1. Buyer Behaviour Family Decision Making Chp. 12 with Duane Weaver

2. OUTLINE The Family Defined Effects of Family Structure and Composition The Family Life Cycle Family Decision Making Family Decision Conflict Family Decision Roles Gender Roles and Family Decisions Children and Family Decisions

3. The Family Defined Extended family –traditional family structure –several generations live together Nuclear family –a married couple and their children Family household –Containing at least two people a husband and wife, married or living common law a lone-parent, with children who have never married and are still living at home

4. Effects of Family Structure on Consumption Family’s needs and expenditures are affected by 1.The number of people in a family 2.The ages of family members 3.The number of adults employed outside the home

5. Effects of Family Structure on Consumption The Family Life Cycle –Classifies consumers based on trends in income, family composition & demands placed upon income –Life cycles determine which product categories are bought, but not how much is spent on each category

6. The Family Life Cycle Age of Head of Household Under 35 yrs35-64 yrsOver 64 yrs One adult in household Bachelor IBachelor IIBachelor III Two adults in household Young coupleChildless coupleOlder couple Two adults plus children in household Full nest I* Full nest II* Delayed full nest* Full nest III* Full Nest I: youngest child is younger than 6 yrs Full Nest II: youngest child is older than 6 yrs Full Nest III: youngest child is older than 6 yrs and the parents are middle aged Delayed Full Nest: parents are middle-aged but the youngest child is younger than 6 yrs Adapted from: Mary C. Gilly and Ben M. Enis Modern – exercise – go out to bars,concerts, movies..etc Dollar value of durables increases as nest empties or parents age

7. Family Decision Making Consensual vs. Accomodative Consensual purchase decision –the group agrees on the desired purchase –differ on how it will be achieved Accommodative purchase decision –reaching agreement among group members by bargaining, coercing, compromising and wielding power

8. Family-Decision Conflict Interpersonal Needs Interpersonal Needs Product Involvement And Utility Product Involvement And Utility Responsibility Power

9. Family Decision Roles 1) Initiator 2) Information Gatherer 3) Gatekeeper 4) Influencer 5) Decision Maker 6) Buyer 7) Preparer 8) User 9) Maintainer 10) Disposer

10. Gender Roles and Decision-Making 1) Gender-role stereotypes 2) Spousal resources 3) Experience 4) Socio-economic status Autonomic decision –Purchase decisions made almost exclusively by one or the other spouse Syncratic decision –Purchase decisions that are made jointly by spouses

11. Children as Decision Makers  Consumer Socialization  The process by which people acquire skills to function in the marketplace  Cognitive Development  The ability to comprehend concepts of increasing complexity as a person ages Marketing Research & Children Product Testing Message Comprehension Ethics

12. THANK YOU