Chapter 13 - Household structure and consumption behaviour. In this lecture we discuss the nature of Australian households, cover the stages in the household life cycle and discuss the importance of households in the purchasing decisions of many consumers. Much of this consumer behaviour is learnt through the influence of other household members and we will cover the trends we are likely to experience in the future.
Chapter 13 Household Structure and Consumption Behaviour • Nature of Australian households • Stages in the household life cycle • Households also undertake purchase-related decision making • The link between household and consumer socialisation • Trends relating to household consumption Copyrightê2004McGrawưHillAustraliaPtyLtd 131 Types of Households Household designates a variety of distinct social groups • Family household – two or more related persons, who live and eat in private residential accommodation • Non-family household – householders who either live alone or with others to whom they are not related Copyright ª 2004 McGrawHill Australia Pty Ltd 13–2 Influence of Household Consumption on Marketing Strategy 13–3 Changes in Household Structure (the average size of household and family units) 13–4 Household Life Cycle • Young (under 35) Single I – young married – full nest I – single parent I – • • Older (over 64) single III – empty nest II – Middle-aged (35–64) – – – – – Single II delayed full nest II full nest II single parent II empty nest I Copyright ª 2004 McGrawHill Australia Pty Ltd 13–5 Stages in the Household Life Cycle 13–6 Young Single Stage • Two subgroups – – Living at home Independent Copyright ª 2004 McGrawHill Australia Pty Ltd 13–7 Young Married: No Children Stage • High level of disposable income Often DINKs Copyrightê2004McGrawưHillAustraliaPtyLtd 138 Full Nest I: Young Married with Children Stage • One partner stops working • About 61% keep dual income Copyright ª 2004 McGrawHill Australia Pty Ltd 13–9 Single Parent I: Young Solo Parent Stage • One in four marriages end in divorce • A high proportion of divorced males remarry • (64.2% of males in 1988 compared to 26.1% of females) Latest figures: http://www.abs.gov.au/Ausstats/abs%40.nsf/94713ad445ff1425ca25682000192a Copyrightê2004McGrawưHillAustraliaPtyLtd 1310 Household Decision Making Five distinct roles: Information gatherer Influencer Decision maker Purchaser User Copyright ª 2004 McGrawHill Australia Pty Ltd 13–22 Determinants of Household Purchases • Different members at different stages • Different attributes are considered by each member • Involvement is often removed – • e.g Clothes for children, BBQ for Dad Who is doing the ‘purchasing’ – – – Product category Likely conflicts Resolution etc Copyrightê2004McGrawưHillAustraliaPtyLtd 1323 Household Decision Making (cont.) Individual’s role within the household – – – – – Information gatherer Influencer Decision maker Purchaser User • Cultural and social changes Copyright ª 2004 McGrawHill Australia Pty Ltd 13–24 Family-Member Influence at Various Stages of the Decision-Making Process 13–25 Conflict Resolution Approaches used to resolve purchase conflicts: Bargaining Impression management Use of authority Reasoning Playing on emotions Additional information Copyrightê2004McGrawưHillAustraliaPtyLtd 1326 Consumer Socialisation Young people acquiring skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace • Consumer socialisation and advertising – advertising standards • Role of the household in socialisation Copyright ª 2004 McGrawHill Australia Pty Ltd 13–27 Managerial Framework for Evaluating the Household Decision-Making Process 13–28 Household Trends Over the Next 25 Years • Single households to double • Average household size down* – – 2.6 (1996) 2.2 (2021) • Families without children more than ‘with children’ by 2016 • One-parent families up by 30% to 66% Copyright ª 2004 McGrawHill Australia Pty Ltd 13–29 The Importance of the Family Pet: Ownership in 1998 13–30 Computers and Video Games in Households • Large number of household have Internet access • Opinion of being ‘online’ and video games is now more favourably accepted by experts Copyright ª 2004 McGrawHill Australia Pty Ltd 13–31 Households and the Purchase of Services • High use of services • Food – – eating-out more frequent fast food frequently purchased Copyrightê2004McGrawưHillAustraliaPtyLtd 1332 Implications As marketers you will need to consider… – will these trends continue? – what will be the ramifications for the product/service market under your management? – When is the ‘household’ the decision-maker … as opposed to individuals Copyrightê2004McGrawưHillAustraliaPtyLtd 1333 Summary • • • • Household is the basic consuming unit Family households pass on cultural and social-class values and behaviour patterns Family household—2 or more related persons living together Non-family households—2 or more unrelated persons HLC is classified into stages—relatively predictable HLC variables—age, marital status (household head) presence of children Household decision making—who buys,who decides, and who uses products purchased and used by and for the household Copyright ª 2004 McGrawHill Australia Pty Ltd 13–34 Summary (cont.) Marketing managers must take into account each household decision process for each product category • Role specialisation • Trends—services, role of pets, etc • Consumer socialisation—how children become socialised, learn how to be consumers – Purchasing skills, e.g shopping, budgeting – Indirect skills, e.g symbols of quality, prestige – Families assist by teaching, providing role models, etc Copyrightê2004McGrawưHillAustraliaPtyLtd 13–35 Next Lecture… Chapter 14: Group Influence and Communication Copyright ª 2004 McGrawHill Australia Pty Ltd 13–36 ... Middle-aged (35–64) – – – – – Single II delayed full nest II full nest II single parent II empty nest I Copyright ª 2004 McGrawHill Australia Pty Ltd 13 5 Stages in the Household Life Cycle 13 6... Home Stage • Older children • Heavy consumer of lessons and clothing Need larger homes Copyrightê2004McGrawưHillAustraliaPtyLtd 131 3 Single Parent II: Middle-Aged Single with Children at Home... social changes Copyrightê2004McGrawưHillAustraliaPtyLtd 132 4 Family-Member Influence at Various Stages of the Decision-Making Process 13 25 Conflict Resolution Approaches used to resolve purchase