McGraw-Hill/Irwin   Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 14

      Reference Groups and
             Family



McGraw-Hill/Irwin    Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Reference Groups
• A group consists of two or more people who
  interact with each other to accomplish some
  goal
• A reference group involves one or more
  people used as a basis for comparison or
  point of reference in forming affective and
  cognitive responses and performing
  behaviors



                     14-3
Reference Groups cont.




          14-4
Analyzing Reference Groups
• Reference groups are cultural groups in that
  members share certain common cultural
  meanings
  – Marketers try to determine the content of the
    shared meanings of various reference groups
  – Reference groups can have both positive and
    negative effects on consumers
     • Associative reference groups
     • Dissociative reference groups



                           14-5
Types of Reference Group Influence
 • Most people are members of several
   primary informal groups and a few formal,
   membership groups
   – People identify and affiliate with particular
     reference groups for three reasons
      • To gain useful knowledge
      • To obtain rewards or avoid punishments
      • To acquire meanings for constructing, modifying, or
        maintaining their self-concepts




                             14-6
Reference Groups cont.
– Three types of reference group influence
  • Informational
  • Utilitarian
  • Value-expressive
– All three types of reference group influence can
  be accomplished by a single reference group.




                       14-7
Reference Group Influence on Products
            and Brands
 • Reference groups do not influence all
   product and brand purchases to the same
   degree
   – Influences vary on at least two dimensions
     • Degree to which the product or brand is
        – A necessity
        – A luxury
     • Degree to which the object in question is
       conspicuous or know by other people
        – Public good
        – Private good


                            14-8
Reference Group Influence on Products
          and Brands cont.
   – Reference group influence will vary depending
     on whether the products and brands are
     •   Public necessities
     •   Private necessities
     •   Public luxuries
     •   Private luxuries




                               14-9
Reference Groups and Marketing
             Strategy
• Developing marketing strategies through an
  analysis of primary informal group
  influences
• Peer group influence as a major asset of
  firms that sell in-home to groups
• Describing similarities between previous
  consumers and potential consumers
• Using salespersons as reference groups
• Soliciting experts to aid in the direct sale of
  products

                       14-10
Reference Group Influence on Products
          and Brands cont.




                 14-11
Family
• Marketers are interested in both families
  and households
  – Household is the housing unit having people
    living in it
  – Nonfamily households include unrelated
    people living together
  – A family has at least two people, the
    householder and someone who is related to the
    householder by blood, marriage, or adoption
     • Nuclear family
     • Extended family
                           14-12
Family Decision Making
• How family members interact and influence
  one another when making purchase choices
  for the household
  – Identification of roles of family members in
    family decision making is important




                         14-13
Family Decision Making cont.
– Types of family decision-making roles include:
  •   Influencers
  •   Gatekeepers
  •   Users
  •   Deciders
  •   Buyers
  •   Disposers




                      14-14
Influences on Family Decision Making
• Areas explored in research on family
  decision making are
  – Differences in product class and their
    relationship to family decision making
  – The structure of husband/wife roles
  – The determinants of joint decision making
• Children and family decision making




                        14-15
Conflict in Family Decision Making
• Decision conflict arises when family
  members disagree about some aspect of
  the purchase decision
  – Means-end chain model is a useful framework
    for analyzing decision conflict




                       14-16
Six Common Types of Family
     Influence Strategies
Patterns or Styles of Influence
           Behaviors
Consumer Socialization
• Refers to how children acquire knowledge
  about products and services and various
  consumption-related skills
  – Can occur directly through intentional instruction
    or indirectly through observation and modeling
  – The consumer knowledge formed in childhood
    can influence people in later years




                         14-19
Consumer Socialization cont.
– Developing early brand awareness and loyalty
  is an important marketing strategy for many
  companies
– The flow of socialization is not restricted to
  parents influencing their young children




                      14-20
Factors Influencing American Families
• Three important changes:
  – Changes in female employment
  – Changes in marriage and divorce
  – Changes in childbirth and child rearing practices




                        14-21
Demographic Changes in Household
          Composition
• American families are highly diverse
  – Various types of families constitute distinctive
    markets for many products
     •   Married-couple family
     •   Traditional family
     •   Nontraditional family
     •   Nonfamily households family
          – Cohabiting couples




                                 14-22
A Modern Family Life Cycle




            14-23
Family Life Cycle
• The modern family life cycle captures most
  types of families in American society,
  including:
  – Single parents
  – Young singles
  – Older singles
  – Married couples with children




                        14-24
Family- Marketing Analysis
• Considerations for using the family life cycle
  for marketing analysis
  – Modern family life cycle does not include
    nonfamily households
  – Modern family life cycle does not capture every
    possible change in family status that can occur
     • Does not include the boomerang age




                          14-25
Family- Marketing Analysis cont.
 – Marketers use the family life cycle to:
    •   Segment the market
    •   Analyze market potential
    •   Identify target markets
    •   Develop more effective marketing strategies
 – Developing marketing strategies for the
   bachelor segment is a challenge
 – Some stages in the family life cycle are more
   important markets than others
 – Stages of the family life cycle that contain
   children are quite important to many marketers
                            14-26
Family- Marketing Implications
• Ideas for marketing strategies to help
  reduce shopping time and stress
  – Provide information
  – Assist in planning
  – Develop out-of-store selling
  – Automate processes
  – Improve delivery




                        14-27
Summary
• Described two aspects of the micro social
  environment
• Discussed three types of reference group
  influence
• Described how reference groups could
  influence choice decisions about products
  and brands, and offered ideas for using
  reference groups in marketing strategies


                     14-28
Summary cont.
• Distinguished between families and
  households
• Discussed decision making by families
• Looked at conflict in family choices and
  described several ways family members
  might try to resolve the decision conflict and
  influence each other



