Chapter-7: Family

Chapter-7: Family

Significance of the Family in Consumer Behavior:

Family is not just as a small group, but one that often predominant in its influence over consumer behavior. The family is both a primary group (face-to-face interaction) and a reference group (with members referring to certain values, norms, and standards in their behavior). These two factors are not the sole reason for accounting for the strength of the family’s influence. Rather, it is first, the fact that the bonds within the family are likely to be much more powerful than those in other small groups. Second, contrary to most other groups to which the consumer belongs, the family functions directly in the role of ultimate consumption.

Thus, the family operates as an economic unit, earning and spending money. In doing this, family members must establish individual and collective consumption priorities, decide on products and brands that fulfill their needs and also decide where these items are to be bought and how they are to be used in furthering family members’ goals. Also consumers’ attitudes toward spending and saving and even the brands and products purchased have been affected. Thus marketers need to understand the nature of the family’s influence on its members and the way in which purchase decisions are made by members so that they may effectively program their marketing mix.

Differences Between Families and Other Groups:

Family: (i) Formation by marriage or birth. Other Groups: (i) Formation by job or task. Family: (ii) More permanent relationship. Other Groups: (ii) More contractual relationship. Family: (iii) More interpersonal relations-oriented. Other Groups: (iii) More goal-oriented. Family: (iv) More intrinsic value seeking. Other Groups: (iv) More rational-oriented ties. Family: (v) Group-oriented (cooperative). Other Groups: (v) Self-oriented (competitive).

Families and Households:

It is important to understand the difference between various terms that are frequently encountered when discussing the concept of family. First, we should distinguish between the terms family and household, since market statistics may be gathered on either of these bases. A household includes the related family members and all the unrelated persons who occupy a housing unit (whether house, apartment, group of rooms, or other).

Thus households may be two main types: family and non-families. Those who do not live in group quarters such as military barracks, prisons, nursing homes, and college dormitories are households. Family is more limited and refers to a group of two or more persons related by blood, marriage, or adoption and residing together as a household.

It should be noted that marketers are interested not only in the concept of families but also of households, since both may form the basis of framework of much consumer decision-making and buying behavior. The marketer will use the concept that seems most relevant for segmenting markets.

For example, manufacturers of refrigerators, dishwashers, ranges and other kitchen appliances would probably fine households to be most relevant dimension in estimating market size since purchase and replace of these appliances would depend more on household formation than family formation. On the other hand, sellers of children’s clothing and toys would probably be more interested in data on families.

Family Life Cycle:

The concept of family or household life cycle has proven very valuable for marketer, especially for segmentation activities. The term life cycle refers to the progression of stages through which individuals and families proceed over time.

(a) Traditional life-cycle stage: In the United States of America, the following stages are typical of the family life cycle progression:

(i) The bachelor stage: young, single people. At this stage, earnings are relatively low, this group is generally recreation oriented and high on fashion opinion leaders.  

(ii) Newly married couples: young no children. Financially better, family have highest purchase rate and highest purchase durables and specially furniture and appliances.

(iii) Full nest I: young married couples with youngest child under 6 years of age. First children born, wives have traditionally stopped working, reduction of family income. New demands for baby food, clothes, toys and medicines and expenses increases. 

(iv) Full nest II: young married couples with youngest child 6 years or over of age. Family financial position improves, wife returns to work, cleaning material, bicycles and musical instruments are needed for the kids.

(v) Full nest III: older married couples with dependent children. Family income continues to rise and even children may be employed. More tasteful furniture needed to replace the older items. They spend more on traveling, buying automobiles etc.

(vi) Empty nest I: older married couples with no children living with them and household head in labor force. Family is more satisfied with its financial position and savings accumulation. They show interest on travel, recreation, and self-education.

(vii) Empty nest II: older married couples with no children living with them and household head retired. Medical appliances, and products that aid their health, sleep and digestion are in their routine and their income drastically cut.

(viii) Solitary survivor: older single people in labor force. Income is likely to be good; money spent in recreation and health oriented items.

(ix) Solitary survivor II: older retired single people. Drastic income cut, medical products are needed, they need for attention, affection, and security.

