Gender And Household Influence On Consumer Behavior


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Gender And Household Influence On Consumer Behavior

  1. 1. Age, Gender and Household Influence on Consumer Behavior By Dr. Kevin Lance Jones
  2. 2. How Age Affects Consumer Behavior <ul><li>Age trends in the USA </li></ul><ul><ul><li>The median age of US consumers was 32.9 in 1990 and was 35.3 in 2000. </li></ul></ul><ul><ul><li>American adults (18+) make up more than 74 percent of the overall population. </li></ul></ul><ul><ul><li>The senior market is a growing segment with significant buying power. </li></ul></ul><ul><ul><li>Younger adults age 20-34 is shrinking. </li></ul></ul>
  3. 3. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Look to develop a distinct identity and self-image. </li></ul></ul><ul><ul><li>Have a need to gain acceptance from peers. </li></ul></ul><ul><ul><li>Want independence but will not deviate from a group for fear of rejection. </li></ul></ul>
  4. 4. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Are very tech savvy, using internet, cell phones, computers and other digital devices to communicate, play games, do homework and shop. </li></ul></ul><ul><ul><li>Many earn their own money gaining financial independence earlier than previous generations. </li></ul></ul>
  5. 5. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Rock, hip-hop and rap music symbolizing rebellion are very popular. </li></ul></ul><ul><ul><li>Clothing establishes an identity, a way of labeling individuals. </li></ul></ul><ul><ul><li>Have sophisticated decision making skills because they come from two career families or single parent families and they are required to make more decisions for themselves. </li></ul></ul>
  6. 6. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Are considered thrifty and savvy shoppers. </li></ul></ul><ul><ul><li>Are particular about how they spend their money </li></ul></ul><ul><ul><li>Shop mostly on weekends with the females shopping more than males. </li></ul></ul><ul><ul><li>Find friends as a major source of information about products. </li></ul></ul>
  7. 7. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Personal purchasing power is $108 billion, not counting the $47 billion more they influence in family purchases. </li></ul></ul><ul><ul><li>Female teens spend $37 billion on beauty and fashion items and 50 percent are cosmetically brand loyal by age 15. </li></ul></ul>
  8. 8. How Age Affects Consumer Behavior <ul><li>Teens </li></ul><ul><ul><li>Advertising often incorporates symbols, issues and language which they can relate. </li></ul></ul><ul><ul><li>Music and sports are commonly used because they fall into the universal language of teenagers. </li></ul></ul><ul><ul><li>Process information faster than earlier generations and prefer short, snappy, phrases to long-winded explanations. </li></ul></ul>
  9. 9. How Age Affects Consumer Behavior <ul><li>Generation X </li></ul><ul><ul><li>Individuals born form 1965-1976 </li></ul></ul><ul><ul><li>Stereotyped as feeling alienated and resentful due to difficulties in career placement and advancement. </li></ul></ul><ul><ul><li>Many believe in “status panic”. </li></ul></ul><ul><ul><li>Called Boomerang kids </li></ul></ul>
  10. 10. How Age Affects Consumer Behavior <ul><li>Generation Xer’s </li></ul><ul><ul><li>$120 plus billion in spending </li></ul></ul><ul><ul><li>Prefers customized offerings </li></ul></ul><ul><ul><li>Key segment for music, movies, travel, alcohol, fast food, clothing, cosmetics </li></ul></ul><ul><ul><li>Twenty-four percent of budget spend on eating out. </li></ul></ul>
  11. 11. How Age Affects Consumer Behavior <ul><li>Generation Xer’s </li></ul><ul><ul><li>Cynical about obvious marketing techniques </li></ul></ul><ul><ul><li>Objectionable ads may contain: exaggerated claims, stereotypes, cigarettes , alcohol, sexually explicit content and political, religious or social messages. </li></ul></ul>
  12. 12. How Age Affects Consumer Behavior <ul><li>Baby Boomers </li></ul><ul><ul><li>Born between 1946-1964 </li></ul></ul><ul><ul><li>Largest demographic segment 78 million </li></ul></ul><ul><ul><li>Heavy consumers of financial services </li></ul></ul><ul><ul><li>Delayed child rearing (parents of some Xer’s and most Gen Y) </li></ul></ul><ul><ul><li>Focus on staying young </li></ul></ul>
