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Family & Household Dr. Rohit Vishal Kumar Reader, Department of Marketing Xavier Institute of Social Service
Video for the Class
What is a Family? <ul><li>Family </li></ul><ul><ul><li>is defined as a group of two or more people (one of whom is a house...
Types of Family <ul><li>Family of Orientation </li></ul><ul><ul><li>Consist of one’s parents and elders </li></ul></ul><ul...
Types of Family <ul><li>Traditional Family Types: </li></ul><ul><ul><li>Married Couple: </li></ul></ul><ul><ul><ul><li>Sim...
Functions of a Family <ul><li>Provides Economic Well Being </li></ul><ul><li>Provides Emotional Support </li></ul><ul><li>...
Family Life Cycle (1/2) <ul><li>Bachelorhood </li></ul><ul><ul><ul><li>Few Financial Burdens </li></ul></ul></ul><ul><ul><...
Family Life Cycle (2/2) <ul><li>Empty Nest – I: </li></ul><ul><ul><ul><li>Head of the family in labour force </li></ul></u...
An Illustration <ul><li>Percentage Change in expenditure in Full Nest I stage </li></ul><ul><li>Based on study by US Burea...
Family Purchase Roles <ul><li>Initiator: </li></ul><ul><ul><li>The family member who first recognizes a need to start the ...
Household Decision Making Process Communication targeted at Children Communication targeted at Parents Influencer (Childre...
Types of Family Decisions <ul><li>Husband Dominated Decisions  </li></ul><ul><ul><li>Husband takes the purchase decisions ...
Conflict Resolution <ul><li>Family Decisions are bound to create conflict </li></ul><ul><li>Conflicts are resolved by: </l...
Consumer Socialization
Consumer Socialization <ul><li>Consumer Socialization is the process by which people acquire skills, knowledge and attitud...
Process of Consumer Socialization <ul><li>Family is the primary source of consumer socialization </li></ul><ul><li>Family ...
Piaget’s Stages of Cognition <ul><li>Stage I : Sensorimotor Intelligence </li></ul><ul><ul><li>Age between 0-2 years </li>...
James McNeal’s 5 Stage Model (1/2) <ul><li>Developed by observing behavior in Super Markets </li></ul><ul><ul><li>Stage I ...
James McNeal’s 5 Stage Model (2/2) <ul><ul><li>Stage IV : Assisted Purchase: </li></ul></ul><ul><ul><ul><li>Median age 6 y...
Importance of Children Market <ul><li>Findings from the USA </li></ul><ul><ul><li>Unassisted spending by children of 4-15 ...
Exercise <ul><li>Groups to Present E and  F </li></ul><ul><li>Have a Power-Point presentation ready (4-5 pages) </li></ul>...
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Family & Household

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Class Notes of Family and Household

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Family & Household

  1. 1. Family & Household Dr. Rohit Vishal Kumar Reader, Department of Marketing Xavier Institute of Social Service
  2. 2. Video for the Class
  3. 3. What is a Family? <ul><li>Family </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>Household: </li></ul><ul><ul><li>Is a family and any unrelated person residing in the same house and consuming food from a common kitchen at least once a day </li></ul></ul><ul><ul><li>Two types of household: </li></ul></ul><ul><ul><ul><li>Family Household </li></ul></ul></ul><ul><ul><ul><li>Institutional Household e.g. Hostel </li></ul></ul></ul>All families are households but all households are not families
  4. 4. Types of Family <ul><li>Family of Orientation </li></ul><ul><ul><li>Consist of one’s parents and elders </li></ul></ul><ul><ul><li>Provides orientation towards </li></ul></ul><ul><ul><ul><li>Social: Religion, Politics, Economics </li></ul></ul></ul><ul><ul><ul><li>Emotional: Self Worth, Ambition, Love and Care </li></ul></ul></ul><ul><li>Family of Procreation </li></ul><ul><ul><li>Consist of one’s spouse and children </li></ul></ul><ul><ul><li>Most important buying unit in a market </li></ul></ul>The influence of Family of Orientation decreases with Age
