Families and Household. 23% on apparel, 48% entertainment, and 12% on fast food Driver- age of child, not rather than income 60% influence of children.

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Presentation transcript:

Families and Household

23% on apparel, 48% entertainment, and 12% on fast food Driver- age of child, not rather than income 60% influence of children. Highest on video games, lowest on apparel Gender does not influence the amount spent except for apparel for girls and video games for boys Brands are important in some category but style and look were important in all categories

Household Influence Factors Structure Stage of household life cycle Household decision process

Types of Household Family household- birth, marriage, adoption Nonfamily Blended family- 40% in USA Traditional family Non traditional family How families are changing in Bangladesh? What are the challenges to target unmarried couple even in USA?

Household Lifecycle Single (18-34 ) Young couples with no children Young married with children/single parent (Club Mom) Middle/old Aged (diamond world ad)

Family Decision Making Process Any example of a bad family purchase ? Family car Parents, 2 sons, their wives, kids aged 6-15 Initiators who recognizes the need – show ad information gatherers Influencers- show ad Decision makers Purchaser Users Crayola- put ad in women’s magazine Husband dominant v wife dominant v joint (pepper fry ad)

Determinants of family purchase role Culture/sub culture Role specialization Degree of involvement Personal Characteristics- education, personality, locus of control, age ( %, %)

Conflict resolution Bargaining (trying to reach a compromise) Impression management (misinterpretation the facts in order to win) Use of authority Reasoning Playing on emotion (silent treatment) Additional information (additional data or third party) Satisfaction with outcome, dissatisfied with process

Marketing strategy and family decision making Discover which family members are involved at each stage of decision making process Determine what their motivations and interest are (toys or books for children?) Develop a marketing strategy that will need the needs of each participants.

Consumer Socialization Process with young people acquire skills, knowledge, attitude relevant to their functioning as consumers in the market place) Why do we think alcohol is bad? Ability to children to learn Consumer skills to evaluate purchase Process of socialization- instrumental (reinforcement), modeling, mediation (parents alter initial response)

Should we market to children?

Assignment Group assignment Choose a product where the everyone in the family takes part in decision making process. Fill up table 6-3. Maximum 2 pages

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