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
Unmarried Family:
Parents, unmarried, but living together
Communal Family:
A group of families living together and sharing responsibility
5. Figure 10.11 A Simple Model of the
Socialization Process
norms
Other Family
Members
Influence More Basic
Values/Behavior
•Moral/religious principles
•Interpersonal skills
•Dress/grooming
standards
•Manners and speech
•Educational motivation
•Occupational career
goals
•Consumer behavior
Friends
Influence More
Expressive
Attitudes/Behavior
•Style
•Fashion
•Fads
•“In/Out”
•Acceptable consumer
behavior
Young Person
Preadolescent Adolescent T
eens Older
6. 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
7. 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
8. 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
9. Table 10.6 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
11. 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
12. 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
14. ConsumerSocialization
Consumer Socialization is the process by which people acquire
skills, knowledge and attitudes relevant to their functioning as
consumers in the marketplace
Contents of Consumer Socialization:
Consumer Skills:
Skills necessary for purchase and understand
money, budgeting, product evaluation
Consumption Preferences:
Are knowledge, attitudes and values that cause people to attach
differential evaluation to products, brands and retail outlets
Consumption Attitudes:
Are cognitive orientation towards market place stimulus such as
advertising, sales persons, warranties etc.
16. Chapter Outline
Copyright 2007 by Prentice
Hall
What is Social Class?
The Measurement of Social Class
Geodemographic Clustering
The Affluent Consumer
The Middle Class Consumer
The Working Class
Selected Consumer Behavior Applications of
Social Class
17. Social Class
The division of
members of a society
into a hierarchy of
distinct status classes,
so that members of
each class have either
higher or lower status
than members of other
classes.
Copyright 2007 by Prentice
Hall
19. Table 11.2 Percent Distribution of
Five-Category Social-Class
Copyright 2007 by Prentice
Hall
Measure
SOCIAL CLASSES PERCENTAGE
Upper 4.3
Upper-middle 13.8
Middle 32.8
Working 32.3
Lower 16.8
Total percentage 100.0
20. SocialClassMeasurement
Copyright 2007 by Prentice
Hall
Subjective Measures
individuals are asked to estimate their own
social-class positions
Reputational Measures
informants make judgments concerning the
social-class membership of others within the
community
Objective Measures
individuals answer specific socioeconomic
questions and then are categorized according to
answers
21. Objective Measures
Copyright 2007 by Prentice
Hall
Single-variable
indexes
Occupation
Education
Income
Other Variables
Composite-
variable indexes
Index of Status
Characteristics
Socioeconomic
Status Score
22. Geo demographic clustering
“Birds of a feather flock together”
Families of similar socioeconomic backgrounds tend
to reside in the same neighborhoods or
communities. “They cluster together”
Dispersed communities with similar geographic
profiles
Located by PINCODES
23. A composite
measure of social
class that combines
occupation, source
Index of Status of income (not
Characteristics amount), house
(ISC) type/dwelling area
into a single
weighted index of
social class
standing.
Copyright 2007 by Prentice
Hall
24. A multivariable social
class measure used by
the United States
Socioeconomic
Status Score
(SES)
Bureau of the Census
that combines
occupational status,
family income, and
educational attainment
into a single measure of
social class standing.
Copyright 2007 by Prentice
Hall
25. A composite
segmentation
strategy that uses
both geographic
Geodemographic
Clusters
variables (zip codes,
neighborhoods) and
demographic
variables (e.g.,
income, occupation)
to identify target
markets.
Copyright 2007 by Prentice
Hall
26. PRIZM
(Potential
Rating Index
by Zip
Market)
A composite index of
geographic and
socioeconomic factors
expressed in
residential zip code
neighborhoods from
which
geodemographic
consumer segments
are formed.
Copyright 2007 by Prentice
Hall
27. TheAffluent Consumer
Copyright 2007 by Prentice
Hall
Especially attractive target to marketers
Growing number of households can be classified as
“mass affluent” with incomes of at least $75,000
Some researchers are defining affluent to include
lifestyle and psychographic factors in addition to
income
Have different medial habits than the general
population
28. WhatIstheMiddleClass?
Copyright 2007 by Prentice
Hall
The “middle” 50 percent of household incomes -
households earning between $22,500 and
$80,000
Households made up of college-educated adults
who use computers, and are involved in
children’s education
Lower-middle to middle-middle based on
income, education, and occupation (this view
does NOT include upper-middle, which is
considered affluent)
29. TheMiddle Class
Copyright 2007 by Prentice
Hall
There is evidence that the middle class is slowly
disappearing in the U.S.
Growth of middle class in some Asian and Eastern
European countries
Many companies offering luxury to the masses with
near-luxury models and goods
30. TheWorking Class?
Copyright 2007 by Prentice
Hall
Households earning $40,000 or less control more
than 30 percent of the total income in the U.S.
These consumers tend to be more brand loyal than
wealthier consumers.
31. Discussion Question
Copyright 2007 by Prentice
Hall
What types of products are targeted to the working
class?
What issues must marketers consider when
targeting their ads to the working class?
32. TheTechno Class
Copyright 2007 by Prentice
Hall
Having competency with technology
Those without are referred to as “technologically
underclassed”
Parents are seeking computer exposure for their
children
Geeks now viewed as friendly and fun
33. Social Class
Copyright 2007 by Prentice
Hall
Clothing, Fashion, and Shopping
The Pursuit of Leisure
Saving, Spending, and Credit
Social Class and Communication
