Group Influence and Family Decision Making. Group and Situational Influence A group is two or more individuals who share a set of norms, have role relationships,

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Presentation transcript:

Group Influence and Family Decision Making

Group and Situational Influence A group is two or more individuals who share a set of norms, have role relationships, and experience interdependent behaviors. Groups influence the socialization process--i.e., they influence what we learn and how we behave.

Classification of Groups Content or function –Membership group –Symbolic group Degree of personal involvement –Primary –Secondary Degree of organization –Formal –Informal

Reference Groups A group to which a consumer looks for guidance for values and behavior. Serves as a frame of reference for individuals in their purchase or consumption decisions. Broad categories of reference groups: –Normative –Comparative

How Do Reference Groups Influence Consumers? Social power theory Information and experience Product conspicuousness and exclusivity

Social Power Theory Groups have potential power over members through 5 different types of social powers. Three processes that impact the likelihood that social power will influence an individual member: –Compliance –Internalization –Identification

Social Powers Legitimate Expert Referent Coercive Reward

Information and Experience Members of reference groups share experiences and information about products. –Family, friends –Expert power

Product Conspicuousness and Exclusivity How much a reference group influences depends on two characteristics of a product: –Conspicuousness How visible the product is to people Public vs. private –Exclusivity How exclusively the product is owned Necessity vs. luxury

“Private necessities” Reference group influence: Weak for product ownership and weak for brand choice. Examples: Mattress Floor lamp refrigerator “Public Luxuries” Reference group influence: Strong for product ownership and strong for brand choice. Examples: Golf clubs Sail boat Snowboard “Private luxuries” Reference group influence: Strong for product ownership but weak for brand choice. Examples: Theater sound system Pool table Trash compactor “Public necessities” Reference group influence: Weak for product ownership But strong for brand choice. Examples: Car Computer Clothes Low exclusivityHigh exclusivity Low visibility High visibility

Reference Group Appeals Appeals that consumers identify with in some way: –Admiration –Aspiration –Empathy –Recognition

Types of Appeals Celebrity appeals –Testimonial –Endorsement –Actor –Spokesperson

Appeals, continued... Expert appeals “Common man” appeals Executive spokesperson appeals Trade or spokes-characters

Benefits of Reference Group Appeals Increase brand awareness Decrease perceived risk

Family A family is the most important reference group. What is a family? Family vs. household

Functions of the Family Economic function Emotional support Establish lifestyle Socialization

Consumer Socialization The process by which children acquire skills, knowledge, and attitudes necessary to function as consumers. Primary socialization agent –Parents Secondary socialization agent –Peers –Media

Family Decision Roles Related to sex –Instrumental vs. expressive –Traditional vs. egalitarian Related to purchase and consumption –Influencer –Gatekeeper –Decider –Buyer –User

Family Decision Making Models Husband-wife decisions –Wife dominant –Husband dominant –Autonomic –Syncratic (joint) Classification based on degree of role specialization and relative influence.

Models, continued... Purchase decision strategies –Consensual decisions Goal consensus Requires problem solving strategy or rule strategy –Accommodative decisions Conflicting goals Requires conflict resolution, persuasion strategies, bargaining strategies

Models, continued... Husband-wife influence strategies –Expert influence –Legitimate influence –Bargaining –Reward/referent influence –Emotional influence –Impression management Partners use a combination of strategies

Influence Strategy Mixes

Involvement of Children in Family Decision Making Children are significant market segment: –As influencers of family purchases –As individual consumers Primary influence on family purchases: –Personal involvement –Initiation stage of purchase process –Sub-decisions

Children…. Direct vs. indirect influence Influence strategies

Family Life Cycle (FLC) A classification scheme based on the assumption that families pass through an orderly progression of stages, each having unique characteristics, financial situations, and purchasing patterns. A useful tool for predicting certain household purchases.

FLC, continued FLC models –Base categorization on either husband’s or wife’s age and on age of youngest child in family. –Spending patterns generally follow an inverted U pattern over the life cycle.

Traditional FLC Stage 1--Bachelorhood Stage 2--Honeymooners Stage 3--Parenthood –Full nest I-III Stage 4--Postparenthood –Empty nest I-II Stage 5--Dissolution

Updated FLC Address societal changes –Never married –Divorce –Childless couples –Single parents –Delayed marriage –Delayed children