchen at least once a day
Two types of household:
Family Household
Institutional Household e.g. Hostel
All families are households but all households are not families
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Types of Family Family of Orientation
Consist of ones parents and elders
Provides orientation towards
Social: Religion, Politics, Economics
Emotional: Self Worth, Ambition, Love and Care
Family of Procreation
Consist of ones spouse and children
Most important buying unit in a market
The influence of Family of Orientation decreases with Age
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Figure 10.11 A Simple Model of the
Socialization Process
Influence More Basic
Values/BehaviorMoral/religious principlesInterpersonal skillsDress/groomingstandards
Manners and speech
Educational motivationOccupational careergoals
Consumer behaviornorms
Influence More
ExpressiveAttitudes/Behavior
StyleFashionFads
In/OutAcceptable consumerbehavior
Other FamilyMembers
Friends
Young Person
Preadolescent Adolescent Teens Older
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Functions of a Family Provides Economic Well Being
Provides Emotional Support
Provides Suitable Life Style
Provides Social Relationships
Provides Morals and Ethical Values
Provides Religious Values
Provides Interpersonal Skills
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Family Life Cycle (1/2) Stage 1 :Bachelorhood
Few Financial Burdens
Fashion and Recreation Oriented
Stage 2: Newly Married Couple Financially better off
Highest purchase rate of consumables and durables
Romantically inclined
Stage 3 : Parenthood Elementary school stage
Youngest child < 6 years of age
Low Liquid Assets
High purchase of baby food & baby oriented products
High school stage Youngest child >= 6 years of age
Financially better off
College Phase
All children still financially dependent
High family influence on purchases
Major expense on higher education
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Family Life Cycle (2/2) Stage 4: Post Parent Hood
Head of the family in labour force
No Dependent Children
Expenditure in self development
Stage 5 :Dissolution :
Solitary Survivor II
Single Surviving head of family in labor force
Supported by family and friends Have high expendable income
Spent on loneliness reducing products and services
Solitary Survivor II:
Single Surviving wife
Low levels of income and savings Expenditure on medical products, security, affection
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Table 10.6 Eight Roles in the Family Decision-
Making Process
ROLE DESCRIPTIONInfluencers Family member(s) who provide information to other
members about a product or service
Gatekeepers Family member(s) who control the flow of informationabout a product or service into the family
Deciders Family member(s) with the power to determineunilaterally or jointly whether to shop for, purchase, use,consume, or dispose of a specific product or service
Buyers Family member(s) who make the actual purchase of aparticular product or service
Preparers Family member(s) who transform the product into a form
suitable for consumption by other family membersUsers Family member(s) who use or consume a particular
product or service
Maintainers Family member(s) who service or repair the product sothat it will provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal ordiscontinuation of a particular product or service
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Types of Family Decisions Husband Dominated Decisions
Husband takes the purchase decisions
Traditionally in products like Automobiles, Alcohol, Insurance
Wife Dominated Decisions
Wife takes the purchase decisions
Traditionally in products like household maintenance items, foodand kitchen appliances
Joint Decision Making
Both husband and wife make the decision
Traditionally in School choice, living room furniture, vacations
Child Dominated Decision Making
Child makes the final product decision Traditionally on children related items
Unilateral Decision Making
Taken by any member of the family
Traditionally on Personal Care items, low priced goods
These Traditional Roles are Changing
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Conflict Resolution Family Decisions are bound to create conflict
Conflicts are resolved by:
Bargaining:
Reaching a compromise on which product to buy
Impression Management:
Misrepresentation of facts in order to create favorable impressions
Use of Authority:
Claiming superior authority to resolve the conflict
Reasoning:
Using logical arguments to resolve the conflict
Playing on Emotions:
Using emotions to resolve the conflict
Additional Information: Getting additional Data or Third Party Information
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Consumer Socialization
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Consumer Socialization Consumer Socialization is the process by which people acquire
skills, knowledge and attitudes relevant to their functioning as
consumers in the marketplace
Contents of Consumer Socialization:
Consumer Skills:
Skills necessary for purchase and understand money, budgeting,
product evaluation
Consumption Preferences:
Are knowledge, attitudes and values that cause people to attachdifferential evaluationto products, brands and retail outlets
Consumption Attitudes:
Are cognitive orientationtowards market place stimulus such asadvertising, sales persons, warranties etc.
