FAMILY INFLUENCE CONSUMER BEHAVIOR Family is the most influential group for the consumer. The family members can strongly influence buyer behavior. It can be distinguished between two families in the buyer¶s life. One is the buyer¶s parents who make up the family of orientation. From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love. The other is the family of procreation-the buyer¶s spouse and children-exert a more direct influence on everyday buying behavior. Marketers are interested in the roles and relative influence of the husband, wife, and children on the purchase of a large variety of products and services. The purpose of this report is to discuss the role of the family in consumer behavior. There are three main elements directly affect the family consumption. They are family life cycle, the structure of the family and family decisions making process. Families change over time, passing through a series of stages called the family life cycle (FLC) (Blackwell, Mansard & Engel, 2001). The diagram below shows the eleven primary stages in the traditional FLC. In the stage of ³Young Singles´, people have relatively low in
Family plays an integral role in influencing our purchasing behavior, as a child the choices are determined by parents based upon safety and need of child considerations. Similarly the child influences the decision making process related to whole family like color of family car etc. The family purchasing decisions can be examined from four perspectives - Role Structure, Power Structure, Decision Making Stage and Family culture.
Role Structure
Like societies, families are also structured of roles and each family member occupied his or her role. For ex Gender role preferences reflect culturally determined attitudes toward the role of husband and wife, mother and father in the household. Perception of these roles based on gender affects the decision making process and household decision process. Power Structure
There are various power structure which accordingly affect the decision making process in the family, for example in patriarchal societies man is the head of the family and makes most of the major decision while in the matriarchal society woman is the head of the family and makes all the major decision. While in equalitarian society both share equal decision making powers. Decision Making Stage
Marketers today focused on understanding the whole buying stage rather than the final purchasing act. Each family member affects the purchasing behavior at different stages. For example when a family decides to buy a car, the women usually specify the needs accordingly man usually decides upon the model of the car based on technological competence while children play a very important role in deciding the color of the car. Family Culture
Each family has different internal culture which influences its purchasing decision. These differences could be due to cultural background, social upbringing and family values. Most marketers today try to focus on few prominent cultures to segment the market. Consumer Behavior involves the psychological processes that consumers must go through when recognizing their needs, finding ways
to solve these needs and making purchase decisions. Consumers often face the decision of whether or not to purchase a certain product or service, and if so, what brand and where to purchase from. This paper examines the process of family-decision making, and secondly examines whether or not parents believe their child is ready to participate in such decisions. If the child does not participate, does the child¶s self esteem go down? When a family member first realizes their car is not running as well as it should be, this is the first step, which is the problem recognition. The second step is information search, like buying a new car, used car, repairing the car, etc. The third step consists of the evaluation of alternatives. A used car is cheaper, but may be more expensive And the long run with all the repairs needed. Finally comes the purchase stage, and even a post-purchase stage, following the purchase and return of the product due to dissatisfaction. The actual involvement of a consumer changes dramatically based on the product, for example, a car versus a tube of toothpaste. Individual family members often have different roles in the household, which rely of shared resources of the family. One family member might seek out information about products, also known as information gatherers. This individual usually has a great deal of power within the family, unlike the influencer, who does not usually have the power to decide between alternatives, but they make their thoughts known. It is of course the decision maker who has the power to determine whether to buy, which product, which brand, where, and when. Family decisions are often subjected to a great deal of conflict; very few families are wealthy enough to avoid tension and conflict.
