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1 Toy Industry Association (TIA) Member Resource

Toy and Game Decision Making Study (June 2013)

Prepared for the Toy Industry Association by

The Family Room Strategic Consulting Group, LLC 27 Ann Street, Norwalk CT 06854

203.523.7840 | www.familyroomllc.com

Hillary Newton, VP, Research & Brand Strategy [email protected]

How do parents ultimate-ly decide which toys,tablets, and games theypurchase for their kids?Are they swayed by

their children? Are they swayed by adver-tising, merchandising, and packaging? Orare they influenced by a combination offactors? How can toy manufacturers andretailers tap into the root of family deci-sion-making to boost sales?

In a new study commissioned by the ToyIndustry Association (TIA), youth marketingexperts at The Family Room, LLC surveyed2,600 parents and kids nationwide in April toprovide the first fact-based understanding ofhow families make their purchasing deci-sions, both when researching a product athome and then while shopping in-store.

Released last month at PlayCon, TIA’sInternational Conference of PlayProfessionals, the Toy and Game Decision

Making Report found that the toy-buyingprocess is a parent/child collaboration. Infact, 40 percent of all toys are purchasedbased on both the child and the parentbeing equally enthusiastic about buying it.

“The basic nature of the family and therole each member now plays in decision-making is undergoing a dramatic changeso fast that it is essentially unrecognizableto what we were seeing 10 years ago,”says Hillary Newtown, vice-president ofresearch and brand strategy at The FamilyRoom. “This is based largely on the factthat more than half of today’s parents con-sider their 6–12-year-old child to be oneof their best friends. And fewer than aquarter of moms view themselves as hav-ing a traditional ‘gatekeeper’ role in fami-ly purchase decisions.”

For toy manufacturers, this newfoundknowledge can have an impact on every ele-ment of a product—from marketing toshopper strategy. Retailers can utilize thisresearch to gain insight on how familiesshop and which “face of mom” will beencountered in a brick-and-mortar store oronline. Will she play the role of gatekeeper,playmate, or simply be the “courier with thewallet” fulfilling her child’s wish?

The study also examines 13 distinct

categories from preschool and buildingsets to outdoor toys and games and puz-zles, mapping out family dynamics, pre-store motivations, and in-store shoppingbehavior to determine the appropriateproduct, marketing, and merchandisingtactics at each category level.

“Understanding each family member aspart of a web whose needs and behaviorsare shaped by those around them leads toa more holistic approach in product devel-opment and marketing that is betteraligned with how families truly make theirchoices,” says Newton.

“The ‘Toy and Game Decision MakingReport’ is a great baseline study that canbe used to track shifting family dynamicsand purchasing activities over the comingyears,” says Carter Keithley, president ofTIA. “As the retail landscape continues tochange—both in terms of online outletsand diversified merchandising strategiesin-store—purchasing decisions willevolve. This type of research will helpcompanies understand how innovative toypackaging and advertisements can helpbuild a category or brand.”

TIA will be sharing more informationabout the report’s findings with its mem-bers. Additional data—including category-specific findings—is available from TheFamily Room. Visit familyroomllc.com.

Kristin Morency is the communications spe-cialist for the Toy Industry Association (TIA).Visit toyassociation.org for more information.

REPORT EXAMINES FAMILY DYNAMICSAND IMPACT ON TOY & GAME PURCHASES

18 TOYS & FAMILY ENTERTAINMENT JUNE 2013

KRISTIN MORENCY, TOY INDUSTRY ASSOCIATION

INDU

STRY

FORU

M

KIDS MAKE TOY-PURCHASINGDECISIONS ONLINE

The path to purchasing a toy orgame is increasingly digital, withmore than one fifth (21 percent) ofparents reporting that their kids point-ed out a new toy online, sent theirmom a text or email requesting thetoy, and/or set up an online wish list.

