Lecture Consumer behaviour: Chapter 13 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 13 - Household structure and consumption behaviour. In this lecture we discuss the nature of Australian households, cover the stages in the household life cycle and discuss the importance of households in the purchasing decisions of many consumers. Much of this consumer behaviour is learnt through the influence of other household members and we will cover the trends we are likely to experience in the future.

• Nature of Australian households

• Stages in the household life cycle

• Households also undertake purchase-related

– householders who either live alone or with others to

whom they are not related

13–3Influence of Household Consumption

on Marketing Strategy

13–4Changes in Household Structure

(the average size of household and family units)

13–6Stages in the Household Life Cycle

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–8

Young Married: No Children Stage

• High level of disposable income

• Often DINKs

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–9

Full Nest I: Young Married

with Children Stage

• One partner stops working

• About 61% keep dual income

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–10

Single Parent I: Young

Solo Parent Stage

• One in four marriages end in

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–11

Middle-Aged Single II Stage

• Small group of the population

• High disposable income

• Travel often

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–12

Delayed Full Nest I: Older Married

with Young Children Stage

• Many have delayed having children until their

• High non-child spending e.g food, alcohol,

entertainment and savings

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–13

Full Nest II: Middle-Aged Married,

with Children at Home Stage

• Older children

• Heavy consumer of

lessons and clothing

• Need larger homes

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–15

Empty Nest I: Middle-Aged Married

with No Children Stage

• Typically dual

income

• Time poor, cash rich

• Spend on dining out,

holidays, services

13–20Household Life Cycle/Social

Stratification Matrix

13–21Targeting Communications at

‘Influencers’ and ‘Information Gatherers’

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–22

Household Decision Making

Five distinct roles:

• Different members at different stages

• Different attributes are considered by each member

• Involvement is often removed

– e.g Clothes for children, BBQ for Dad

• Who is doing the ‘purchasing’

– Product category

– Likely conflicts

– Resolution etc.

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–24

Household Decision Making (cont.)

• Individual’s role within the household

13–25Family-Member Influence at Various

Stages of the Decision-Making Process

• Young people acquiring skills, knowledge and

attitudes relevant to their functioning as consumers

13–28Managerial Framework for Evaluating the Household Decision-Making Process

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

13–29

Household Trends Over

the Next 25 Years

• Single households to double

• Average household size down*

13–30The Importance of the Family Pet:

Ownership in 1998

• Large number of household have Internet access

• Opinion of being ‘online’ and video games is now more favourably accepted by experts

– eating-out more frequent

– fast food frequently purchased

• As marketers you will need to consider…

– will these trends continue?

– what will be the ramifications for the product/service

market under your management?

– When is the ‘household’ the decision-maker … as

opposed to ‘individuals’

• Household is the basic consuming unit

• Family households pass on cultural and social-class

values and behaviour patterns

• Family household—2 or more related persons living

together

• Non-family households—2 or more unrelated persons

• HLC is classified into stages—relatively predictable

• HLC variables—age, marital status (household head)

presence of children

• Household decision making—who buys,who decides, and who uses products purchased and used by and for the

household

• Marketing managers must take into account each

household decision process for each product category

• Role specialisation

• Trends—services, role of pets, etc.

• Consumer socialisation—how children become socialised, learn how to be consumers

– Purchasing skills, e.g shopping, budgeting

– Indirect skills, e.g symbols of quality, prestige

– Families assist by teaching, providing role models, etc.