This document discusses family life cycle and psychographic segmentation for marketing purposes. It defines the family and different types of families like nuclear, joint, blended, and single-parent. It describes the eight roles in family decision making and how decisions are made. The family life cycle has 5 stages from bachelorhood to dissolution. Psychographic segmentation looks at lifestyle, personality, and social class. Lifestyle is influenced by activities, interests, and opinions. Personality and self-concept influence brand perceptions and product choices. Social class segmentation ranges from upper-upper class to lower-lower class.
Organizational Decision Making ,Household Decision Making ,Organizational Buyers, Business-to-Business (B2B) Marketers ,Roles in Decision Making ,Influence in Decision Making ,Family Life Cycle , Factor Affect Family Conflict ,Who Makes Key Decisions in the Family?
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India
Understanding the ConsumerIncome and Social Class1.docxmarilucorr
Understanding the Consumer
Income and Social Class
1
Income and Social Class
Every culture has social hierarchies some more rigid than others
Social Class is an important indicator of how money is spent.
Affects access to resources. Affects taste and lifestyles
“People who occupy different positions in society consume in different ways” (Solomon et al, 2006:428)
Relative value of social class versus income in predicting consumer behaviour:
Social class appears to be a better predictor of purchases that have symbolic aspects (logos)
Income is a better predictor of major expenditures that do not have status or symbolic aspects.
Social class and income data together are better predictors of purchases of expensive, symbolic products.
Income and Social Class
A consumer’s social class refers to his/her standing in society.
Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources.
Every individual senses that he/she is more at home with and more acceptable to some groups than to others
Consumers often use external symbols of status to indicate their position in society; e.g. clothing, store patronage, furniture.
Social Class
Social Class
How do we measure social class?
Income
Family Background
Education
Occupation
Taste - Culture
“[Ones] place in the social structure is not just a determinant of how much money is spent , it also influences how it is spent” (Solomon et al, 2006:433).
Social Class Trends
Social Mobility
Upward/ Downward/ Horizontal
General upward mobility over time
Reasons for upward mobility trend
Small and successful companies
Internationalisation of trade made goods more available and affordable
Global communications/media has increased exposure to and knowledge of goods
Increase in dual income families
Higher educational attainment
Upper/middle classes not reproducing as much as working classes
A basic assumption of economic psychology is that consumer demand for goods and services depends on their ability and willingness to buy.
Discretionary spending only occurs when people are able and willing to spend money on items above and beyond their basic needs.
Consumer confidence or the state of mind, consumers have about their own personal situation, as well as their feelings about their overall economic prospects helps to determine whether they will purchase goods, take on debt or save their money.
Factors Influencing Consumer Spending
Socio-Economic GroupingsAUpper Middle ClassHigh managerial/ professional
e.g.company director, doctor, solicitorBMiddle ClassIntermediate managerial/admin/professionalC1Lower Middle ClassSupervisory/clerical/junior managerialC2Skilled Working ClassSkilled manual workersDWorking ClassSemi-skilled or unskilled workersEPensioners ...
MADE BY:
My Lovely Group Studied In Sindh University Jamshoro, Mirpurkhas Campus.
By this Presentation your concept will clear easily.
Comment plz if u like :)
The presentation is about the role of family influences on consumer behavior.
It cosists of the various stages of persons life which affect his buying behavior & social class affecting the individuals buying pattern
Organizational Decision Making ,Household Decision Making ,Organizational Buyers, Business-to-Business (B2B) Marketers ,Roles in Decision Making ,Influence in Decision Making ,Family Life Cycle , Factor Affect Family Conflict ,Who Makes Key Decisions in the Family?
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India
Understanding the ConsumerIncome and Social Class1.docxmarilucorr
Understanding the Consumer
Income and Social Class
1
Income and Social Class
Every culture has social hierarchies some more rigid than others
Social Class is an important indicator of how money is spent.
Affects access to resources. Affects taste and lifestyles
“People who occupy different positions in society consume in different ways” (Solomon et al, 2006:428)
Relative value of social class versus income in predicting consumer behaviour:
Social class appears to be a better predictor of purchases that have symbolic aspects (logos)
Income is a better predictor of major expenditures that do not have status or symbolic aspects.
Social class and income data together are better predictors of purchases of expensive, symbolic products.
Income and Social Class
A consumer’s social class refers to his/her standing in society.
Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources.
Every individual senses that he/she is more at home with and more acceptable to some groups than to others
Consumers often use external symbols of status to indicate their position in society; e.g. clothing, store patronage, furniture.
Social Class
Social Class
How do we measure social class?
Income
Family Background
Education
Occupation
Taste - Culture
“[Ones] place in the social structure is not just a determinant of how much money is spent , it also influences how it is spent” (Solomon et al, 2006:433).
Social Class Trends
Social Mobility
Upward/ Downward/ Horizontal
General upward mobility over time
Reasons for upward mobility trend
Small and successful companies
Internationalisation of trade made goods more available and affordable
Global communications/media has increased exposure to and knowledge of goods
Increase in dual income families
Higher educational attainment
Upper/middle classes not reproducing as much as working classes
A basic assumption of economic psychology is that consumer demand for goods and services depends on their ability and willingness to buy.
Discretionary spending only occurs when people are able and willing to spend money on items above and beyond their basic needs.
Consumer confidence or the state of mind, consumers have about their own personal situation, as well as their feelings about their overall economic prospects helps to determine whether they will purchase goods, take on debt or save their money.