Source: The TIA-commissioned Toy andGame Decision Making Report (2013)

Background Material for the TIA-‐Hosted Webinar Toy & Game Decision Making Study

A first-‐ever look at the new realities of how

Families Make Decisions in the Toy and Game Sector

(and the doors this opens for TIA members)

Webinar to be presented by

The Family Room Strategic Consulting Group, LLC 27 Ann Street, Norwalk CT 06854

203.523.7840 | www.familyroomllc.com

Background material for the TIA-‐hosted webinar on June 20, 2013

http://www.google.com/url?sa=i&rct=j&q=tia%20knowledge%20network&source=images&cd=&cad=rja&docid=o9dSfbuPMp55uM&tbnid=nWF3NLbimejEXM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.toyassociation.org%2FTIA%2FKnowledge_Network%2FResources%2FTIA_Knowledge_Network%2FOverview.aspx%3Fhkey%3D3865c02e-c976-474b-acb7-11139202307f&ei=eiSmUfrOFPWp4APjkIG4CQ&bvm=bv.47008514,d.dmg&psig=AFQjCNFvOg06vM060Qe0jIC6aH9y-oLqBA&ust=1369929207220193


Introduction to

The Family Room (TFR) is a research-‐based consultancy firm that creates youth and mom

marketing strategy through an advanced understanding of family decision making. TFR employs a

systems dynamics approach to mom and youth marketing based not just on what the parent

wants or what the child wants, but what they can agree on. The result is a fundamentally new

approach to mom and youth targeting, positioning, and innovation strategies better aligned with

the new realities of how families make their purchase decisions.

In early 2013, the Toy Industry Association (TIA) and several of its members engaged The Family Room

to conduct a qualitative and quantitative research study to decode the new realities of family decision

making in the toy, tablet, and game sectors. This background paper is one of the output documents

from that study.



• This document provides BACKGROUND on: – How the research was conducted – Context – Five (5) “Big Aha’s” about toy and game decision making

• The Path-‐to-‐Purchase Process • The Five Family Decision Making Typologies

• The June 20th webinar will EXPLORE THE FINDINGS in greater detail

Detailed findings at the category level are available separately from The Family Room

What did we learn?



How the research was conducted

• All research was conducted in April 2013 • Qualitative pre-‐test

– Twelve (12) in-‐depth interviews with parent/child pairs in NY metro area

• Online survey – Nationally representative sample of 2,600 parent + child interviews

• Families with children 3-‐17 years old • Includes 657 dads • Children over 6 years old answered special “kid-‐directed” questions

• Detailed questions were based on specific toys purchased within the past year and covered key stages in the path to purchase



Thirteen (13) toy, game and tablet categories were covered (definitions shown in Appendix)



Overall At the Category Level

• Role of mom, dad and child • Steps navigated in the

“path to purchase” • Triggers, barriers, context,

influencers, and sources of information

• Naming and decoding the multiple approaches to decision making in the toy sector

• How families are making decisions at the category level (e.g., action figures vs. tablets vs. arts and crafts, etc.)

• Robust sample allows for reads within each of the 13 categories

• Detailed measures across key stages in the “path to purchase”

• Brand, model and character/ theme captured

Family Decision-‐Making Styles

6



Context • The parent/child relationship has gone through a fundamental change • More than half of the parents now consider their 6-‐ to 12-‐year-‐old child

to be one of their best friends

28%27% 26%

14%

5%

0%

5%

10%

15%

20%

25%

30%

Stronglyagree

Agree NeitherAgree norDisagree

Disagree StronglyDisagree

19% Disagree

7

Source: The Family Room 2012 Passion Points

55% Agree



Context (continued)

Parents no longer playing traditional roles of authority figure and gatekeeper

Source: The Family Room 2012 Passion Points

Parents’ Role In The Family Total Parents Moms Dads

Plans everything out 52% 60% 44%

Keeps everyone focused on what is practical 49% 51% 47%

Helps steer the ship 39% 38% 39%

Is the peacemaker 37% 42% 31%

Has the final word 28% 21% 35%

Plays devil’s advocate 15% 13% 16%

Sits back and lets things play out 12% 9% 15%



Five Big Aha’s Toy And Game Decision-‐Making at the Macro Level

1) Purchase triggers for toys and games are completely unlike other categories … kids rule.

2) However, there are very different paths to purchase…and the key delineator is the level of deliberation parents require.

