CH-10 The Family and Its Social Class Standing – Consumer Behaviour : Book Guide

Chapter 10 The Family and Its Social Class Standing REVIEW AND DISCUSSION QUESTIONS 10.1 How does the family influence the consumer socialization of children? What role does television advertising play in consumer socialization? The family influences the consumer socialization of its children by imparting values, beliefs, attitudes and modes of behavior that relate to consumption through either direct instruction of children, or indirectly as children imitate the behavior of other family members. It was found that TV commercials have great influence on children. Thus, television advertising conveys consumption-related values and is part of the consumer socialization of children. This role of TV is important to both marketers and legislators because of the sometimes rather fine distinction between what constitutes effective marketing and potentially harmful influence on children. 10.2 As a marketing consultant, you were retained by the Walt Disney Company to design a study investigating how families make vacation decisions. Whom, within the family, would you interview? What kind of questions would you ask? How would you assess the relative power of each family member in making vacation-related decisions? As Disney’s marketing consultant, you must identify the distinct roles in the family decision-making process regarding vacations. You should identify and interview both the influencers and deciders regarding vacation decisions. It is likely that you would have to interview both parents and children. The questions asked should be designed to reveal the relative influence of the various family members regarding the many factors involved in a typical family’s decision to visit Disney World. These factors include; the time of year during which the vacation is taken; the length of the vacation; the amount of money to be spent. 10.3 Which of the five stages of the traditional family life cycle constitute the most lucrative segment(s) for the following products and services: (a) TV cable subscriptions, (b) a Club Med vacation, (c) Domino’s pizza, (d) iPods, (e) mutual funds, and (f) the fastest Internet access available in one’s location? Explain your answers. The five stages of the traditional family life cycle are: 1. Bachelorhood/Single Stage 2. Honeymoon Stage 3. Parenthood Stage 4. Post-Parental Stage 5. Dissolution Stage Let's analyze the most lucrative segments for each product or service based on these stages: (a) TV Cable Subscriptions: • Parenthood Stage: Families in this stage may be more likely to subscribe to TV cable for family entertainment and educational content. (b) Club Med Vacation: • Honeymoon Stage: Newlyweds may be more interested in luxury vacations like Club Med as they begin their life together. (c) Domino's Pizza: • Bachelorhood/Single Stage: Individuals in this stage may be more likely to order pizza for convenience and social gatherings. (d) iPods: • Honeymoon Stage: Newlyweds may be interested in purchasing electronics for entertainment and leisure activities. (e) Mutual Funds: • Post-Parental Stage: Families in this stage may focus more on saving for retirement and investing in mutual funds for long-term financial goals. (f) Fastest Internet Access: • Parenthood Stage: Families with children may require fast internet for streaming, online learning, and entertainment. These are general trends, and individual preferences can vary. It's essential for marketers to understand their target audience's specific needs and preferences within each life stage to effectively market their products and services. 10.4 Why do marketing researchers use objective, rather than subjective, measures of social class? The objective method is often preferred because: a) The objective approach is based on consumers’ responses to one or more factual questions about socioeconomic items (e.g., occupation, income, education), which can be easily included in most self-administrated marketing research questionnaires. b) Most media have socioeconomic profiles of their audiences; therefore, objective measures are useful for matching media audiences and target markets. c) Because the subjective method relies on self-perception, it tends to produce an overabundance of people who classify themselves as “middle class” or “don’t know.” d) The reputational method relies on an informed participant to make judgments concerning the social class membership of others and, therefore, it is limited to small community studies. On the other hand, a marketing research study that utilizes a sample drawn from a large population is generally required to yield the kind of findings needed for formulating marketing strategies. 10.5 Under what circumstances would you expect income to be a better predictor of consumer behavior than a composite measure of social class (e.g., based on income, education, and occupation)? When would you expect the composite social class measure to be superior? Whether income alone or a composite measure of social class is a better predictor of consumer behavior is likely to depend on what dimension of consumer behavior is being predicted. For acquisitive behavior (i.e., buying or not buying a product), income alone has been found to be a better predictor. For more expressive behavior (i.e., frequency of use, how the product is used), however, composite variable indexes have been found to be better predictors. 