  5. 5. Types of Family <ul><li>Traditional Family Types: </li></ul><ul><ul><li>Married Couple: </li></ul></ul><ul><ul><ul><li>Simplest type of family consisting of husband and wife </li></ul></ul></ul><ul><ul><li>Nuclear Family: </li></ul></ul><ul><ul><ul><li>Consist of Husband Wife and at least one child </li></ul></ul></ul><ul><ul><li>Extended Family: </li></ul></ul><ul><ul><ul><li>Consist of a nuclear family with at least one grand parent </li></ul></ul></ul><ul><ul><li>Joint Family: </li></ul></ul><ul><ul><ul><li>Blood relatives and their spouses with kids staying together </li></ul></ul></ul><ul><li>New Modes of Family </li></ul><ul><ul><li>Blended Family: </li></ul></ul><ul><ul><ul><li>A family in which either or both partner were previously married </li></ul></ul></ul><ul><ul><li>Single Parent Family: </li></ul></ul><ul><ul><ul><li>A family in which only one of the parent is present </li></ul></ul></ul><ul><ul><li>Unmarried Family: </li></ul></ul><ul><ul><ul><li>Parents, unmarried, but living together </li></ul></ul></ul><ul><ul><li>Communal Family: </li></ul></ul><ul><ul><ul><li>A group of families living together and sharing responsibility </li></ul></ul></ul>
  6. 6. Functions of a Family <ul><li>Provides Economic Well Being </li></ul><ul><li>Provides Emotional Support </li></ul><ul><li>Provides Suitable Life Style </li></ul><ul><li>Provides Social Relationships </li></ul><ul><li>Provides Morals and Ethical Values </li></ul><ul><li>Provides Religious Values </li></ul><ul><li>Provides Interpersonal Skills </li></ul>
  7. 7. Family Life Cycle (1/2) <ul><li>Bachelorhood </li></ul><ul><ul><ul><li>Few Financial Burdens </li></ul></ul></ul><ul><ul><ul><li>Fashion and Recreation Oriented </li></ul></ul></ul><ul><li>Newly Married Couple </li></ul><ul><ul><ul><li>Financially better off </li></ul></ul></ul><ul><ul><ul><li>Highest purchase rate of consumables and durables </li></ul></ul></ul><ul><ul><ul><li>Romantically inclined </li></ul></ul></ul><ul><li>Full Nest – I </li></ul><ul><ul><ul><li>Youngest child < 6 years of age </li></ul></ul></ul><ul><ul><ul><li>Low Liquid Assets </li></ul></ul></ul><ul><ul><ul><li>High purchase of baby food & baby oriented products </li></ul></ul></ul><ul><li>Full Nest – II </li></ul><ul><ul><ul><li>Youngest child >= 6 years of age </li></ul></ul></ul><ul><ul><ul><li>Financially better off </li></ul></ul></ul><ul><li>Full Nest – III </li></ul><ul><ul><ul><li>All children still financially dependent </li></ul></ul></ul><ul><ul><ul><li>High family influence on purchases </li></ul></ul></ul><ul><ul><ul><li>Major expense on higher education </li></ul></ul></ul>
  8. 8. Family Life Cycle (2/2) <ul><li>Empty Nest – I: </li></ul><ul><ul><ul><li>Head of the family in labour force </li></ul></ul></ul><ul><ul><ul><li>No Dependent Children </li></ul></ul></ul><ul><ul><ul><li>Expenditure in self development </li></ul></ul></ul><ul><li>Empty Nest – II: </li></ul><ul><ul><ul><li>Head of the family retired from the labor force </li></ul></ul></ul><ul><ul><ul><li>Drastic Fall in Income </li></ul></ul></ul><ul><ul><ul><li>Readjustment of lifestyle </li></ul></ul></ul><ul><ul><ul><li>Increasing medical expenses </li></ul></ul></ul><ul><li>Solitary Survivor – I: </li></ul><ul><ul><ul><li>Single Surviving head of family in labor force </li></ul></ul></ul><ul><ul><ul><li>No dependent children </li></ul></ul></ul><ul><ul><ul><li>Have high expendable income </li></ul></ul></ul><ul><ul><ul><li>Spent on loneliness reducing products and services </li></ul></ul></ul><ul><li>Solitary Survivor – II: </li></ul><ul><ul><ul><li>Single Surviving head of family retired from labor force </li></ul></ul></ul><ul><ul><ul><li>Low levels of income and savings </li></ul></ul></ul><ul><ul><ul><li>Expenditure on medical products, security, affection </li></ul></ul></ul>
  9. 9. An Illustration <ul><li>Percentage Change in expenditure in Full Nest I stage </li></ul><ul><li>Based on study by US Bureau of Labor </li></ul><ul><li>Income - 9.30 </li></ul><ul><li>Food at Home 11.80 </li></ul><ul><li>Eating Out - 34.70 </li></ul><ul><li>Alcohol - 43.40 </li></ul><ul><li>Adult Clothing - 28.40 </li></ul><ul><li>Health Care 7.90 </li></ul><ul><li>Toys & Pets 23.00 </li></ul><ul><li>Self Enjoyment - 48.10 </li></ul><ul><li>Personal Care Products - 8.50 </li></ul>Still Want to Have Children?
