CH 2

SOCIO-CULTURAL SETTINGS AND

CONSUMER DECISION MAKING

WHAT IS FAMILY ??

Family is both a primary group and a reference

group.
They can influence consumers attitude towards
spending and saving and even the brands and
products purchased have been molded, by the
families they grew up in.

FAMILY LIFE CYCLE

1.

Traditional Life Cycle Stage

The bachelor stage

Newly Married Couples
Parenthood
Post parenthood
Dissolution

FAMILY LIFE CYCLE

2. Modernized Family Life Cycle

Bachelor
Young Couple (no children)
Full Nest I (Youngest Child Under 6)
Full Nest II (Youngest Child 6 or Over)
Single Parent I (Youngest Child Under 6)
Single Parent II (Youngest Child 6 or Over)
Bachelor II (never married, divorced, separated, widowed)
Childless Couples (No Dependent Children)
Delayed Full Nest
Full Nest III
Single Parent III
Bachelor III
Older Couple

FAMILY PURCHASING DECISIONS

Childhood (provided by parents)
Adolescence (basic needs provided by parents)
Early Singlehood (very few assets, very less
responsibility)
Mature Single (higher income, good experience)
Newly Married Couples (high purchase of
durables)
Youngest Child Under Six (primary concern)
Youngest Child Six or Older (need expanding
faster than income)

FAMILY PURCHASING DECISIONS

CONT..
Older Married Couples with Dependent Children
Single parenthood (home security devices)
Older married Couples With No Children's At
Home (pre-retirement planning)
Older Solitary Survivor (requirement to sell
assets)

PARENT CHILD INTERGENERATIONAL

INFLUENCE ON CONSUMER DECISION
BEHAVIOR
Parents
Influence

Childrens
Consumer
Behavior

Parents
Consumer
Behavior

Childrens
Influence

FAMILY SPECIFIC
CHARACTERISTICS IN DECISION
MAKING

Culture
In

Muslim culture
In Latin American Culture
In European and North-American Culture

Subculture
Social class
Reference groups and Social Interaction
Mobility
Geographical location
Children

WHAT IS REFRENCE GROUP???

A reference group is any person or

group that serves as a point of comparison or
reference for an individual in forming either
general or specific values, attitudes or a specific
guide for a behavior.

CONSUMER RELATED REFERENCE

GROUP

Friends

Shopping groups

Work groups

Virtual groups or communities

Consumer action groups

TYPES OF REFERENCE GROUPS

Membership Vs. Nonmembership

Positive Vs. Negative

USES OF REFERENCE GROUP APPEALS BY

MARKETERS
Celebrities
The expert
The common man
The executive and employee spokes person
Trade or spokes characters
Other reference groups

REASONS FOR ACCEPTING

REFERENCE GROUP INFLUENCE

Informational benefits

Utilitarian benefits

Value-expressive benefits

INFORMATIONAL BENEFITS

The individual seeks information about various

brands of the product from an association of
professional or independent group of experts.
The individual seeks information from those who
work with the product as a profession.
The individual seeks brand-related knowledge
and experience from friends, neighbors, relatives
or work associates.

UTILITARIAN BENEFITS
To satisfy the expectation of fellow work
associates, the individuals decisions to purchase
a particular brand is influenced by their
preference.
Decision is influenced by preferences of people
with whom he or she has social interaction.
The desire to satisfy the expectations which
others have of him or her as impact on the
individuals brand choice.

VALUE-EXPENSIVE BENEFITS
The individual feels that the purchase or use of a
particular brand will enhance the image which
others have of him or her.
The individual feels that the people who
purchase a particular brand are admired or
respected by others.
The individual feels that the purchase of a
particular brand helps to show others what he or
she is, or would like to be.

WHAT IS CULTURE?????

Culture is everything that is socially learned and

shared by the members of a society.