Family and Social Class

Rohit Oberoi

As You See It, What Is the Main Family Message of This Ad?

Consumer Behavior

It Reminds Parents of the Importance of Creating Quality Time.

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Family
The term family refers to the basic sociological unit.

The term has been used to denote two or more people staying together and related to each other by blood or marriage. The composition, size and structure (in terms of roles and statuses) has undergone a change across time and culture.

Consumer Behavior

Types of family
Nuclear Extended
Two parents and at least one child.

Nuclear family with grandparents or uncles and aunts.

Married Couple

The husband and the wife, generally representative of couples who have recently got married and are yet to start a family.

Consumer Behavior

Functions of the Family

Economic well-being Emotional support Suitable family lifestyles

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Relevance of family for marketer

Monetary source

Values and lifestyles

Socialization

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Consumer Socialization
The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.
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What Is the Name and Definition of the Process Depicted in This Ad?

Consumer Behavior

Consumer Socialization - the Process by Which Children Acquire the Skills, Knowledge, Attitudes, and Experiences Necessary to Function as Consumers

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A Simple Model of the Socialization Process

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Family Decision Making

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Family Decision Making

Expanding Role of Children In Family Decision Making
Choosing restaurants and items in supermarkets Teen Internet mavens Pester power

Joint Decision Making in a family

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Framework of 10-year-old Influencer

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Resolving Consumer Conflict in family

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Resolving Consumer Conflict in family

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Family Life Cycle

Traditional Family Life Cycle
Stage I: Bachelorhood Stage II: Honeymooners Stage III: Parenthood Stage IV: Postparenthood Stage V: Dissolution

Modifications - the Nontraditional FLC

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Stage I: Bachelorhood
Preferences of Purchase Spend their money on house rent, basic furniture and kitchen equipment Spend on purchase of automobiles (particularly motor bikes), travel (trekking and holidays), adventure sports (motor racing, bungee jumping etc.), health clubs, clothes and fashion accessories.
Consumer Behavior

Implications for Marketer Attractive segment for

sports Travel entertainment and fun

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Stage II: Honeymooners

Preferences of purchase Spend on creating a home for themselves Spend on cars, furniture, curtains and upholstery, electronics, kitchen appliances and utensils, and vacations.

Implications for Marketer Highest purchase rate amongst segments. Highest average purchase of durables takes place in this stage

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Stage III: Parenthood

The stage comprises married couple with children. Extends for about a long 20-25 year period Broken up into three stages
Full Nest I Full Nest II Full Nest III

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Full Nest I
Preferences of Purchase Liquidity of cash is low, expenses are high. Family spends on baby food, diapers, medicines for cough and cold, doctor visits, child toys and games, school admissions and fees and insurance policies. There are increased expenses on child care.
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Implications for Marketer Purchasing is at the peak The children in the family begin to impact family purchases, and are a huge potential for future.

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Full Nest II
Preferences of Purchase Financial position gets better as one begins to rise up the ladder. Spends on food, clothes for children, education of children, insurance policies and investments, medical expenses. Buy larger-size packages, and economy packs.
Consumer Behavior

Implication for Marketer Purchasing is still at the peak. The children, as also teenagers continue to impact family purchases. The latchkey kids are a potential for home delivered junk food like pizzas and burgers.

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Full Nest III

Preferences of Purchases Income continues to increase and so do expenses. Spend on food, clothes for teenagers, higher education of children. Repeat purchase of durables that were bought in honeymooning stage or Full Nest I. Invests in real estate and property and/or flats. Implications for Marketer

Income begins to increase as one of the children begins to earn. As expenses see a rise, the stage offers a potential for marketers.