                       14-29
Summary cont.
• Explored consumer socialization
• Described several demographic trends that
  have changed family households
• Discussed a model of the family life cycle
  and showed how marketers could use it to
  analyze markets and develop marketing
  strategies



                     14-30

Chapter014

  • 1.
    McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2.
    Chapter 14 Reference Groups and Family McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 3.
    Reference Groups • Agroup consists of two or more people who interact with each other to accomplish some goal • A reference group involves one or more people used as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors 14-3
  • 4.
  • 5.
    Analyzing Reference Groups •Reference groups are cultural groups in that members share certain common cultural meanings – Marketers try to determine the content of the shared meanings of various reference groups – Reference groups can have both positive and negative effects on consumers • Associative reference groups • Dissociative reference groups 14-5
  • 6.
    Types of ReferenceGroup Influence • Most people are members of several primary informal groups and a few formal, membership groups – People identify and affiliate with particular reference groups for three reasons • To gain useful knowledge • To obtain rewards or avoid punishments • To acquire meanings for constructing, modifying, or maintaining their self-concepts 14-6
  • 7.
    Reference Groups cont. –Three types of reference group influence • Informational • Utilitarian • Value-expressive – All three types of reference group influence can be accomplished by a single reference group. 14-7
  • 8.
    Reference Group Influenceon Products and Brands • Reference groups do not influence all product and brand purchases to the same degree – Influences vary on at least two dimensions • Degree to which the product or brand is – A necessity – A luxury • Degree to which the object in question is conspicuous or know by other people – Public good – Private good 14-8
  • 9.
    Reference Group Influenceon Products and Brands cont. – Reference group influence will vary depending on whether the products and brands are • Public necessities • Private necessities • Public luxuries • Private luxuries 14-9
  • 10.
    Reference Groups andMarketing Strategy • Developing marketing strategies through an analysis of primary informal group influences • Peer group influence as a major asset of firms that sell in-home to groups • Describing similarities between previous consumers and potential consumers • Using salespersons as reference groups • Soliciting experts to aid in the direct sale of products 14-10
  • 11.
    Reference Group Influenceon Products and Brands cont. 14-11
  • 12.
    Family • Marketers areinterested in both families and households – Household is the housing unit having people living in it – Nonfamily households include unrelated people living together – A family has at least two people, the householder and someone who is related to the householder by blood, marriage, or adoption • Nuclear family • Extended family 14-12
  • 13.
    Family Decision Making •How family members interact and influence one another when making purchase choices for the household – Identification of roles of family members in family decision making is important 14-13
  • 14.
    Family Decision Makingcont. – Types of family decision-making roles include: • Influencers • Gatekeepers • Users • Deciders • Buyers • Disposers 14-14
  • 15.
    Influences on FamilyDecision Making • Areas explored in research on family decision making are – Differences in product class and their relationship to family decision making – The structure of husband/wife roles – The determinants of joint decision making • Children and family decision making 14-15
  • 16.
    Conflict in FamilyDecision Making • Decision conflict arises when family members disagree about some aspect of the purchase decision – Means-end chain model is a useful framework for analyzing decision conflict 14-16
  • 17.
    Six Common Typesof Family Influence Strategies
  • 18.
    Patterns or Stylesof Influence Behaviors
  • 19.
    Consumer Socialization • Refersto how children acquire knowledge about products and services and various consumption-related skills – Can occur directly through intentional instruction or indirectly through observation and modeling – The consumer knowledge formed in childhood can influence people in later years 14-19
  • 20.
    Consumer Socialization cont. –Developing early brand awareness and loyalty is an important marketing strategy for many companies – The flow of socialization is not restricted to parents influencing their young children 14-20
  • 21.
    Factors Influencing AmericanFamilies • Three important changes: – Changes in female employment – Changes in marriage and divorce – Changes in childbirth and child rearing practices 14-21
  • 22.
    Demographic Changes inHousehold Composition • American families are highly diverse – Various types of families constitute distinctive markets for many products • Married-couple family • Traditional family • Nontraditional family • Nonfamily households family – Cohabiting couples 14-22
  • 23.
    A Modern FamilyLife Cycle 14-23
  • 24.
    Family Life Cycle •The modern family life cycle captures most types of families in American society, including: – Single parents – Young singles – Older singles – Married couples with children 14-24
  • 25.
    Family- Marketing Analysis •Considerations for using the family life cycle for marketing analysis – Modern family life cycle does not include nonfamily households – Modern family life cycle does not capture every possible change in family status that can occur • Does not include the boomerang age 14-25
  • 26.
    Family- Marketing Analysiscont. – Marketers use the family life cycle to: • Segment the market • Analyze market potential • Identify target markets • Develop more effective marketing strategies – Developing marketing strategies for the bachelor segment is a challenge – Some stages in the family life cycle are more important markets than others – Stages of the family life cycle that contain children are quite important to many marketers 14-26
  • 27.
    Family- Marketing Implications •Ideas for marketing strategies to help reduce shopping time and stress – Provide information – Assist in planning – Develop out-of-store selling – Automate processes – Improve delivery 14-27
  • 28.
    Summary • Described twoaspects of the micro social environment • Discussed three types of reference group influence • Described how reference groups could influence choice decisions about products and brands, and offered ideas for using reference groups in marketing strategies 14-28
  • 29.
    Summary cont. • Distinguishedbetween families and households • Discussed decision making by families • Looked at conflict in family choices and described several ways family members might try to resolve the decision conflict and influence each other 14-29
  • 30.
    Summary cont. • Exploredconsumer socialization • Described several demographic trends that have changed family households • Discussed a model of the family life cycle and showed how marketers could use it to analyze markets and develop marketing strategies 14-30