Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 06

PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit

CHAPTER 06 The American Society: Families and Households McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved PART II: EXTERNAL INFLUENCES 6-2 Learning Objectives L0 L0 L0 L0 L0 Explain the concept of household types and their influence on consumption Summarize the household life cycle’s various stages and marketing implications Understand the family decision process Describe the role that households play in child socialization Explain the sources of ethical concern associated with marketing to children 6-3 Consumer Behavior In The News… Can Kid’s Movies be Big Business?  Which movie you think was the highest grossing film of 2011?  Rango  Scream Source: A Hampp, “Family-film Frenzy Helping Hollywood Fend Off Losses,” Advertising Age, May 2, 2011, p 14 6-4 Consumer Behavior In The News… Can Kid’s Movies be Big Business?  Which movie you think was the highest grossing film of 2011?  Rango – if you said Rango you were correct!  Scream  Animated films dominated in 2011  As one source says, “When you have a movie…that entertains both parents a kids alike, positive word-ofmouth will spread…”  Relates to children’s roles as decision influencers Source: A Hampp, “Family-film Frenzy Helping Hollywood Fend Off Losses,” Advertising Age, May 2, 2011, p 14 6-5 The Nature of American Households The Household Influences Most Consumption Decisions 6-6 The Nature of American Households Types of Households1  Household  Consists of all the people who occupy a housing unit (a house, apartment, group of rooms, or single room designed to be occupied as a separate living quarters)  Family Household  One having at least two members related by birth, marriage, or adoption, one of whom is the householder (householder owns or rents the residence)  Nonfamily Household  A householder living alone or exclusively with others to whom he or she is not related U.S Census Bureau definition of a household 6-7 The Nature of American Households 6-8 The Nature of American Households The traditional family refers to a married opposite-sex couple and their own or adopted children living at home A step family is a marriedcouple family household with at least one child under the age of 18 who is a stepchild (i.e., a son or daughter through marriage) 6-9 The Nature of American Households A multigenerational family is a family household containing (a) At least two adult generations, or (b) A grandparent and at least one other generation Fox News Reports on the Multigenerational Family YouTube Spotlight 6-10 Marketing Strategy Based on the Household Life Cycle Factors such as income, occupation, and education heavily influence how an individual meets his/her needs So, it makes sense to combine stage in the HLC with one of these variables to aid in market segmentation and strategy formulation 6-20 Marketing Strategy Based on the Household Life Cycle HLC/Occupational Category Matrix 6-21 Family Decision Making Family decision making is the process by which decisions that directly or indirectly involve two or more family members are made Family purchases are often compared to organizational buying decisions However, with family purchasing, there is usually less explicit criteria, and most family purchases directly affect the other members of the family Most important, many family purchases are inherently emotional and affect the relationships between the family members 6-22 Family Decision Making Family Purchase Roles Determinants of Family Purchase Roles Conflict Resolution Marketing Strategy and Family Decision Making Consumer Socialization and Marketing to Children 6-23 Applications in Consumer Behavior The American Home Shield ad provides a good example of how family decisions directly or indirectly involve two or more family members Courtesy AHS 6-24 Family Decision Making The Household Decision-Making Process for Children’s Products 6-25 Family Decision Making Determinants of Family Purchase Roles How families interact in a purchase decision is largely dependent on the culture and subculture in which the family exists the role specialization of different family members the degree of involvement each has in the product area of concern, and the personal characteristics of the family members 6-26 Family Decision Making Decision-Making Influence and Relative Income Husband Earns More Wife Earns More 6-27 Family Decision Making Conflict Resolution One study revealed six basic approaches that individuals use to resolve purchase conflicts1 Approach Description Bargaining Trying to reach a compromise Impression Management Misrepresenting the facts in order to win Use of Authority Claiming superior expertise or role appropriateness (the husband/wife should make such decisions) Reasoning Using logical argument to win Playing on Emotion Using the silent treatment or withdrawing from the discussion Additional Information Getting additional data or a third-party opinion 1C Kim and H Lee, “A taxonomy of Couples Based on Influence Strategies,” Journal of Business Research, June 1996, pp 157-68 6-28 Marketing Strategy and Family Decision Making 6-29 Consumer Socialization The family provides the basic framework in which consumer socialization occurs Consumer socialization is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace Understanding the content and the process of consumer socialization Consumer socialization content refers to what children learn with respect to consumption Consumer socialization process refers to how they learn it 6-30 Consumer Socialization Piaget’s Stages of Cognitive Development Stage Description Stage The period of sensorimotor intelligence (0-2 yrs.) - behavior is primarily motor - the child does not yet “think” conceptually, though cognitive development is seen Stage The period of preoperational thoughts (3-7 yrs.) - Characterized by the development of language and rapid conceptual development Stage The period of concrete operations (8-11 yrs.) - the child develops the ability to apply logical thought to concrete problems Stage The period of formed operations (12-15 yrs.) - the child’s cognitive structures reach their greatest level of development, and the child becomes able to apply logic to all classes of problems 6-31 Consumer Socialization The Content of Consumer Socialization Consist of three categories: Consumer skills—are those capabilities necessary for purchases to occur such as understanding money, budgeting, product evaluation, etc Consumption-related preferences—are the knowledge, attitudes, and values that cause people to attach differential evaluations to products, brands, and retail outlets Consumption-related attitudes—are cognitive and affective orientations toward marketplace stimuli such as advertisements, salespeople, warranties, etc 6-32 Consumer Socialization The Process of Consumer Socialization Consumer socialization occurs primarily through family, as well as through a number of avenues including advertising and friends Parents socialize their children through the following: Instrumental training—occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement Modeling—occurs when a child learns appropriate, or inappropriate, consumption behaviors by observing others Mediation—occurs when a parent alters a child’s initial interpretation of, or response to, a marketing or other stimulus 6-33 Marketing to Children Children are a large and growing market However, marketing to children is fraught with ethical concerns, including: The limited ability of younger children to process information and to make informed purchase decisions Marketing activities, particularly advertising, can produce undesirable values in children, resulting in inappropriate diets, and cause unhealthy levels of family conflict 6-34 ... Purchase Roles Conflict Resolution Marketing Strategy and Family Decision Making Consumer Socialization and Marketing to Children 6-23 Applications in Consumer Behavior The American Home Shield... opinion 1C Kim and H Lee, “A taxonomy of Couples Based on Influence Strategies,” Journal of Business Research, June 1996, pp 157-68 6-28 Marketing Strategy and Family Decision Making 6-29 Consumer. .. marketplace Understanding the content and the process of consumer socialization Consumer socialization content refers to what children learn with respect to consumption Consumer socialization