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Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 06

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

1
L0
2
L0
3
L0
4
L0
5

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 do you think was the highest
grossing film of 2011?
 Rango
 Scream 4

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 do you think was the highest
grossing film of 2011?
 Rango – if you said Rango you were correct!

 Scream 4


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.
1 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


The Household Life Cycle
The Traditional view of Family Life Cycle
6.
A few years
later the
female would
die

1.
People married
by their early
20s

5.
The male
would
eventually die

2.
Couple had
several
children

4.
The original
couple retired

3.
Their children
grew up and
started their
own families

6-11


The Household Life Cycle
American households follow much more complex and
varied cycles today. Therefore, researchers have
developed several models of the household lifecycle
(HLC).
Each HLC stage presents unique needs and wants as
well as financial conditions and experiences.
HLC provides marketers with relatively homogeneous
household segments that share similar needs with
respect to household-related problems and purchases.

6-12


Video Application
The following Video Clip demonstrates
how Act II fits into today’s households
with its Microwave Popcorn!

6-13


6-14
6-14


The Household Life Cycle
Stages of the Household Life Cycle

6-15


The Household Life Cycle
Younger (< 35)
Single I
Young Couples: No Children
Full Nest I
Single Parent I

6-16


The Household Life Cycle
Middle Aged (35 – 64)
Middle-Aged Single
Empty Nest I
Delayed Full Nest I
Full Nest II
Single Parent II

6-17


The Household Life Cycle
Older (> 64)
Empty Nest II
Older Single

6-18


Marketing Strategy Based on the Household
Life Cycle
HLC can be an important segmentation
variable.
The purchase and consumption of many
products are driven by the HLC, with each stage
posing unique problems and opportunities.

6-19


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


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