Family & Family Life cycle Social Class
Jan 17, 2015
Family &
Family Life cycle
Social Class
What is a Family? Family
is defined as a group of two or more people (one of whom is a householder) related by birth, marriage or adoption and residing together
Household: Is a family and any unrelated person residing in the same house
and consuming food from a common kitchen at least once a day Two types of household:
Family Household Institutional Household e.g. Hostel
All families are households but all households are not families
Types of Family Family of Orientation
Consist of one’s parents and elders Provides orientation towards
Social: Religion, Politics, Economics Emotional: Self Worth, Ambition, Love and Care
Family of Procreation Consist of one’s spouse and children Most important buying unit in a market
The influence of Family of Orientation decreases with Age
Types of Family Traditional Family Types:
Married Couple: Simplest type of family consisting of husband and wife
Nuclear Family: Consist of Husband Wife and at least one child
Extended Family: Consist of a nuclear family with at least one grand parent
Joint Family: Blood relatives and their spouses with kids staying together
New Modes of Family Blended Family:
A family in which either or both partner were previously married Single Parent Family:
A family in which only one of the parent is present Unmarried Family:
Parents, unmarried, but living together Communal Family:
A group of families living together and sharing responsibility
Figure 10.11 A Simple Model of the Socialization Process
Influence More BasicValues/Behavior•Moral/religious principles
•Interpersonal skills•Dress/grooming standards
•Manners and speech•Educational motivation
•Occupational career goals
•Consumer behavior norms
Influence More BasicValues/Behavior•Moral/religious principles
•Interpersonal skills•Dress/grooming standards
•Manners and speech•Educational motivation
•Occupational career goals
•Consumer behavior norms
Influence More ExpressiveAttitudes/Behavior
•Style•Fashion•Fads•“In/Out”•Acceptable consumer behavior
Influence More ExpressiveAttitudes/Behavior
•Style•Fashion•Fads•“In/Out”•Acceptable consumer behavior
Other Family MembersOther Family Members FriendsFriends
Young PersonYoung Person
Preadolescent Adolescent Teens Older
Functions of a Family Provides Economic Well Being Provides Emotional Support Provides Suitable Life Style Provides Social Relationships Provides Morals and Ethical Values Provides Religious Values Provides Interpersonal Skills
Family Life Cycle (1/2) Stage 1 :Bachelorhood
Few Financial Burdens Fashion and Recreation Oriented
Stage 2: Newly Married Couple Financially better off Highest purchase rate of consumables and durables Romantically inclined
Stage 3 : Parenthood Elementary school stage
Youngest child < 6 years of age Low Liquid Assets High purchase of baby food & baby oriented products
High school stage Youngest child >= 6 years of age Financially better off
College Phase All children still financially dependent High family influence on purchases Major expense on higher education
Family Life Cycle (2/2) Stage 4: Post Parent Hood
Head of the family in labour force No Dependent Children Expenditure in self development
Stage 5 :Dissolution : Solitary Survivor – II
Single Surviving head of family in labor force Supported by family and friends Have high expendable income Spent on loneliness reducing products and services
Solitary Survivor – II: Single Surviving wife Low levels of income and savings Expenditure on medical products, security, affection
Table 10.6 Eight Roles in the Family Decision-Making ProcessROLE DESCRIPTIONInfluencers Family member(s) who provide information to other
members about a product or service
Gatekeepers Family member(s) who control the flow of information about a product or service into the familyDeciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or serviceBuyers Family member(s) who make the actual purchase of a particular product or service
Preparers Family member(s) who transform the product into a form suitable for consumption by other family membersUsers Family member(s) who use or consume a particular product or service
Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction.Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service
Household Decision Making Process
Communication targeted at Children
Communication targeted at Parents
Influencer(Children)
Initiator(Parents, Children)
InformationGathering
DecisionMaker
(Parents, Children)
Purchaser(Parents)
User(Parents,Children)
Types of Family Decisions Husband Dominated Decisions
Husband takes the purchase decisions Traditionally in products like Automobiles, Alcohol, Insurance
Wife Dominated Decisions Wife takes the purchase decisions Traditionally in products like household maintenance items, food
and kitchen appliances Joint Decision Making
Both husband and wife make the decision Traditionally in School choice, living room furniture, vacations
Child Dominated Decision Making Child makes the “final product” decision Traditionally on children related items
Unilateral Decision Making Taken by any member of the family Traditionally on Personal Care items, low priced goods
These Traditional Roles are Changing
Conflict Resolution Family Decisions are bound to create conflict Conflicts are resolved by:
Bargaining: Reaching a compromise on which product to buy
Impression Management: Misrepresentation of facts in order to create favorable impressions
Use of Authority: Claiming superior authority to resolve the conflict
Reasoning: Using logical arguments to resolve the conflict
Playing on Emotions: Using emotions to resolve the conflict
Additional Information: Getting additional Data or Third Party Information
Consumer Socialization
Consumer Socialization Consumer Socialization is the process by which people acquire
skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace
Contents of Consumer Socialization: Consumer Skills:
Skills necessary for purchase and understand money, budgeting, product evaluation
Consumption Preferences: Are knowledge, attitudes and values that cause people to attach
differential evaluation to products, brands and retail outlets Consumption Attitudes:
Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc.
