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FamilyorHouseholdDecisionMakingFamiliesandHouseholdsfamiliesarerelatedbybloodormarriagehouseholdsarepeoplelivingtogether,butnotnecessarilyrelatedWhat’sthedifferencebetweenaFamilyandHousehold?TypesofHouseholds/FamiliesimpartlifestyleandconsumptionvaluestotheirmembersinfluentialinconsumptiondecisionsmakeseveraljointpurchasedecisionsprimetargetmarketforgoodsandservicesWhyisitImportantforMarketerstoknowaboutFamiliesandHouseholds?LargebagsforlargerfamiliesSmallbagsofspecialtypotatoesforaffluentcoupleswithoutchildren.AndwithsmallkitchensWhatistheFamilyLifecycle(FLC)FamilyLife-cyclebachelornewlymarried,nokidsyoungcouple,kids<6youngcouple,kids>6oldermarriedw/dep.emptynesters,workingretiredwidower-working,notworkingChangesOverLife-CyclefinancialsituationbrandsconsideredinterestsprimarydecisionmakerAteachstagemembershavenewandconstantneedsforgoodsandservices

I.econsumptionpatternschangeLifecycledetermineswhichproductcategoriesareboughtbutnothowmuchisspentoneachcategory

HowdowekeepcustomersthroughtheFLC?(Automobile)

Whyisitofvaluetounderstandthefamilylifecycle?Thefamilylifecycleconceptattemptstoexplainconsumerbehaviorpatternsofindividualsastheyage,marry,havechildren,retire,andtheirdiscretionaryincomevaryovertheirlifespansummertravel,shortovernighttrips,andlongovernighttripssignificantlydiffer

acrossthefamilylifestages

Youngsinglesthemostactionmotivated,oldermarrieds

theleastmotivatedbyaction.youngmarriedswithchildrenwerehighlymotivatedtoescapeoldermarriedswerenot.Youngmarriedswithchildrenhadmostinterestinrestandrelaxation.Youngsingletravelershadthemostegomotivationwheremiddle-agedsingleswereleastmotivatedbyego.FamilyLifecycleandTravelYoungsinglesplacedmuchgreateremphasisonoutdoorexperiencesoldermarriedsdidnotregardoutdooractivitiesasimportant.Olderunmarrieds,youngmarrieds,andyoungsinglesthoughtculturalattractionswereimportant.Fortheoldermarriedandolderunmarriedsegments,weatherwasveryimportantinvacationdestinationselection.Man-madeattractionssuchasthemeparkswereimportantfordivorcedtravelerswithchildrenandyoungmarriedtravelerswithchildren.

numberofpeople(childrenandadults)inthefamily,theagesofthefamilymembersNumberofemployedadultsWhataretheCriticalConsumptionfactors?Stagesofthefamilylifecycle1)BachelorStage.(Youngsinglepeoplenotlivingathome):(a)Fewfinancialburdens,(b)Fashion/opinionleaderled,(c)Recreationorientated,(d)Experimentwithpersonalfinancialmanagement(e)menandwomendifferinconsumerbehaviour-womenmorehousing-relateditemsandfurniture,menmoreonrestaurantsandcars(f)buy: basickitchenequipment,basicfurniture,cars,holidays,2)Newlymarriedcouples(Young,nochildren)(DINKS)(a)Betterofffinanciallythantheywillbeinthenearfuture,(b)Highlevelsofpurchaseofhomesandconsumerdurablegoods,(c)Establishpatternsofpersonalfinancialmanagementandcontrol;(D)Buy:cars,fringes,cookers,lifeassurance,durablefurniture,holidays,3)FullnestI.(Youngestchildundersix):(a)Homepurchasingatpeak,(b)Liquidassets/savinglow,(c)Dissatisfiedwithfinancialpositionandamountofmoneysaved,(d)Relianceoncreditfinance,creditcards,overdraftsetc.,(e)Childdominatedhousehold,(f)Buynecessities-washers,dryers,babyfoodandclothes,healthfoodsvitamins,toys,booksetc.;4)FullnestII.

