COPYRIGHT 2006 Thomson SouthWestern a part of The

COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800– 423– 0563 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

CHAPTER 12 Family and Household Influences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Importance of Families and Households on Consumer Behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Importance of Families and Households on Consumer Behavior Many products are purchased by a family unit Individual’s buying decisions may be heavily influenced by other family members COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

The Importance of Families and Households on Consumer Behavior How families make purchase decisions depends on the roles of the various members in the purchase, consumption, and influence of products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

© AP/Wide World Photos Pets Are Family Members Too COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Household: all persons, both related and unrelated, who occupy a housing unit COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Nonfamily households include: Elderly persons living with nonfamily members Persons of the opposite sex sharing living quarters Friends living together Same-sex couples COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Families are the largest single category of households Rapid rise in the number of nontraditional families and nonfamily 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) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Structural variables affecting families and households: COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Structural variables affecting families and households: Age of head of household or family Marital status Presence of children Employment status COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Sociological variables affecting families and households: COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families and Households Sociological variables affecting families and households: Cohesion: emotional bonding between family members Adaptability: ability of a family to change its power structure, role relationships, and relationship rules in response to situational and developmental stress Communication: facilitating dimension, critical to movement on the other two dimensions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families Celebrations and Gift Giving Marketers frequently refer to resilient families who emphasize time spent together through family traditions, rituals, and celebrations COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Families Celebrations and Gift Giving Gift giving and family holidays are increasing in importance Traditional holiday spending and promotions have shifted to other holidays throughout the year Physical movement of large gifts have become difficult leading to increase sales of gift certificates, gift cards, and Internet gift purchases COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Appeal to Different Ways Market Segments Celebrate Holidays COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Appeal to Different Ways Market Segments Celebrate Holidays COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Who Determines What the Family Buys? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Who Determines What the Family Buys? Instrumental roles: financial, performance, and other functions performed by group members (also known as functional or economic roles) COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Who Determines What the Family Buys? Expressive roles: involve supporting other family members in the decision-making process and expressing the family’s aesthetic or emotional needs including upholding family norms COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Individual roles in family purchases COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Individual roles in family purchases Initiator/gatekeeper: initiator of family thinking about buying products and gathering information to aid decisions Influencer: individual whose opinions are sought concerning criteria and which products or brands most likely to fit those criteria Decider: person with the financial authority or power to choose how the family’s money will be spent on which products and brands COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Individual roles in family purchases 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Family marketing differentiates scenarios in which some purchases may have more than one decision maker from those that have more than one consumer COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Identifying different purchaserconsumer relationships: COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Identifying different purchaserconsumer 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? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Spousal roles in buying decisions COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Spousal roles in buying decisions 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Role Behavior Spousal roles in buying decisions Wife dominant: the wife or female headof-household makes a majority of the decisions Joint: most decisions made with equal involvement by both spouses COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process 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? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process Influence of Decision Stage Spouses exert different degrees of influence when passing through the different stages of the decision process 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process Influence of Decision Stage The decision process tends to more toward joint participation and away from autonomic behavior as a final decision nears COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process Influence of Employment More women working outside the home Changing spousal roles has affected how couples divide their buying responsibilities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Influences on the Decision Process Influence of Gender 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 dualgender positioning COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles Eleven primary stages have been identified, but households do not necessarily go through all stages Which stages families go through is based in part on their lifestyle choices COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Life Stage Activities and Behaviors Young Singles Newly Married Couples Full Nest I, III Married, No Kids Older Singles Empty Nest I, II Solitary Survivor Retired Solitary Survivor COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles FLC affects demand for many products COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles Individuals may repeat family stages if their family situations change or they may be in stages different from most people their age COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles Individuals may repeat family stages if their family situations change or they may be in stages different from most people their age FLC helps explain how families change over time and can identify core target markets when modified with market data COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Family Life Cycles Family and household spending 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” COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure Marketers must evaluate how changes in family and household structures affect marketing strategy COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure What is the structure of contemporary families? How is that structure changing? How does structure affect the various stages of the consumer decision process? Are the changing realities of family structure a problem or an opportunity for growth? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure Marriage Trends What are the affects on markets for household products, homes, counseling, travel, etc. ? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure The Singles Boom Rise in number of single households in developed nations Co-habitating singles are the fastest growing segment of singles market COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure The Singles Boom: Mature Singles In the U. S. , 61 percent of the singles market is made up of women, with a median age of 66 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure Gay and Lesbian Markets This market is gaining attention because of its recent growth (often because people are now classifying themselves as gay when they may not have in the past) This market tends to be urban, has above average income, travels more than average consumers, and express more interest in the arts COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure Gay and Lesbian Markets Marketers are having more success reaching this market with relationship building marketing activities Sponsoring gay-oriented events Advertising in gay-oriented media COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Family and Household Structure Household Characteristics The average household size has fallen in most industrialized countries Nonfamily households are projected to grow more rapidly than families over the next few decades, but the highest incomes are found among family households COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

U. S. Median Income by Households by Type Median Income (2003) Change in Real Income (2002 -2003) $53, 991 62, 405 29, 307 41, 959 0. 1% -0. 4 -1. 2 -1. 7 25, 741 21, 313 31, 928 -1. 0 -0. 4 -0. 6 All households Family households Married couples Female householder Male householder Non-family households Female householders Male householders COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women Female consumers now outnumber male consumers as women tend to liver longer than men do Women represent a greater proportion in the population, improved purchasing ability, and assume greater importance in the workplace COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women Female employment is increasing around the world Employment outside the home increases income and family buying power, but it may also increase expenditures for specific items such as child care, clothing, food away from home, and gasoline COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Working Families Want Fashion COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women Career Orientation Career or “just-a-job” orientation Reach segments in different media COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women and Time As roles outside the home increase, women have less leisure time Marketers have developed timesaving products to appeal to women, including convenience foods Marketers have also developed products to help women enjoy the leisure time they do have COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women 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 the family income, they expect in return a more equal division of the household responsibilities COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Relaxation or Self-Indulgence COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women Marketing to Women COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Roles of Women 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Masculine Roles COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Changing Masculine Roles of men in families are changing substantially as well 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” COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Personal Care Products for Men COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior Children influence about $1. 88 trillion of purchases globally each year COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior Children exert direct influence over parental spending when they request specific products and brands They exert indirect influence when parents buy products and brands that they know children prefer without being asked or told to make a specific purchase COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior Children also make their own purchases with family money or with their own 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 COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior Childhood Socialization Children learn their consumer behaviors through socialization Children learn shopping behaviors from shopping with parents COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Children and Household Consumer Behavior Childhood Socialization Co-shoppers explain to their children why they buy certain products over others, thereby, teaching their children how to shop COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Research Methodology for Family Decision Studies COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Research Methodology for Family Decision Studies Measuring Influences COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Research Methodology for Family Decision Studies Measuring Influences Who was responsible for initial need recognition? Who was responsible for acquiring information about the purchase alternatives? Who made the final decision on which alternative should be purchased? Who made the actual purchase of the product? COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Research Methodology for Family Decision Studies Interviewer Bias Gender of the interviewer may influence the roles of husbands and wives say they play in a purchase situation COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Research Methodology for Family Decision Studies Respondent Selection In measuring family buying, it is necessary to determine who to ask about the influence of various family members Results often vary considerably depending on which family members are interviewed COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.