Factors Influencing Consumer Spending
Socio-Economic GroupingsAUpper Middle ClassHigh managerial/ professional
e.g.company director, doctor, solicitorBMiddle ClassIntermediate managerial/admin/professionalC1Lower Middle ClassSupervisory/clerical/junior managerialC2Skilled Working ClassSkilled manual workersDWorking ClassSemi-skilled or unskilled workersEPensioners ...
MADE BY:
My Lovely Group Studied In Sindh University Jamshoro, Mirpurkhas Campus.
By this Presentation your concept will clear easily.
Comment plz if u like :)
The presentation is about the role of family influences on consumer behavior.
It cosists of the various stages of persons life which affect his buying behavior & social class affecting the individuals buying pattern
Similar to 4.9 familysocialclasslifecycle and psychographic.pptx (20)
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4.9 familysocialclasslifecycle and psychographic.pptx
1. NESC ONLINE
CLASSES
RETAIL PROMOTION RETAIL SERVICES
UNIT 4.9
CONCEPTS OF MARKETING STRATEGY
MARKET SEGMENTATION – FAMILY LIFE CYCLE
&
Psychographic Segmentation
2. WhatisaFamily?
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
3. Typesof 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
4. Typesof 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
5. Functionsof aFamily
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
6. FamilyLife 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
7. FamilyLife 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
8. Eight Roles in the Family Decision-
Making Process
ROLE DESCRIPTION
Influencers 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 family
Deciders 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
Buyers 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 members
Users 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
10. Typesof 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
11. 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
12. Market Segmentation –Psychographic :
social class, lifestyle, personality,
characteristics
Lifestyle
RETAIL PROMOTION
Life style, in many ways, is an outward expression of ones self-concept.
Life style it can be viewed as a unique pattern of living which influences and
reflected by one’sbuying habits.
Psychographics may be viewed as the method of defining lifestyle in
measurable terms
13. The Nature Of
Lifestyles
L i f e s t y l e variables are defined by how people spend
their time (activities), what they consider important in
their environment (interests), and what they think of
themselves and the world around them (opinions).
Activities:- Work, Hobbies, Social Events,
vacation , Entertainment, Club Membership
I n t e r e s t s : - Family, Home, Job, Community,
recreation, Fashion
O p i n i o n s : - Personal Relations, Social issues,
politics, Business, Economics, Education etc
15. Brand
Personality
• Consumers attribute various descriptive
like traits to different brands in a wide
variety of product categories.
• Vo l v o – representing safety / family
orientation
• Levi’s 501 jeans – dependable, rugged &
American
• B M W - performance driven
• N i v e a – Mild and caring
• N i k e - the athlete inall of us.
16. SELF CONCEPT
• Is defined as the totality of individuals thoughts and feelings having
reference to him/ her as an object.
• Life style, in many ways, is an outward expression of ones self-concept.
• H o l d s that an individuals have a concept of B
ased on who
they think they are (the actual self)
• …
…
…
…and a concept of who they think they would like to be
(ideal self).
• EXTENDED SELF : N o t only does our self image influence
products we choose, but the products (of symbolic value)
we possess frequently influence our
selfimage. E x t e n d e d self incorporates some of our m
o
r
e
important possessions into our self concept.
W e are what we wear, and what we use.
17. Actual Self
Concept
Private
Self
Socia
l Self
Actual Self
How I actually
see myself
Ideal self
How I would like
to see myself
Social Self
How others
actually see me
Ideal Social Self
How I would like
others to see me.
19. Social-Class
THE UPPER-UPPER CLASS--COUNTRY CLUB
•Small number of well-established families
•Belong to best country clubs and sponsor major charity events
•Serve as trustees for local colleges and hospitals
•Prominent physicians and lawyers
•May be heads of major financial institutions, owners of major
long-established firms
•Accustomed to wealth, so do not spend money conspicuously
THE LOWER-UPPER CLASS--NEW WEALTH
•Not quite accepted by the upper crust of society
•Represent “new money”
•Successful business executive
•Conspicuous users of their new wealth
11-19
20. THE UPPER-MIDDLE CLASS--
ACHIEVING PROFESSIONALS
•Have neither family status nor unusual wealth
•Career oriented
•Young, successful professionals, corporate managers, and
business owners
•Most are college graduates, many with advanced degrees
•Active in professional, community, and social activities
•Have a keen interest in obtaining the “better things in life”
•Their homes serve as symbols of their achievements
•Consumption is often conspicuous
•Very child oriented
11-20
21. THE LOWER-MIDDLE CLASS--FAITHFUL FOLLOWERS
•Primary non-managerial white-collar workers and highly paid
blue-collar workers
•Want to achieve “respectability” and be accepted as good
citizens
•Want their children to be well behaved
•Tend to be churchgoers and are often involved in church-
sponsored activities
•Prefer a neat and clean appearance and tend to avoid faddish
or highly-styled clothing
•Constitute a major market for do-it-yourself products
11-21
22. THE UPPER-LOWER CLASS--SECURITY-MINDED MAJORITY
•The largest social-class segment
•Solidly blue-collar
•Strive for security
•View work as a means to “buy” enjoyment
•Want children to behave properly
•High wage earners in this group may spend impulsively
•Interested in items that enhance leisure time (e.g., TV sets)
•Husbands typically have a strong “macho” self-image
•Males are sports fans, heavy smokers, beer drinkers
11-22
23. THE LOWER-LOWER CLASS--ROCK BOTTOM
•Poorly educated, unskilled laborers
•Often out of work
•Children are often poorly treated
•Tend to live a day-to-day existence
11-23