Why do we study households?

Families
and Households frequently do a better job of
explaining why consumers do what they do
Households than straight demographics (age, income)
Many decisions are not autonomous.
The consumer may be a “purchasing
agent” for a household.

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 Household definitions:
Family household: a household unit of two or Family Decision Making Roles (continued)
more related persons
Nuclear family: a household of two adults of the Decider: the person with the power to
opposite sex w/children determine whether to purchase and which
Extended family: a nuclear family plus brand to purchase. Four types of decisions:
additional relatives
Nonfamily household: a household made up of – Wife dominated
single individuals, or people not related to one – Husband dominated
another – Autonomic decisions
Blended family: a family consisting of a couple – Syncratic decisions
(one or both of which were previously married),
their children, and the children from previous
marriages

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 Meeting Family Size Needs The “Sandwich Generation”
Folger’s Coffee
addresses an important
need by allowing single
people to brew one cup
of coffee at a time.

This insurance ad reminds us that people in the “sandwich

generation” often must care for their parents in addition to
their children.

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 Nontraditional Family Consumer Relevant Groups
Structures
Family
POSSLQ
– Persons of Opposite Sex Sharing Living Quarters
Friendship
Formal social groups (sports clubs)
Voluntarily Childless:
– Women of childbearing age who choose to have no Shopping groups
children Consumer action groups
Who’s Living at Home? Work groups
– Boomerang Kids: Children between the ages of 18 and
34 that return home to live with their parents. Virtual groups or communities
Animals Are People Too! Nonhuman Family
Members

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 Reference Groups Types of Reference Groups
Definition: “is any person or group that serves as a Contactual Group - holds membership to or has regular face to
point of comparison or reference for an individual face contact with.
in the formation of either general or specific
values, attitudes or behaviour”. Aspirational Group - does not hold membership to or has regular
face to face contact with but would like to.
Normative Reference Groups - groups that
influence general or broadly defined attitudes or Disclaimant Group - holds membership to or has regular face to
behaviour. face contact with but disapproves of the
group’s values, attitudes, and behaviour.
Comparative Reference Groups - serve as a
benchmark Avoidance Group - does not hold membership to or has regular
face to face contact with and also disapproves
- Indirect Reference vs Direct Reference Groups the group’s values, attitudes, and behaviour.
– comparative (value-expressive):
(identification with values of others)

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 Major Consumer Reference Groups

The brand which the individual selects is

influenced by observing a seal of approval of an
independent testing agency (such as Good
Housekeeping).

The individual feels that the purchase of a

particular brand helps him show others what he
is, or would like to be (such as an athlete,
successful businessman, good mother, etc.).

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 Applications of the A Simple Model of the Socialization Process
Reference Group Concept
Young Person
Celebrities
Other Family
Friends
Members
The Expert
Influence More Basic
Values/Behaviour Influence More Expressive
The Common Man Attitudes/Behaviour
• Moral/religious principles
• Interpersonal skills
• Style
• Dress/grooming standards
The Executive Spokesperson • Manners and speech
• Fashion
• Educational motivation • Fads
• Occupational career goals • Acceptable consumer
• Consumer behaviour norms behaviour
Other Reference Group Appeals

Pre-adolescent 5 – 11 yrs Adolescent 12 – 15 yrs Teens Young adult

Benefits of Reference Group Appeals - Increases brand 15 – 17 yrs 18 –21 yrs

awareness, and reduces perceived risk.

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 Some Common Issues on Which
Teenagers and Post-Teens
Married Couples Disagree
– Tend to have a greater personal disposal income. Can
be segmented into lifestyle categories.
How to spend money

TV programs to watch

Disciplining children
– Teenagers are important consumers for the following
reasons:
How to spend weekends

Housekeeping

Which friends to see

• What they buy for themselves
Spending for kids • Their influence on family consumption decisions
• The formation of later adult consumption
patterns.

