Influence of Familiy on Consumer Behaviour

INTRODUCTION
Consumer behaviour is influenced not only by consumer
personalities and motivations, but also the relationships with in the families.

From the marketing point of view there are several types of

families and their buying requirements also differ in nature.

1. Nuclear Family consisting of husband, wife and

their offspring's.

2. Extended Family beyond nuclear family, including

aunts, uncles grandparents, etc.

The Reciprocal Nature of Family Influence

Intergenerational Influences
It refers to what is passed along from grandparents to parents, from the parents to their children, and from the children to their children. Including religious and cultural values, lifestyles, attitudes, social-life, etc. The marketers try to get consumers who are highly brand loyal for many decades Concept known as Intergenerational carryover.

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.

Family Role Structure

The Initiator This is the person who first suggests the idea of a
product or service and initiates the buying process.

The Influencer This is someone whose opinion is valued in the

decision-making process. An influencer may be a friend, brother, sister, spouse, etc.

The Decider This is the person who makes the final decision on what
brand or make to but, after all aspects such as price, quality, etc, have been thought over.

The Purchaser This is the individual who actually purchases the

product and pays for it. Very often, the purchaser and the decider are the same person.

The Consumer He is the user of the goods or services.

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

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

Family Decision Making Process

Problem Recognition Search for Information

Evaluation of alternatives
Final Decision Purchase

The Elements of Power Which Influences Family Decision Making

Economic Resources: Cultural Norms:
Here the person making the greater economic contribution tends to have the most power. The prevailing culture may decide which partner has the most power. eg,. In many cultures the male is the dominant partner.

Expert Power: One partner has more knowledge about the product. Bargaining Power:
This involves inducing one member to make a decision favourable to another on the basis of give and take. One spouse may reward the other by doing something the

Reward Power:
other will like.

Emotional Power: The direction of purchase decision may be influenced by

one partner by making use of non-verbal emotional pressure on the other.

Family Life Cycle

Bachelorhood Newly Married Couple Parenthood Post Parent Hood Dissolution

 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

 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/husband Low levels of income and savings Expenditure on medical products, security, affection