significance of family in marketing and consumer behaviour

1. Family
Fahim akhtar

2. Family
A group consisting of parents and children living together in
a household.
All the descendants of a common ancestor.

3. Attributes of family
 Different age group
 Diverse educational level
 Professional difference
 Different habits and behavior
 Varied likings
 Life style difference
 Opinion not alike

4. Types of Households /
Families

5. Household Influences for Marketing
Strategy
Stage of the
Household
Life Cycle
Structure
of Household
Unit
Household
Decision
Processes
Household
Purchase and
Consumption
Behavior
Marketing
Strategy

6. Why is it Important for Marketers to know about
Families and Households?
1. Impart lifestyle and consumption values to their members
2. Influential in consumption decisions
3. Make several joint purchase decisions
4. Prime target market for goods and services

7. What is the Family Lifecycle (FLC)
Family Life-cycle
 bachelor
 newly married, no kids
 young couple, kids < 6
 young couple, kids >6
 older married w/ dep.
 empty nesters, working
 retired
 widower - working, not
working
 financial situation
 Product categories
considered
 interests
 primary decision
maker
 Free time
Changes Over Life-Cycle
The family life cycle concept attempts to explain consumer
behaviour patterns of individuals as they age, marry, have
children and retire

8.  At each stage members have new needs for goods and
services, i.e consumption patterns change
 Life cycle stage determines which product categories are
bought but not how much is spent on each category
 As interests change so too does the ability to reach them.
 Purchasing decision process changes
 Basic strategy is how to keep customers through the FLC
Why is it of value to understand the family
life cycle?

9. Choose your
vacation

10.  Young singles the most action motivated
 greater emphasis on outdoor experiences
 Older marrieds the least motivated by action.
 did not regard outdoor activities as
important
 Young single travelers had the most ego
motivation
 young marrieds with children were highly
motivated to escape had most interest in rest
and relaxation.
Family Life cycle and Travel
Travel locations differ significantly across the family life stages

11.  Older unmarrieds, young marrieds, and young
singles thought cultural attractions were
important.
 For the older married and older unmarried
segments, weather was very important in
vacation destination selection.
 attractions such as theme parks were important
for divorced travelers with children and young
married travelers with children.

12.  Number of people (children and adults) in the family
 The ages of the family members
 Number of employed adults
What are the Critical Consumption
factors?

13. Living Concepts

14. Living Concepts

15. Stages of the family life cycle
Bachelor Stage. (Young single people not living at home):
 Few financial burdens
 Fashion/opinion leader led
 Recreation orientated
 Experiment with personal financial management
 men and women differ in consumer behaviour
Women more housing-related items and furniture
Men more on restaurants and motor cycles / cars

16. Newly married couples (Young, no children) (DINKS)
 Better off financially than they will be in the near future,
 High levels of purchase of homes and consumer durable goods,
 Establish patterns of personal financial management and
 control;
Buy: cars, fringes, cookers, life assurance, durable furniture,
holidays

17. Full nest I. (Youngest child under six):
 Home purchasing at peak
 Liquid assets/saving low
 Dissatisfied with financial position and amount of money saved
 Reliance on credit finance, credit cards, overdrafts etc.,
 Child dominated household
Buy necessities - washers, dryers, baby food and clothes, health foods
vitamins, toys, books etc.;

18. Full nest II. (Youngest child six or over):
 Financial position better,
 Some wives return to work,
 Child dominated household,
Buy necessities - foods, cleaning material, clothes, bicycles,
sports gear, music lessons, pianos, junk foods, holidays etc.;

19. Full nest III. (Older married couples with dependent children.:
 Financial position still better
 More wives work
 School and examination dominated household
 Some children get first jobs; other in further/higher education
 Expenditure to support children's further/higher education,
Buy:

20. Empty nest I. (Older married couples, no children living with
them, head of family still in labor force):
 Home ownership at peak,
 More satisfied with financial position and money saved,
 Interested in travel, recreation, self-education,
 Make financial gifts and contributions,
 Children gain qualifications and move to Stage 1.
Buy luxuries, home improvements e.g. fitted kitchens etc.;

21. Empty nest II. (Older married couples, no children living at
home, head of family retired):
 Significant cut in income
 Keep home,
 Concern with level of savings and pension
 Assist children
Buy: medical appliances or medical care, products which aid health,
sleep and digestion, hobbies and pastimes,

22. Solitary survivor I. (In labour force):
 Income still adequate but likely to sell family home and purchase
smaller accommodation,
 Worries about security and dependence;
 Concern with level of savings and pension,
Buy: hobbies and pastimes,

23. Solitary survivor II. (Retired):
 Significant cut in income,
 Additional medical requirements,
 Special need for attention, affection and security,
 May Seek sheltered accommodation,
 Possible dependence on 'others for personal financial,
management and control.
Buy:

24. Household Decision Making
 Household decision making is also
different from individual decision
making
 Family role structure orientation
influences household decision making
Households vary in consumption habits depending on stage
where they are in family life cycle
 Nature of good or service to be
purchased and consumed influences
household decision making

25. Consensual Decision Making
Group Agrees on the Desired
Purchase
Differing Only in Terms of How
It Will Be Achieved.
Types of Purchase Decisions Made by Families
Household Decision Making

26. Accommodative
Group Members Have
Different Preferences and
Can’t Agree
on a Purchase That
Will Satisfy Everyone

27. Husband-Wife Decision Making
 Influence may depend on the good or service to be
purchased, role structure orientation, stage of the
decision making process
 four categories:
 husband-dominated;
 wife-dominated
 autonomous or unilateral;
 joint decision
Who makes the Decisions?

28. The Apparel Manufacturer Haggar Placed Menswear Ads in About
a Dozen Women’s Magazines After Its Research Found That
Women Exert Influence Over Men’s Clothing Choices

29. Decision
Roles
Initiator
Information
Gatherer
Gatekeeper
Influencer
Decision
Maker
Buyer
Preparer
User
Maintainer
Disposer

30. Marketing Strategy Implications
 Marketing communication: advertising message, media used,
person targeted, product positioning
 Households can be targeted by advertising by lifestyle .
 Product development: products, e.g. minivans and cars built
specifically for families; vacations; services, e.g. insurance, hotel
 Pricing decisions: e.g. discounts for bulk purchases
 Distribution: changes in family lifestyle means changes in
distribution, e.g. longer retail hours
 Public policy regulations re marketing to children

31.  If a car is being purchased by a family for a teenager
to drive to school, how will this influence:
 The type of product
 Method of financing
 Price
 Appropriate promotion message
 The media
 As opposed to the family purchasing a car that the
adult head of the household will use to commute to
work?

32. Internet, e-mail and other technology
 Since kids are often the more technologically
savvy members of the family
 Web sites
Marketing to the Family
When marketing to the family children must be a consideration.
How would you reach families with your marketing message?
Magazines
 Children’s magazines are good avenues for
reaching the youth and mom markets.
 Also family-oriented magazines aimed more at
parents. Eg. Family Circle, Sesame Street Parents
(5.4 million readers) Family Fun, Child, Parents,
or Parenting magazine.

33. Organizations
 family-friendly organizations are good places
in which to focus marketing efforts aimed at
the family eg.
 Religious institutions
 Schools: primary, secondary, public and
private;
 their affiliated clubs and organizations,
 Kids’ groups - Scouts, 4-H, etc.
 YMCA, YWCA and other athletic clubs

34. For many households, a car purchase is a family event. It can be a
pleasant one or a story that is retold with embarrassment and
horror. If you were the owner of a car dealership how would you
make the purchase of a car a pleasant family event.