Role of family in consumer decision making

This Presentation describes the role of family members in consumer decision making process.

1. Role of Family in consumer decision making Vijay B 100

2. Why is it Important ? Influential in consumption decisions Influential in purchase decisions Make several joint purchase decisions Prime target market for goods and services It helps to devise our marketing strategies

3. Family Lifecycle (FLC) The family life cycle concept attempts to explain consumer behaviour patterns of individuals as they age, marry, have children and retire Changes Over Life-Cycle financial situation Product categories considered interests primary decision maker Free time Family Life-cycle bachelor newly married, no kids young couple, kids < 6 young couple, kids >6 old couple working retired widow - working, not working

4. Role Behavior Individual roles in family purchases Initiator : initiator of family thinking about buying products and gathering information to aid decisions Influencer: individual whose opinions are sought concerning criteria and which products or brands most likely to fit those criteria Decider: person with the financial authority or power to choose how the family’s money will be spent on which products and brands Buyer: person who acts as the purchasing agent by visiting the store, calling suppliers, writing checks, bringing products into the home and so on User: person or persons who use the product

5. Buying a car!!

6. Identifying different purchaser-consumer relationships Who’s buying for whom? Who are the principal characters? What’s the plot for the purchase? What can we assume?

7. Changing Roles of Women Marketing to Women Appealing to the “mother” category Different segments exist and they look at advertising, the Internet, products, time, and brands differently Depending on career orientation, responsibilities in and out of the home, time pressures, messages, and ads need to be adapted Retailers can appeal to women with special services or extended hours

8. Example!! Nivea For Men targeted women in a campaign to persuade them of the benefits of buying male grooming products for their partners. The company organized a six-month campaign targeting over 42,000 women with the purpose of educating them about their partners' skincare habits and handing out samples. Results? 55% purchased at least one Nivea For Men product, and 20% purchased two or more products. 58% of men recommended the product to their friends and family. 

9. Changing Masculine Roles Roles of men in families are changing substantially as well Men are more involved in family functions and household activities Men may buy items traditionally purchased by women (groceries) Many men are achieving gender role transcendence and use products previously seen as “feminine”

10. Children and Household Consumer Behavior

11. Children and Household Consumer Behavior Children change dramatically how the family functions, in terms of relationships, employment, and purchases Children reduce parents’ participation in the labor force, change how families spend their money and reduce the amount of time and money available for leisure Children influence about $1.88 trillion of purchases globally each year Children exert direct influence over parental spending when they request specific products and brands They exert indirect influence when parents buy products and brands that they know children prefer without being asked or told to make a specific purchase

12. Advertising and children Children’s TV watching Behavior : Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants

13. Changing trends in youth

14. Recent trends Online shopping : Shop 14/7 Comfort of own home A lot of strokes within a click away Comparison made easier Discounts Payments made Easier

15. Other Trends Celebrity influence

16. Other Trends Quality oriented outlet

17. Other Trends Eco friendly products

18. THANK YOU