1. Chapter 11 Organizational and Household Decision Making
CONSUMER BEHAVIOR, 9e Michael R. Solomon

2. Organizational Decision Making
Organizational buyers
Business-to-business (B2B) marketers

3. Roles In Collective Decision Making
Initiator
Influencer
Buyer
User
Gatekeeper

4. Table 11.1 Types of Organizational Buying Decisions
Buyclass Theory of Purchasing
Buying Situation
Extent of Effort
Risk
Buyers Involved
Straight Rebuy
Habitual decision making
Low
Automatic reorder
Modified Rebuy
Limited problem
solving
Low to moderate
One or a few
New Task
Buying
Extensive problem
High
Many

5. The Modern Family Changes in family structure
Changes in concept of household

6. Family Size
Depends on educational level, availability of birth control, and religion
Today, women want smaller families
The rate of voluntary childlessness is rising, making DINKs a valuable market segment

7. Sandwich Generation Sandwich generation Boomerang kids
Female caregivers
Boomerang kids
Less on Household
More on Entertainment

8. Nonhuman Family Members
Pets are often treated like family members
Spending on pets has doubled in the last decade
Pet-smart marketing strategies:
Name-brand pet products
Designer water for dogs
Lavish kennel clubs, pet classes/clothiers
Pet accessories in cars

9. Family Life Cycle Factors that impact family spending patterns
Whether they have children
Whether the woman or partner works outside the home
Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income

10. Variables Affecting Family Life Cycle
Age
Marital Status
Children in the Home
Ages of Children in the Home

11. Families make two types of decisions
Household Decisions
Families make two types of decisions
Consensual purchase decision
Accommodative purchase decision

12. Resolving Decision Conflicts in Families
Interpersonal need
Product involvement and utility
Responsibility
Power

13. Who Makes Key Decisions in the Family?
Autonomic decisions
Syncretic decisions
Who plays the role of family financial officer?

14. Factors Affecting Decision-Making Patterns Among Couples
Sex-role stereotypes
Spousal Resources
Joint Decision-Making Experience
Socioeconomic Status

15. Children as Decision Makers
Children make up three distinct markets:
Primary market
Influence market
Future market

16. Consumer Socialization
Process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace
Parents are role models
Parents also control access to media
Children’s purchasing behavior is influenced by:
Parents, family, and teachers
Television and toys
Culture

17. Figure 11.2 Five Stages of Consumer Development

18. Parental Styles for Socializing Children
Authoritarian
Neglecting
Indulgent

19. Marketing Research and Children
Difficulty assessing children’s preferences/influences on spending patterns because they:
Are undependable reporters of own behavior
Have poor recall
Do not understand abstract questions
Researchers do study kids for
Product testing
Advertising message comprehension

20. Chapter 11: Organizational & Household Decision Making Key Concepts
Organizational buyers
Business to business (B2B) marketers
Roles in collective decision making
What’s different about organizational decision making?
What influences organizational buying?
Three types of organization buying decisions
Modern family structure
Family size
Sandwich generation
Nonhuman family members
Family life cycle
Types of household decision
Resolving conflicts in family decisions
Key decisions in the family
Factors affecting decision making patterns in couples
Children as decision makers
Consumer socialization
Stages of consumer development
Parental styles for socializing children