And this article we examined the topic of social groups in order to understand their relevance to individuals and how marketers could use this knowledge. Now we turn to the family, not just as a type of small group, but one that is often predominant in its influence over consumer behavior. The family is both a primary group (characterized by intimate, face to face interaction) and a reference group (with members referring to certain family values, norms, and standards in their behavior) These two factors, however are not the sole reasons accounting for the strength of the family¶s influence. Rather, it is first, the fact that the bonds within the family are likely to be much more powerful than those in other small groups. Second, contrary to most other groups to which the consumer belongs the family functions directly in the role of ultimate consumption. Thus, the family operates as an economic unit, earning and spending money. In doing this, family members must establish individual and collective consumption priorities decide on products and brands that fulfill their needs, and also decide where these items are to be bought and how they are to be used in furthermore family members¶ goals. Also, consumers attitudes toward spending and saving and even the brands and products purchased have been molded, often quite indelibly by the family¶s influence on its members and the way in which purchase decisions are made by members so that they may effectively program their marketing mix. Table below Illustrates several ways in which families differ from other groups Decision making is a term used to describe the process by which families make choices, determine judgments, and come to conclusions that guide behaviors. That the process is called family decision-making implies that it requires more than one member's input and agreement (Canzone and Pocono 1980). The family decision-making process is a communication activity²it rests on the making and expression of
meaning. The communication may be explicit (as when families sit down and discuss a prospective decision) or implicit (as when families choose an option based on their past decisions or some other unspoken rationale). Families are confronted with a myriad of decisions, including the purchase of products, the selection of educational practices, the choice of recreational activities, the use of disciplinary practices, and the deployment of limited resources. Decision making is an unavoidable, daily process. Family decision making is a process that can be filled with tension, extremely pleasant and rewarding, both, or somewhere in between. In the decision-making process, families can address the differences among members (Galvin and Brummell 2000) and negotiate their needs for closeness and independence (Baxter and Montgomery 1996). Further, as James Atkinson and Timothy Stephen (1990) observed, decision making is inextricably bound to values. In decision making "values are communicated within the family group and [they] will become part of a family's assumptive foundation as its members coordinate future action" (Atkinson and Stephen, p. 5). Thus, family decision-making spans many family goals and practices. Introduction
The family is a major influence on the consumer behavior of its members. There are many examples of how the family influences the consumption behavior of its members. A child learns how to enjoy candy by observing an older brother or sister; learns the use and value of money by listening to and watching his or her parents. Decisions about a new car, a vacation trip, or whether to go to a local or an out-of-town college are consumption decisions usually made within the context of a family setting. As a major consumption unit, the family is also a prime target for the marketing of many products and services.
THE
FAMILY
The importance of the family or household unit in consumer behavior arises for two reasons: 1. Many products are purchased by a family unit. 2. Individuals¶ buying decisions may be heavily influenced by other family members. How families or households make purchase decisions depends on the roles of The various family members in the purchase, consumption, and infl uence of products. Household products like food and soaps may be purchased by a person but consumed by many, whereas personal care items, such as cosmetics or shaving cream, might be purchased by an individual family member for his or her own consumption. Homes and cars, on the other hand, are often purchased by both spouses, perhaps with involvement from children or other member of the extended family. Visits to shopping malls often involve multiple family members buying clothing and accessories, something with a heavy dose of influence by family member¶s children may buy clothing paid for and approved of by parents, whereas teenagers may influence the clothing purchase of a parent. Regardless of how many family members are present when items are being purchased, the other family members play an important role in the purchase. Just because of being mother for two young children, it is her responsibility for buying food for the family and act as an individual in the market. It does not mean that her decisions are not influenced by the preferences and power of other family members. Although marketing communications are usually directed to individuals, marketers should consider the consumption circumstances and the family structure before deciding on specific communication or advertising methods to attract their segment.
What
is a Family?
