family by xiaohuicaicai


									Family or Household
  Decision Making
Types of
  Why is it Important for Marketers to know about
              Families and Households?

1. impart lifestyle and consumption values to their
2. influential in consumption decisions
3. make several joint purchase decisions
4. prime target market for goods and services
   What is the Family Lifecycle (FLC)

Family Life-cycle          Changes Over Life-Cycle
 bachelor                   financial situation
 newly married, no kids     brands considered
 young couple, kids < 6     interests
 young couple, kids >6
                             primary decision
 older married w/ dep.       maker
 empty nesters, working
 retired
 widower - working, not
  Why is it of value to understand the family 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

 At each stage members have new and constant needs for goods
  and services I.e consumption patterns change

 Life cycle determines which product categories are bought but
  not how much is spent on each category

 Basic strategy is how to keep customers through the FLC? (e.g.
   Household Influences for
   Marketing Strategy

               of Household

Stage of the
Household                      Household
 Life Cycle                   Purchase and
                              Consumption    Strategy
Choose your
                 Family Life cycle and Travel
Travel locations, arrangements etc. differ significantly across the
family life stages

Young singles the most action motivated,
older marrieds the least motivated by action.

young marrieds with children were highly motivated to escape
older marrieds were not.

Young marrieds with children had most interest in rest and

Young single travelers had the most ego motivation where
middle-aged singles were least motivated by ego.
Young singles placed much greater emphasis on outdoor
older marrieds did not regard outdoor activities as important.

Older unmarrieds, young marrieds, and young singles thought
cultural attractions were important.

For the older married and older unmarried segments, weather
was very important in vacation destination selection.

attractions such as theme parks were important for divorced
travelers with children and young married travelers with
          What are the Critical
          Consumption factors?

 number   of people (children and adults) in
the family,

 the ages of the family members

 Number of employed adults
            Stages of the family life cycle
1) Bachelor Stage. (Young single people not living at home):
(a) Few financial burdens,
(b) Fashion/opinion leader led,
(c) Recreation orientated,
(d) Experiment with personal financial management
(e) men and women differ in consumer behaviour
    - women more housing-related items and furniture,
    -men more on restaurants and cars
(f) buy: basic kitchen equipment,
       basic furniture, cars, holidays,
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
(D) Buy: cars, fringes, cookers, life assurance, durable furniture,
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,
(f) Buy necessities - washers, dryers, baby food and clothes, health
        foods vitamins, toys, books etc.;
4) Full nest II.
(Youngest child six or over):
(a) Financial position better,
(b) Some wives return to work,
(c) Child dominated household,
(d) Buy necessities - foods, cleaning material, clothes, bicycles,
        sports gear, music lessons, pianos, junk foods, holidays
5) 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,
(f) Buy: new, more tasteful furniture, non-necessary appliances,
         boats, holidays, etc.
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.
(f) Buy luxuries, home improvements e.g. fitted kitchens etc.;
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
(f) Buy:medical appliances or medical care, products which aid
        health, sleep and digestion, hobbies and pastimes,
8) Solitary survivor I. (In labour force):
(a) Income still adequate but likely to sell family home and purchase
smaller accommodation,
(b) Worries about security and dependence;
(c) Concern with level of savings and pension,
(d) Buy: 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.
Buy: Prepaid funeral
                        Small bags of specialty
Large bags for larger
                        potatoes for affluent
                        couples without
                        children. And with
                        small kitchens
          Marketing Potatoes through the FLC
Traditional Families - one parent works, one parent stays home,
children live at home.
eat dinner at-home more frequently than other demographic
also consume more potatoes per person than those in families
without children.
affluent groups tend to eat fewer potatoes than low- to moderate-
income groups with the same demographics.
the mainstay of fresh potato marketing, but over time it has come
to represent less and less of the total population
Two working parents, children present
Dinner is a hectic time.
Parents and children arrive home about the same time.
 Kids are excited (and hungry); parents are tired (and
Convenience concerns often override other factors in
deciding what's for dinner.
 Dinnertime solutions need to be quick and easy.