(Youngestchildsixorover):(a)Financialpositionbetter,(b)Somewivesreturntowork,(c)Childdominatedhousehold,(d)Buynecessities-foods,cleaningmaterial,clothes,bicycles,sportsgear,musiclessons,pianos,junkfoods,holidaysetc.;5)FullnestIII.(Oldermarriedcoupleswithdependentchildren.:(a)Financialpositionstillbetter,(b)Morewiveswork,(c)Schoolandexaminationdominatedhousehold,(d)Somechildrengetfirstjobs;otherinfurther/highereducation,(e)Expendituretosupportchildren'sfurther/highereducation,(f)Buy:new,moretastefulfurniture,non-necessaryappliances,boats,holidays,etc.)EmptynestI.(Oldermarriedcouples,nochildrenlivingwiththem,headoffamilystillinlaborforce):(a)Homeownershipatpeak,(b)Moresatisfiedwithfinancialpositionandmoneysaved,(c)Interestedintravel,recreation,self-education,(d)Makefinancialgiftsandcontributions,(e)ChildrengainqualificationsandmovetoStage1.(f)Buyluxuries,homeimprovementse.g.fittedkitchensetc.;7)EmptynestII.(Oldermarriedcouples,nochildrenlivingathome,headoffamilyretired):(a)Significantcutinincome,(b)Keephome,(d)Concernwithlevelofsavingsandpension,(e)Assistchildren(f)Buy:medicalappliancesormedicalcare,productswhichaidhealth,sleepanddigestion,hobbiesandpastimes,8)SolitarysurvivorI.(Inlabourforce):(a)Incomestilladequatebutlikelytosellfamilyhomeandpurchasesmalleraccommodation,(b)Worriesaboutsecurityanddependence;(c)Concernwithlevelofsavingsandpension,(d)Buy:hobbiesandpastimes,9)SolitarysurvivorII.(Retired):(a)Significantcutinincome,(b)Additionalmedicalrequirements,(c)Specialneedforattention,affectionandsecurity,(d)MaySeekshelteredaccommodation,(e)Possibledependenceon'othersforpersonalfinancial,managementandcontrol.Buy:PrepaidfuneralAsarule,familieswithchildrenathomeeatdinnerat-homemore

frequentlythanotherdemographic

groups.Theyalsoconsumemorepotatoesperpersonthanthose

infamilieswithoutchildren.affluentgroupstendtoeatfewerpotatoesthanlow-tomoderate-incomegroupswiththesamedemographics.TraditionalFamilies-oneparentworks,oneparentstayshome,childrenliveathome.themainstayoffreshpotatomarketing,butovertimeithascometorepresentlessandless

ofthetotalpopulationTwoworkingparents,childrenpresentDinner

isahectictime.

Parentsandchildrenarrivehomeaboutthesametime.Kidsareexcited(andhungry);parentsare

tired(andhungry).Convenienceconcernsoftenoverrideotherfactorsindecidingwhat'sfordinner.Dinnertimesolutionsneedtobequickandeasy.MarketingPotatoesthroughtheFLCSingleparentfamilies-singleworkingparent,childrenpresent.Thisverybusyparentneeds

easy,quickmealsolutions.Dinnerisjustanotherthingonthe"todo"listalongwithsoccerpractice,

homework,etc.Whatsortofpotatoproductsshouldbemarketedtofamilieswithchildren?HouseholdswithoutchildrenHalftheU.S.populationlivesinaone-ortwo-person

household.Everydemographicinthisgrouphaslowerpotatoconsumptionthanhouseholdswith

childrenandrepresentsasignificant(andcurrentlymissed)opportunity.SinglesSingleshavethelowestat-homepotatoconsumption,withaffluentsinglesshowingeven

lowerconsumptionthanlow-tomoderate-incomesingles.Theyeatoutoften,andrepresenta

significantportionoffryconsumptioninrestaurants.Manyinthisgroupwillbemovingintothemarriage,parenthoodsegment.Potatoproductideas:Doubleincome,nokidsyoungmarriedcouplesjustestablishingtheirhouseholds.Manycan

affordtoeatoutoftenanddon'thavecookingskills.EmptyNesters,childrengrownandoutofhomeSomeinthisgrouparestillworking,someare

retiredalmostallwantabreakfromtheyearsofdinnerpreparation.Theycanaffordtoeatoutor

takehomeupscalemeals.Oftenhealthandfitnessconscious,thisimportantgrouphaspositive

attitudesaboutpotatoes.PotatoProductideas:MarriedandSingleactiveelderlyAsmallpercentageofthepopulationatpresent,this

