Personal & Family Influence on Consumer Behavior Marketing 547 Personal & Family Influence on Consumer Behavior

Reference Groups Definition -- A group or person that serves as a point of comparison for an individual which serves as a guide in formulating values Types of Reference Groups Normative & Comparative Aspirational & Contractual Disclaimant & Avoidance

Reference Groups Reference Group Influence on Consumption Conformity Norms Influence Informational Normative Identification

Reference Groups Reference Group Influence on Consumption Determinants of Reference Group Influence Usage Visibility Group Commitment Relevance of Behavior to the Group Consumer Confidence

The Family & CB Definition of Family Family versus Household Two or more persons related to each other by blood, marriage or adoption, who reside together Family versus Household Mom, Dad & Kids Roommates The Nuclear Family (and reality) Divorces (second marriage divorce rates are higher than first) “Single by Choice” Extended Families

The Family & CB Family Decision Making Info Influencers Gatherers Decision Makers Purchasers Consumers

The Family & CB Information Gatherers Influencers Decision Makers Those with a problem – notify family of needs/wants Influencers Those with specific needs – different than family may have as a unit Decision Makers Person with the authority to choose an alternative Purchasers Person who actually buys the product (at the store) User Person who actually uses the product

The Family & CB Implications of Family Decision Making Many differing individuals are involved Individuals may play differing roles – know who they are for your product Implications for Promotion Different elements targeted at different roles Multi-pronged effort is likely required

The Family & CB The Family Life-Cycle (FLC) Joint Decision Making Strategies Autonomic Syncratic The Family Life-Cycle (FLC) Definition -- classification scheme based on the assumption that families pass through an orderly progression of stages, each having unique characteristics financial situations and purchasing patterns

The Family Life-Cycle (FLC) FLC Stages Young Singles Young Marrieds Full Nest I Single Parent I Middle-Aged Singles Empty Nest I Full Nest II Single Parent II Empty Nest II Survivors

To Which FLC Segment is this Ad Targeted?