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Family

&Family Life cycle

SocialClass


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What is a Family? Family

is defined as a group of two or more people (one of whom is a

householder) related by birth, marriage or adoption and residingtogether

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


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Types of Family Family of Orientation

Consist of ones parents and elders

Provides orientation towards

Social: Religion, Politics, Economics

Emotional: Self Worth, Ambition, Love and Care

Family of Procreation

Consist of ones spouse and children

Most important buying unit in a market

The influence of Family of Orientation decreases with Age


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Figure 10.11 A Simple Model of the

Socialization Process

Influence More Basic

Values/BehaviorMoral/religious principlesInterpersonal skillsDress/groomingstandards

Manners and speech

Educational motivationOccupational careergoals

Consumer behaviornorms

Influence More

ExpressiveAttitudes/Behavior

StyleFashionFads

In/OutAcceptable consumerbehavior

Other FamilyMembers

Friends

Young Person

Preadolescent Adolescent Teens Older


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Functions of a Family 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


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Family Life 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


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Family Life 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


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Table 10.6 Eight Roles in the Family Decision-

Making Process

ROLE DESCRIPTIONInfluencers Family member(s) who provide information to other

members about a product or service

Gatekeepers Family member(s) who control the flow of informationabout a product or service into the family

Deciders Family member(s) with the power to determineunilaterally 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 aparticular product or service

Preparers Family member(s) who transform the product into a form

suitable for consumption by other family membersUsers Family member(s) who use or consume a particular

product or service

Maintainers Family member(s) who service or repair the product sothat it will provide continued satisfaction.

Disposers Family member(s) who initiate or carry out the disposal ordiscontinuation of a particular product or service


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Types of 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, foodand 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


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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


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Consumer Socialization


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Consumer Socialization 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 attachdifferential evaluationto products, brands and retail outlets

Consumption Attitudes:

Are cognitive orientationtowards market place stimulus such asadvertising, sales persons, warranties etc.


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Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Copyright 2007 by Prentice Hall

Chapter 11

Social Class andConsumer Behavior
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Copyright 2007 by PrenticeHall

Chapter Outline 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 ofSocial Class


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Social Class

The division ofmembers 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 otherclasses.

S i l Cl i h l


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Social Class Is Hierarchal

Status is frequently thought of as the relativerankings of members of each social class


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Table 11.2 Percent Distribution of

Five-Category Social-ClassMeasureSOCIAL CLASSES PERCENTAGE

Upper 4.3

Upper-middle 13.8Middle 32.8

Working 32.3

Lower 16.8

Total percentage 100.0


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Social Class Measurement

Subjective Measures

individuals are asked to estimate their ownsocial-class positions

Reputational Measures informants make judgments concerning the

social-class membership of others within thecommunity

Objective Measures individuals answer specific socioeconomic

questions and then are categorized according toanswers


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Objective Measures

Single-variableindexes Occupation

Education

Income

Other Variables

Composite-variable indexes Index of Status

Characteristics

SocioeconomicStatus Score

G d hi l i


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Geo demographic clustering

Birds of a feather flock together

Families of similar socioeconomic backgrounds tendto reside in the same neighborhoods orcommunities. They cluster together

Dispersed communities with similar geographicprofiles

Located by PINCODES


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Socioeconomic

Status Score(SES)

A multivariable social

class measure used by

the United States

Bureau of the Census

that combinesoccupational status,

family income, and

educational attainment

into a single measure ofsocial class standing.


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GeodemographicClusters

A composite

segmentation

strategy that uses

both geographic

variables (zip codes,

neighborhoods) anddemographic

variables (e.g.,

income, occupation)to identify target

markets.


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PRIZM

(Potential

Rating Index

by Zip

Market)

A composite index of

geographic andsocioeconomic factors

expressed in

residential zip codeneighborhoods from

which

geodemographic

consumer segments

are formed.

Th Affl C


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The Affluent Consumer Especially attractive target to marketers

Growing number of households can be classified asmass affluent with incomes of at least $75,000

Some researchers are defining affluent to includelifestyle and psychographic factors in addition toincome

Have different medial habits than the generalpopulation

Wh t I th Middl Cl ?


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What Is the Middle Class?

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 inchildrens education

Lower-middle to middle-middle based on income,education, and occupation (this view does NOT

include upper-middle, which is consideredaffluent)

Th Middl Cl


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The Middle Class

There is evidence that the middle class is slowlydisappearing in the U.S.

Growth of middle class in some Asian and EasternEuropean countries

Many companies offering luxury to the masses withnear-luxury models and goods

Th W ki Cl ?


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Copyright 2007 by Prentice

Hall

The Working Class?

Households earning $40,000 or less control morethan 30 percent of the total income in the U.S.

These consumers tend to be more brand loyal thanwealthier consumers.


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Th T h Cl


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Hall

The Techno Class

Having competency with technology

Those without are referred to as technologicallyunderclassed

Parents are seeking computer exposure for theirchildren

Geeks now viewed as friendly and fun

Social Class


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Hall

Social Class

Clothing, Fashion, and Shopping

The Pursuit of Leisure Saving, Spending, and Credit

Social Class and Communication


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