Chapter No: 7

Chapter No: 7FAMILYSignificance of the family in Consumer BehaviorPage No: 2211prepared by: Azhar Ali ShahDefinition Family is defined as two or more person related by blood, marriage, or adoption who reside (live) together. In a more dynamic sense, the individuals who constitute a family might be described as member of the most basic social group who live together and interact to satisfy their personal and mutual needs. 2prepared by: Azhar Ali ShahContiHousehold: A household includes the related family members and all the unrelated persons who occupy a housing unit (whether house, apartment, group of rooms, military barracks, prisons , hostels, nursing homes, roommates etc. So we can say the term household is more broad as compare to family. 3prepared by: Azhar Ali ShahFamily Life Cycle The term life Cycle refers to the progression of stages through which individuals and families proceed over time.In the United state, the following stages are followed. The Bachelor Stage: (young, single people): At this stage of the life Cycle, earning are relatively low because the individual is often just beginning a career. At this stage the individual perform activities like, car driving, most of time busy with their friends, late night sleeping, playing games etc. At this stage most of the time away from their family.4prepared by: Azhar Ali ShahConti2. Newly Married Couple (young, no children): At this stage the person is newly married. Here the person financially strong as compare to the first stage because both spouses are likely to be working. This family has the highest purchase rate especially to purchase durable products like furniture and electronic commodities. They also spend heavily on cars, clothing and trips.5prepared by: Azhar Ali ShahConti3. Full Nest 1: (young married couples with youngest child under 6): At this stage the income of this family become low because many wives traditionally stopped working for the sake of their child, which cause a reduction in family income. At the same time new demands are added to the family purchasing requirements. For example, furniture for babys room, toys for baby, doctor visits etc.6prepared by: Azhar Ali ShahConti4. Full Nest 2: (young married couples with youngest child 6 or over): in this stage family financial position has improved with husband advancement and the wifes return to work. Families in this stage are still new product oriented, but tend to be less influenced by advertising because they have more buying experience. At this stage they mostly buy large family pack of products. 7prepared by: Azhar Ali ShahConti5. Full Nest 3: (older married couples with dependent children): During this stage, the family income continues to advance, because children also start work due to which their financial position is more strong. This type of families has a high expenditure for durable goods like tasteful furniture, luxury appliance (electrical device), automobiles etc. 8prepared by: Azhar Ali ShahConti6. Empty Nest 1: (Older married couples with no children living with them): At this stage the family is most satisfy with its financial position and start saving their income. Home ownership is at a peak, and major expenditures are necessary for home improvement. At this stage the couple show less interest in new products. 9prepared by: Azhar Ali ShahConti7. Empty Nest 2: ( older married couples with no children living with them and household head retired): During this stage the couples income start declining. They stay more at home and spend more for medical appliance, medical care, and products that aid their health means multi vitamins products. 10prepared by: Azhar Ali ShahConti8. Solitary (single, alone ) Survivor 1:( older single people in labor force): If these individuals are still active in the labor force, their income is likely to continue to be good. However, the home is likely to be sold, and more money will be spent for vacations, recreation (hobbies, pastime) and health oriented items. At this stage the person become alone because his wife may died or leave him and children also separate from him. During this stage, the individuals need special attention, affection, and security. This is the decline stage of individual life cycle. If the individual is retired from work than his life become difficult. 11prepared by: Azhar Ali ShahA Modernized Family Life Cycle:During recent years, many changes in the family have occurred, particularly in smaller family size like, postponement of marriage and rising divorce rates. Thus another concept of the life cycle start. Following are the stages of a modernized family life cycle:Bachelor 1: ( female head is 18-34, single) (never married, divorced, separated, widowed): Young Couple: Female head is 18-34, Couple (married or unmarried), no Children. 12prepared by: Azhar Ali ShahConti3. Full Nest 1: female head is 18-34, Couple (married or unmarried), youngest child under 6.4. Full Nest 2: Female head is 18-34, Couple (married or unmarried), youngest child 6 or over).5. Single Parent1: Female head is 18-34, single (never married, divorce, separated , widowed), youngest child under 6. 6. Single Parent 2: Female head is 18-34, single (never married, divorced, separated, widowed) youngest child 6 or over.13prepared by: Azhar Ali ShahConti7. Bachelor 2: Female head is 35-64, single (never married, divorced separated, widowed ), no dependent children. 8. Childless couple: female head is 35-64, couple (married or unmarried like prince Charles and lady Diana), no dependent children.9. Delayed Full Nest: Female head is 35-64, couple (married or unmarried), youngest child under 6.10. Full Nest 3: Female head is 35-64, couple (married or unmarried), youngest child 6 0r over).14prepared by: Azhar Ali ShahConti11. Single parent 3: head is 35-64, youngest child 6 or over.12. Bachelor 3: head is 65 or older, single ( never married, divorced, separated, widowed), no dependent child.13. Older couple (Empty Nest): Female head is 65 or older, couple (married or unmarried), no dependent child.15prepared by: Azhar Ali ShahFamily Purchasing Decision:Here in this we will study the decision making process within the family and its implications for consumer behavior and marketing.Family purchasing will be examined from four prospective:Role structure.Power Structure.Stages in the decision making process.Family specific characteristics.16prepared by: Azhar Ali Shah1. Role Structure:Every family has its own structure, in which each member playing his or her role. Thus, gender role preferences reflect culturally determine attitudes toward the role of wife/husband and mother/ father in the house hold. Perception of these gender roles affect the decision making process and household decision behavior.The following role categorization appear to be perhaps the most helpful.

