Lecture Consumer behaviour: Chapter 13 - Cathy Neal, Pascale Quester, Del Hawkins
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Chapter 13 Household Structure and
Consumption Behaviour
• Nature of Australian households
• Stages in the household life cycle
• Households also undertake purchase-related
decision making
• The link between household and consumer
socialisation
• Trends relating to household consumption
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–1
Types of Households
• Household designates a variety of distinct social
groups
• Family household
–
two or more related persons, who live and eat in private
residential accommodation
• Non-family household
–
householders who either live alone or with others to
whom they are not related
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–2
Influence of Household Consumption
on Marketing Strategy
13–3
Changes in Household Structure
(the average size of household and family units)
13–4
Household Life Cycle
•
Young (under 35)
Single I
– young married
– full nest I
– single parent I
–
•
•
Older (over 64)
single III
– empty nest II
–
Middle-aged (35–64)
–
–
–
–
–
Single II
delayed full nest II
full nest II
single parent II
empty nest I
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–5
Stages in the Household Life Cycle
13–6
Young Single Stage
• Two subgroups
–
–
Living at home
Independent
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13–7
Young Married: No Children Stage
• High level of disposable income
• Often DINKs
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13–8
Full Nest I: Young Married
with Children Stage
• One partner stops working
• About 61% keep dual income
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13–9
Single Parent I: Young
Solo Parent Stage
• One in four marriages end in
divorce
• A high proportion of divorced
males remarry
• (64.2% of males in 1988
compared to 26.1% of females)
• Latest figures:
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13–10
Middle-Aged Single II Stage
• Small group of the population
• High disposable income
• Travel often
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13–11
Delayed Full Nest I: Older Married
with Young Children Stage
• Many have delayed having children until their
thirties
• They have a high income and have acquired more
capital and possessions
• They outspend all groups on childcare, mortgage
repayments, home and garden maintenance, and
household furnishings
• High non-child spending e.g. food, alcohol,
entertainment and savings
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–12
Full Nest II: Middle-Aged Married,
with Children at Home Stage
• Older children
• Heavy consumer of
lessons and clothing
• Need larger homes
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13–13
Single Parent II: Middle-Aged Single
with Children at Home Stage
• Financially burdened
group
• Older children take on
significant household
responsibilities
• Typically female
–
(5 times male number)
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–14
Empty Nest I: Middle-Aged Married
with No Children Stage
• Typically dual
income
• Time poor, cash rich
• Spend on dining out,
holidays, services
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13–15
Empty Nest II: Older Married
Couple Stage
• Either still working or
fully retired
• Financial situation in
decline
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13–16
Older Single III Stage
• Typically female
• Growing segment as
baby boomers age
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13–17
A Product
Targeted at
the Older
Single Market
13–18
Household Life Cycle and
Social Class
• A useful segmentation is household life cycle and
social class
• People from different social classes have similar
problems but seek varying solutions
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–19
Household Life Cycle/Social
Stratification Matrix
13–20
Targeting Communications at
‘Influencers’ and ‘Information Gatherers’
13–21
Household Decision Making
Five distinct roles:
1. Information gatherer
2. Influencer
3. Decision maker
4. Purchaser
5. User
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–22
Determinants of Household
Purchases
• 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.
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–23
Household Decision Making (cont.)
• Individual’s role within the household
–
–
–
–
–
Information gatherer
Influencer
Decision maker
Purchaser
User
• Cultural and social changes
Copyright ª 2004 McGrawHill Australia Pty Ltd
13–24
Family-Member Influence at Various
Stages of the Decision-Making Process
13–25
