Chapter 6 The American Society: Families and Households

The Household Influences Most Consumption Decisions Household purchases and consumption behavior Marketing strategy Structure of household unit Stage of the household life cycle Household decision process The McGraw-Hill Companies, Inc., 1998

Types of Households Family household is a household unit that consists of two or more related persons. Nuclear family consists of a married couple with their own or adopted children. Extended family household includes the nuclear family plus additional relatives. Nonfamily households are made up of persons living alone or with other non-relatives. Blended family consists of a couple living with children from a previous marriage.

Family and Nonfamily Households: 2000-2010 Percent Number Percent Number Percent Change (000) (000) 2000-2010 All Households Families Married couples Children under 18 at home Children over 18 at home No children under 18 at home Single fathers Single mothers Other families Nonfamilies Men living alone Women living alone Other nonfamilies 110,140 77,705 60,969 24,286 5,318 31,365 1,523 7,473 7,741 32,434 10,898 16,278 5,258 100.0% 70.6 55.4 22.1 4.8 28.5 1.4 6.8 7.0 29.4 9.9 14.8 117,696 80,193 61,266 23,433 6,884 30,950 1,660 7,779 9,488 37,503 12,577 18,578 6,347 6.9% 3.2 0.5 (3.5) (1.3) 9.0 4.1 22.6 18.0 15.4 14.1 20.7 68.1 52.1 19.9 5.8 26.3 6.6 8.1 31.9 10.7 15.8 5.4 Source: Adapted from “The Future of Households,” American Demographics, December 1993, p. 29.

Average Size of American Household Source: D. Crispell, “How Small a Household?,” American Demographics, August 1994, p. 59.

Stages of the Household Life Cycle Stage Marital Status Children at Home Single Married None < 6 years > 6 years Younger(<35) Single I Young married Full nest I Single parent I Middle-aged (35-64) Single II Delayed full nest I Full nest II Single parent II Empty nest I Older (>64) Empty nest II Single III The McGraw-Hill Companies, Inc., 1998

Household Life Cycle/Social Stratification Matrix Stage of House- hold Life Cycle Social Class Lower- Upper- Lower- Upper- Lower Lower Working Middle Upper Upper Single I Young married Full nest I Single parent I Single II Delayed full nest I Full nest II Single parent II Empty nest I Single III Empty nest II The McGraw-Hill Companies, Inc., 1998

The Household Decision-Making Process for Children’s Products 6-7 Influencers (children) Communications targeted at children (taste, image) Initiators (parents, (children) Decision makers (parents, children) Purchasers (parents) User (children) Communications targeted at parents (nutrition) Information gatherers (parents) Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Joint Decision Making Buyer User Decision Maker Influencer Gatekeeper One Either Both Dominant Autonomic Syncratic

Husband/Wife Decision Roles for Services 6-8 Vacation Insurance Child’s School Made the purchase Husband Husband and Wife Wife Decided when to buy Choice Initiated the idea 24 46 29 20 63 14 23 48 27 25 50 22 39 44 17 42 45 12 34 2 41 3 54 4 35 51 42 42 15 Source: M. R. Stafford, G. K. Ganesh, and B. C. Garland, “Marital Influence in the Decision-Making Process for Services,” Journal of Services Marketing 10, no. 1 (1996), p. 15.

Family Decision Making Determinants of Family Purchase Roles: Culture and Subculture Role Specialization Involvement Personal Characteristics Conflict Resolution within Family Decision Making: Bargaining Impression Management Use of Authority Reasoning Playing on Emotion Providing Additional Information

Marketing Strategy Based on the Family Decision-Making Process Segment:_______________________ Family Marketing Family Members’ Strategy Stage in the Members Motivation and Decision Process Involved and Interests Tactics Problem recognition Information search Alternative evaluation Purchase Use/Consumption Disposition Evaluation The McGraw-Hill Companies, Inc., 1998

Consumer Socialization Consumer socialization is the process by which people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace. Instrumental training occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement. Modeling occurs when a child learns appropriate consumption behaviors by observing others. Mediation occurs when a parent alters a child’s initial interpretation of, or response to, a marketing stimuli.