(b) A modernized family life cycle: During recent years, many changes in the family have occurred, particularly in smaller family size, postponement of marriage, and rising divorce rates. (i) Bachelor I: head is 18-34, single (never married, divorced, separated, widowed), no dependent children. (ii) Young couple: female head 18-34, couple (married or unmarried), no children. (iii) Full nest I: female head is 18-34, couple (married or unmarried), youngest child under 6. (iv) Full nest II: female head is 18-34, couple (married or unmarried), youngest child 6 or over. (v) Single parent I: head is 18-34, single (never married, divorced, separated, widowed), youngest child under 6. (vi) Single parent II: head is 18-34, single (never married, divorced, separated, widowed), youngest child 6 or over. (vii) Bachelor II: head 35-64, single, (never married, divorced, separated, widowed), no dependent children. (viii) Childless couple: female head is 35-64, (married or unmarried), no dependent children. (ix) Delayed full nest: female head 35-64, couple, (married or unmarried), youngest child under 6. (x) Full nest III: female head is 35-64, couple, (married or unmarried), youngest child 6 or over. (xi) Single parent III: head is 35-64, youngest child 6 or over. (xii) Bachelor III: head is 65 or older, single (never married, divorced, separated, widowed), no dependent children. (xiii) Older couple (empty nest): female head 65 or older, couple (married, unmarried), no dependent children.

For most products, however, lifecycle analysis allows the marketer to achieve a richer understanding of the market. The family is a primary socialization agent for each new generation. The transmission of attitudes, values, and behaviors from parents to children is termed as intergenerational transfer. The relevant question for the marketer is the extent to which this family influence carries over our consumer behavior as adults.

Family Purchasing Decision:

It is very important that the marketer understand who influences whom, and how, in the family buying process, so that the proper marketing strategy may be developed.

(i) Role structure: In the family each members are playing his or her role at different ways. Gender role preferences reflect culturally determined attitudes toward the role of wife/husband and mother/father in the household. (a) Instrumental and expressive roles: Husband is more likely to provide material support and primary leadership authority within the family, and the wife is more likely to provide affection and moral support. (b) Purchase process roles: There are several ways of viewing family members role as they relate to the purchase decision and consumption process. First: one or another family members may be the initiator. Second: someone in the family may be the influencer; he may also be the opinion leader. Third: one or more member of the family may gather information as information gatherer. Fourth: some one in the family may be the decision-maker having the authority to make the buying decision. Fifth: someone may act as a purchaser. Sixth: User may be the same of different persons from the above. For the marketer, it is important to distinguish each family member’s role in order to develop an optimum marketing strategy. (c) Role Load: role load is the continuum of demand on a spouse’s time, energy, and other resources. One or both may be under loaded or overloaded in their household roles.

(ii) Power structure: The fact that which family member is dominant or considered to be the family’s head. A family may be patriarchal (father), matriarchal (mother) or equalitarian (both) dominates the decision-making. (a) Purchase influence patterns: autonomic, husband dominant, wife dominant, and joint decisions may be made in the family. (b) Alternative family decision-making role structure: the decision-making can fit one of the four basic structure: parallel – two or more family members makes the decision; hierarchical – two or more family members are ranked in terms of their decision making; ring – members that comprises the ring are judged to have similar decision making; and star- one member is assigned to coordinate the effort of all other members in the family.

Strategies to resolve conflict: Family purchase decisions are often characterized by conflict over parties on several factors. Several strategies may be adopted to resolve the conflict: Expert – a spouse might attempt to influence other spouse by using their superior information; legitimate – influence other spouse based on their position in the households; bargaining – gain influence now and offer influence later on; reward – by offering reward; emotional – using emotional reaction; and impression management – using persuation.

(iii) Family-specific characteristics: There are number of factors influences the nature of family purchase decision e.g., culture, subculture, social class, reference groups, stages of life cycle, mobility, geographical location, children, marriage etc.

The Changing Family: As everything changes day after day, role of family also changes. It is important to understand what the major changes are. Changing female roles, traditionalists and feminists. Working wives are playing a different role in family decision-making. Stages in the family purchase decision, family specific characteristics (culture, social class, reference group influence, mobility). Marketers need to understand the changing roles of male and female consumers and design their marketing programs to meet the changing needs.

• Consumer Behavior @ Md. Akteruzzaman, Assistant Professor of Marketing, Chittagong University