Family or Household Decision Making . Types of Households/Families. Why is it Important for Marketers to know about Families and Households?. impart lifestyle and consumption values to their members influential in consumption decisions make several joint purchase decisions
impart lifestyle and consumption values to their members
influential in consumption decisions
make several joint purchase decisions
prime target market for goods and services
Family Life-cycle Households?
newly married, no kids
young couple, kids < 6
young couple, kids >6
older married w/ dep.
empty nesters, working
widower - working, not working
primary decision makerWhat is the Family Lifecycle (FLC)
Changes Over Life-Cycle
The family life cycle concept attempts to explain consumer behavior patterns of individuals as they age, marry, have children, retire, and their discretionary income vary over their life span
Household Influences for Marketing Strategy Households?
Stage of the
Choose your vacation Households?
Family Life cycle and Travel Households?
Travel locations, arrangements etc. differsignificantly across the family life stages
What are the Critical Consumption factors? experiences
2) Newly married couples (Young, no children) (DINKS)
(a) Better off financially than they will be in the near future,
(b) High levels of purchase of homes and consumer durable goods,
(c) Establish patterns of personal financial management and
3) Full nest I. (Youngest child under six):
(a) Home purchasing at peak,
(b) Liquid assets/saving low,
(c) Dissatisfied with financial position and amount of money saved, (d) Reliance on credit finance, credit cards, overdrafts etc.,
(e) Child dominated household,
necessities - foods, cleaning material, clothes, bicycles, sports gear, music lessons, pianos, junk foods, holidays etc.;
4) Full nest II.
(Youngest child six or over):
(a) Financial position better,
(b) Some wives return to work,
(c) Child dominated household,
5) sports gear, music lessons, pianos, Full nest III. (Older married couples with dependent children.:
(a) Financial position still better,
(b) More wives work,
(c) School and examination dominated household,
(d) Some children get first jobs; other in further/higher education, (e) Expenditure to support children's further/higher education,
new, more tasteful furniture, non-necessary appliances, boats, holidays, etc.
luxuries, home improvements e.g. fitted kitchens etc.; sports gear, music lessons, pianos,
Empty nest I. (Older married couples, no children living with
them, head of family still in labor force):
(a) Home ownership at peak,
(b) More satisfied with financial position and money saved,
(c) Interested in travel, recreation, self-education,
(d) Make financial gifts and contributions,
(e) Children gain qualifications and move to Stage 1.
medical appliances or medical care, products which aid health, sleep and digestion, hobbies and pastimes,
7) Empty nest II. (Older married couples, no children living at
home, head of family retired):
(a) Significant cut in income,
(b) Keep home,
(d) Concern with level of savings and pension,
(e) Assist children
hobbies and pastimes, health, sleep and digestion, hobbies and pastimes,
Prepaid funeral health, sleep and digestion, hobbies and pastimes,
9) Solitary survivor II. (Retired):
(a) Significant cut in income,
(b) Additional medical requirements,
(c) Special need for attention, affection and security,
(d) May Seek sheltered accommodation,
(e) Possible dependence on 'others for personal financial, management and control.
Small bags of health, sleep and digestion, hobbies and pastimes,specialty potatoes for affluent couples without children. And with small kitchens
Large bags for larger families
Marketing Potatoes through the FLC health, sleep and digestion, hobbies and pastimes,
Traditional Families - one parent works, one parent stays home, children live at home.
Two working parents, children present health, sleep and digestion, hobbies and pastimes,
Single parent families health, sleep and digestion, hobbies and pastimes,- single working parent, children present.
Households without children health, sleep and digestion, hobbies and pastimes,
Double income, no kids health, sleep and digestion, hobbies and pastimes,
Empty Nesters, children grown and out of home
Married and Single active elderly
Households vary in consumption habits depending on stage where they are in family life cycle
Household decision making is also different from individual decision making
Family role structure orientation influences household decision making
Nature of good or service to be purchased and consumed influences household decision makingHousehold Decision Making
Types of Purchase Decisions Made by Families where they are in family life cycle
Consensual Decision Making
Group Agrees on the Desired Purchase
Differing Only in Terms of How It Will Be Achieved.
Accommodative where they are in family life cycle
Group Members Have Different Preferences and Can’t Agree
on a Purchase That
Will Satisfy Everyone
Conflict 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:
Person’s Level of Investment in the Group
Degree to Which the Product in Question Will Be Used or Will Satisfy a Need
For Procurement, Maintenance, Payment, etc.
One Family Member’s Influence Over the Others in Making Decisions
Influence may depend on the good or service to be purchased, role structure orientation, stage of the decision making process
autonomous or unilateral;
joint decisionHusband-Wife Decision Making
Who makes the Decisions?
The Apparel Manufacturer Haggar Placed Menswear Ads in About a Dozen Women’s Magazines After Its Research Found That Women Exert Influence Over Men’s Clothing Choices
Four Factors Influencing Family Decision Making a Dozen Women’s Magazines After Its Research Found That Women Exert Influence Over Men’s Clothing Choices
1.Sex-role stereotypes - separation of decision-making for sex-typed products.
2 Spousal Resources - spouse contributing the greater resources (usually, but not always, money) has the greater influence
3. Experience - individual decisions are made more frequently when the couple has gained experience as a decision-making unit
4. Socio-Economic Status - middle class families make more joint decisions than either upper or lower class families.
Information a Dozen Women’s Magazines After Its Research Found That Women Exert Influence Over Men’s Clothing Choices
Initiators: initiate consumption behaviour a Dozen Women’s Magazines After Its Research Found That Women Exert Influence Over Men’s Clothing Choices
Information Gatherers: research alternatives
Gatekeepers: control flow of information to other members
Influencer(s): provide information about a good or service to other members
Deciders: have power to make final buying decision
Buyers: member(s) who actually make purchase
Preparers: transform product into useable form
Users: family members who use the good or service
Maintainers: responsible for maintenance of good
Disposers: responsible for disposal of good/serviceConsumption-related Roles
Marketing communication: advertising message, media used, person targeted, product positioning
Product development: products, e.g. minivans and cars built specifically for families; vacations; services, e.g. insurance, hotel
Pricing decisions: e.g. discounts for bulk purchases
Distribution: changes in family lifestyle means changes in distribution, e.g. longer retail hours
Public policy regulations re marketing to children
Households can be targeted by advertising by lifestyle .Marketing Strategy Implications
If a car is being purchased by a family for a teenager to drive to school, how will this influence:
As opposed to the family purchasing a car that the adult head of the household will use to commute to work?
Marketing to the Family drive to school, how will this influence:
When marketing to the family children must be a consideration.
How would you reach families with your marketing message?
Internet, e-mail and other technology
Organizations drive to school, how will this influence:
marketing to families employs strategies and practices that strongly appeal to parent customers and their children for the ultimate purpose of increasing sales.
It involves looking at your sales and marketing processes from the viewpoint of a consumer who has money to buy, children beside them and is stretched for time.
Family marketing has three components:
For many households, a car purchase is a family event. It can be a pleasant one or a story that is retold with embarrassment and horror. Which do you think will lead to a repeat sale or referral? If you were the owner of a car dealership how would you make the purchase of a car a pleasant family event.