A family i s a group of two or more persons relat ed by blood, marr iage, or ado ption who reside t oget her. The nuclear family i s t he immed iat e group of fat her, mot her, and child (ran) l iving t oget her. The ext ended family i s t he nuclear family, pl u s ot her relatives , such as grand parent s, uncles and aunt s, cou sins, and parent s-in-law. The family int o which one i s born i s called t he family of or ient ation, whereas t he one est abl i shed by marr iage i s t he family of procreation. In a more dynamic sense, the individuals who constitute a family might be described as members of the most basic social group who live together and interact to satisfy their personal and mutual needs. FAMILY DECISION-MAK ING
Families use products even though individuals usually buy them. Determining what products should be bought, which retail outlet to use, how and when products are used, and who should buy them is a complicated process involving a variety of roles and actors. Role Behavior Families and other groups exhibit what sociologist Alcott Parsons called instrumental and expressive role behaviors. * Instrumental roles, also known as functional or economic roles, involve financial, performance, and other functions performed by group members. * ? Expressive roles involve supporting other family members in the decision making process and expressing the family¶s aesthetic or emotional needs, including upholding family norms. Individual
Roles in Family Purchases
Family consumption decisions involve at least five definable roles, which may be assumed by spouses, children, or other members of a household. Both multiple roles and multiple actors are normal. Marketers need to communicate with consumers assuming each of these
roles, remembering that different family members will assume different roles depending on the situation and product. Children, for example, are users of cereals, toys, clothing, and many other products but may not be the buyers. One or both of the parents may be the decider and the buyer, although the children may be important as Influencers and users. Family Roles For a family to function as a cohesive unit, roles or tasks-such as doing the laundry, preparing meals, setting the dinner table, taking out the garbage, walking the dog must be carried out by one or more family members. In our dynamic society, etc. family-related roles are constantly changing. Key Family Consumption Roles The roles played by the different family members will vary from product to product. While shopping in the market, a housewife comes across a new variety of juice that she buys for the family. Her decision to purchase does not directly involve the influence of other family members. She is the decider, buyer; but she may or may not be the preparer and is not the only user. In case of products such as television, car, music systems, furniture or any other product which is likely to be used by some or all the family members, the purchase decision is likely to be joint or group decision. There are eight distinct roles in the family decision-making process. Influences on the Decision Process How do husbands and wives perceive their relative influence on decision making across the decision stages? And what does this mean for marketers? Joint decisions tend to be made about vacations, televisions, refrigerators, and living room furniture. Autonomic decision-making tends to be present in decisions about categories that include women¶s jewelry, men¶s leisure clothing, indoor paint and wallpaper, and luggage. By understanding where on this ³map´ the decisions to buy particular products fall, marketers can being to
determine which aspects of specific product to advertise to different household members and which media will reach the influential family member. Influence
by Decision Stage
Spouses exert different degrees if influence when passing through the different stages of the decision-making process. This movement from information search to final decision may be minimal in the case of many low-involvement goods but more pronounced for goods that are risky or have high involvement for the family. Movement is most pronounced for refrigerators, family autos, upholstered living room furniture, and carpets or rugs. Vacations are perhaps the most democratic of a family¶s purchase decisions. Separate campaigns may be timed to coincide with specialized interests, especially for products with a long planning cycle. Influence of employment In the past, marketers were able to refer to the traditional role structure categories to determine which family member was most likely to purchase a specific product. Although traditional buying roles still apply, husbands in dual-income marriages may be willing to stop at the grocery store to pick up a few items, and working wives may drop the family car at the service station for an oil change. Influence of Gender As the gender gap narrows, husband and wife decisions are increasingly made jointly. Qualls studied family decisions concerning vacations, automobiles, children¶s education, housing, insurance, and savings. Prior studies showed that decisions regarding these products were usually reported as wife or husband dominant. Qualls found overwhelmingly that joint decisions are now the norm for these products, with 80 percent of children¶s education and housing decisions made jointly. Increasing resources of women and shift toward egalitarianism are producing more joint decision-making in product and service categories of perceived high risk.
[MARKETING-2]
PR OJECT ON FAMILY
INFLUENCE ON COMSUMER BEHAVIOUR
SUBMITTED TO:PROF.
VISHWANATH
SUBMITTED BY:-
UDYOTTA KESHARI RAJA MUKESH BHUPENDER SINGH