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Consumer Behavior,Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter 11
Social Class andConsumer Behavior
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Copyright 2007 by PrenticeHall
Chapter Outline What is Social Class?
The Measurement of Social Class
Geodemographic Clustering
The Affluent Consumer
The Middle Class Consumer
The Working Class
Selected Consumer Behavior Applications ofSocial Class
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Copyright 2007 by PrenticeHall
Social Class
The division ofmembers of a society
into a hierarchy of
distinct status classes,
so that members of
each class have either
higher or lower status
than members of otherclasses.
S i l Cl i h l
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Copyright 2007 by PrenticeHall
Social Class Is Hierarchal
Status is frequently thought of as the relativerankings of members of each social class
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Copyright 2007 by PrenticeHall
Table 11.2 Percent Distribution of
Five-Category Social-ClassMeasureSOCIAL CLASSES PERCENTAGE
Upper 4.3
Upper-middle 13.8Middle 32.8
Working 32.3
Lower 16.8
Total percentage 100.0
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Copyright 2007 by PrenticeHall
Social Class Measurement
Subjective Measures
individuals are asked to estimate their ownsocial-class positions
Reputational Measures informants make judgments concerning the
social-class membership of others within thecommunity
Objective Measures individuals answer specific socioeconomic
questions and then are categorized according toanswers
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Copyright 2007 by PrenticeHall
Objective Measures
Single-variableindexes Occupation
Education
Income
Other Variables
Composite-variable indexes Index of Status
Characteristics
SocioeconomicStatus Score
G d hi l i
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Geo demographic clustering
Birds of a feather flock together
Families of similar socioeconomic backgrounds tendto reside in the same neighborhoods orcommunities. They cluster together
Dispersed communities with similar geographicprofiles
Located by PINCODES
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Copyright 2007 by PrenticeHall
Socioeconomic
Status Score(SES)
A multivariable social
class measure used by
the United States
Bureau of the Census
that combinesoccupational status,
family income, and
educational attainment
into a single measure ofsocial class standing.
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Copyright 2007 by PrenticeHall
GeodemographicClusters
A composite
segmentation
strategy that uses
both geographic
variables (zip codes,
neighborhoods) anddemographic
variables (e.g.,
income, occupation)to identify target
markets.
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Copyright 2007 by PrenticeHall
PRIZM
(Potential
Rating Index
by Zip
Market)
A composite index of
geographic andsocioeconomic factors
expressed in
residential zip codeneighborhoods from
which
geodemographic
consumer segments
are formed.
Th Affl C
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The Affluent Consumer Especially attractive target to marketers
Growing number of households can be classified asmass affluent with incomes of at least $75,000
Some researchers are defining affluent to includelifestyle and psychographic factors in addition toincome
Have different medial habits than the generalpopulation
Wh t I th Middl Cl ?
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What Is the Middle Class?
The middle 50 percent of household incomes -households earning between $22,500 and$80,000
Households made up of college-educated adults
who use computers, and are involved inchildrens education
Lower-middle to middle-middle based on income,education, and occupation (this view does NOT
include upper-middle, which is consideredaffluent)
Th Middl Cl
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The Middle Class
There is evidence that the middle class is slowlydisappearing in the U.S.
Growth of middle class in some Asian and EasternEuropean countries
Many companies offering luxury to the masses withnear-luxury models and goods
Th W ki Cl ?
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Hall
The Working Class?
Households earning $40,000 or less control morethan 30 percent of the total income in the U.S.
These consumers tend to be more brand loyal thanwealthier consumers.
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Th T h Cl
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Hall
The Techno Class
Having competency with technology
Those without are referred to as technologicallyunderclassed
Parents are seeking computer exposure for theirchildren
Geeks now viewed as friendly and fun
Social Class
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Hall
Social Class
Clothing, Fashion, and Shopping
The Pursuit of Leisure Saving, Spending, and Credit
Social Class and Communication
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