3) When it comes to actual decision making, families employ FIVE approaches, each with its own combination of defining characteristics.

4) In-‐store behaviors are particularly impacted by the type of decision making in play.

5) The parent/child dialogues driving decision making are increasingly virtual.



Toy And Game Purchasing Is Particularly Unique

• It is ALL about the child’s wants . . . – Six in ten toy/game ideas come directly from an overt “ask” from the child. – Virtually all of these ‘asks’ specify exact brand and model/type. – One in ten toys were purchased by the child. – When a purchase is made by the parent, eight in ten are exactly what child

has requested. – Six in ten kids claim they felt they “HAD to have” the toy they requested.

• But parents do the buying, so the journey that each toy takes from the initial ‘ask’ to getting into the child's hands follows a range of paths. – Price – Appropriateness – Occasion/Reason – Quality/Value



Paths To Purchase

“Stop And Think”

“No Need to Deliberate, Just Buy It”

1. Awareness/Want/Nag Factor

2. Actual Purchase

1. Awareness/Want/Nag Factor

2. Stop & Think: We Need information

3. Searching for Best Price/Purchase Outlet

4. Actual Purchase

(60% choose a two-‐step cycle) (40% choose a three-‐ to four-‐step cycle)



• When Very brief duration (entire cycle measured in hours or days).

• How Half are impulse decisions or unplanned purchases.

• Where Most are Big Box store purchases.

• When Much longer cycle (often measured in weeks). Fewer impulse purchases.

• How Greater kid involvement. High parent reluctance. Stress expressed by parents.

• Where Dramatic increase in online search and purchase.

• Consideration Set Expands.

“Stop And Think”

“No Need to Deliberate, Just Buy It”

The Path to Purchase has Significant Impact on the “How, When, Why and Where” of Toy Purchase Decisions



Family Decision Making Typologies

Type 3 Fine

with Me

Type 2 I Have to

Think About It

Type 4 Families In Sync

Type 1 Over My

Dead Body!

Type 5 Surprise!!

Parent Control

Kid Demand

Child wants, parent says “no” (then ultimately caves)

Child wants, parent reluctant

Child wants, parent indifferent

Child and parents equally enthusiastic

Parents purchase as a gift for child

20% 40% 21% 11% 7%



Type 1: Over My Dead Body Child Wants, Parent Says “No” (Then Ultimately Caves)

Parent Mood Brand Focus Occasion

Store

Type

Presence

Of Others

Average

Price Index

Toy Purchase Motivators

Path To Purchase •Quick “Stop & Think” • 2-‐step cycle (week) • Some research to resolve a few questions

Shopper Experience

Other Distinguishing Characteristics

Local toy store, national toy store 120

Brand focus, 3 brands considered

Non-‐winter, holiday, reward

Indecisive, surprised

Grandparent, child

• A toy for when friends come over •Want a girl/boy specific toy • Based on a character or theme

Impact of Decision Making Style on Pre-‐Store and In-‐Store Behaviors

• High research, but fairly quick

• Kid comes to shop

• Focus on one brand … but

•75% switch brand/model in store

• Make multiple toy purchases

• High parent stress

• Least likely to buy online



Type 2: I’ll Have To Think About It Child Wants, Parent is Reluctant


Store

Type

Presence

Of Others

Average

Price Index


Path To Purchase • “Stop & Think” • 4-‐step cycle (month+) • Research to resolve a number of questions

Shopper Experience


Electronics store 111

Brand focus, 3 brands considered

Non-‐winter, holiday, reward

Indecisive, pressured

Child’s friend, grandparent

• Keeping up with their friends • A toy to explore their creativity • Nostalgia


• High research / longest deliberation

• Less single-‐brand focus

• 50% switch brand/model in store

• Make multiple toy purchases

• Parent stress



Type 3: Fine With Me Child Wants, It’s No Big Deal to Parent


Store

Type

Presence

Of Others

Average

Price Index


Path To Purchase • “No Need to Deliberate, Just Buy It” • 2-‐step cycle (weeks) •Moderate research for 1-‐2 questions

