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Family Influences and Consumer Behavior

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Sesha Sai

on 26 September 2014

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Transcript of Family Influences and Consumer Behavior

Family Influences - Consumer Behavior
is defined as a group of two or more people related by birth, marriage or adoption and residing together.

House hold
is a family and any unrelated person residing in the same house and consuming food from a common kitchen at least once a day. Eg: Hostel

All families are households but all households are not families.

An individual’s immediate family members play an essential role in influencing his/her buying behaviour.

Family consists of Parent, Siblings, Spouse, Grandparents, Relatives, etc..
What an individual imbibes from his parents becomes his/her culture. What he sees from his childhood becomes his habit or in other words lifestyle.

Family by far is the most important reference group. It is also the most basic consumption unit for most consumer goods.
Eight Roles in the Family Decision-Making Process..
Conservative average of wedding expenditure to be
`3 lakh i.e 3 trillion
for weddings every year
An upper middle class family normally spends
30 lakh
on a wedding.
An average of
10 million (or 1 crore) marriages
take place in India every year.
Indian Weddings..
Consumer Socialization.
Consumer Socialization is the process by which people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace..

Contents of Consumer Socialization:
Consumer Skills:
Skills necessary for purchase and understand money, budgeting, product evaluation
Consumption Preferences:
Are knowledge, attitudes and values that cause people to attach differential evaluation to products, brands and retail outlets
Consumption Attitudes:
Are cognitive orientation towards market place stimulus such as advertising, sales persons, warranties etc.
Family is the primary source of consumer socialization.

Family causes consumer socialization through:
Instrumental Training:
Occurs when family members specifically and directly attempt to bring certain responses
through reasoning and / or reinforcement.
EG: “Chocolates are bad for your teeth”
Occurs when a child learns appropriate or inappropriate behavior by observing other members of the family
EG: Using Lipstick because mother uses lipstick
Occurs when a family member alters a child’s initial interpretation of a marketing stimulus through use of authority
EG: “You are too young to use a ball-pen. Use a pencil”

James McNeal’s 5 Stage Model.
Developed by observing behavior in Super Markets
Stage I : Observation:
Median age 2–6 months
Child can process sounds and colors
Environment creates stimulus and brings rewards
Stage II : Making Request:
Median Age 2 years
Child understands various objects and products
Makes request by pointing and gesturing
Request only when physical object present
Mental Image of product yet difficult to carry
Stage III : Making Selection
Median Age 4 years
Simple request processing
Ability to carry mental image develops
Ability to pick up things from the shelves independently
Concept of money becomes clearer
Stage IV : Assisted Purchase:
Median age 6 years
Children learn by modeling
Start learning Value of Money
Learning to become primary consumers
Stage V : Making Independent Purchase:
Median Age 8 years
Making Independent purchase
Ability to visit store sections independently
CHILDREN in the process of house-hold decision making
Children Learn to Shop By Going Shopping with their Parents,Learning in stages.
The group formerly known as “children” today is a large, thriving “Consumer Market” to marketers and advertisers.

Shared shopping experiences (i.e., co shopping- when mother an child shop together) also give children the opportunity to acquire in-store shopping skills.

Co shopping is a way of spending time with one’s children while at the same time accomplishing a necessary task.

Consumer socialization also serves as a tool by which parents influence other aspects of the socialization process.

For instance, parents frequently use the process or reward of material goods as a device to modify or control a child’s behavior.

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