Family or Household Decision Making . Families and Households. What’s the difference between a Family and Household ?. families are related by blood or marriage households are people living together, but not necessarily related. Types of Households/Families.
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What’s the difference between a Family and Household?
Small bags of Households?specialty potatoes for affluent couples without children. And with small kitchens
Large bags for larger families
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
Changes Over Life-Cycle
primary decision makerWhat is the Family Lifecycle (FLC)
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
Family Life cycle and Travel Households?
summer travel, short overnight trips, and long overnight trips significantly differacross the family life stages
What are the Critical Consumption factors?
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.
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
Single parent families health, sleep and digestion, hobbies and pastimes,- single working parent, children present.
This very busy parent needseasy, quick meal solutions. Dinner is just another thing on the "to do" list along with soccer practice,homework, etc.
What sort of potato products should be marketed to families with children?
Households without children health, sleep and digestion, hobbies and pastimes,
Half the U.S. population lives in a one- or two- personhousehold.
Every demographic in this group has lower potato consumption than households withchildren and represents a significant (and currently missed) opportunity.
Singles have the lowest at-home potato consumption, with affluent singles showing evenlower consumption than low- to moderate-income singles.
They eat out often, and represent asignificant portion of fry consumption in restaurants. Many in this group will be moving into the marriage, parenthood segment.
Potato product ideas:
Double income, no kids health, sleep and digestion, hobbies and pastimes,
Empty Nesters, children grown and out of home
Married and Single active elderly
How would a married couples choices with regards to: health, sleep and digestion, hobbies and pastimes,
be affected if they had children?
Types of Purchase Decisions Made by Families health, sleep and digestion, hobbies and pastimes,
Consensual Decision Making
Group Agrees on the Desired Purchase
Differing Only in Terms of How It Will Be Achieved.
Accommodative health, sleep and digestion, hobbies and pastimes,
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
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
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.
Since 1976, the real income (in constant dollars corrected for inflation) of Canadian families has remained relatively constant. How is this situation affecting the purchasing behaviour of Canadian Families?
How should a firm use this information to develop a marketing strategy for