1. Chp. 12 with Duane Weaver

2.  Income and Spending  Social Class and Impacts  The Family Defined  Effects of Family Structure and Composition  The Family Life Cycle  Family Decision Making  Family Decision Roles

3.  Average Canadian Standard of Living relatively high in international standards:  Avg. Family Income = 67.6K in 205 to 75.32K in 2009 Note: In 2008, 2.5 Billion people in world live on <$2/day = $730/year  Poverty Line (Revenue Canada) just over $30,000  Income up due to shift in women’s roles and education  (24% of couples the wives paychecks propelling the income ladder)  % of Cdns. with college diploma 50% (2009) up from 39% (1999)

4.  Discretionary Income a.k.a “disposable income”  “the money available for a household over and above that required for a comfortable standard of living.” ^^^what does this really mean??^^^ + or ?

5.  Social Class = a consumer’s standing  Determined by a complex set of variables including income, family background, and occupation within a particular culture. (note we will look at cultural implications separately)  Is it Have vs. Have not?  What is the “have”???  How does the perception of social class impact the cognition of spending? (e.g. minimalism vs. materialism)

6.  Picking a Pecking order E.G.: Max Weber:  Prestige or Social honour (status groups)  Power (party)  Wealth and Property (Class)  Social Stratification: Process by which scarce and valuable resources are distributed unequally to status positions. Examples?

7.  Social class “standing” can be used to segment markets as we see examples of buyer behaviour that are related. E.g.: Working class focusing on Function and Yuppie focusing on Image.  World-view of classes (how globally we see different classes (activities, desires, hopes of change/destiny))  Taste cultures  aesthetic and intellectual preferences  Strong differences in how classes spend discretionary income and leisure time

8.  Targeting Social Class  From what we have learned, how can we better target a specific social class?  High income  Middle income  Low income  Invidious distinction – products that inspire envy in others through display of wealth or power.  Conspicuous consumption – people’s desire to provide prominent, visible evidence of their ability to afford luxury goods.  Parody Display – seek status by reverse consumption, (mocking status symbols – do not buy because it is status related – desire to be above it all ).

9.  Extended family  traditional family structure  several generations live together  Nuclear family  a married couple and their children  Family household  Containing at least two people  a husband and wife, married or living common law  a lone-parent, with children who have never married and are still living at home

10.  Family’s needs and expenditures are affected by 1. The number of people in a family 2. The ages of family members 3. The number of adults employed outside the home

11.  The Family Life Cycle Classifies consumers based on  trends in income, family composition, & demands placed upon income  Life cycles determine which product categories are bought, but not how much is spent on each category.

12. Age of Head of Household Under 35 yrs35-64 yrsOver 64 yrs One adult in household Bachelor IBachelor IIBachelor III Two adults in household Young coupleChildless coupleOlder couple Two adults plus children in household Full nest I* Full nest II* Delayed full nest* Full nest III* Full Nest I: youngest child is younger than 6 yrs Full Nest II: youngest child is older than 6 yrs Full Nest III: youngest child is older than 6 yrs and the parents are middle aged Delayed Full Nest: parents are middle-aged but the youngest child is younger than 6 yrs Adapted from: Mary C. Gilly and Ben M. Enis Modern – exercise – go out to bars,concerts, movies..etc Dollar value of durables increases as nest empties or parents age

13.  Consensual purchase decision  the group agrees on the desired purchase  differ on how it will be achieved  Accommodative purchase decision  reaching agreement among group members by bargaining, coercing, compromising and wielding power

14. 1) Initiator 2) Information Gatherer 3) Gatekeeper 4) Influencer 5) Decision Maker 6) Buyer 7) Preparer 8) User 9) Maintainer 10) Disposer