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Stage IV: Postparenthood

Stage that occurs once children have left home. Leave home first for education, and then for employment. Stage has also been broken into two stages,
Empty Nest I Empty Nest II

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Empty Nest I
Preferences of Purchase Family size gradually begins to shrink and parents are still earning and expenses gradually reduce. Family spends on food, instalments for real estate, higher education of the dependent children and medical expenses. Implications for Marketer The couple beings to again have disposable income in hand. Financial responsibilities towards children begins to decrease. This stage offers potential for marketers who are involved in providing services like leisure, travel and holiday
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Consumer Behavior

Empty Nest II
Preferences of Purchase Higher disposable incomes (saving and investment) and fewer expenses. Spend on all that they had been thinking to spend on. Spend money on food, travel and holidays, watch TV and form hobby clubs. Medical expenses rise. Implications for Marketer Stage is lucrative for those involved in the entertainment industry. Many industries provide special discounts in travel and stay as Senior Citizen benefits, Ex: hotels, airlines and railways. Banks and financial institutions also have special facilities for those above 60.
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Consumer Behavior

Stage V: Dissolution
Preferences of Purchase When one of the spouses is still earning, or earns money from savings and investments, things are little easier. However, if he/she is not earning, he/she follows a lifestyle that is economical. Primary expenditure is on medicines, checkups with doctors and restrictive diet.
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Implications for Marketer The stage is characteristic of a widow/widower with lower income and least shopping and expenses.

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To Which Stage of the Family Life Cycle Does This Ad Apply, and Why?

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Bachelorhood The Target Consumer Is Not Yet Married

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Which Subgroup of Empty Nesters Does This Ad Most Likely Target?

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The ones who are would like to pursue new interests and fulfill unsatisfied needs

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Nontraditional FLC Family Stages

Alternative FLC Stage Childless couples Definition/Commentary Increasingly acceptable with more careeroriented married women and delayed marriages Likely to have fewer or no children Likely to have fewer children. Want the best and live quality lifestyle High divorce rate - about 50% lead to this Child out of wedlock Single person who adopts Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.

Couples who marry later in life Couples with first child in late 30s or later Single parents I Single parents II Single parents III Extended family

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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.

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Social Class
The stratification into varied social classes, is done on the bases on three factors
wealth (economic assets) power (ability to exert influence over others) prestige (recognition received).

However, marketing academicians and researchers, define status in terms of demographical variables like income, occupation and education
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Dynamics of Social Class

Hierarchal Structure: Relevance for marketer
Marketers can use this as a basis to segment the market; the various strata provide a basis for market segmentation.

People are susceptible to social influence, and buy products and services and/or brands that people from their respective social classes purchase because they look for social approval. There are social-class influences on the actual consumption of products. The higher social class also acts as reference groups, for people in the lower class. The latter aspire to emulate the former and desire buying products and brands which the former buy.
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Dynamics of Social Class

Similarity of people within a social class:

People within a social class are similar to each other. This similarity is not only witnessed in terms of their education, occupation and income, but also their thinking, values, norms, attitudes, lifestyle and behavioral patterns.

There is similarity among members within each social class and dissimilarity with between social classes.

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Social Class Mobility

Upward mobility Downward mobility

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Lifestyle Profiles of Social Class

Segment the Consumers based on Primary Motivation and Resources

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Geodemographic Clusters

A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets.
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Social Class Measurement

Subjective Measures
Individuals are asked to estimate their own socialclass positions

Objective Measures
Individuals answer specific socioeconomic questions and then are categorized according to answers

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Objective Measures
Single-variable indexes
Occupation Education Income

Compositevariable indexes
Index of Status Characteristics Socioeconomic Status Score

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The Affluent Consumer

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
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What Is the Name of the Segment Targeted by This Ad, and Why Is the Appeal Shown Here Used?

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This Ad was Used Because it is Effective for the Affluent Consumer.

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What Is the Middle Class?

The middle 50 percent of household incomes - households earning between $25,000 and $75,000 The emerging Chinese and Indian middle class Moving up to more near luxuries
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The Working Class?

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.

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The Techno Class

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

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Consumer Behavior and Social Class

Clothing, Fashion, and Shopping
Where one shops External point of identification

The Pursuit of Leisure

Type of leisure activities differ

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Consumer Behavior and Social Class

Saving, Spending, and Credit

Level of immediate gratification sought varies

Responses to marketing communication

Upper classes have a broader and more general view of the world Regional variations in language rise as we move down the social ladder Exposure to media varies by social class

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