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Family: Members of most basic social group who live together and interact to satisfy their personal and

mutual needs Indian family - the central institution in providing for peoples welfare major consumption unit Nuclear Family: Husband, wife and one or more children Extended Family: The nuclear family, together with at least one grand parent

More number of women are preferring to work leaving behind their traditional role as home maker Marketer a Solution Provider: Opens whole new segment of products and services specifically targeting the needs of such families Products which save time: Washing Machines, Ready to cook and dish washers Indian family and household- changing in size and composition especially in urban areas family is growing smaller in size with lesser number of children

Whether an employed wife behaves at home the same as a nonworking wife Little or no difference between the working and non-working wives with respect to their purchase of time-saving durables Indeed, Nonworking married women were even more likely to buy time-saving durables Married mens behavior also remained same w.r.t. household chores whether the wife was working or not The ultimate responsibility of household management rests with the wife

Defines as the process by which children acquire the skills, knowledge, attitudes, and experiences necessary to function as consumers Pre-adolescent children acquire CB norms by observing parents and older siblings Teenagers look towards their friends for models of acceptable consumer behavior Socialization Agent: A person or organization involved in the socialization process because of the frequency of contact with the individual and control over the rewards and punishments given to the individual e.g. Mothers act as Socialization agents for their Children

Certain product loyalties or brand preferences get transferred from one generation to another Married daughters tend to follow rituals that their mothers have followed and this aspect of the culture provides scope for brands to use intergenerational marketing Brands that have used this concept are Vicks, Horlicks, Complan etc. Socialization is a two way street young person is both socialized and influences those who are socializing e.g. Kids teaching parents about the internet

Economic Well-Being: Providing financial means to its dependents in one of the most basic family function Emotional Support: The provision of emotional nourishment (including love, affection and intimacy) to its members is an important core function of the contemporary family Suitable Family Lifestyles: Upbringing, experience, and the personal and jointly held goals of the spouses determine the importance places on education, career, reading, television, frequency and quality of dining out and recreational activities

Dynamics of Husband-Wife Decision Making


Husband Dominated Wife Dominated Joint (Equal or Syncratic) Autonomic (Where either the husband or the wife is the primary or

only decision maker)

Expanding Role of Children in Family Decision Making


Result of families having fewer children More dual income couples afford to allow children to make choices Encouragement by media allow children to express themselves

The extent to which children influence a familys purchases is related to family communication pattern
Pluralistic Parents: Parents who encourage children to speak up :

Highest influence of children Consensual Parents: Parents who encourage children to seek harmony, but are open to childrens viewpoint on purchases: Moderate influence of Children Protective Parents: Parents who stress that children should not stress their own preferences, but rather go along with parents judgments on what is to be purchased : Less influence of children

Advertisers have long recognized the importance of childrens pester power, and encourage children to pester their parents to purchase what they see in ads

FLC is a composite variable created by systematically combining such commonly used demographic variables as marital status, size of family, age of family members, and employment status of the head of the household Traditional Family Cycle:
Stage I: Bachelorhood young single adult living apart from parents Stage II: Honeymooners young married couple Stage III: Parenthood married couple with at least one child living

at home Stage IV: Post parenthood older married couple with or without children living at home Stage V: Dissolution one surviving spouse

Stage I : Bachelorhood: Rent, basic home furnishing, clothes, automobiles, accessories, travel etc. Stage II : Honeymooners: appliances, furniture, carpets, dishes, utensils and accessory items etc. Stage III: Parenthood: Expenses of child, education etc. Stage IV: Post Parenthood: High disposable income-Travel, purchase second home, new automobiles, expensive furniture etc. Stage V: Dissolution: Economical lifestyle, hobby or activity groups

FLC model has been expanded to include divorce and later marriages, and with and without the presence of children Consumption In Nontraditional Families
When households undergo status change ( divorce, temporary

retirement or the death of the spouse), they undergo spontaneous changes in consumption related preferences attractive target for marketers

New index uses occupational status and career commitment of both the spouses as a basis for segmentation Eight Category Schema
Retired Couples Non-working wife, low husband- occupation status couples Non-working wife, high husband-occupation status couples Dual low occupation status, blues collar husband couples Dual low occupation status, low white collar husband couples High husband, low wife-occupation status couples Medium- high wife occupation status couples Very high occupation status career couples

It is defined as division of members of a society into a hierarchy of distinct status classes. The inherent features of the class are: The members of each class have relatively the same status The members of all other classes have either more or less status The hierarchical aspect of social class is the basis for market segmentation for products & services

How status operates within the minds of the consumer? Individuals compare their own material possessions with those owned by others. Measurement through demographic variables. More purchasing power more status & vice versa

Subjective measures
Based on ones self perception and that of others. Reflects an individuals sense of belonging or identification with others- Class consciousness. Measurement-Individual asked to estimate their own social class positions. Tend to produce an over abundance of middle class

Objective measures

Selected demographic or socioeconomic variables of the individual are put under study
Best documented measure Target market defined in terms of specific occupation Certain values & beliefs are attached to occupational sets

Occupation Education Income

A proxy for social class standing Higher education Higher income Higher occupational status Higher purchasing power

Amount or source of income Relevance to marketers-How income is spent

Single variable indexes It uses one socioeconomic variable at a time

Composite variable indexes Combines a number of factors to form one overall measure of social class standing Better reflects the complexity of social class

The upper upper class


Small number of well established families Prominent physicians & lawyers Accustomed to wealth so dont spend money conspicuously

The lower upper class


Not quite accepted by the upper crust of society Represent new money Successful businessmen Conspicuous users of new wealth

The upper middle class


Have neither family status nor unusual wealth Corporate managers and business owners Have a keen interest in obtaining better things in life Conspicuous consumption

Social class profiles (2/2)


The lower middle class
Non-managerial white collar workers & highly paid blue collar workers Tend to avoid high styled clothing Constitute a major market for do it yourself products

The upper lower class


Solidly blue collar View work as a means to buy enjoyment High wage earners in this group usually spend impulsively Males are sport fans , heavy smokers ,drinkers

The lower lower class


Poorly educated, unskilled laborers Tend to live a day to day existence

Relationship between social class & geodemographic clusters Families of similar socio economic backgrounds tend to reside in similar communities These communities can be defined in terms of pin codes or postal routes Theses can be combined to create a larger geo demographic cluster

Clothing , Fashion & Shopping People dress to fit their self image which includes their perception of social class membership Consumers look up or like to emulate the up scale reference groups Social class important in determining where a consumer shops

Saving , Spending & credit Upper class consumers are more future oriented & confident of their financial acumen : more willing to invest Lower class consumers concerned with immediate gratification

Social class & Communication

Social class groupings differ in terms of their media habits & in how they receive and transmit communication Describing their world
Regional differences in terminology , choice of words &patterns off usage tend to increase as we move down the social class ladder Selective exposure to various types of mass media also differs by social class Higher social class : Current events & drama , magazines ,newspapers Lower social class : Soap operas ,quiz shows ,publications dramatizing romance & celebrity lifestyle