17prepared by: Azhar Ali ShahContia. Instrumental and Expressive Roles: Generally, in traditional families among societies throughout the world the husband is more likely to provide material support and primary leadership authority within the family, and the wife is more likely to provide affection and moral support. This distinction relates to what are known as instrumental and expressive needs; that is, the need for leadership and fulfillment of the task on the one hand, and the need for moral and spiritual on the other. 18prepared by: Azhar Ali ShahContib) Purchase Process Roles: there are several ways of viewing family member roles as they relate to the purchasing decision and consumption process. There are several roles that may be performed by various family member.

19prepared by: Azhar Ali ShahCONTI Initiator: the person who identify that something is needed, who initiate the need. Influencer: the person who has the authority to influence the purchasing decision. Buyer: the individual who actually makes the purchase transaction, who actually buy the commodity.User: the person most directly involved in the consumption or use of the purchase.20prepared by: Azhar Ali Shah2. Power Structure: This factor has to do with which family member is dominant or considered to be the family head. A family may be patriarchal, in which the father is considered to be the familys head. In a matriarchal family, the woman plays the dominant role and makes most of the decision. While in the equalitarian family, the husband and wife share somewhat equally in decision making. Although the American family is still generally patriarchal and our society is male-dominated. So the marketer will try to find out the power structure of the that society and than on the basis of that they will prepare marketing strategy for their products.21prepared by: Azhar Ali Shah3. Stage in the family purchase decision process:The marketer is interested not only in the physical act of purchasing a product or brand, but also in the stages leading up to that decision. Mean which person play the most important role in purchase decision. For some product wives are involved more heavily in the initiation, information-seeking, purchasing stages than are husband like, clothes, food items etc. At other times, however, there is a greater tendency for husband to participate in the decision process. Particularly when the product is high priced and technically complex like electronic products, car other type of high price products. 22prepared by: Azhar Ali ShahFamily Specific characteristics:There are a number of additional variables that have been found to influence the nature of purchasing decisions made within the family. These Factor include the following:culture: Subculture:Social Class:Stage in life cycle:Mobility:Geographical Location:Children Marriage:23prepared by: Azhar Ali Shaha) Culture: The role of husbands and wives may differ dramatically from culture to culture, which may result in numerous differences in consumer decision making. In Moslem Cultures, the wife is generally in a subordinate and husband has the full authority in all major decisions and his decision is considered final. In the Latin American culture, the wife is free but is still definitely a junior member of the partnership, with the husband having the final authority in all but minor matters. In Europe and North American Cultures the basic pattern is equality, in which both husband and wife involve in household activies.24prepared by: Azhar Ali ShahContib. Subculture: In addition to culture variations from one culture to another, there are also subculture or ethnic variations in consumer behavior within a countrys heterogeneous population. For example, in the united states joint decision making is most pronounced among white families, with husband dominance strongest among Japanese-Americans, and wife dominance strongest among black families.25prepared by: Azhar Ali ShahContiC. Social Class: Purchasing decision are differ among different social classes. Autonomy in decision making is most likely at upper and lower classes, while joint decision making is most common among the middle class. 26prepared by: Azhar Ali ShahContid. Stage in Life Cycle: The nature of family decision making changes over the life cycle. In the early stage of life cycle the individual is independent, he spend more money on entertainment. With the passage of time as he enter to the next stages of life than responsibilities comes on his shoulders due to which he take care in spending their income. After marriage than they start joint decision for purchasing various commodities. As they enter to new stages of life cycle this tendency also change.27prepared by: Azhar Ali ShahContie. Mobility: Mobility both social as well as geographic change the family purchasing decision. When a middle class move to upper class their purchasing power increase due to which their family purchasing decision also change. f. Geographical Location: researcher says that location also effect families purchasing decision. Like in rural area most of the decisions are made jointly mean joint decision making tendency are higher in rural area, while the wife occupies a less influence role in these families. In urban areas mostly individual decision making tendency is high and wife can also participate in major decision making in the family.28prepared by: Azhar Ali ShahChildreng. A researcher study indicates the childrens influence on family decision processes for twenty five products, for example, toys, childrens clothing, food, vacation, restaurant choice, outside entertainment etc. children participate much more in problem recognition than in later decision stages, and older children are more influential than younger childern.29prepared by: Azhar Ali ShahContih. Marriage: there are differences between married and cohabit (live together, roommates) couples in terms of purchase involvement and participation. There is more autonomy and less female influence among unmarried than married couples. However, these patterns vary from product to product. While as married couple made purchasing decision jointly on various occasion. 30prepared by: Azhar Ali Shah