Consumer Buyer Behaviour

Chapter – 11

The Family

Prof. (Mr.) Ashish Hathi

Learning Objectives

• To understand;

– What is family life cycle

– The meaning of new urban family

– The role of women

11.1 Introduction

• Since birth, a child is exposed to different surroundings.

• He also watches something contradicting to what is being taught to him.

• He most often aligns himself with what has been imparted to him as knowledge rather than break away and re-align with what he observes otherwise.

• He has seen his parents making certain decisions which were in the interest of the entire family such as buying a certain car.

11.1 Introduction

• The family commonly provides the opportunity for product exposure and trial, and imparts consumption values to its members.

• As a major consumption unit, the family is also a prime target for marketing of many products and services.

• It is essential to understand how the family makes its purchase decisions and affects the future purchase behaviour of its members.

11.1 Introduction

• It is useful to understand the functions provided and the role played by family members to fulfil their consumption needs.

• A family means two or more persons, related by blood, marriage or adoption who resides together.

• A family, however, is the basic collective social group living together and interacting to satisfy their personal and mutual needs.

• Family structure too has evolved over decades.

11.2 Functions of the Family

• Economic Well-Being

• Emotional Support

• Suitable Family Lifestyles

• Family Member Socialisation

• Consumer socialization

11.2 Functions of the Family

• Consumer socialization

• It is the process by which children get equipped with the skills and knowledge and wear attitudes necessary to act as consumers.

• Children pattern their consumption after their parents. Parents often act as their role models.

• Later as adolescents and teenagers, we tend to accept our friends as models of acceptable behaviour.

11.2 Functions of the Family

• Consumer socialization

• A child is in tow when a mother shops. It results in the development of the shopping skills.

• Consumer socialization can be directly related to consumption.

• Socialisation is a continuous process and not restricted to childhood.

• Socialisation is a two-way process – One who gets influenced, also starts influencing.

11.3 Family Decision Making

• Marketers most frequently examine the attitudes and behaviour of the one family member whom they believe to be the major decision maker.

• What later emerged was duality in role – one who uses it may not buy it - Personal care products for teenage daughter.

11.3 Family Decision Making

• Family Role

o Each member of a family performs some task either alone or together with others. Traditionally each member’s roles and responsibilities were defined within the societal context.

o However, in this 21st century, new roles are being performed, shared by every member of the household.

11.3 Family Decision Making

• Key Family Consumption Role

o In matter of consumption, we come across the following types of roles in a family, each signifying the type of interactions at the time of consumption decision.

1 Influencers 5 Preparers

2 Gate Keepers 6 Users

3 Deciders 7 Maintainers

4 Buyers 8 Disposers

11.3 Family Decision Making

• Key Family Consumption Role

• Influencers: This family member provides the information inputs and influences the buying decision.

• Gatekeepers: This family member controls the flow of information about consumption items into the family.

• Deciders: This family member takes the ultimate decision of buying, consuming and disposing of the consumption items.

11.3 Family Decision Making

• Key Family Consumption Role

• Buyers: This family member actually buys. Preparers: This family member converts the consumption items into a usable form.

• Users: Actually uses or consumes the item.

• Maintainers: This family member maintains the product in a functional condition.

• Disposers: This family member either initiates or carries out the disposal or discontinuation of a product or service.

11.3 Family Decision Making

• Influencing Spouses and Resolving Consumer Conflict - There are six influence strategies

o Expert: One of the spouses assumes an expert’s role to influence the other spouse.

o Legitimacy: The decision is legitimized on the basis of position in the family.

o Bargaining: Influence exerted by a spouse at present which will be exchanged with the other spouse in future.

11.3 Family Decision Making

• Influencing Spouses and Resolving Consumer Conflict - There are six influence strategies

o Reward: A reward is offered to the other spouse to influence the decision.

o Emotional: Emotionally charged response affects the other spouse.

o Impression: Persuasive approach to influence the behaviour of the other spouse.

11.3 Family Decision Making

• Children’s Influence

o Children put forward their own demand

o They start participate in purchase decision

o They listen to radio, watch TV and acquires information, which he uses when he needs it

o They acquire advertisement symbols much early in life

o They re-align their choices as they move up

o Growing use of child model

11.4 Family Life Cycle

• Family Life Cycle (FLC) refers to the series of life stages through which individuals proceed.

• As a marketer, when you see these stages as a basis of segmentation, you are able to find a target segment, recognisable, targetable, with sufficient volume feasibility and sustainable.

• Each LCS differs from previous stages in terms of (a) structure, (b) financial position, (c) consumption pattern, and (d) product need and preferences.

11.4 Family Life Cycle

• Traditional or Conventional FLC

1) Young and single bachelor stage

2) Newly married couples

3) Young married

4) Older, married with children

5) Older married with dependent children

6) Older, married with no children

7) Old, single, retired people

11.4 Family Life Cycle

• Revised FLC Concept

1) Young, Married, with Child and Dual Income

2) Single Parent Families

3) Divorced

4) Older people, Married or Single

11.4 Family Life Cycle

• Extended FLC Concept

11.4 Family Life Cycle

o Segmentation strategies based on FLC

Product Segment

(i) Cosmetics Young single and young married women who are cash-rich are a

potential segment for beauty products like face creams, moisturizers,

compacts, foundation make up, etc.

(ii) Vacations Middle-aged families need facials, sauna baths and such related

products. Newly married couples are sold vacations at the time of

marriage in the form of honeymoon packages.

Middle-aged couples with no responsibility of children are the most

attractive segment to sell vacations in the form of packaged tours. They

are cash-rich and free from encumbrances.

(iii) Housing Young, married with children need starter housing.

Middle-aged couples need housing – 2 bedroom flats etc.

Bachelors need liberal and professional education. They are career-

minded. They can be sold courses like private secretary, computers etc.`

11.5 The New Urban Family (NUF)

o It’s an emerging buying unit

o They believe in balancing their own individualism and the family traditions -fascinated by age-old customs like the mehandi ceremony, elaborate sangeet evening, fun at home and with friend

o Youth think that they are understood better by their friends than their parents

o Women empowerment and other social re-alignment opening opportunities

11.6 Role of Women

o In various product advertisements, now the lead role is played by a woman.

o In few product advertisements targeted towards male segments, women are shown giving consensus for selecting a specific brand.

o It is thus evident that the decision-making role women play in buying has been recognized.

o Various brands are tracking the increasing role of women as the decision maker / influencer.

11.6 Role of Women

o Some companies have evolved special products or schemes to target the ‘women’ segment.

o Some companies show their women-oriented marketing by some token steps like the use of women-friendly graphics and colours and making contributions to a women’s cause.

o The life stages of women needs to be studied separately – the college going girl student, the single working woman, the double-income no kids (DINK) lady and the young mother.

11.6 Role of Women

o Women are more confident and assertive.

o Companies still have not changed their traditional marketing approach.

o One reason is that women are still not sizeable in number.

o Though the need to address them is felt, it is not the focus.

o Some companies feel products are gender neutral and there is no need to address women separately!

THANK YOU