Chapter 10: The Family and Its Social Class Standing MKT 344 Faculty: NNA Copyright 2007 by Prentice Hall

Chapter Outline What Is a Group? Categories of Reference Groups Selected Consumer-Related Reference Groups Reference Group Appeals The Changing U.S. Family Consumer Socialization Family Decision Making The Family Life Cycle

What Is a Group? Two or more people who interact to accomplish either individual or mutual goals

Reference Group A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior.

Broad Categories of Reference Groups Normative Reference Groups Reference groups influencing broadly defined value. i.e. Family

Broad Categories of Reference Groups Comparative Reference Groups Reference group serving as benchmarks for specific or narrowly defined attitude or behavior. i.e. upper level executive Membership group: A group where a person belongs to or would qualify for membership. i.e. NSUSS

Broad Categories of Reference Groups aspirational reference groups comprise idealized figures such as successful business people, athletes or performers

Teens are very influenced by indirect reference groups.

Broad Categories of Reference Groups Groups include people who more realistically represent the individuals’ current equals or near-equals Associative Reference Groups group includes people that the individual would not like to belong to Dissociative Reference Group

Selected Consumer-Related Reference Groups Friendship groups: a group of people, usually of similar age, background, and social status, with whom a person associates and who are likely to influence the person's beliefs and behavior.

Selected Consumer-Related Reference Groups Shopping groups Work groups: a group within a workforce that normally works together.

Selected Consumer-Related Reference Groups Virtual groups or communities: individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology.

Selected Consumer-Related Reference Groups The Internet has created many friendship and shopping groups.

Brand Communities Saturn car owners who meet for reunions and barbecues Harley-Davidson Owner Groups

Brand Communities Since Honda cannot compete on brand community, they choose to emphasize the family.

Reference Group Appeals Celebrities The expert The “common man”

Celebrities

The common “wo”men Appeal

Nonfamily Households: Married couple, Nuclear family, Extended family Households Nonfamily Households: Unmarried couples, Friends/ Roommates

The Changing U.S. Family Increase in childless women More working mothers Changes in household spending patterns

Evidence of the Dynamic Nature of U.S. Households - Figure 10-7

Consumer Socialization The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

Discussion Question How do marketers influence consumer socialization? Does this seem unethical? At what point would it be unethical?

A Simple Model of the Socialization Process - Figure 10.11

Table 10.7 Eight Roles in the Family Decision-Making Process DESCRIPTION Influencers 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 family Deciders 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 service Buyers Family member(s) who make the actual purchase of a particular product or service Users 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

Dynamics of Husband-Wife Decision Making Husband-Dominated Wife-Dominated Joint Autonomic

The Family Life Cycle Traditional Family Life Cycle Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution

The Family Life Cycle

The Family Life Cycle

The Family Life Cycle Modifications - the Nontraditional FLC Child less couple Couples who marry later in life Couples who have first child later in life Single parents Extended family (kids return to parents to avoid expenses or after divorce) Unmarried couples