Consumer Behaviour -Family, social class & life cycle

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Consumer Behaviour

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Consumer Behaviour -Family, social class & life cycle

  1. 1. Family &Family Life cycle<br />SocialClass<br />
  2. 2. What is a Family?<br />Family<br />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<br />Household:<br />Is a family and any unrelated person residing in the same house and consuming food from a common kitchen at least once a day<br />Two types of household:<br />Family Household<br />Institutional Household e.g. Hostel<br />All families are households but all households are not families<br />
  3. 3. Types of Family<br />Family of Orientation<br />Consist of one’s parents and elders<br />Provides orientation towards<br />Social: Religion, Politics, Economics<br />Emotional: Self Worth, Ambition, Love and Care<br />Family of Procreation<br />Consist of one’s spouse and children<br />Most important buying unit in a market<br />The influence of Family of Orientation decreases with Age<br />
  4. 4. Types of Family<br />Traditional Family Types:<br />Married Couple:<br />Simplest type of family consisting of husband and wife<br />Nuclear Family:<br />Consist of Husband Wife and at least one child<br />Extended Family:<br />Consist of a nuclear family with at least one grand parent<br />Joint Family: <br />Blood relatives and their spouses with kids staying together<br />New Modes of Family<br />Blended Family:<br />A family in which either or both partner were previously married<br />Single Parent Family:<br />A family in which only one of the parent is present<br />Unmarried Family:<br />Parents, unmarried, but living together<br />Communal Family:<br />A group of families living together and sharing responsibility<br />
  5. 5. Figure 10.11 A Simple Model of the <br />Socialization Process<br />Young Person<br />Friends<br />Other Family Members<br />Influence More Expressive<br />Attitudes/Behavior<br /><ul><li>Style
  6. 6. Fashion
  7. 7. Fads
  8. 8. “In/Out”
  9. 9. Acceptable consumer behavior</li></ul>Influence More Basic<br />Values/Behavior<br /><ul><li>Moral/religious principles
  10. 10. Interpersonal skills
  11. 11. Dress/grooming standards
  12. 12. Manners and speech
  13. 13. Educational motivation
  14. 14. Occupational career goals
  15. 15. Consumer behavior norms</li></ul>Preadolescent<br />Adolescent<br />Teens<br />Older<br />
  16. 16. Functions of a Family<br />Provides Economic Well Being<br />Provides Emotional Support<br />Provides Suitable Life Style<br />Provides Social Relationships<br />Provides Morals and Ethical Values<br />Provides Religious Values<br />Provides Interpersonal Skills<br />
  17. 17. Family Life Cycle (1/2)<br />Stage 1 :Bachelorhood<br />Few Financial Burdens<br />Fashion and Recreation Oriented<br />Stage 2: Newly Married Couple<br />Financially better off<br />Highest purchase rate of consumables and durables<br />Romantically inclined<br />Stage 3 : Parenthood <br />Elementary school stage<br />Youngest child < 6 years of age<br />Low Liquid Assets<br />High purchase of baby food & baby oriented products<br />High school stage <br />Youngest child >= 6 years of age<br />Financially better off<br />College Phase<br />All children still financially dependent<br />High family influence on purchases<br />Major expense on higher education<br />
  18. 18. Family Life Cycle (2/2)<br />Stage 4: Post Parent Hood<br />Head of the family in labour force<br />No Dependent Children<br />Expenditure in self development<br />Stage 5 :Dissolution :<br />Solitary Survivor – II<br />Single Surviving head of family in labor force<br />Supported by family and friends<br />Have high expendable income<br />Spent on loneliness reducing products and services<br />Solitary Survivor – II:<br />Single Surviving wife<br />Low levels of income and savings<br />Expenditure on medical products, security, affection<br />
  19. 19. Table 10.6 Eight Roles in the Family Decision-Making Process<br />ROLE<br />DESCRIPTION<br />Influencers<br />Family member(s) who provide information to other members about a product or service<br />Gatekeepers<br />Family member(s) who control the flow of information about a product or service into the family<br />Deciders<br />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<br />Buyers<br />Family member(s) who make the actual purchase of a particular product or service<br />Preparers<br />Family member(s) who transform the product into a form suitable for consumption by other family members<br />Users<br />Family member(s) who use or consume a particular product or service<br />Maintainers<br />Family member(s) who service or repair the product so that it will provide continued satisfaction.<br />Disposers<br />Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service<br />
  20. 20. Household Decision Making Process<br />Influencer<br />(Children)<br />Communication targeted at Children<br />Initiator<br />(Parents, <br />Children)<br />Decision<br />Maker<br />(Parents, <br />Children)<br />Purchaser<br />(Parents)<br />Communication targeted at Parents<br />User<br />(Parents,<br />Children)<br />Information<br />Gathering<br />
  21. 21. Types of Family Decisions<br />Husband Dominated Decisions <br />Husband takes the purchase decisions<br />Traditionally in products like Automobiles, Alcohol, Insurance<br />Wife Dominated Decisions<br />Wife takes the purchase decisions<br />Traditionally in products like household maintenance items, food and kitchen appliances<br />Joint Decision Making<br />Both husband and wife make the decision<br />Traditionally in School choice, living room furniture, vacations<br />Child Dominated Decision Making<br />Child makes the “final product” decision<br />Traditionally on children related items<br />Unilateral Decision Making<br />Taken by any member of the family<br />Traditionally on Personal Care items, low priced goods<br />These Traditional Roles are Changing<br />