What sort of potato products would they be interested in?
Single parent families- single working parent, children
Dinner is just another thing on the "to do" list along with
soccer practice, homework, etc.
needs easy, quick meal solutions.
What sort of potato products should be marketed to
families with children?
Households without children
Half the U.S. population lives in a one- or two- person household.
Every demographic in this group has lower potato consumption
than households with children and represents a significant (and
currently missed) opportunity.
Singles have the lowest at-home potato consumption, with affluent
singles showing even lower consumption than low- to moderate-
income singles.
They eat out often, and represent a significant 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
young married couples just establishing their households. Many
can afford to eat out often and don't have cooking skills.

Empty Nesters, children grown and out of home
Some in this group are still working, some are retired
almost all want a break from the years of dinner preparation.
They can afford to eat out or take home upscale meals.
Often health and fitness conscious, this important group has
positive attitudes about potatoes.
Potato Product ideas:

Married and Single active elderly
A small percentage of the population at present,
this demographic, along with empty nesters, is expected to grow
dramatically in the next 20 years.
Potato product ideas:
     Household Decision Making
 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 making
Types of Purchase Decisions Made by Families

                 Consensual Decision Making

                      Group Agrees on the
                      Desired Purchase

                      Differing Only in
                      Terms of How It Will
                      Be Achieved.
Group Members Have
Different Preferences
and Can’t Agree
on a Purchase That
Will Satisfy Everyone
           Family Decision Conflict
  Conflict Occurs When There is Not Complete
 Correspondence in Family Members’ Needs and
 Some Specific Factors Determining the Degree of
  Family Decision Conflict Include the Following:

Interpersonal Needs    Person’s Level of Investment in the Group

Product Involvement   Degree to Which the Product in Question Will
    and Utility              Be Used or Will Satisfy a Need

  Responsibility      For Procurement, Maintenance, Payment, etc.

                        One Family Member’s Influence Over the
      Power                   Others in Making Decisions
Husband-Wife Decision Making
          Who makes the Decisions?

 Influence may depend on the good or service to
  be purchased, role structure orientation, stage of
  the decision making process
 four categories:
   autonomous or unilateral;
   joint decision
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
 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
     Initiator                 Gatekeeper

Disposer                             Buyer
Maintainer                         Influencer

       User                     Decision
    Consumption-related Roles
   Initiators: initiate consumption behaviour
   Information Gatherers: research alternatives
   Gatekeepers: control flow of information to other
   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/service
Marketing Strategy Implications
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 .
If a car is being purchased by a family for a teenager
to drive to school, how will this influence:
   The type of product

   Method of financing

   Appropriate promotion message

   The media
As opposed to the family purchasing a car that the
adult head of the household will use to commute to
         Marketing to the Family
When marketing to the family children must be a consideration.
How would you reach families with your marketing message?

  children’s magazines are good avenues for reaching the youth
  and mom markets.
  also family-oriented magazines aimed more at parents. Eg.
  Family Circle, Sesame Street Parents (5.4 million readers)
  Family Fun, Child, Parents, or Parenting magazine.

Internet, e-mail and other technology
   since kids are often the more technologically savvy members of
   the family
    Web sites
family-friendly organizations are good places in which to focus
marketing efforts aimed at the family eg.
    Religious institutions
    Schools: primary, secondary, public and private;
    their affiliated clubs and organizations,
    Kids’ groups - Scouts, 4-H, etc.
    YMCA or YWCA and other athletic clubs

Direct Mail
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:
   customer service
   and environment.
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.
Provide a good play area. Construction play, a table for drawing,
good books, creative activities like train sets, Lego tables, mazes
and puzzles. Stay away from videos. Children who sit too long just
build up their energy and compensate with over-active play.
Welcome families with broad smiles, make eye contact with the
Take a few minutes to make the children comfortable by leading
them to the play area or explaining where the toys are. Do not put
parents into the position of apologizing for their children's
Make sure that the vending machine has packaged, healthy
treats available, including fruit juice or water in bottles.
The bathroom should have a change table.
stop periodically to make sure the kids are engaged and happy.

Include them if old enough, in some of the discussions.

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