Family & Family Life cycle Social Class

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 residing together

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

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

Types of Family

Traditional Family Types:

Married Couple:

Simplest type of family consisting of husband and wife Consist of Husband Wife and at least one child Consist of a nuclear family with at least one grand parent Blood relatives and their spouses with kids staying together

Nuclear Family:

Extended Family:

Joint Family:

New Modes of Family

Blended Family:

A family in which either or both partner were previously married

Single Parent Family:

A family in which only one of the parent is present

Parents, unmarried, but living together A group of families living together and sharing responsibility

Unmarried Family:

Communal Family:

Figure 10.11 A Simple Model of the Socialization Process

Young Person
Other Family Members
Influence More Basic Values/Behavior Moral/religious principles Interpersonal skills Dress/grooming standards Manners and speech Educational motivation Occupational career goals Consumer behavior norms

Friends Influence More Expressive Attitudes/Behavior

Style Fashion Fads In/Out Acceptable consumer behavior

Preadolescent

Adolescent

Teens

Older

Functions of a Family

Provides Provides Provides Provides Provides Provides Provides

Economic Well Being Emotional Support Suitable Life Style Social Relationships Morals and Ethical Values Religious Values Interpersonal Skills

Family Life Cycle (1/2)

Stage 1 :Bachelorhood

Few Financial Burdens Fashion and Recreation Oriented Financially better off Highest purchase rate of consumables and durables Romantically inclined

Stage 2: Newly Married Couple

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

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 Single Surviving wife Low levels of income and savings Expenditure on medical products, security, affection

Solitary Survivor II:

Table 10.6 Eight Roles in the Family DecisionMaking Process

ROLE Influencers Gatekeepers Deciders DESCRIPTION Family member(s) who provide information to other members about a product or service Family member(s) who control the flow of information about a product or service into the family Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Family member(s) who make the actual purchase of a particular product or service Family member(s) who transform the product into a form suitable for consumption by other family members Family member(s) who use or consume a particular product or service Family member(s) who service or repair the product so that it will provide continued satisfaction.

Buyers Preparers Users Maintainers

Disposers

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

Household Decision Making Process

Influencer (Children)

Communication targeted at Children Initiator (Parents, Children) Communication targeted at Parents User (Parents, Children) Decision Maker (Parents, Children) Purchaser (Parents)

Information Gathering

Types of Family Decisions

Husband Dominated Decisions

Husband takes the purchase decisions Traditionally in products like Automobiles, Alcohol, Insurance Wife takes the purchase decisions Traditionally in products like household maintenance items, food and kitchen appliances

Wife Dominated Decisions

Joint Decision Making

Both husband and wife make the decision Traditionally in School choice, living room furniture, vacations
Child makes the final product decision Traditionally on children related items Taken by any member of the family Traditionally on Personal Care items, low priced goods These Traditional Roles are Changing

Child Dominated Decision Making

Unilateral Decision Making

Conflict Resolution

Family Decisions are bound to create conflict Conflicts are resolved by:

Bargaining:

Reaching a compromise on which product to buy Misrepresentation of facts in order to create favorable impressions Claiming superior authority to resolve the conflict Using logical arguments to resolve the conflict Using emotions to resolve the conflict

Impression Management:

Use of Authority:

Reasoning:

Playing on Emotions:

Additional Information:

Getting additional Data or Third Party Information

Consumer Socialization

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 Are knowledge, attitudes and values that cause people to attach differential evaluation to products, brands and retail outlets Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc.

Consumption Preferences:

Consumption Attitudes:

Chapter 11 Social Class and Consumer Behavior

Consumer Behavior, Ninth Edition Schiffman & Kanuk

Copyright 2007 by Prentice Hall

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 of Social Class

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Social Class

The division of members 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 other classes.

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Social Class Is Hierarchal

Status is frequently thought of as the relative rankings of members of each social class

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Table 11.2 Percent Distribution of Five-Category Social-Class Measure

SOCIAL CLASSES Upper Upper-middle Middle Working Lower Total percentage PERCENTAGE 4.3 13.8 32.8 32.3 16.8 100.0

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Social Class Measurement

Subjective Measures

individuals are asked to estimate their own social-class positions

informants make judgments concerning the social-class membership of others within the community

Reputational Measures

Objective Measures

individuals answer specific socioeconomic questions and then are categorized according to answers

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Objective Measures

Single-variable indexes

Compositevariable indexes

Occupation Education Income Other Variables

Index of Status Characteristics Socioeconomic Status Score

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Geo demographic clustering

Birds of a feather flock together Families of similar socioeconomic backgrounds tend to reside in the same neighborhoods or communities. They cluster together Dispersed communities with similar geographic profiles Located by PINCODES

Index of Status Characteristics (ISC)

A composite measure of social class that combines occupation, source of income (not amount), house type/dwelling area into a single weighted index of social class standing.

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Socioeconomic Status Score (SES)

A multivariable social class measure used by the United States Bureau of the Census that combines occupational status, family income, and educational attainment into a single measure of social class standing.

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Geodemographic Clusters

A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic 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 and socioeconomic factors expressed in residential zip code neighborhoods from which geodemographic consumer segments are formed.

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The Affluent Consumer

Especially attractive target to marketers Growing number of households can be classified as mass affluent with incomes of at least $75,000 Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income Have different medial habits than the general population

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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 in childrens education Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)

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The Middle Class

There is evidence that the middle class is slowly disappearing in the U.S. Growth of middle class in some Asian and Eastern European countries Many companies offering luxury to the masses with near-luxury models and goods

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The Working Class?

Households earning $40,000 or less control more than 30 percent of the total income in the U.S. These consumers tend to be more brand loyal than wealthier consumers.

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Discussion Question

What types of products are targeted to the working class? What issues must marketers consider when targeting their ads to the working class?

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The Techno Class

Having competency with technology Those without are referred to as technologically underclassed Parents are seeking computer exposure for their children Geeks now viewed as friendly and fun

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Social Class

Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication

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Class Situations, Self-Perceptions, and Financial Orientations Figure 11-9

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