demographic,alongwithemptynesters,isexpectedtogrowdramaticallyinthenext20years.Potatoproductideas:Howwouldamarriedcoupleschoiceswithregardsto:GroceriesVehiclesbeaffectediftheyhadchildren?HouseholdDecisionMakingHouseholdsvaryinconsumptionhabitsdependingonstagewheretheyareinfamilylifecycleHouseholddecisionmakingisalsodifferentfromindividualdecisionmakingFamilyrolestructureorientationinfluenceshouseholddecisionmakingNatureofgoodorservicetobepurchasedandconsumedinfluenceshouseholddecisionmakingConsensualDecisionMakingGroupAgreesontheDesiredPurchaseDifferingOnlyinTermsofHowItWillBeAchieved.TypesofPurchaseDecisionsMadebyFamiliesAccommodativeGroupMembersHaveDifferentPreferencesandCan’tAgreeonaPurchaseThatWillSatisfyEveryoneFamilyDecisionConflictConflictOccursWhenThereisNotCompleteCorrespondenceinFamilyMembers’NeedsandPreferences.SomeSpecificFactorsDeterminingtheDegreeofFamilyDecisionConflictIncludetheFollowing:InterpersonalNeedsProductInvolvementandUtilityResponsibilityPerson’sLevelofInvestmentintheGroupDegreetoWhichtheProductinQuestionWillBeUsedorWillSatisfyaNeedForProcurement,Maintenance,Payment,etc.PowerOneFamilyMember’sInfluenceOvertheOthersinMakingDecisionsHusband-WifeDecisionMakingInfluencemaydependonthegoodorservicetobepurchased,rolestructureorientation,stageofthedecisionmakingprocessfourcategories:husband-dominated;wife-dominatedautonomousorunilateral;jointdecisionWhomakestheDecisions?TheApparelManufacturerHaggarPlacedMenswearAdsinAboutaDozenWomen’sMagazinesAfterItsResearchFoundThatWomenExertInfluenceOverMen’sClothingChoices1.

Sex-rolestereotypes-separationofdecision-makingforsex-typedproducts.2SpousalResources-spousecontributingthegreaterresources(usually,butnotalways,money)hasthegreaterinfluence3.Experience-individualdecisionsaremademorefrequentlywhenthecouplehasgainedexperienceasadecision-makingunit4.Socio-EconomicStatus-middleclassfamiliesmakemorejointdecisionsthaneitherupperorlowerclassfamilies.FourFactorsInfluencingFamilyDecisionMakingDecisionRolesInitiatorInformationGathererGatekeeperInfluencerDecisionMakerBuyerPreparerUserMaintainerDisposerConsumption-relatedRolesInitiators:initiateconsumptionbehaviourInformationGatherers:researchalternativesGatekeepers:controlflowofinformationtoothermembersInfluencer(s):provideinformationaboutagoodorservicetoothermembersDeciders:havepowertomakefinalbuyingdecisionBuyers:member(s)whoactuallymakepurchasePreparers:transformproductintouseableformUsers:familymemberswhousethegoodorserviceMaintainers:responsibleformaintenanceofgoodDisposers:responsiblefordisposalofgood/serviceMarketingStrategyImplicationsMarketingcommunication:advertisingmessage,mediaused,persontargeted,productpositioningProductdevelopment:products,e.g.minivansandcarsbuiltspecificallyforfamilies;vacations;services,e.g.insurance,hotelPricingdecisions:e.g.discountsforbulkpurchasesDistribution:changesinfamilylifestylemeanschangesindistribution,e.g.longerretailhoursPublicpolicyregulationsremarketingtochildrenHouseholdscanbetargetedbyadvertisingbylifestyle.Ifacarisbeingpurchasedbyafamilyforateenagertodrivetoschool,howwillthisinfluence:ThetypeofproductMethodoffinancingPriceAppropriatepromotionmessageThemediaAsopposedtothefamilypurchasingacarthattheadultheadofthehouseholdwillusetocommutetowork?Magazineschildren’smagazinesaregoodavenuesforreachingtheyouthandmommarkets.alsofamily-orientedmagazinesaimedmoreatparents.Eg.FamilyCircle,SesameStreetParents(5.4millionreaders)FamilyFun,Child,Parents,orParentingmagazine.Internet,e-mailandothertechnology

sincekidsareoftenthemoretechnologicallysavvymembersofthefamilyWebsitesMarketingtotheFamilyWhenmarketingtothefamilychildrenmustbeaconsideration.Howwouldyoureachfamilieswithyourmarketingmessage?

Organizationsfamily-friendlyorganizationsaregoodplacesinwhichtofocusmarketingeffortsaimedatthefamilyeg.ReligiousinstitutionsSchools:primary,secondary,publicandprivate;theiraffiliatedclubsandorganizations,Kids’groups-Scouts,4-H,etc.YMCAorYWCAandotherathleticclubsDirectMailmarketingtofamiliesemploysstrategiesandpracticesthatstronglyappealtoparentcustomersandtheirchildrenfortheultimatepurposeofincreasingsales.Itinvolveslookingatyoursalesandmarketingprocessesfromtheviewpointofaconsumerwhohasmoneytobuy,childrenbesidethemandisstretchedfortime.Familymarketinghasthreecomponents:productscustomerserviceand

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