Consumer Behavior Family Decision Making

1. Consumer BehaviorFamily Decision Making Shauna Heynen Vicky Shen

2. Table of Content • Introduction • Family Decision Making • Individual Decision Making • Differences • Similarities • Marketing to Families • Conclusion

3. Introduction • Every family is unique. • There is no decision that can work for all families. • It is important for marketers to know how families make consumer decisions.

4. Family Decision Making • Modern Family • The new meaning of household • Age of the family • Family size • Non-traditional family structures • The people living at home

5. Family Decision Making (cont.) • The Family Life Cycle Model (FLC) • Can provide a clear image of what the target market is to the marketers. • Examples: • on average younger households spend less money on products and services • new formed families without children are willing to spend more time and money on entertainment and social life

6. Family Decision Making (cont.) • Type of Decisions • Consensual purchase decision: • Members agree on desired purchase • Accommodative purchase decision: • Members have different preferences or priorities and cannot agree on a purchase

7. Families Decision Roles: Pre-purchase Stage: Initiator Information gatherer Gatekeeper Influencer Purchase Stage: Decision maker Preparer Buyer User Post-purchase Stage: Maintainer Disposer Family Decision Making (cont.)

8. Family Decision Making (cont.) • Decision Makers • Autonomic decision • When one family member chooses a product • Syncratic Decision • When the family jointly makes a decision • Four Factors Determine the Degree to Which Decisions will be Made Jointly by One or the Other Spouse • Sex-role stereotypes • Spousal resources • Experience • Socioeconomic Status

9. Individual Decision Making • Decision Making Process: • Need Recognition • Information Search • Evaluate the Alternative • Purchase Decision • Consumption and Learning

10. Individual Decision Making (cont.) • Types of Decisions:

11. Differences Family Decision Making Individual Decision Making • More than one person will be participate in any stage of problem-solving sequence • 2 basic types of decisions: • Consensual purchase decision • Accommodative purchase decision • Individuals only have to make decisions for themselves • A continuum scaleis used to evaluate types of consumer decisions: • Habitual decision making • Limited problem solving • Extended problem solving

12. Similarities Family Decision Making Individual Decision Making • Same Decision Making Process: • Need Recognition • Information Search • Evaluate the Alternative • Purchase Decision • Consumption and Learning • Same Decision Making Process: • Need Recognition • Information Search • Evaluate the Alternative • Purchase Decision • Consumption and Learning

13. Marketing to Families • Marketers must attempt to create a need for a product for two or more people. • Use the Family Life Cycle • Discovering who the FFO is • Family Financial Officer • Children can be very influential on the products being consumed

14. Commercials & Ads Marketed to Families

15. Conclusion • Families are ever evolving unique groups containing two or more people • Tradition family to the Modern family • Marketers have developed certain criteria and tricks

16. References Solomon M. R., Zarichowsky J. L., Polegato R., (2005) Consumer Behavior 3rd Edition You Tube LLC, 2007,. (July 30,2007) http//:youtube.com

17. Family Decision Making Questions ?