1. Copyright Atomic Dog Publishing, 2002 Chapter 15 Household and Family Influences

2. Copyright Atomic Dog Publishing, 2002 Chapter Spotlights The household consumption unit Family lifecycle influences Roles of family members

3. Copyright Atomic Dog Publishing, 2002 The Household Consumption Unit The changing face of the family as an institution. Is there a “typical” family today? Regardless of its structure, the family remains the single most significant and enduring influence on consumer behavior The family is one of the key forces of socialization and individual personality development

4. Copyright Atomic Dog Publishing, 2002 Types of Families The “consanguine family” or “family of orientation” refers to the family into which we are born or adopted. The “conjugal family” or “family of procreation” refers to the family formed by marriage

5. Copyright Atomic Dog Publishing, 2002 Composition of Households Household – any group of individuals living in a dwelling, no matter what the relationships are among them (U.S. Census Bureau) Changing household demographics (trends) influence consumption patterns: Lower birth rates have led to smaller families People are marrying later or are not marrying at all High first marriage and even higher second marriage divorce rates

6. Copyright Atomic Dog Publishing, 2002 Economic Impact on Households Two-income families In 1999, 65 million women were in the work force Career women and just-a-job women Single women heading families In 1998, 13 million single-parent families in the US headed by women (14% of white families, 24% of Latino, 42% of African- American)

7. Copyright Atomic Dog Publishing, 2002 Gender Role Impact Is there a blurring of gender roles (androgyny) in today’s society? Gender roles are those acted out by a person regardless of their biological gender. In reality, gender roles have been slow to change. Women are still expected to perform tasks traditionally associated with them: housework, child-rearing, etc. Men still spend 15 hours more per week on leisure activities than their wives.

8. Copyright Atomic Dog Publishing, 2002 Family and Household Consumption Patterns What kinds of benefits are sought and hence products/services purchased and consumed by what types of families and households? It depends on such factors as: Family lifecycle position Reference group Social class Subculture Culture

9. Copyright Atomic Dog Publishing, 2002 Family Lifecycle and Consumption Patterns Young singles, Newlyweds, Young couples without children, Married couples with children, Households with teenagers, Mature couples Determinants of lifecycle position: marital status (single, married, widowed) age, presence of children, age of children, employment status (working or eligible, retired)

10. Copyright Atomic Dog Publishing, 2002 Purchase Decisions within Families and Households Husband/wife decisions Husband-dominant Wife-dominant Autonomic – husband and wife independently make the same decision at different times, each doing it about half of the time Syncratic – both husband and wife share in the decision

11. Copyright Atomic Dog Publishing, 2002 Sources of Power in Household Marketplace Decisions The power to make decisions in a household may come in a number of ways: Power may be earned A person may take the power Power is simply given to one of the members “Society say’s” “Marketplace value” where the person who has highest income and/or the greatest wealth has right of first refusal on all decisions. Other factors: Product type Gender-role orientation Type of decision

12. Copyright Atomic Dog Publishing, 2002 Decisions Influenced by Children Children influence family decisions to a significant degree (begins at birth). Children between the ages of 4 and 12 influence buying decisions to the tune of $70 billion a year ($6 billion in allowances per year) Children plead, whine, and bargain with their parents to get what they want

13. Copyright Atomic Dog Publishing, 2002 Strategies Used by Adolescents to Influence Decisions Bargain Persuade Use emotion-laden tactics Directly ask Use the “expert” strategy How do parents respond? Use a “legitimate” strategy

14. Copyright Atomic Dog Publishing, 2002 Factors that Help Predict the Influence of Children Product type Children’s personal resources (income, employment status, grades, birth order, siblings, parents’ love and confidence) Children’s age Mother’s child-centeredness and attitude toward television or advertising Family communication environment Socio-oriented vs. concept-oriented Parental style Authoritarian, authoritative or permissive

15. Copyright Atomic Dog Publishing, 2002 Roles of Family Members in Decision making Family members often assume varying roles across the five stages of the “consumer decision process” Problem recognition Information search Alternative evaluation Choice Post-purchase evaluation