Shopper Experience


Amazon 108

On a specific theme, 2 brands

considered

Reward, no special reason

Resigned, neutral

Child

• Getting exactly what my child wants •Making sure it’s not just a passing fad


• Very low research / short deliberation

• Focus on one item and stick to it

• Parent is calm



Type 4: Families In Sync Parents and Children Agree


Store

Type

Presence

Of Others

Average

Price Index


Path To Purchase • “No Need to Deliberate, Just Buy It” • 2-‐step cycle (days) • Some do minor research to confirm choices

Shopper Experience


Amazon 105

Specific toy, 1 brand

considered Reward Enthusiastic,

happy

Child, sibling

• Getting exactly what my child wants • A toy to explore their creativity


• Lowest research / short deliberation

• High focus on one item and stick to it

• Parent is happy



Type 5: Surprise!! The Search for the Perfect Gift


Store

Type

Presence

Of Others

Average

Price Index


Path To Purchase • “No Need to Deliberate, Just Buy It” • 2-‐step cycle (same day) • Some do minor research to check details

Shopper Experience


No skew

73

Category, not brand

Winter, holiday Excited, confident

Parent only

• A new and surprising toy • A toy to explore their creativity • Making sure it’s not just a passing fad

Connections Between Decision Making And In-‐Store Habits And Behaviors

• No research / lots of impulse decisions

• Less brand focus, more category focus

• More unplanned purchases



1/3 switch in store

Observations: In-‐Store Habits and Behaviors

6 in 10 shoppers plan to purchase a specific Item

4 in 10 shoppers purchase on impulse

Increases with

child demand

More than half

of shoppers still

‘in play’ at store



What’s next? …

Join TIA and The Family Room for a live webinar* on June 20th to explore the

five (5) “cascading effects” of decision making and the vital purchasing dynamic

elements that they create. The presentation will include strategizing opportunities

for marketing, consumer and retailer sectors:

1. Path to Purchase (two-‐step impulsive vs. four-‐step stop and think)

2. Mom Mind-‐Set (Girded for battle or biddable and conciliatory)

3. Preferred Store Type (Bog Box vs. specialty vs. national toy chain vs. online)

4. Purchase Motivators (emotional, rational, social, occasion, etc.)

5. Child/Parent Balance of Power (where the authority really lies)

*This webinar will be recorded.



Accessories and battling toys and play sets and action role play and action figure dress-‐up

Trains and accessories, trucks, aircraft, boats, race track vehicles and play sets, remote control vehicles and mini/finger vehicles.

Bicycles, tricycles, ride-‐ons, skateboards, scooters, foam toys and weaponry, sporting goods, seasonal toys

Fashion dolls, collectible dolls, baby dolls, horse and pony dolls, doll clothing and accessories, dollhouses and play sets, fashion styling and dress-‐up

Clay, dough, sand, paint, crayons, markers, craft kits, science kits, mechanical craft toys and models

Traditional stuffed animals, favorite character plush, customizable stuffed animals, special feature plush and puppets

LEGO, K’NEX and preschool building sets, wood blocks, magnetic and gear sets

Appendix Page 1/2

Thirteen (13) toy, game and tablet categories



For use with gaming consoles and devices, video game figures and video game accessories as well as games for PCs, downloadable social network games

Tablets, portable media players, other mobile devices (e.g., iPad, iPad mini, iPod touch)

Stacking, shape sorting, push/pull toys, musical instruments, play sets and figures, dress-‐up and other role play, bath toys

Home game consoles, handheld gaming players

Card games, dice games, trading cards, board games, puzzles, brainteasers, travel games, small digital games, electronic versions of traditional games

Kid-‐specific tablets, robotic or interactive playmates, electronic pets and robots, electronic learning systems

Appendix Page 2/2

Thirteen (13) toy, game and tablet categories



For more details on the 13 categories examined for their three-‐part decision

making and path to purchase process (including how decision making differs

between categories), please contact Hillary Newton at:

The Family Room Strategic Consulting Group, LLC

27 Ann Street, Norwalk CT 06854

203.523.7840 | [email protected] | www.familyroomllc.com


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