1.
Famil
y &
FamilyLifecycle
SocialClass

2.
WhatisaFamily?
 Family
 is defined as a group of two or more people (one of whom is a
householder) related by birth, marriage or adoption and residing
together
 Household:
 Is a family and any unrelated person residing in the same house
and consuming food from a common kitchen at least once a day
 Two types of household:
 Family Household
 Institutional Household e.g. Hostel
All families are households but all households are not families

3.
Typesof Family
 Family of Orientation
 Consist of one’s parents and elders
 Provides orientation towards
 Social: Religion, Politics, Economics
 Emotional: Self Worth, Ambition, Love and Care
 Family of Procreation
 Consist of one’s spouse and children
 Most important buying unit in a market
The influence of Family of Orientation decreases with Age

4.
Typesof Family
 Traditional Family Types:
 Married Couple:
 Simplest type of family consisting of husband and wife
 Nuclear Family:
 Consist of Husband Wife and at least one child
 Extended Family:
 Consist of a nuclear family with at least one grand parent
 Joint Family:
 Blood relatives and their spouses with kids staying together
 New Modes of Family
 Blended Family:
 A family in which either or both partner were previously married
 Single Parent Family:
 A family in which only one of the parent is present
 Unmarried Family:
 Parents, unmarried, but living together
 Communal Family:
 A group of families living together and sharing responsibility

5.
Figure 10.11 A Simple Model of the
Socialization Process
norms
Other Family
Members
Influence More Basic
Values/Behavior
•Moral/religious principles
•Interpersonal skills
•Dress/grooming
standards
•Manners and speech
•Educational motivation
•Occupational career
goals
•Consumer behavior
Friends
Influence More
Expressive
Attitudes/Behavior
•Style
•Fashion
•Fads
•“In/Out”
•Acceptable consumer
behavior
Young Person
Preadolescent Adolescent T
eens Older

6.
Functionsof aFamily
 Provides Economic Well Being
 Provides Emotional Support
 Provides Suitable Life Style
 Provides Social Relationships
 Provides Morals and Ethical Values
 Provides Religious Values
 Provides Interpersonal Skills

7.
FamilyLife Cycle(1/2)
 Stage 1 :Bachelorhood
 Few Financial Burdens
 Fashion and Recreation Oriented
 Stage 2: Newly Married Couple
 Financially better off
 Highest purchase rate of consumables and durables
 Romantically inclined
 Stage 3 : Parenthood
 Elementary school stage
 Youngest child < 6 years of age
 Low Liquid Assets
 High purchase of baby food & baby oriented products
 High school stage
 Youngest child >= 6 years of age
 Financially better off
 College Phase
 All children still financially dependent
 High family influence on purchases
 Major expense on higher education

8.
FamilyLife Cycle(2/2)
 Stage 4: Post Parent Hood
 Head of the family in labour force
 No Dependent Children
 Expenditure in self development
 Stage 5 :Dissolution :
 Solitary Survivor – II
 Single Surviving head of family in labor force
 Supported by family and friends
 Have high expendable income
 Spent on loneliness reducing products and services
 Solitary Survivor – II:
 Single Surviving wife
 Low levels of income and savings
 Expenditure on medical products, security, affection

9.
Table 10.6 Eight Roles in the Family Decision-
Making Process
ROLE DESCRIPTION
Influencers Family member(s) who provide information to other
members about a product or service
Gatekeepers Family member(s) who control the flow of information
about a product or service into the family
Deciders Family member(s) with the power to determine
unilaterally or jointly whether to shop for, purchase, use,
consume, or dispose of a specific product or service
Buyers Family member(s) who make the actual purchase of a
particular product or service
Preparers Family member(s) who transform the product into a form
suitable for consumption by other family members
Users Family member(s) who use or consume a particular
product or service
Maintainers Family member(s) who service or repair the product so
that it will provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service

10.
HouseholdDecisionMakingProcess
Communication
targeted at
Children
Communication
targeted at
Parents
Influencer
(Children)
Initiator
(Parents,
Children)
Information
Gathering
Decision
Maker
(Parents,
Children)
Purchaser
(Parents)
User
(Parents,
Children)

11.
Typesof Family Decisions
 Husband Dominated Decisions
 Husband takes the purchase decisions
 Traditionally in products like Automobiles, Alcohol, Insurance
 Wife Dominated Decisions
 Wife takes the purchase decisions
 Traditionally in products like household maintenance items, food
and kitchen appliances
 Joint Decision Making
 Both husband and wife make the decision
 Traditionally in School choice, living room furniture, vacations
 Child Dominated Decision Making
 Child makes the “final product” decision
 Traditionally on children related items
 Unilateral Decision Making
 Taken by any member of the family
 Traditionally on Personal Care items, low priced goods
These Traditional Roles are Changing

12.
Conflict Resolution
 Family Decisions are bound to create conflict
 Conflicts are resolved by:
 Bargaining:
 Reaching a compromise on which product to buy
 Impression Management:
 Misrepresentation of facts in order to create favorable impressions
 Use of Authority:
 Claiming superior authority to resolve the conflict
 Reasoning:
 Using logical arguments to resolve the conflict
 Playing on Emotions:
 Using emotions to resolve the conflict
 Additional Information:
 Getting additional Data or Third Party Information