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 Family Life Cycle Group/Family Decision Making
Traditional Family Life Cycle
Decision Roles:
– Stage I - Bachelorhood - young single adult living apart – Influencer: influences the purchase decision.
from parents
– Gatekeeper:
– Stage II - Honeymooners - young married couple – Decider: makes the final decision regarding a purchase.
– Buyer: engages in the actual transaction/ purchase.
– Stage III - Parenthood - married couple with at least 1
child living at home – Preparer: prepares the purchased goods for use.
– User: uses the purchased good(s).
– Stage IV - Post Parenthood - older married couple with – Maintainer: maintains or takes care of the good(s).
no children living at home
– Disposer: chooses when and how to dispose of the good(s).
– Stage V - Dissolution - only 1 of original spouses living

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 Eight Roles in the Family Sex Roles and Decision-Making
Decision-Making Process Responsibilities
ROLE DESCRIPTION
Influencers Family member(s) who provide information to other members about a
product or service
Gatekeepers Family member(s) who control the flow of information about a
Autonomic Decision
product or service into the family
Deciders Family member(s) with the power to determine unilaterally or jointly
whether to shop for, purchase, use, consume, or dispose of a specific
product or service
Syncratic Decision
Buyers Family member(s) who make the actual purchase of a particular
product or service
Preparers Family member(s) who transform the product into a form suitable for
consumption by other family members
There is a shift in decision making
Users Family member(s) who use or consume a particular product or service toward more compromise and turn-
Maintainers Family member(s) who service or repair the product so that it will
taking.
provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service

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 Family Influence - Children

Children have more influence on:

– Food, vacations, eating out .
Adept at forming alliances with 1
parent to constitute a majority.
Child influence increases with age
and earnings.

Figure 12.3 Five stages of consumer development by earliest age at onset and median age at onset
Source: Adapted from James U. McNeal and Chyon-Hwa Yeh, ‘Born to Shop’, American Demographics (June 1993): 36. Reprinted by permission of American Demographics, Inc.

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 Parental Roles in Family Decision Making Parental Influence by Product Category
3 3

cleaning
wife products
dominant food
wife dominant wife's clothing
2.5 2.5
cosmetics

children's toys
appliances
husband's clothing

2 autonomic syncratic 2 vacation

housing
alcoholic beverages

television
car
1.5 1.5
other insurance
husband dominant
life insurance
husband
dominant
Percentage of families engaging in joint decision making Percentage of families engaging in joint decision making
1 1
0% 50% 100% 0% 50% 100%

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 Wife
Relative influence of husbands & wives
Dominant
Child clothing Women’s

Parental Influence by Stage of Decision Final Information groceries

clothing
Pots & pans
decision search
3 NonRx
lamps
Toys/games
furniture
wife 1 problem recognition luggage
dominant
2 search for information carpet
3 final decision refrigerator
Paint wallpaper
2.5 vacations
Men’s leisure clothing
Joint Men’s business clothing
1
stereo
2 appliances TV sets
camera
3 Financial planning
husband's
2 clothing

Family car Sport equipment

car hardware

1.5 Lawn mower

husband life insurance Husband

dominant
Extent of role specialization Dominant
Percentage of families engaging in joint decision making
1
0% 50% 100%
100 75 50 25 0

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 Opinion Leaders... Types of Opinion Leaders
Lead in a specific product category and situation. Opinion Leader Market Maven
Are usually involved with the product category. – Always involved in – General market
product category. knowledge
May have higher social status than followers. – High status, socially – Expertise not product
May be more innovative in purchases than active. specific.
followers. Product Innovator Surrogate Consumer
– Purchases innovative – Often professional: tax
Are a bit similar to product innovators. products consultant, wine
– Less integrated into steward, stock broker.
social groups.

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 Managerial Implications Implications continued...
Positioning. New products should be positioned Marketing Mix. Promotions can be positioned to
to appeal to opinion leaders, then possibly appeal to children and thus utilize their influence
repositioned to appeal to followers. in family decision makings.
Environmental Scanning. Scanning can identify Segmentation. Naturally existing groups of
what present customers are saying to other
customers or potential customers about the customers make outstanding target markets.
company or its products.
Market Research. Research can provide insight
into the shape of the diffusion curve for a new
product.

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Variety of Reference Groups
Marketers sometimes attempt to create opinion
leaders for their products.
– Use celebrities in advertising
– Product sampling—give product or allow
presumed opinion leaders use products.
– Give advance notice of new product introductions,
ad campaigns, etc.
– Create boards—e.g., advisory board of a bank.
– Use marketing research. Problem—opinion leaders
are hard to identify
• Early adopters, but not innovators
• Heavy users
• Often lead membership groups.

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