10.6 Which status related variable—occupation, education or income—is the most appropriate segmentation base for: (a) family vacations, (b) opera subscriptions, (c) subscribing to online.wsj.com, (d) shopping at Whole Foods supermarkets, (e) buying from freshdirect.com, (f) purchasing new models of the iPhone, and (g) becoming a member of a 24-hour fitness center? Occupation is the most appropriate segmentation base for personal computers and cellular telephones because these products reflect a person’s career and profession. Education should be used to segment markets for opera and magazine subscriptions and for products and services that are related to physical health (e.g., fat-free foods, health clubs) because such purchases reflect a person’s educational attainment. Expensive vacations (e.g., flying to Europe or winter weekend trips to an island with a warm climate) are non-necessity, luxurious activities that only individuals with very high incomes can afford. 10.7 Consider the Rolex watch, which has a retail price range starting at about $4,500 for a stainless steel model to tens of thousands of dollars for a solid-gold model. How might the Rolex company use geo-demographic clustering in its marketing efforts? First, Rolex should identify the socioeconomic characteristics of the buyers of its product line. A service such as PRIZM could be used to pinpoint the geographic areas in the United States where such individuals reside. The firm should then make sure that its products are sold by retailers in those areas, and advertise them in the local media and national periodicals that offer local editions to the selected areas. 10.8 You are the owner of two furniture stores: one catering to upper-middle-class consumers and the other to lower-class consumers. How do social class differences influence each store’s: (a) product lines and styles, (b) advertising media selection, (c) the copy and communication style used in the ads, and (d) payment policies? (a) The furniture directed at the upper-middle class should be distinctive, highly styled, modern, and with an artistic quality. The furniture directed at the lower-class should be traditional, sturdy, comfortable, and highly utilitarian. (b) Upper-middle-class consumers regard their homes as symbols of achievements and sources of status and prestige. They place symbolic value on furniture, and advertising directed at them should stress a total home environment as a means of self-expression. Lower-class consumers seek respectability and conformity to norms, and promotion directed at them should focus on the practical and utilitarian aspects of furniture. (c) Social classes vary in terms of how they transmit and receive communications. Thus, lower-class members portray their world in rather personal and concrete terms, and the advertising copy directed at them should be simple, straightforward and should describe immediate experiences. Upper-middle-class people generally describe their experiences from a number of different perspectives, and the promotion directed at them should be designed to create a “total” experience, atmosphere, or feel. (d) Because some lower-class consumers may not have the total sum required for a purchase, the store should offer deposit lay-away and installment payment plans. The retailer should also recognize that members of the lower social classes tend to use their credit cards for installment payments, although members of higher social classes pay their credit card bills in full each month. Thus, an in-store sales appeal of “buy now and pay later” is likely to lure lower-class consumers into buying. In the case of upper-middle-class patrons, an in-store offer of a lower price for payment with cash or personal check rather that a credit card (made possible by the fact that the merchant does not have to pay credit card company fees during such purchases) is an effective payment policy. HANDS-ON ASSIGNMENTS 10.9 In this chapter, we have considered how parents and siblings play a role in consumer socialization of their children and young brothers and sisters, and how adults continue to be socialized throughout their lives. However, we have not considered how children (especially teens and young adults) influence the socialization of their parents. Make a list of ten ways in which you have contributed to or influenced the ongoing socialization of your parents. Certainly! Here are ten ways children, especially teens and young adults, can influence the ongoing socialization of their parents: 1. Technology Adoption: Introducing new technologies and digital trends to parents, such as social media platforms or mobile apps, can influence their use and understanding of these tools. 2. Cultural Trends: Children can introduce their parents to current cultural trends, music, movies, and fashion, which can impact their parents' tastes and preferences. 3. Diet and Health: Encouraging parents to adopt healthier eating habits or engage in regular exercise can influence their lifestyle choices. 4. Environmental Awareness: Teaching parents about environmental issues and sustainable practices can lead to changes in their behavior and consumption patterns. 5. Political Views: Children can challenge their parents' political views and introduce new perspectives, influencing their parents' political beliefs and actions. 6. Travel and Exploration: Introducing parents to new travel destinations or experiences can broaden their horizons and influence their future travel plans. 7. Financial Management: Advising parents on financial management strategies or introducing them to new financial tools can impact their financial decisions. 8. Hobbies and Interests: Sharing hobbies and interests with parents can lead to them adopting new hobbies or developing a deeper appreciation for existing ones. 9. Social Issues: Discussing social issues and advocating for change can influence parents' awareness and attitudes towards these issues. 