Household and social class

Household Influence on Consumer Behavior

• Definition of Household: Refers to one or more individuals in the same housing unit; family implies related individuals such as through marriage, birth, or adoption.

  • Includes various arrangements like single parents, same-sex couples, etc.

• Types of Family Structures:

  • Nuclear Family: A couple and their children.

  • Extended Family: Includes additional relatives such as grandparents, aunts, uncles.

  • Increasing prevalence of nontraditional households and shrinking average household size.

• Family Life Cycle Stages:

  • Transitions from no children to a small family, then large family, empty nest, and potentially widowed empty nest.

  • The structure and number of household members evolve through these stages.

• Importance for Marketers:

  • Understanding spending patterns related to household structure (single vs. multiple households).

  • Recognizing how purchasing evolves through life cycle stages aids in demand forecasting.

• Factors Influencing Household Structure:

  • Marriage and Cohabitation: Variations in living arrangements.

  • Careers: Impact of dual-career households.

  • Smaller Families: Shift away from larger families.

  • Same-Sex Couples: Recognition of diverse arrangements.

• Targeting Strategies:

  • Convenience products appeal more to busy working households.

  • Tailored offerings for nontraditional households, avoiding superficial support (e.g., sincere inclusivity for the LGBT community).

Decision-Making in Households

• Decision-Making Process: Involves recognizing a problem, making choices, consuming, and reflecting post-consumption.

  • Each household member may contribute differently depending on the role.

• Patterns of Household Decision-Making:

  • Autonomous Decision: One member decides (e.g., a parent buying for the family).

  • Partner-Dominated Decision: One spouse dominates the choice.

  • Child-Dominated Decision: Decisions are heavily influenced by children, especially regarding their products.

  • Syncretic Decision: Collective family decisions made involving all members.

• Conflict Resolution Techniques:

  • Techniques to resolve conflicts include problem-solving, persuasion, bargaining, and politics.

• Influence of Family Members:

  • Age, gender, education, and income of partners affect their decision-making impact.

  • Informal decision-making process—family discussions dictate choices.

  • Importance of children's preferences in purchasing decisions, particularly for child-related items.

• Socialization in Decision-Making:

  • Parents teach children consumption behaviors; children express their needs, influencing parental decisions.

  • Level of influence varies with household type.

Social Class Influence on Consumer Behavior

• Definition of Social Class: Identification of individuals by social status, creating a hierarchy based on wealth and prestige.

• U.S. Social Class Distribution:

  • Capitalist Class: 1% with incomes > $2 million.

  • Upper Middle Class: 14% with incomes around $150,000.

  • Middle Class: Average income of $70,000.

  • Working Class: Includes working poor and middle class.

• Comparative Class Structures:

  • Varies culturally; e.g., middle class predominance in Japan and India.

• Consumption Types and Patterns:

  • Trickle-Down Consumption: Upper class trends influence lower classes.

  • Regular Consumption: Lower class trends adopted by upper class.

  • Trickle-Across Consumption: Products used universally across classes.

• Indicators for Class Classification:

  • Income, Occupation, Education: Main measures.

  • Other indicators include residence, material possessions, and family background.

• Status Variations:

  • Inherited Status: Status passed down.

  • Earned Status: Achieved through personal effort.

  • Status Threat: Fear of losing social standing due to downward mobility.

• Status Crystallization: Consistent socio-economic indicators indicating stable class position.

  • Upward Mobility: Movement to higher class status.

  • Downward Mobility: Reduction to lower status than one’s family.

• Social Class Fragmentation: Increased inclusion and technological advancements blurring class distinctions.

• Consumption Symbols and Behaviors:

  • Status Symbols: Products signaling higher class (e.g., luxury items).

  • Compensatory Consumption: Buying to alleviate frustrations—or expressing self-esteem issues through purchases.

  • Conspicuous Consumption: Public display of wealth through non-essential purchases.

  • Voluntary Simplicity: Choosing minimalism over materialism.

• Social Class Characteristics:

  • Upper Class: Invests and saves more, seeks self-expression.

  • Middle Class: Diverse values, reaches for upper class guidance.

  • Working Class: Short-term focus; relies on family support.

  • Underprivileged: Significant poverty affects their cognitive resources and buying capacity, necessitating CSR focus in marketing efforts.

Conclusion

• Understanding household and social class influences is essential for targeted marketing.

• Tailoring messages and products for specific social classes maximizes effectiveness.

• The interplay of consumer diversity, household structure, and social class offers insight into buyer behavior.