Lesson 8 Videos Flashcards
Many products are purchased by
a family unit instead of just an individual
Individual’s buying decisions may be heavily influenced by
other family members.
How families make purchase decisions depends
on the roles of the various members in the purchase and consumption, as well as the influence of buying decisions.
Some products are bought by individuals and used by other family members, meanwhile…
others are bought by individuals for themselves, while others are bought jointly, etc.
Family:
a group of two or more persons related by blood, marriage, or adoption who reside together.
Nuclear family:
immediate group of father, mother, and child(ren) living together.
Extended family:
nuclear family, plus other relatives such as grandparents, uncles and aunts, cousins, and parents-in-law.
Family of orientation:
family into which one is born.
Family of procreation:
family established by marriage.
Some families are extending these definitions to include
pets.
Anthropomorphism
A technical term when human beings give animals human form and human personality.
What is the most common pet in the U.S.?
Fish
An estimated 171 million (or more) freshwater fish are kept as pets in the states.
Easy to care for and relatively inexpensive, fish are ideal for most families seeking a pet.
Fish also take up a relatively small amount of space, perfect for apartment life.
Household:
all persons, both related and unrelated, who occupy a housing unit
Nonfamily households include
Elderly persons living with nonfamily members
Persons of the same/opposite sex sharing living quarters
Friends living together
Same-sex couples
Average family size =
3.1 people
Average household size =
2.6 people
Families are the _____ single category of households.
largest
(approx 70%).
Rapid rise in the number of
nontraditional families and non-family households.
Any of these types of households may or may not include
children.
Buying behavior is best described by the term
consumer unit (CU) or minimal household unit (MHU).
Non-family households are those with
single adults, those with elderly people living with non-family members, friends living together, same sex couples, etc.
How many married couples are in the US?
There are 62 M married couples in the US
Structural variables affecting families and households:
Age of head of household
Marital status
Presence of children
Employment status
Marketers monitor these variables to predict changes in demand for specific products and categories.
Marketers frequently refer to resilient families who
emphasize time spent together through family traditions, rituals, and celebrations.
Gift giving and family holidays are increasing in importance.
Physical movement of large gifts have become difficult leading to increased sales of gift certificates, gift cards, and Internet gift purchases.
Many retailers generate ___ of their annual sales from Christmas, etc.
50%
Families use products purchased by
individuals.
Determining what products should be bought at which retail outlet, how and when products are used, and who should buy them, is
a complicated process involving a variety of roles and actors.
Individual roles in family purchases
Initiator/gatekeeper
Influencer
Decider
Buyer
User
Initiator/gatekeeper
initiator of family thinking about buying products and gathering information to aid decisions.
Influencer
individual whose opinions are sought concerning criteria of purchase and which products or brands are most likely to fit those criteria.
Decider
person with the financial authority or power to choose how the family’s money will be spent and on which products and brands.
Buyer
person who acts as the purchasing agent by visiting the store, calling suppliers, writing checks, bringing products into the home and so on.
User
person or persons who use the product.
Family members commonly play _____ roles in the family.
multiple
eg: influencer, buyer & user
Different family members will assume different roles depending on
the situation and product.
Children may be influencers and users for items (such as cereals and toys) while parents may be the
decider and the buyer.
Family marketing
focuses on the relationships between family members based on the roles they assume, including the relationship between purchaser and family consumer and between purchaser and purchase decision maker.
Identifying different purchaser-consumer relationships:
Who’s buying for whom? Who are the principal characters? What’s the plot for the purchase? Who wants what when? What can we assume?
Eg: the restaurant industry typically focuses on marketing to the family as a single unit. McDonald’s has been very successful being ‘kid focused’.
Spousal roles in buying decisions
Autonomic
Husband dominant
Wife dominant
Joint (syncretic)
Autonomic
an equal number of decisions is made by each spouse, but each decision is individually made by one spouse or the other.
Husband dominant
the husband or male head-of-household makes a majority of the decisions.
Wife dominant
the wife or female head-of-household makes a majority of the decisions.
Joint (syncretic)
most decisions made with nearly equal involvement by both spouses.
KGOY
Kids Growing Older Younger
Sociological/anthropological pop culture phenomenon
A 4yr old is already as savvy as mature in terns of shopping awareness. Behaves like a 14 yr old of the previous generation.
Keep in mind, the terms ‘husband’ & ‘wife’ apply to
roles performed by members of the household & may exist even though the family members may not be married.
Marketers evaluate which types of products are typically purchased by
wives, husbands, or jointly.
Marketers can determine which attributes of specific products to
advertise to different household members.
Which media will best reach the most influential family member?
Which ad appeals are most effective?
DINKS
Dual-Income, No Kids Family
DEWKS
Dual-Employed With Kids
When passing through the different stages of the decision process, spouses exert different degrees of
influence
Movement from ‘information search’ to final decision may be minimal for
many low-involvement goods and more pronounced for goods that are risky or have high involvement for the family.