10. Career and Education: Sharing insights about career opportunities or educational pursuits can influence parents' perspectives on these matters, potentially impacting their own career paths or educational goals. Instructor’s Discussion This exercise will illustrate the wide variation of roles that family members play in the family consumption decision-making process. 10.10 Identify one traditional family and one nontraditional family (or household) featured in a TV sitcom or series. (The two families/households can be featured in the same or in different television shows). Classify the traditional group according to the family life cycle stage and the other according to the living arrangements features in Table 10.7. Compare the characteristics and consumption patterns of the two households. Here's an example comparing a traditional family and a nontraditional family from TV sitcoms: Traditional Family: The Cleavers from "Leave It to Beaver" • Family Life Cycle Stage: The Cleavers can be classified as a nuclear family in the "Parental Child" stage, as they consist of the parents, Ward and June Cleaver, and their two sons, Wally and Beaver. • Characteristics and Consumption Patterns: The Cleavers portray a traditional family dynamic with a stay-at-home mother, a working father, and children who attend school. Their consumption patterns may include family-oriented activities such as family dinners, outings, and purchasing items for the household. Nontraditional Family: The Pritchetts and Dunphys from "Modern Family" • Living Arrangements Feature: The Pritchetts and Dunphys can be classified as an extended family household, as the family consists of three different families interconnected through marriage and adoption, living in close proximity. • Characteristics and Consumption Patterns: The Pritchetts and Dunphys represent a nontraditional family structure with multiple generations and diverse family compositions. Their consumption patterns may include shared expenses, such as household maintenance and childcare, as well as unique family dynamics and traditions. Comparison: • The Cleavers represent a more traditional family structure with a focus on traditional family values and roles, while the Pritchetts and Dunphys depict a more modern and nontraditional family dynamic with diverse living arrangements and family compositions. • The consumption patterns of the Cleavers may revolve around traditional family activities and roles, while the Pritchetts and Dunphys may demonstrate a more complex and varied set of consumption patterns due to their nontraditional structure and living arrangements. Instructor’s Discussion Many TV sitcoms depict nontraditional families or households; the contrast between the two characters selected by the student will illustrate the diversity of American households and families. 10.11 Copy the list of occupations in Figure 10.16 and ask students majoring in areas other than marketing (both business and nonbusiness) to rank the relative prestige of these occupations. Are any differences in the rankings related to the students’ majors? Explain. Figure 10.16 provides a list of occupations, which I'll reproduce here: 1. Surgeon 2. Accountant 3. Lawyer 4. College Professor 5. Engineer 6. Pharmacist 7. Executive in a Large Corporation 8. Real Estate Salesperson 9. Secretary 10. Computer Programmer 11. Electrician 12. Plumber 13. Retail Salesperson 14. Auto Mechanic 15. Factory Worker 16. Farm Worker To ask students to rank the relative prestige of these occupations, we'll need to seek responses from individuals majoring in areas other than marketing, both in business and non-business fields. If there are differences in the rankings related to the students' majors, it could be due to several factors: 1. Perceived Prestige: Students majoring in fields related to certain occupations may perceive those occupations as more prestigious. For example, students majoring in engineering may rank engineering-related occupations higher. 2. Industry Exposure: Students may have more exposure to certain industries or occupations based on their major, leading to different perceptions of prestige. For instance, business majors might rank executive positions higher due to their familiarity with corporate environments. 3. Societal Influence: Societal norms and values can influence perceptions of prestige. Students majoring in fields that align with traditionally prestigious occupations (e.g., medicine, law) may rank those occupations higher. 4. Personal Aspirations: Individual aspirations and career goals can impact how occupations are ranked. Students may rank occupations they aspire to higher than others. By comparing the rankings based on students' majors, we can gain insights into how different fields of study influence perceptions of occupational prestige. Instructor’s Discussion Figure 10.16 presents findings from a continuing survey that estimates the relative honesty and perceived ethical standards that people assign to many basic occupational titles. Because this ranking is based more on perceived societal prestige than on status or wealth, not all of the occupations toward the top half of the table earn greater incomes and/or require more formal education than those toward the bottom half. In reality, however, a close association exists between occupational status, income, and education. This exercise is designed to illustrate that different members of the same society, who share similar values, may still rank various occupations differently, especially when such rating is based on honesty and ethical standards. 