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Goals

Understand the functions and life cycle of families as well

as each family member’s role in buying
Chapter 4 Create effective marketing strategies based on the
influence of family on consumer behaviours
Family & Reference groups Identify all types of reference groups and their influence
on consumer behaviours
Apply the influence of reference group on consumer
behaviours in marketing

1. Family 1. Family

1.1 Definition 1.2 Functions of families and their effects on consumption

A family is a group of Labour regeneration fuction
members who share a
certain connection Nurturing and education function
(usually marriage,
bloodline or adoption) Economic function
and live together for a Elder-care function
long time.

1. Family

Labour regeneration fuction

• Reproduction
• Recovery

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1. Family 1. Family

Nurturing and education function Nurturing and education function

• A family is an important part of an individual’s
socialization. Personality, beliefs and personal
standards are formed through the family’ s education
• The family’s product consumption makes a part of their
own characteristics

1. Family 1. Family

Nurturing and education function

1. Family 1. Family

Economic function Elder-care function

• method of contribution and the use of the family’s fund • Physical and mental health-care products for elders
affect consumbing behaviours gain incerasing attention as the ratio of elders is rising

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1. Family 1. Family
1.3. Models of family
FAMILY MODELS GENERAL DEFINITION
1. Nuclear family Husband and wife with or without children 1.4 Family Life Cycle – FLC
2. Extended family Nuclear family + grandparents and relatives
3. Single family Only a parent + children
4. Blended family Divorced people who are now remarried to
someone else and live with children from both
sides (if any)
5. Communities or groups that Many couples live together with or without
live together like a family children
6. Others • adoptive family
• single people
• pets are considered a family members

1. Family 1. Family
Bachelorhood
• Fashion
Traditional family life cycle • Entertainment
• Electronics
Parent- Parent- • Sports
Post
Bachelor Honey- hood hood • Transportation
parent- Elderhood
hood mooners (small (grown up
hood
children) children)

1. Family 1. Family

 Parenthood with young children

 Honeymooners
• Real estate • Finance & insurance service
• Entertainment • Dining and friend party • Household appliances • Medical service
• Traveling • Furniture and kitchen appliances • Baby & kid products • Food

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1. Family 1. Family

Parenthood with grown up Post-parenthood

children • Entertainment
• Education service • Traveling
• Entertainment • Health-care products
• Fastfood • Dining and friend party
• Transportation • Jewelry and cosmetics
• House maintenance
• Furniture

1. Family 1. Family
1.5. Family member’s roles in purchase decisions
Elderhood Role Description
• Medical and health- Influencer Family member who provides information to other
care service members about a product or service
• Housing Ex: A child asked his mom to buy a new toy in the
• Traveling store
Gatekeeper Family member who control the flow of information
about a product or service into the family
Ex: A mom didn’t tell her son about a toy she saw in
the store

Role Description Role Description

Decider Family members with the power to detemine Maintainer Family members who service or repair the
unilaterally or jointly whether to shop for, purchase, use, product so that it will provide continued
consume or dispose of a specific product or service satisfaction
Ex: The father decided which kind of TV to buy after Ex: The father repaired the toy so that his kid
evaluating all models and their prices can continue to play with it
Buyer Family members who makes the purchase of a Disposer Family members who initiate or carry out the
particular product or service disposal or discontinuation of a particular
Ex: The mother went to the store to buy the toy for her product or service
kid Ex: The mother decided not to buy that toy
User Family members who actually use the product or again next time because it broke down quickly
service
VD: The kid played with the toy

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1. Family 1. Family

1.6 Dynamics of Husband-Wife Decision Making When you were little, how did you persuade your
• Husband-dominated parents to buy you something?
• Wife-dominated
• Joint
• Autonomic

1. Family 1. Family

Tatics Description
1.7 Children’s role in buying
Pressure tactics The child makes demands, uses threats, or intimidation
• Tactics that children use to influence their parents to persuade parents to comply with his/her request
Upward appeal The child seeks to persuade parents, saying that the
request was approved or supported by an older member
of the family, a teacher or even a family friend
Exchange The child makes an explicit or implicit promise to give
tactics you some sort of service such as cleaning the house or
babysitting younger siblings in return for a favor

1. Family 1. Family

Tatics Description Tatics Description

Coaliation Children seek the aid of others to persuade their parents Inspirational Children makes an emotional appeal or proposal that
tactics to comply with their request or uses the support of others appeals arouses enthusiasm by appealing to their parents’ values
as an argument for parents to agree with them and ideas
Ingratiating Children seek to get their parents in a good mood or Consultation Children seek their parents’ involvement in making a
tactics think favorably of them before asking their parents to tactics decision
comply with a request
Rational Children use logical arguments and factual evidence to
persuasion persuade parents to agree with their request

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1. Family 1. Family
7 factors that affect children’s influence (according to • The child’s “resource”
Harold W. Berkman, Jay D. Linquist và M. Joseph Sirgy)
• The child’s age
• Product category
• The mother’s view about her child

1. Family 1. Family

• The mother’s attitude towards television and advertising 1.8 Marketing application of family influence
• Family tradition • Products that are bought buy one or many family
• The parents’ lifestyle members

1. Family 1. Family

• Family life cycle as a way of segmenting the market

• Identify each family member’s role for each
product/service to have a suitable marketing strategy

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1. Family 2. Reference groups

For cultures that value family attachment, marketing

2.1 Definition
strategies should concentrate on family happiness rather
than personal interest. • A reference group is an
actual or imaginary
individual or group that
significantly influences an
individual’s evaluations,
aspirations, or behavior

2. Reference groups 2. Reference groups

2.2 Classification of reference groups membership reference groups consist of people we

• membership reference groups actually know, such as:
• aspirational reference groups üFriends
• avoidance groups üColleagues
üClubs
üFamily

2. Reference groups 2. Reference groups

avoidance groups are
• we don’t know those in aspirational reference groups,
groups we do not want to be
we admire them anyway
associated with
üanticipatory aspiration groups
üsymbolic aspiration groups

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2. Reference groups 2. Reference groups

2.3 Influence of reference groups The degree of reference groups’ influence depends on
Reasons to use reference groups the consumer’s characteristics
the attribute of the product/service
- information search
publicity of the product
- personal benefits received infomation
- building a self-concept image purchase experience
the reference group’s attractiveness and reliability

2. Reference groups 2. Reference groups

Reference group influence on products and brands
Use famous people/celebrities to advertise products
PRODUCTS/ Weak reference Strong reference
BRAND group influence group influence Type Definition
Weak reference Public necessities Public luxuries Testimonial Use an individual/ a celebrity to confirm the quality of a
group influence Influence: weak Influence: strong product/service
product, strong product and
Approval The celebrity allows the advertiser to use his/her name and
brand brand
image to represent a product/service that he/she isn’t an
Strong reference Private necessities Private luxuries
group influence Influence: weak Influence: strong
expert about.
product and product, weak Placement The celebrity introduces the product/service as a part of their
brand brand life or their show
Spokeperson The celebrity represents a brand for a long time

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2. Reference groups
Use experts to advertise products: consumers trust experts

2. Reference groups Discussion

Use ordinary people to advertise products to create 1. Create a scenario in which all family members
sincerity (grandparents, parents and children) participate in the
purchase of a product (a car, a house or a tour). Clarify each
member’s role in the process.
2. Which of the following products do reference groups
influence the most?
 Laptop  Footwear
 Cooking oil  Smartphone