Copyright 2007 by Prentice Hall
Consumer Behavior,Ninth Edition
Schiffman & Kanuk
Chapter 11Social Class and
Consumer Behavior
Copyright 2007 by Prentice Hall
Chapter Outline What is Social Class? The Measurement of Social Class Geodemographic Clustering The Affluent Consumer The Middle Class Consumer The Working Class Selected Consumer Behavior Applications of
Social Class
Copyright 2007 by Prentice Hall
Social Class
The division of members of a society
into a hierarchy of distinct status classes,
so that members of each class have either higher or lower status than members of other
classes.
Copyright 2007 by Prentice Hall
Social Class Is Hierarchal Status is frequently thought of as the relative
rankings of members of each social class
Copyright 2007 by Prentice Hall
Table 11.2 Percent Distribution of Five-Category Social-Class
MeasureSOCIAL CLASSES PERCENTAGEUpper 4.3Upper-middle 13.8Middle 32.8Working 32.3Lower 16.8Total percentage 100.0
Copyright 2007 by Prentice Hall
Social Class Measurement Subjective Measures
individuals are asked to estimate their own social-class positions
Reputational Measures informants make judgments concerning the
social-class membership of others within the community
Objective Measures individuals answer specific socioeconomic
questions and then are categorized according to answers
Copyright 2007 by Prentice Hall
Objective Measures
Single-variable indexes Occupation Education Income Other Variables
Composite-variable indexes Index of Status
Characteristics Socioeconomic Status
Score
Geo demographic clustering “Birds of a feather flock together” Families of similar socioeconomic backgrounds tend
to reside in the same neighborhoods or communities. “They cluster together”
Dispersed communities with similar geographic profiles
Located by PINCODES
Copyright 2007 by Prentice Hall
Index of Status Characteristics
(ISC)
A composite measure of social
class that combines occupation, source
of income (not amount), house
type/dwelling area into a single
weighted index of social class standing.
Copyright 2007 by Prentice Hall
Socioeconomic Status Score
(SES)
A multivariable social class measure used by
the United States Bureau of the Census
that combines occupational status, family income, and
educational attainment into a single measure of
social class standing.
Copyright 2007 by Prentice Hall
Geodemographic Clusters
A composite segmentation
strategy that uses both geographic
variables (zip codes, neighborhoods) and
demographic variables (e.g.,
income, occupation) to identify target
markets.
Copyright 2007 by Prentice Hall
PRIZM (Potential
Rating Index by Zip
Market)
A composite index of geographic and
socioeconomic factors expressed in
residential zip code neighborhoods from
which geodemographic
consumer segments are formed.
Copyright 2007 by Prentice Hall
The Affluent Consumer Especially attractive target to marketers Growing number of households can be classified as
“mass affluent” with incomes of at least $75,000 Some researchers are defining affluent to include
lifestyle and psychographic factors in addition to income
Have different medial habits than the general population
Copyright 2007 by Prentice Hall
What Is the Middle Class?
The “middle” 50 percent of household incomes - households earning between $22,500 and $80,000
Households made up of college-educated adults who use computers, and are involved in children’s education
Lower-middle to middle-middle based on income, education, and occupation (this view does NOT include upper-middle, which is considered affluent)
Copyright 2007 by Prentice Hall
The Middle Class There is evidence that the middle class is slowly
disappearing in the U.S. Growth of middle class in some Asian and Eastern
European countries Many companies offering luxury to the masses with
near-luxury models and goods
Copyright 2007 by Prentice Hall
The Working Class? Households earning $40,000 or less control more
than 30 percent of the total income in the U.S. These consumers tend to be more brand loyal than
wealthier consumers.
Copyright 2007 by Prentice Hall
Discussion Question What types of products are targeted to the working
class? What issues must marketers consider when
targeting their ads to the working class?
Copyright 2007 by Prentice Hall
The Techno Class Having competency with technology Those without are referred to as “technologically
underclassed” Parents are seeking computer exposure for their
children Geeks now viewed as friendly and fun
Copyright 2007 by Prentice Hall
Consumer Behavior and Social Class Clothing, Fashion, and Shopping The Pursuit of Leisure Saving, Spending, and Credit Social Class and Communication
Copyright 2007 by Prentice Hall
Class Situations, Self-Perceptions, and Financial OrientationsFigure 11-9