Consumer Behaviour -Family, social class & life cycle

Family &

Family Life cycle

Social Class

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 residing together

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

Types of Family Family of Orientation

Consist of one’s parents and elders Provides orientation towards

Social: Religion, Politics, Economics Emotional: Self Worth, Ambition, Love and Care

Family of Procreation Consist of one’s spouse and children Most important buying unit in a market

The influence of Family of Orientation decreases with Age

Types of Family Traditional Family Types:

Married Couple: Simplest type of family consisting of husband and wife

Nuclear Family: Consist of Husband Wife and at least one child

Extended Family: Consist of a nuclear family with at least one grand parent

Joint Family: Blood relatives and their spouses with kids staying together

New Modes of Family Blended Family:

A family in which either or both partner were previously married Single Parent Family:

A family in which only one of the parent is present Unmarried Family:

Parents, unmarried, but living together Communal Family:

A group of families living together and sharing responsibility

Figure 10.11 A Simple Model of the Socialization Process

Influence More BasicValues/Behavior•Moral/religious principles

•Interpersonal skills•Dress/grooming standards

•Manners and speech•Educational motivation

•Occupational career goals

•Consumer behavior norms

Influence More BasicValues/Behavior•Moral/religious principles

•Interpersonal skills•Dress/grooming standards

•Manners and speech•Educational motivation

•Occupational career goals

•Consumer behavior norms

Influence More ExpressiveAttitudes/Behavior

•Style•Fashion•Fads•“In/Out”•Acceptable consumer behavior

Influence More ExpressiveAttitudes/Behavior

•Style•Fashion•Fads•“In/Out”•Acceptable consumer behavior

Other Family MembersOther Family Members FriendsFriends

Young PersonYoung Person

Preadolescent Adolescent Teens Older

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

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

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

Table 10.6 Eight Roles in the Family Decision-Making ProcessROLE DESCRIPTIONInfluencers 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 product or service into the familyDeciders 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 serviceBuyers 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 membersUsers Family member(s) who use or consume a particular product or service

Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Household Decision Making Process

Communication targeted at Children

Communication targeted at Parents

Influencer(Children)

Initiator(Parents, Children)

InformationGathering

DecisionMaker

(Parents, Children)

Purchaser(Parents)

User(Parents,Children)

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, food

and 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

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

Consumer Socialization

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 attach

differential evaluation to products, brands and retail outlets Consumption Attitudes:

Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc.

Copyright 2007 by Prentice Hall

Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Chapter 11Social Class and

Consumer Behavior

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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 of

Social Class


Social Class

The division of members 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 other

classes.


Social Class Is Hierarchal Status is frequently thought of as the relative

rankings of members of each social class


Table 11.2 Percent Distribution of Five-Category Social-Class

MeasureSOCIAL CLASSES PERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage 100.0


Social Class Measurement Subjective Measures

individuals are asked to estimate their own social-class positions

Reputational Measures informants make judgments concerning the

social-class membership of others within the community

Objective Measures individuals answer specific socioeconomic

questions and then are categorized according to answers


Objective Measures

Single-variable indexes Occupation Education Income Other Variables

Composite-variable indexes Index of Status

Characteristics Socioeconomic Status

Score

Geo demographic clustering “Birds of a feather flock together” Families of similar socioeconomic backgrounds tend

to reside in the same neighborhoods or communities. “They cluster together”

Dispersed communities with similar geographic profiles

Located by PINCODES


Index of Status Characteristics

(ISC)

A composite measure of social

class that combines occupation, source

of income (not amount), house

type/dwelling area into a single

weighted index of social class standing.


Socioeconomic Status Score

(SES)

A multivariable social class measure used by

the United States Bureau of the Census

that combines occupational status, family income, and

educational attainment into a single measure of

social class standing.


Geodemographic Clusters

A composite segmentation

strategy that uses both geographic

variables (zip codes, neighborhoods) and

demographic variables (e.g.,

income, occupation) to identify target

markets.


PRIZM (Potential

Rating Index by Zip

Market)

A composite index of geographic and

socioeconomic factors expressed in

residential zip code neighborhoods from

which geodemographic

consumer segments are formed.


The Affluent Consumer Especially attractive target to marketers Growing number of households can be classified as

“mass affluent” with incomes of at least $75,000 Some researchers are defining affluent to include

lifestyle and psychographic factors in addition to income

Have different medial habits than the general population


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 in children’s education

Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)


The Middle Class There is evidence that the middle class is slowly

disappearing in the U.S. Growth of middle class in some Asian and Eastern

European countries Many companies offering luxury to the masses with

near-luxury models and goods


The Working Class? Households earning $40,000 or less control more

than 30 percent of the total income in the U.S. These consumers tend to be more brand loyal than

wealthier consumers.


Discussion Question What types of products are targeted to the working

class? What issues must marketers consider when

targeting their ads to the working class?


The Techno Class Having competency with technology Those without are referred to as “technologically

underclassed” Parents are seeking computer exposure for their

children Geeks now viewed as friendly and fun


Consumer Behavior and Social Class Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication


Class Situations, Self-Perceptions, and Financial OrientationsFigure 11-9

Self Improvement

Consumer Behaviour -Family, social class & life cycle