  10. 10. Family Purchase Roles <ul><li>Initiator: </li></ul><ul><ul><li>The family member who first recognizes a need to start the purchase process </li></ul></ul><ul><li>Influencer: </li></ul><ul><ul><li>The person who influences the alternatives evaluated </li></ul></ul><ul><li>Decider: </li></ul><ul><ul><li>The person in the family who makes the final decision </li></ul></ul><ul><li>Purchaser: </li></ul><ul><ul><li>The family member who actually purchases the product </li></ul></ul><ul><li>User: </li></ul><ul><ul><li>The ultimate consumer of the product </li></ul></ul>“ Information Gathering” continues throughout the process
  11. 11. Household Decision Making Process Communication targeted at Children Communication targeted at Parents Influencer (Children) Initiator (Parents, Children) Information Gathering Decision Maker (Parents, Children) Purchaser (Parents) User (Parents, Children)
  12. 12. Types of Family Decisions <ul><li>Husband Dominated Decisions </li></ul><ul><ul><li>Husband takes the purchase decisions </li></ul></ul><ul><ul><li>Traditionally in products like Automobiles, Alcohol, Insurance </li></ul></ul><ul><li>Wife Dominated Decisions </li></ul><ul><ul><li>Wife takes the purchase decisions </li></ul></ul><ul><ul><li>Traditionally in products like household maintenance items, food and kitchen appliances </li></ul></ul><ul><li>Joint Decision Making </li></ul><ul><ul><li>Both husband and wife make the decision </li></ul></ul><ul><ul><li>Traditionally in School choice, living room furniture, vacations </li></ul></ul><ul><li>Child Dominated Decision Making </li></ul><ul><ul><li>Child makes the “final product” decision </li></ul></ul><ul><ul><li>Traditionally on children related items </li></ul></ul><ul><li>Unilateral Decision Making </li></ul><ul><ul><li>Taken by any member of the family </li></ul></ul><ul><ul><li>Traditionally on Personal Care items, low priced goods </li></ul></ul>These Traditional Roles are Changing
  13. 13. Conflict Resolution <ul><li>Family Decisions are bound to create conflict </li></ul><ul><li>Conflicts are resolved by: </li></ul><ul><ul><li>Bargaining: </li></ul></ul><ul><ul><ul><li>Reaching a compromise on which product to buy </li></ul></ul></ul><ul><ul><li>Impression Management: </li></ul></ul><ul><ul><ul><li>Misrepresentation of facts in order to create favorable impressions </li></ul></ul></ul><ul><ul><li>Use of Authority: </li></ul></ul><ul><ul><ul><li>Claiming superior authority to resolve the conflict </li></ul></ul></ul><ul><ul><li>Reasoning: </li></ul></ul><ul><ul><ul><li>Using logical arguments to resolve the conflict </li></ul></ul></ul><ul><ul><li>Playing on Emotions: </li></ul></ul><ul><ul><ul><li>Using emotions to resolve the conflict </li></ul></ul></ul><ul><ul><li>Additional Information: </li></ul></ul><ul><ul><ul><li>Getting additional Data or Third Party Information </li></ul></ul></ul>
  14. 14. Consumer Socialization
  15. 15. Consumer Socialization <ul><li>Consumer Socialization is the process by which people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace </li></ul><ul><li>Contents of Consumer Socialization: </li></ul><ul><ul><li>Consumer Skills: </li></ul></ul><ul><ul><ul><li>Skills necessary for purchase and understand money, budgeting, product evaluation </li></ul></ul></ul><ul><ul><li>Consumption Preferences: </li></ul></ul><ul><ul><ul><li>Are knowledge, attitudes and values that cause people to attach differential evaluation to products, brands and retail outlets </li></ul></ul></ul><ul><ul><li>Consumption Attitudes: </li></ul></ul><ul><ul><ul><li>Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc. </li></ul></ul></ul>
  16. 16. Process of Consumer Socialization <ul><li>Family is the primary source of consumer socialization </li></ul><ul><li>Family causes consumer socialization through: </li></ul><ul><ul><li>Instrumental Training: </li></ul></ul><ul><ul><ul><li>Occurs when family members specifically and directly attempt to bring certain responses through reasoning and / or reinforcement </li></ul></ul></ul><ul><ul><ul><li>EG: “Chocolates are bad for your teeth” </li></ul></ul></ul><ul><ul><li>Modeling: </li></ul></ul><ul><ul><ul><li>Occurs when a child learns appropriate or inappropriate behavior by observing other members of the family </li></ul></ul></ul><ul><ul><ul><li>EG: Using Lipstick because mother uses lipstick </li></ul></ul></ul><ul><ul><li>Mediation: </li></ul></ul><ul><ul><ul><li>Occurs when a family member alters a child’s initial interpretation of a marketing stimulus through use of authority </li></ul></ul></ul><ul><ul><ul><li>EG: “You are too young to use a ball-pen. Use a pencil” </li></ul></ul></ul>