13.
Consumer Socialization

14.
ConsumerSocialization
 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.

15.
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter 11
Social Class and
Consumer Behavior

16.
Chapter Outline
Copyright 2007 by Prentice
Hall
 What is Social Class?
 The Measurement of Social Class
 Geodemographic Clustering
 The Affluent Consumer
 The Middle Class Consumer
 The Working Class
 Selected Consumer Behavior Applications of
Social Class

17.
Social Class
The division of
members of a society
into a hierarchy of
distinct status classes,
so that members of
each class have either
higher or lower status
than members of other
classes.
Copyright 2007 by Prentice
Hall

18.
SocialClassIs Hierarchal
Copyright 2007 by Prentice
Hall
 Status is frequently thought of as the relative
rankings of members of each social class

19.
Table 11.2 Percent Distribution of
Five-Category Social-Class
Copyright 2007 by Prentice
Hall
Measure
SOCIAL CLASSES PERCENTAGE
Upper 4.3
Upper-middle 13.8
Middle 32.8
Working 32.3
Lower 16.8
Total percentage 100.0

20.
SocialClassMeasurement
Copyright 2007 by Prentice
Hall
 Subjective Measures
 individuals are asked to estimate their own
social-class positions
 Reputational Measures
 informants make judgments concerning the
social-class membership of others within the
community
 Objective Measures
 individuals answer specific socioeconomic
questions and then are categorized according to
answers

21.
Objective Measures
Copyright 2007 by Prentice
Hall
 Single-variable
indexes
 Occupation
 Education
 Income
 Other Variables
 Composite-
variable indexes
 Index of Status
Characteristics
 Socioeconomic
Status Score

22.
Geo demographic clustering
 “Birds of a feather flock together”
 Families of similar socioeconomic backgrounds tend
to reside in the same neighborhoods or
communities. “They cluster together”
 Dispersed communities with similar geographic
profiles
 Located by PINCODES

23.
A composite
measure of social
class that combines
occupation, source
Index of Status of income (not
Characteristics amount), house
(ISC) type/dwelling area
into a single
weighted index of
social class
standing.
Copyright 2007 by Prentice
Hall

24.
A multivariable social
class measure used by
the United States
Socioeconomic
Status Score
(SES)
Bureau of the Census
that combines
occupational status,
family income, and
educational attainment
into a single measure of
social class standing.
Copyright 2007 by Prentice
Hall

25.
A composite
segmentation
strategy that uses
both geographic
Geodemographic
Clusters
variables (zip codes,
neighborhoods) and
demographic
variables (e.g.,
income, occupation)
to identify target
markets.
Copyright 2007 by Prentice
Hall

26.
PRIZM
(Potential
Rating Index
by Zip
Market)
A composite index of
geographic and
socioeconomic factors
expressed in
residential zip code
neighborhoods from
which
geodemographic
consumer segments
are formed.
Copyright 2007 by Prentice
Hall

27.
TheAffluent Consumer
Copyright 2007 by Prentice
Hall
 Especially attractive target to marketers
 Growing number of households can be classified as
“mass affluent” with incomes of at least $75,000
 Some researchers are defining affluent to include
lifestyle and psychographic factors in addition to
income
 Have different medial habits than the general
population

28.
WhatIstheMiddleClass?
Copyright 2007 by Prentice
Hall
 The “middle” 50 percent of household incomes -
households earning between $22,500 and
$80,000
 Households made up of college-educated adults
who use computers, and are involved in
children’s education
 Lower-middle to middle-middle based on
income, education, and occupation (this view
does NOT include upper-middle, which is
considered affluent)

29.
TheMiddle Class
Copyright 2007 by Prentice
Hall
 There is evidence that the middle class is slowly
disappearing in the U.S.
 Growth of middle class in some Asian and Eastern
European countries
 Many companies offering luxury to the masses with
near-luxury models and goods

30.
TheWorking Class?
Copyright 2007 by Prentice
Hall
 Households earning $40,000 or less control more
than 30 percent of the total income in the U.S.
 These consumers tend to be more brand loyal than
wealthier consumers.

31.
Discussion Question
Copyright 2007 by Prentice
Hall
 What types of products are targeted to the working
class?
 What issues must marketers consider when
targeting their ads to the working class?

32.
TheTechno Class
Copyright 2007 by Prentice
Hall
 Having competency with technology
 Those without are referred to as “technologically
underclassed”
 Parents are seeking computer exposure for their
children
 Geeks now viewed as friendly and fun

33.
Social Class
Copyright 2007 by Prentice
Hall
 Clothing, Fashion, and Shopping
 The Pursuit of Leisure
 Saving, Spending, and Credit
 Social Class and Communication

34.
ClassSituations,Self-Perceptions, andFinancial Orientations
Figure 11-9
Copyright 2007 by Prentice
Hall