This document discusses the rising trend of lone-person households in Australia and its implications for marketing. It notes that the number of people living alone is projected to increase the most over the next 25 years. This demographic shift affects consumer decision making as lone households have different needs than multi-person households. Marketers need to recognize this growing segment and reconsider their marketing approaches to appeal to individual consumers rather than families. Reference groups like family still influence lone individuals' behaviors, so marketing that features approval from these groups can be effective.

1. Responding to growth in the lone-person
household in Australia
Bianca Johnston
Kimberley Odgers
Lauren Martin

2. This case study focuses on the lone-person household
social group. The lone-person household social group
is characterised as individuals, either male or female,
who are single by choice. They are identified as people
who prefer to live alone, and place value on fostering a
career, travel, independence and freedom, over finding
a partner or starting a family. It is a shifting of ideals,
moving away from the nuclear family in favour of
being independent, self-reliant and single.

3. The number of Australians
living alone is going to have
the most rapid increase of all
household types in the next 25
years.
Source: ABS Household and Family Projections, Australia, 2006 to 2031 (cat.
no. 3236.0)

4. The consumer decision making process has
aspects that can be affected by the changes in
the demographic composition of the
household.
There are three parts to the consumer
decision making model,
Input, Process and Output.

5. Input has two factors, Marketing and Sociocultural.
 Marketers need to recognise the growth in the
lone-person house hold and may need to
reconsider their marketing approaches for some
products and services to ensure that they are not
only appealing to families and couples.
 Sociocultural influences for the lone-person house
hold are going to continue to be important in the
decision making process, as if the consumer has
any doubt or hesitation, this is where they may
look to for guidance, such as family or social
groups.

6.  Need recognition is going to have less external
factors in a lone-household. There will be no
partner, or children to contribute or influence the
needs that arise within the household.
 Pre-purchase search and Evaluation of
alternatives may not be affected by the
demographic changes, as a purchase is already
going to be made at these stages.

7. Output comprises of Post-Purchase Evaluation and
Purchase Behaviour.
 The purchase behaviour is not going to be
affected, as no matter who has made the
purchase, they are going to use it in one of the
three purchase behaviour manners.
 Post-Purchase evaluation is going to rely heavily
on the individual, rather than the consensus of
the family or couple.

8. This case study focuses on the rising number in lone person
households, featuring Melissa and Susan.
Based on these large demographic changes, there has been a
flow on effect on the demand of goods and services.
Goods in higher demand:
 Suitable housing for people living alone
 Individually portioned food products
 Security equipment, such as alarms
 Restaurants that allow for the ‘shared dining experience’
 Services such as dry cleaners, dog walkers and food
delivery

9. Previously marketing has been based around the tradition
family life cycle. The lone-person households are defying
these stereotypes. This is affecting how marketers
communicate with and market.
Melissa and Susan are in the ‘single by choice’ segment. This
segment is not defined by age or income.
Many companies are making special appeal to singles by
featuring singles in their marketing campaigns.
However it is not always necessary to exclusively target this
particular segment. Some goods are marketed the same,
regardless of the consumer’s relationship status or living
situation. Advertising to singles should not always be based
around the assumption they want to find a partner.

10. Reference groups are a point of comparison which
influences attitudes and behaviours of consumers
Reference groups have been recognised by social
scientists ‘…as a determinant of behaviour. The fact
that people act in accordance with a frame of reference
produced by the groups to which they belong is a long-accepted
and sound premise (Bearden, Etzel 1982).

11. One of the most influential reference groups with the
lone person social group is family. The attitudes,
behaviour and beliefs exhibited by ones family form a
strong point for reference for an individual’s own
behaviour. One’s family sets the bar for many people,
and have formed similar or identical behaviours and
values from a young age. Thus, family is an important
normative reference group to be considered by
marketers in the decision making process.

12. By recognising that lone-household individuals see family as a point of reference for buying
behaviours and attitudes, marketers can creating advertisements which demonstrate how a
product is accepted, approved or even consumed by a certain reference group. A marketing
communications message that would appeal to individuals living in a lone-person
household would be one that reflects the values held by this group. For example, words
such as ‘independent’ and ‘self-reliant’ are the types of words that this group would identify
with. This, combined with an emotional appeal would be a persuasive way to send a
message by causing an emotional response in the message recipients. For example, the
marketers of a frozen meal company could market their meals as being ‘wholesome’, ‘like a
home cooked meal but in a third of the time’, ‘nutritious meal for those on the go’ and so on.
Phrases such as these appeal to single people who need to take care of themselves, and plays
on the need to look after one’s health. Using the ‘mother knows best’ approach makes lone-household
individuals feel like they must be looking after themselves if the product is
‘mum-approved’. This is because ‘consumers who buy a specific brand perceive themselves
as similar to others who consume that same brand’… (Wei, Yu 2012).