  13. 13. How Age Affects Consumer Behavior <ul><li>Boomers </li></ul><ul><ul><li>Young Again : Individuals from age 50 to 65 tend to think of themselves as about 15 years younger than they really are in terms of cognitive age. </li></ul></ul><ul><ul><li>Gray market : consumers over 65 </li></ul></ul>
  14. 14. How Age Affects Consumer Behavior <ul><li>Boomers represent a critical growing marketing for health-related and medical products and services, </li></ul><ul><li>Already spend more than twice the national average on prescription drugs, accounting for more than 40 percent of all pharmaceutical sales. </li></ul>
  15. 15. How Age Affects Consumer Behavior <ul><li>Boomers have an active lifestyle, they buy leisure based products and services such as educational seminars, travel and sporting goods. </li></ul><ul><li>Grandparents spend as much as $30 billion on clothing, toys and other goods and services for their grandchildren. </li></ul>
  16. 16. How Gender and Sexual Orientation affect Consumer Behavior <ul><li>Men and Women behave based on sex-roles learned early in childhood and defined by their culture. </li></ul><ul><li>In Western Societies men previously were guided by agentic goals that stress mastery, self-efficacy, strength, and assertiveness; characterized as being emotionless. </li></ul>
  17. 17. How Gender and Sexual Orientation affect Consumer Behavior <ul><li>Women, in western societies have been guided by communal goals that stress affiliation and fostering harmonious relations with others; characterized as being submissive, emotional and home oriented. </li></ul>
  18. 18. Men vs. Women <ul><li>Men </li></ul><ul><ul><li>Competitive </li></ul></ul><ul><ul><li>Independent </li></ul></ul><ul><ul><li>Externally motivates </li></ul></ul><ul><ul><li>Risk takers </li></ul></ul><ul><ul><li>Sports </li></ul></ul><ul><ul><li>Hunting </li></ul></ul><ul><ul><li>Fishing </li></ul></ul><ul><ul><li>Mechanical tasks </li></ul></ul><ul><li>Women </li></ul><ul><ul><li>Cooperative </li></ul></ul><ul><ul><li>Interdependent </li></ul></ul><ul><ul><li>Intrinsically motivated </li></ul></ul><ul><ul><li>Arts </li></ul></ul><ul><ul><li>Activities fostering social ties </li></ul></ul>
  19. 19. Changing Sex Roles <ul><li>Women delay marriage and child-bearing in favor of building a career and working in fields that were traditionally male dominated, such a management, engineering and law. </li></ul><ul><li>In dual-career families, some husbands are assuming greater responsibility for household tasks and child rearing, although a significant number still fail to do their share. </li></ul><ul><li>Men express emotions, be more sensitive and more caring and loving fathers. </li></ul>
  20. 20. Gender and Sexual Orientation <ul><li>Gender refers to a biological state (male or female). </li></ul><ul><li>Sexual orientation reflects a person’s preference toward certain masculine or feminine behaviors. </li></ul><ul><li>Masculine individuals whether male or female display male oriented traits. </li></ul><ul><li>Feminine individuals display female oriented traits. </li></ul><ul><li>Androgynous individuals display both male and female traits. </li></ul>
  21. 21. Gender and Sexual Orientation <ul><li>According to Census Bureaus statistics the US has more than 601,000 same sex households (304,000 gay male couples and 297,000 lesbian couples). </li></ul><ul><li>Gay and lesbian consumers are likely to distrust ad messages more than heterosexual consumers. </li></ul><ul><li>They respond well to sexual orientation symbols and ads that reflect their lives and culture. </li></ul>
  22. 22. Men vs. Women Differences in Acquisition & Consumption Behaviors <ul><li>Men </li></ul><ul><ul><li>Selective examination of ad messages </li></ul></ul><ul><ul><li>Decisions based on heuristics </li></ul></ul><ul><ul><li>Agentic goals </li></ul></ul><ul><ul><li>Pay attention to positive emotions in purchase decisions </li></ul></ul><ul><li>Women </li></ul><ul><ul><li>Detailed examination of ad messages </li></ul></ul><ul><ul><li>Decisions based on attributes </li></ul></ul><ul><ul><li>Communal goals </li></ul></ul><ul><ul><li>Pay attention to negative emotions in purchase decisions </li></ul></ul><ul><ul><li>Compensatory eating </li></ul></ul>