  17. 17. Piaget’s Stages of Cognition <ul><li>Stage I : Sensorimotor Intelligence </li></ul><ul><ul><li>Age between 0-2 years </li></ul></ul><ul><ul><li>Child learns by observing </li></ul></ul><ul><li>Stage II : Preoperational Thoughts: </li></ul><ul><ul><li>Age between 3 -7 years </li></ul></ul><ul><ul><li>Child learns language and rapid conceptual development </li></ul></ul><ul><li>Stage III : Concrete Operation: </li></ul><ul><ul><li>Age between 8 – 11 years </li></ul></ul><ul><ul><li>Starts to apply logic to solve the problem </li></ul></ul><ul><li>Stage IV : Formal Operations: </li></ul><ul><ul><li>Age between 12 to 15 years </li></ul></ul><ul><ul><li>Logical in nature, Grasps abstract concepts with ease </li></ul></ul>
  18. 18. James McNeal’s 5 Stage Model (1/2) <ul><li>Developed by observing behavior in Super Markets </li></ul><ul><ul><li>Stage I : Observation: </li></ul></ul><ul><ul><ul><li>Median age 2–6 months </li></ul></ul></ul><ul><ul><ul><li>Child can process sounds and colors </li></ul></ul></ul><ul><ul><ul><li>Environment creates stimulus and brings rewards </li></ul></ul></ul><ul><ul><li>Stage II : Making Request: </li></ul></ul><ul><ul><ul><li>Median Age 2 years </li></ul></ul></ul><ul><ul><ul><li>Child understands various objects and products </li></ul></ul></ul><ul><ul><ul><li>Makes request by pointing and gesturing </li></ul></ul></ul><ul><ul><ul><li>Request only when physical object present </li></ul></ul></ul><ul><ul><ul><li>Mental Image of product yet difficult to carry </li></ul></ul></ul><ul><ul><li>Stage III : Making Selection </li></ul></ul><ul><ul><ul><li>Median Age 4 years </li></ul></ul></ul><ul><ul><ul><li>Simple request processing </li></ul></ul></ul><ul><ul><ul><li>Ability to carry mental image develops </li></ul></ul></ul><ul><ul><ul><li>Ability to pick up things from the shelves independently </li></ul></ul></ul><ul><ul><ul><li>Concept of money becomes clearer </li></ul></ul></ul>
  19. 19. James McNeal’s 5 Stage Model (2/2) <ul><ul><li>Stage IV : Assisted Purchase: </li></ul></ul><ul><ul><ul><li>Median age 6 years </li></ul></ul></ul><ul><ul><ul><li>Children learn by modeling </li></ul></ul></ul><ul><ul><ul><li>Start learning Value of Money </li></ul></ul></ul><ul><ul><ul><li>Learning to become primary consumers </li></ul></ul></ul><ul><ul><li>Stage V : Making Independent Purchase: </li></ul></ul><ul><ul><ul><li>Median Age 8 years </li></ul></ul></ul><ul><ul><ul><li>Making Independent purchase </li></ul></ul></ul><ul><ul><ul><li>Ability to visit store sections independently </li></ul></ul></ul>Major Findings Children Learn to Shop By Going Shopping with their Parents Learning in stages Utilization in Marketing Children Clubs being started for various products Most Retailers in USA have introduced child shopping cart Children Given Preferential treatment in shops
  20. 20. Importance of Children Market <ul><li>Findings from the USA </li></ul><ul><ul><li>Unassisted spending by children of 4-15 is $ 35 Billion </li></ul></ul><ul><ul><li>Influence indirectly $ 200 billion worth of parental purchase </li></ul></ul><ul><ul><li>Brand Loyalty is extremely strong </li></ul></ul><ul><ul><li>Ethical issues are ever present </li></ul></ul>
  21. 21. Exercise <ul><li>Groups to Present E and F </li></ul><ul><li>Have a Power-Point presentation ready (4-5 pages) </li></ul><ul><li>The group would be called to present in the class </li></ul><ul><li>Evaluation will be out of 15 marks </li></ul>Exercise E Interview 3-4 students (class 5 – 12) and determine and describe the household decision purchase of his or her (a) clothes (b) Toiletries and (c) Hobby related items Exercise F Interview (a) family which has no dependent children and (b) family in Full Nest 1 stage and determine the differences in purchase of products and service

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