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ADVANCED CONSUMER BEHAVIOR

ADVANCED CONSUMER BEHAVIOR Family, Social Class and Consumer Behavior

Family, Social

Class and

Consumer

Behavior

A Simple Model of Consumer Decision Making

A Simple Model of Consumer Decision Making Dr Catherine Bachleda: MKT 5399 2

Dr Catherine Bachleda: MKT 5399

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Learning Outcomes

Learning Outcomes By the end of this lecture you should be able to: 1. Explain the

By the end of this lecture you should be able to:

  • 1. Explain the changing nature of families, including their composition and spending patterns.

  • 2. Explain the socialization process and other roles of the family.

  • 3. Explain the dynamics of family consumption decision making.

  • 4. Explain social class, its measures, its groupings and its role in consumer behavior.

  • 5. Critically analyze:

The influence of various family members on consumption

decisions. Measures of social class.

The Changing Family

The Changing Family

Family: Traditionally defined as two or more persons related by blood, marriage, or adoption who reside together.

Nowadays more aptly defined as: members of the most basic social group who live together and interact to satisfy their personal and mutual needs.

There are four main types of family:

Married Couple Extended

Nuclear

Single-parent

The Changing Family • • • • Family: Traditionally defined as two or more persons related

The predominant form of family is largely influenced by the culture within which the families exist.

Household spending patterns have changed.

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Dr Catherine Bachleda: MKT 5399

Family and Consumer Socialization

Family and Consumer Socialization Consumer Socialization: The process by which children acquire the skills, knowledge, and

Consumer Socialization: The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.

Family and Consumer Socialization Consumer Socialization: The process by which children acquire the skills, knowledge, and

Dr Catherine Bachleda: MKT 5399

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Other Functions of the Family

Other Functions of the Family • In addition to socialization, the family provides other functions including:

In addition to socialization, the family provides other functions including:

Economic well-being

Emotional support

Suitable family lifestyles

Other Functions of the Family • In addition to socialization, the family provides other functions including:

Family Consumption Decisions: Roles

Family Consumption Decisions: Roles

The roles that individuals play in the consumption process in multi-person households typically fall into the following eight

categories:

  • 1. Influencer

  • 2. Gatekeeper

  • 3. Decider

  • 4. Buyer

  • 5. Preparer

  • 6. User

  • 7. Maintainer

  • 8. Disposer

Family Consumption Decisions: Roles • The roles that individuals play in the consumption process in multi-person

Family Consumption Decisions

Family Consumption Decisions

Family consumption decisions can also be classified as:

Husband dominated

– Husband dominated

Wife dominated

Joint

Autonomic

The extent and nature of husband-wife influence in family

decisions depend in part on the specific product or service and cultural influences.

More recently there has been a trend toward children playing a more active role in what the family buys, as well as in the family decision-making process.

Social Class

Social Class • Social Class: The division of members of a society into a hierarchy of

Social Class: The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.

Status reflects the relative rankings of members of each social class

in terms of specific status factors.

Social class membership often serves as a frame of reference for the development of consumer attitudes and behavior.

Most societies have three major types of social class: high, middle

and lower. However the size and composition of the classes depend upon the relative prosperity of a particular country.

Social Class • Social Class: The division of members of a society into a hierarchy of

US Model

Social Class • Social Class: The division of members of a society into a hierarchy of

Japanese Model

Social Class • Social Class: The division of members of a society into a hierarchy of

Indian Model

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Social Class Measurement

Social Class Measurement Researchers measure social class either by: • Subjective measures : individuals are asked

Researchers measure social class either by:

Subjective measures: individuals are asked to estimate their own social-class positions

Objective measures: individuals answer specific socioeconomic questions and then are categorized according to answers:

Single-variable indexes such as:

o

Occupation

o

Education

o

Income

Composite-variable indexes:

o

Index of Status Characteristics

o

Socioeconomic Status Score

Class Application: Decision Making

Class Application: Decision Making In small groups: • Read the decision-making case on page 125-126 of

In small groups:

Read the decision-making case on page 125-126 of the text.

Be prepared to identify the characters in the case who are playing each of the following roles:

  • 1. Influencer

  • 3. Decider

  • 5. Preparer

  • 7. Maintainer

2. Gatekeeper

4. Buyer

6.

User

8. Disposer

Class Application: Decision Making In small groups: • Read the decision-making case on page 125-126 of

Homework for Tutorial

Homework for Tutorial • Read the following articles (available on Jenzabar): 1. Mittal, B & Royne

Read the following articles (available on Jenzabar):

  • 1. Mittal, B & Royne, M. (2010) “Consuming as a family: Modes of intergenerational influence on young adults”, Journal of Consumer Research, 9: 239-257.

  • 2. Hamilton, K & Catterall, M. (2006) “Consuming love in poor families: Children’s influence on consumption decisions’, Journal of Marketing, 22: 1031-1052.

  • 3. Coleman, R. (1983) “The continuing significance of social class to marketing”, Journal of Consumer Research, 10: 265-279.

Be prepared to discuss:

the influence of parents on their children’s consumption decisions the influence of children on parents consumption decisions; and the problems with measures of social class.