  23. 23. Marketing Implications Based on Gender & Sexual Orientation <ul><li>Products are becoming less sex-typed as sex roles evolve. </li></ul><ul><li>Marketers still target particular genders </li></ul><ul><li>Ads are depicting more modern images for both men and women. </li></ul><ul><li>Cause Marketing is an effective way to reach women. </li></ul>
  24. 24. How Household Influence Consumer Behavior <ul><li>Households are the most important unit of analysis for consumer behavior because most decisions for acquisition, usage and disposition are made by households rather than individuals. </li></ul>
  25. 25. Types of Households <ul><li>Household is a single person living alone or a group of individuals who live together in a common dwelling, regardless of whether they are related. </li></ul><ul><li>This term include cohabitating couples: unmarried opposite sex, same sex or roommates. </li></ul>
  26. 26. Types of Households <ul><li>The traditional stereotype of the American family consisted of a husband a the primary wage earner, a wide who was a non-wage earner at home, and two children under the age of 18. Only 6 percent of families fit this profile. </li></ul>
  27. 27. Types of Households <ul><li>Female single head of households have increased three times the number of two-parent households. </li></ul><ul><li>Twenty-nine percent of all US households consists of married couples without children (empty nesters or chose not to have kids). </li></ul>
  28. 28. Types of Households <ul><li>Family is usually defined as a group of individuals living together who are related by marriage, blood, or adoption. </li></ul><ul><li>Nuclear family is a father, mother and children (traditional family unit). </li></ul><ul><li>Extended family is the nuclear family plus relatives such as a grandparents, aunts, uncles and cousins. </li></ul>
  29. 29. Types of Households <ul><li>Households are also termed based on family life cycle: </li></ul><ul><ul><li>Singles </li></ul></ul><ul><ul><li>Young married </li></ul></ul><ul><ul><li>Parents </li></ul></ul><ul><ul><li>Empty nesters </li></ul></ul>
  30. 30. Types of Households <ul><li>Many households consider pets to be family members. </li></ul><ul><ul><li>60% of American families own pets </li></ul></ul><ul><ul><ul><li>59 million dogs </li></ul></ul></ul><ul><ul><ul><li>75 millions cats </li></ul></ul></ul><ul><ul><ul><li>25 million birds </li></ul></ul></ul><ul><ul><ul><li>250 million fish </li></ul></ul></ul><ul><ul><ul><li>125 million other animals </li></ul></ul></ul>
  31. 31. Changing Trends in Households <ul><li>Five factors have altered the basic structure and characteristics of households: </li></ul><ul><ul><li>Delayed marriage </li></ul></ul><ul><ul><li>Cohabitation </li></ul></ul><ul><ul><li>Dual careers </li></ul></ul><ul><ul><li>Divorce </li></ul></ul><ul><ul><li>Smaller families </li></ul></ul>
  32. 32. Changing Trends in Households <ul><li>Delayed marriage </li></ul><ul><ul><li>Many individuals are delaying marriage or not marrying at all </li></ul></ul><ul><ul><li>Never married individuals age 30-34 has risen 9.4% for men 6.2% for women. </li></ul></ul><ul><ul><li>Married couple under the age of 25 has decreased by 1/3 since 1980. </li></ul></ul>
  33. 33. Changing Trends in Households <ul><li>Cohabitation </li></ul><ul><ul><li>More individuals live with one another outside the bonds of marriage. </li></ul></ul><ul><ul><li>Defining aspect is that they view personal possessions as personal property and leave the possibility of the relationship not lasting. </li></ul></ul><ul><ul><li>Leads to greater discretionary income </li></ul></ul>
  34. 34. Changing Trends in Households <ul><li>Dual Career Families – 2 types </li></ul><ul><ul><li>The woman is concerned about career advancement and personal fulfillment </li></ul></ul><ul><ul><li>Woman works out of financial necessity and considers her employment “just a job”. </li></ul></ul><ul><ul><li>Increased discretionary income </li></ul></ul><ul><ul><li>Increased burden of family and career (role overload) </li></ul></ul><ul><ul><li>Husbands are taking on more nontraditional roles in the family. </li></ul></ul>