The decision process tends to move toward ___ _____ and away from ___ _____ as a final decision nears.
joint participation, autonomic behavior
More women working outside the home changes how spousal roles have affected
how couples divide their buying responsibilities
As the gender gap narrows, decisions are increasingly made
jointly
Due to waning gender identification of products, marketers are transitioning gender-dependent products to a
dual-gender positioning
A nationwide survey of 1,000 fathers conducted by Yahoo and market research firm DB5 said 45 percent men were the
primary grocery shoppers in their household.
Family life cycle (FLC) :
the process of families passing through a series of stages that change them over time.
The concept may need to be changed to household life cycle or consumer life cycle to reflect changes in society.
How many primary stages in the FLC have been identified?
Eleven, but households do not necessarily go through all stages.
Which FLC stages families go through is based in part on
their lifestyle choices.
FLC affects
demand for many products.
Descriptions of life stages can be combined with additional information about consumer markets to
analyze consumer’s needs, identify niches, and develop consumer-specific marketing plans.
FLC helps explain how families ___ ___ ___ and can identify ___ ___ ___ when modified with market data.
change over time, core target markets
the FLC is an important predictor of
family or household spending.
In the last decade, consumers have changed their household spending from
“things” to “services”.
Marketers must evaluate how changes in family and household structures affect…
marketing strategy.
What is the structure of contemporary families?
How is that structure changing?
How does structure affect the various stages of the consumer decision process?
Marriage Trends
Delaying age of marriage
Increased incidence of cohabitation before marriage
Over half of marriages end in divorce
As a result, individuals shift between married and single status
What are the effects on markets for household products, homes, counseling, travel, etc.?
Boomerang Kids
Kids who leave home and boomerang right back to their parents.
Sandwich Generation
People in their 30s, 40s, 50s
in-between 2 generations (taking care of kids and parents)
Lot of constraints on budget/money
The Singles Boom
Rise in number of single households in developed nations
Co-habitating singles are the fastest growing segment of singles market
Mature Singles
In the U.S., 61 percent of the singles market is made up of women, with a median age of 68 years
Older women living single are often widows; older men living single are usually divorced or were never married
Marketers have targeted the mature singles market with travel, financial services, entertainment, social activities
The average household size has fallen in
.
Marketers are increasingly interested in single-parent households because of their rapid growth.
most industrialized countries.
One person households account for ___ of all households
25%
Non-family households are projected to grow more ___ than families over the next few ___, but the ___ incomes are found among ___ households.
rapidly
decades
highest
family
Female consumers ___ male consumers as women tend to live longer than men do.
outnumber
Women represent a greater proportion in the population…
improved purchasing ability, and assume greater importance in the workplace.
Female employment is ___ around the world.
increasing
Employment outside the home increases ___ and ___, but it may also increase expenditures for specific items such as ___.
income
family buying power
child care, clothing, food away from home, and gasoline
Career or “just-a-job” orientation.
Reach segments though different media.
As roles outside the home increase, women have less
leisure time.
Marketers have developed time-saving products to appeal to women, including
convenience foods.
Marketers have also developed products to help women enjoy the
leisure time they do have.
Role Overload exists when
the total demands on time and energy associated with prescribed activities of multiple roles are too great to perform roles adequately or comfortably.
As women contribute more to family income, they expect a more equal division of
the household responsibilities.
Marketing to Women
Appealing to the “mother” category
Different segments exist and they look at advertising, the Internet, products, time, and brands differently
Depending on career orientation, responsibilities in and out of the home, time pressures, messages, and ads need to be adapted
Retailers can appeal to women with special services or extended hours
Changing Masculine Roles
Men are more involved in family functions and household activities
Men may buy items traditionally purchased by women (groceries)
Many men are achieving gender role transcendence and use products previously seen as “feminine”
Children change dramatically how the family functions, in terms of
relationships, employment, and purchases.
Children reduce parents’ participation in the
labor force, change how families spend their money and reduce the amount of time and money available for leisure.
Children influence about ___ of purchases globally each year.
$1.9 trillion
Children exert ___ ___ over parental spending when they request specific products and brands.
direct influence
Children exert ___ ___ when parents buy products and brands that they know children prefer without being asked or told to make a specific purchase.
indirect influence
Children also make their own purchases with ___ ___ or with their own.
family money
Children like to shop for
candy, toys, clothing, school supplies, and other personal use items.
Retailers study ways to adapt specific departments to
these young, but significant, consumers. (children)
Children learn their consumer behaviors through…
socialization.
Children learn shopping behaviors from shopping with…
parents.
Co-shoppers
They explain to their children why they buy certain products over others; thereby, teaching their children how to shop
Metrosexual
A man who is meticulous about his grooming and appearance, typically spending a significant amount of time and money on it.
Children average just over ___ store visits per year.
180
