1. Chapter 10 Copyright © 2015 Pearson Education

2. Slide 2 of 35 Chapter 10 Learning Objectives 10.1 To understand the family as a consumer socialization agent. 10.2 To understand family decision-making and its members’ consumption-related roles. 10.3 To understand the role of the family life cycle in market segmentation and targeting. 10.4 To understand the consumption patterns of nontraditional families and non-family households.

3. Copyright © 2015 Pearson Education Slide 3 of 35 Chapter 10 Learning Objectives 10.5 To understand the impact of social stratification on consumer behavior. 10.6 To understand how to measure social class and segment consumers accordingly. 10.7 To understand the demographics, lifestyles, and consumption patterns of America’s social classes. 10.8 To understand how to employ geo- demographics to locate target markets.

4. Copyright © 2015 Pearson Education Slide 4 of 35 Opening Vignette

5. Copyright © 2015 Pearson Education Slide 5 of 35 Learning Objective 10.1 10.1 To understand the family as a consumer socialization agent.

6. Copyright © 2015 Pearson Education Slide 6 of 35 Pre-adolescent – Observe parents and older siblings – Families more reliable than advertising Teenagers – Peers most influential – Like products when parents disapprove Consumer Socialization

7. Copyright © 2015 Pearson Education Slide 7 of 35 Socialization = Two Way Process

8. Copyright © 2015 Pearson Education Slide 8 of 35 Mothers stronger socialization agents than fathers Mothers usually: – more involved – control children’s exposure to commercial messages – regulate spending Socialization Agents

9. Copyright © 2015 Pearson Education Slide 9 of 35 Mothers’ Socialization-Related Attitudes

10. Copyright © 2015 Pearson Education Slide 10 of 35 Parental Styles and Socialization

11. Copyright © 2015 Pearson Education Slide 11 of 35 Consumer Socialization is Learning

12. Copyright © 2015 Pearson Education Slide 12 of 35 Socialization is ongoing – Marriage – Retirement – Pet adoption Skepticism increases over time but varies by demographics Preferences and loyalties are often transferred between generations Intergenerational Socialization

13. Copyright © 2015 Pearson Education Slide 13 of 35 Economic well being Emotional support Discussion Question: How does family shape what people view as a “suitable” lifestyle? Family’s Supportive Roles

14. Copyright © 2015 Pearson Education Slide 14 of 35 Learning Objective 10.2 10.2 To understand family decision-making and its members’ consumption-related roles.

15. Copyright © 2015 Pearson Education Slide 15 of 35 Husband-dominated decisions Wife-dominated decisions Joint decisions Autonomic decisions What affects the relative influence of a husband and wife on a particular consumer decision? Husband-Wife Decision-Making

16. Copyright © 2015 Pearson Education Slide 16 of 35 Tactics Pressure Exchange Rational Children’s Influence Consultation Ingratiation

17. Copyright © 2015 Pearson Education Slide 17 of 35 Roles and Measurement

18. Copyright © 2015 Pearson Education Slide 18 of 35 Learning Objective 10.3 10.3 To understand the role of the family life cycle in market segmentation and targeting.

19. Copyright © 2015 Pearson Education Slide 19 of 35 Bachelorhood Honeymooners Parenthood Post-parenthood Dissolution Family Life Cycle

20. Copyright © 2015 Pearson Education Slide 20 of 35 Which life-cycle stage is targeted with these two ads?

21. Copyright © 2015 Pearson Education Slide 21 of 35 Which life-cycle stage is targeted with this ad?

22. Copyright © 2015 Pearson Education Slide 22 of 35 Learning Objective 10.4 10.4 To understand the consumption patterns of nontraditional families and non-family households.

23. Copyright © 2015 Pearson Education Slide 23 of 35 Nontraditional Households

24. Copyright © 2015 Pearson Education Slide 24 of 35 Changes in consumption behavior Advertising decisions – Recognize existence – Avoid alienating conservative traditional households Targeting Nontraditional Families

25. Copyright © 2015 Pearson Education Slide 25 of 35 Discussion Question: How might the 8 groups differ in consumption patterns?

26. Copyright © 2015 Pearson Education Slide 26 of 35 Learning Objective 10.5 10.5 To understand the impact of social stratification on consumer behavior.

27. Copyright © 2015 Pearson Education Slide 27 of 35 How do material possessions relate to social status? How does social comparison/social class affect consumption patterns? Discussion Questions

28. Copyright © 2015 Pearson Education Slide 28 of 35 Learning Objective 10.6 10.6 To understand how to measure social class and segment consumers accordingly.

29. Copyright © 2015 Pearson Education Slide 29 of 35 Subjective – estimate your social class Objective – Occupation – Education – Income – Multivariable Index Index of status characteristics Socioeconomic status score Subjective vs. Objective Measures

30. Copyright © 2015 Pearson Education Slide 30 of 35 Learning Objective 10.7 10.7 To understand the demographics, lifestyles, and consumption patterns of America’s social classes.

31. Copyright © 2015 Pearson Education Slide 31 of 35 Social Class Profiles

32. Copyright © 2015 Pearson Education Slide 32 of 35 Spending patterns – Clothing, fashion and shopping – Saving, spending and credit card usage Media consumption Discussion Question: Why should marketers care about downward mobility and its affect on consumption patterns? Comparing Social Classes

33. Copyright © 2015 Pearson Education Slide 33 of 35 Learning Objective 10.8 10.8 To understand how to employ geo- demographics to locate target markets.

34. Copyright © 2015 Pearson Education Slide 34 of 35 PRIZM ® Geo-demographic Segmentation

35. Copyright © 2015 Pearson Education Slide 35 of 35 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2015 Pearson Education Copyright © 2015 Pearson Education