  35. 35. Changing Trends in Households <ul><li>Divorce </li></ul><ul><ul><li>Divorce rate have more than doubled since 1960. </li></ul></ul><ul><ul><li>Four out of ten marriages end in divorce. </li></ul></ul><ul><ul><li>Influences household structure/ creates single parent families </li></ul></ul><ul><ul><li>One out of three families in the USA are one parent households. </li></ul></ul><ul><ul><li>Remarry with greater frequency creating stepfamilies which ½ end up in divorce as well. </li></ul></ul>
  36. 36. Changing Trends in Households <ul><li>Smaller families </li></ul><ul><ul><li>Boomers and Xer’s are having fewer children </li></ul></ul><ul><ul><li>Average family size is 3.14 </li></ul></ul><ul><ul><li>Childless families are one of the fastest growing types of households </li></ul></ul>
  37. 37. Roles that Household Members Play <ul><li>Household decision roles refers to the roles that different members play in household decisions. </li></ul><ul><ul><li>Gatekeeper </li></ul></ul><ul><ul><li>Influencer </li></ul></ul><ul><ul><li>Decider </li></ul></ul><ul><ul><li>Buyer </li></ul></ul><ul><ul><li>User </li></ul></ul><ul><ul><li>Each role can be performed by different household members and by a single individual, subset of individuals or the entire household. </li></ul></ul>
  38. 38. Roles that Household Members Play <ul><li>Household decision roles can be instrumental meaning that they are related to tasks affecting the buying decision. </li></ul><ul><li>Roles are also expressive which means they indicate family norms such as choice of color or style. </li></ul>
  39. 39. Roles that Household Members Play <ul><li>Household decision roles can create conflict: </li></ul><ul><ul><li>Reason for buying </li></ul></ul><ul><ul><li>Who should make the decision </li></ul></ul><ul><ul><li>Which option to choose </li></ul></ul><ul><ul><li>Who gets to use the product or service </li></ul></ul><ul><ul><li>Households can resolve conflicts through problem solving, persuasion, bargaining, and politics (persuasion and problem solving are used most frequently). </li></ul></ul>
  40. 40. Roles that Household Members Play <ul><li>Joint decisions are most likely to be made when: </li></ul><ul><ul><li>Perceive risk is high </li></ul></ul><ul><ul><li>The decision is an important one </li></ul></ul><ul><ul><li>Time is not limited </li></ul></ul><ul><ul><li>Household is young </li></ul></ul>
  41. 41. Roles that Household Members Play <ul><li>The role of spouses: </li></ul><ul><ul><li>Husband dominant decisions </li></ul></ul><ul><ul><li>Wife dominant decisions </li></ul></ul><ul><ul><li>Autonomic decisions </li></ul></ul><ul><ul><li>Syncratic decisions </li></ul></ul>
  42. 42. Roles that Household Members Play <ul><li>Spouses </li></ul><ul><ul><li>As spouses get nearer a final decision the process moves towards syncratic (two deciding together) decision making. </li></ul></ul><ul><ul><li>If the family has strong traditional sex-role orientation, tasks are stereotypical in nature and more husband-dominate decisions are made. </li></ul></ul>
  43. 43. Roles that Household Members Play <ul><li>The process of bargaining which involves a fair exchange of preferences or concession in which the spouse gives in on some points to get what her or she wants in other areas couples tend to make equitable decisions that result from compromises. </li></ul>
  44. 44. Roles that Household Members Play <ul><li>Children </li></ul><ul><ul><li>Children nag parents. </li></ul></ul><ul><ul><li>More likely to influence parents on child-related products i.e. cereal, cookies, snacks, ice cream, pizza, vacations etc… </li></ul></ul><ul><ul><li>Less likely to influence families who are more traditional and conservative. </li></ul></ul><ul><ul><li>Parents are more likely to give in to children if both work. </li></ul></ul><ul><ul><li>The more TV children watch the more they try to influence parents. </li></ul></ul>
  45. 45. Roles that Household Members Play <ul><li>Children </li></ul><ul><ul><li>The older the child the more influence he or she will exert. </li></ul></ul><ul><ul><li>Older children generate income on their own creating power. </li></ul></ul><ul><ul><li>Children use techniques such as bargaining, persuasion, emotional appeals and requests. </li></ul></ul>