  22. 22. Conflict Resolution<br />Family Decisions are bound to create conflict<br />Conflicts are resolved by:<br />Bargaining:<br />Reaching a compromise on which product to buy<br />Impression Management:<br />Misrepresentation of facts in order to create favorable impressions<br />Use of Authority:<br />Claiming superior authority to resolve the conflict<br />Reasoning:<br />Using logical arguments to resolve the conflict<br />Playing on Emotions:<br />Using emotions to resolve the conflict<br />Additional Information:<br />Getting additional Data or Third Party Information<br />
  23. 23. Consumer Socialization<br />
  24. 24. Consumer Socialization<br />Consumer Socialization is the process by which people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace<br />Contents of Consumer Socialization:<br />Consumer Skills:<br />Skills necessary for purchase and understand money, budgeting, product evaluation<br />Consumption Preferences:<br />Are knowledge, attitudes and values that cause people to attach differential evaluation to products, brands and retail outlets<br />Consumption Attitudes:<br />Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc. <br />
  25. 25. Copyright 2007 by Prentice Hall<br />Chapter 11<br />Social Class and Consumer Behavior<br />
  26. 26. Copyright 2007 by Prentice Hall<br />Chapter Outline<br />What is Social Class?<br />The Measurement of Social Class<br />Geodemographic Clustering<br />The Affluent Consumer<br />The Middle Class Consumer<br />The Working Class<br />Selected Consumer Behavior Applications of Social Class<br />
  27. 27. Copyright 2007 by Prentice Hall<br />Social Class<br />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.<br />
  28. 28. Copyright 2007 by Prentice Hall<br />Social Class Is Hierarchal<br />Status is frequently thought of as the relative rankings of members of each social class<br />
  29. 29. Copyright 2007 by Prentice Hall<br />Table 11.2 Percent Distribution of Five-Category Social-Class Measure<br />SOCIAL CLASSES PERCENTAGE<br />Upper 4.3<br />Upper-middle 13.8<br />Middle 32.8<br />Working 32.3<br />Lower 16.8<br />Total percentage 100.0<br />
  30. 30. Copyright 2007 by Prentice Hall<br />Social Class Measurement<br />Subjective Measures<br />individuals are asked to estimate their own social-class positions<br />Reputational Measures<br />informants make judgments concerning the social-class membership of others within the community<br />Objective Measures<br />individuals answer specific socioeconomic questions and then are categorized according to answers<br />
  31. 31. Copyright 2007 by Prentice Hall<br />Objective Measures<br />Single-variable indexes<br />Occupation<br />Education<br />Income<br />Other Variables<br />Composite-variable indexes<br />Index of Status Characteristics<br />Socioeconomic Status Score<br />
  32. 32. Geo demographic clustering<br />“Birds of a feather flock together”<br />Families of similar socioeconomic backgrounds tend to reside in the same neighborhoods or communities. “They cluster together”<br />Dispersed communities with similar geographic profiles<br />Located by PINCODES<br />
  33. 33. Copyright 2007 by Prentice Hall<br />Index of Status Characteristics (ISC)<br />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. <br />
  34. 34. Copyright 2007 by Prentice Hall<br />Socioeconomic Status Score (SES)<br />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.<br />
  35. 35. Copyright 2007 by Prentice Hall<br />Geodemographic Clusters<br />A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets.<br />
  36. 36. Copyright 2007 by Prentice Hall<br />PRIZM (Potential Rating Index by Zip Market)<br />A composite index of geographic and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.<br />
  37. 37. Copyright 2007 by Prentice Hall<br />The Affluent Consumer<br />Especially attractive target to marketers<br />Growing number of households can be classified as “mass affluent” with incomes of at least $75,000<br />Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income<br />Have different medial habits than the general population<br />
  38. 38. Copyright 2007 by Prentice Hall<br />What Is the Middle Class?<br />The “middle” 50 percent of household incomes - households earning between $22,500 and $80,000<br />Households made up of college-educated adults who use computers, and are involved in children’s education<br />Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)<br />
  39. 39. Copyright 2007 by Prentice Hall<br />The Middle Class<br />There is evidence that the middle class is slowly disappearing in the U.S.<br />Growth of middle class in some Asian and Eastern European countries<br />Many companies offering luxury to the masses with near-luxury models and goods<br />
  40. 40. Copyright 2007 by Prentice Hall<br />The Working Class?<br />Households earning $40,000 or less control more than 30 percent of the total income in the U.S.<br />These consumers tend to be more brand loyal than wealthier consumers.<br />
  41. 41. Copyright 2007 by Prentice Hall<br />Discussion Question<br />What types of products are targeted to the working class?<br />What issues must marketers consider when targeting their ads to the working class?<br />
  42. 42. Copyright 2007 by Prentice Hall<br />The Techno Class<br />Having competency with technology<br />Those without are referred to as “technologically underclassed”<br />Parents are seeking computer exposure for their children<br />Geeks now viewed as friendly and fun<br />
  43. 43. Copyright 2007 by Prentice Hall<br />Consumer Behavior and Social Class<br />Clothing, Fashion, and Shopping<br />The Pursuit of Leisure<br />Saving, Spending, and Credit<br />Social Class and Communication<br />
  44. 44. Copyright 2007 by Prentice Hall<br />Class Situations, Self-Perceptions, and Financial OrientationsFigure 11-9<br />

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