10.12 Select two households featured in two different TV series or sitcoms. Classify each household into one of the social classes discussed in the text, and analyze its lifestyle and consumption behavior. Let's consider two households from popular TV series: 1. The Bluth Family from "Arrested Development" • Social Class Classification: Upper Class • Lifestyle and Consumption Behavior: The Bluth family portrays a lifestyle of wealth and privilege. They live in a large, luxurious mansion and often engage in extravagant spending, such as expensive cars, designer clothing, and lavish parties. Their consumption behavior reflects their status, with a focus on high-end products and services. However, despite their wealth, the family often finds themselves in comical and dysfunctional situations due to their eccentricities and mismanagement of their finances. 2. The Dunphy Family from "Modern Family" • Social Class Classification: Middle Class • Lifestyle and Consumption Behavior: The Dunphy family represents a typical middle-class household. They live in a suburban home and lead a relatively comfortable but not extravagant lifestyle. Their consumption behavior is more moderate compared to the Bluths, focusing on everyday items and experiences typical of middle-class families, such as family dinners, school activities, and occasional vacations. The Dunphys' lifestyle is characterized by the challenges and joys of raising a modern family, with a mix of humor and heartfelt moments. These examples illustrate how different social classes are portrayed in popular TV series, highlighting the lifestyle and consumption behavior associated with each class. Instructor’s Discussion This exercise is designed to show that TV programs often target specific social classes. The instructor should choose the programs. It might even be best if you videotaped the program and showed it in class. S.T.A.R. PROJECTS Ethical Issues in Consumer Behavior S.T.A.R. Project #1 The National Beverage Company (see www.nationalbeverage.com) makes the popular Shasta and Faygo drinks. The company also produces water products, juices, and specialty drinks such as VooDoo Rain (similar to Mountain Dew). The company has provided low cost alternatives to store brands and more heavily advertised national brands (such as Coca-Cola and Pepsi-Cola) for a number of years. The Shasta brand is especially popular with cost-conscious moms. Assume that National Beverage is considering a product line expansion to include a wine cooler product. The product will be named Shasta Cooler—“Shasta with a punch!” The rationale behind the move is to capitalize on the popular Shasta name, expand into the rapidly growing wine cooler field, and to increase profits. Assume the company believes that this spin-off brand will also be popular with cost conscious consumers. Evaluate the possibility of this line expansion from an ethical perspective. Considering what you have learned about groups and the family, make a decision for the company. Be sure to explain your position and describe any modifications that you might feel are necessary. From an ethical perspective, the National Beverage Company's expansion into wine coolers with the Shasta Cooler brand raises several considerations. Here are some key points to consider: 1. Target Audience: The company aims to target cost-conscious consumers, particularly moms who are already familiar with and trust the Shasta brand. Ethically, it's important to consider whether marketing alcohol-related products to this demographic aligns with responsible advertising practices, especially considering the potential impact on families and individuals. 2. Health Implications: Introducing an alcoholic beverage under the Shasta brand, which is known for offering low-cost and often healthier alternatives, raises questions about the health implications of promoting alcohol consumption, especially to a demographic that may include parents and caregivers responsible for children's well-being. 3. Brand Image: The decision to launch a wine cooler product may affect the overall brand image of Shasta and National Beverage Company. Will consumers perceive Shasta as a family-friendly brand if it also offers alcoholic beverages? 4. Social Responsibility: As a company, National Beverage has a social responsibility to consider the impact of its products on society. Introducing an alcoholic beverage should be done with careful consideration of the potential consequences, including promoting responsible drinking habits and avoiding targeting vulnerable populations. In considering these points, the ethical implications of expanding into wine coolers with the Shasta Cooler brand are significant. While it may offer a potential increase in profits, the company should carefully weigh the potential negative effects on its brand image and the well-being of its target audience. As for a decision, I would recommend against the expansion into wine coolers under the Shasta brand. Instead, if the company is interested in entering the alcoholic beverage market, it should consider launching a separate brand that clearly distinguishes itself from the Shasta brand. This approach would help maintain the integrity of the Shasta brand as a provider of low-cost, family-friendly beverages while allowing the company to explore new market opportunities. Instructor’s Discussion Students should see that, although adding the wine cooler product might be an opportunity for the company, confusion with the popular family-oriented product is bound to occur. Is this right or wrong? Will the product’s name and slogan be the main issue? Have students discuss and comment. Be sure to discuss the responsibilities that companies owe to their customers. Small Group Projects S.T.A.R. Project #2 The modern grocery store has undergone some dramatic changes that have mirrored the demographic changes that have occurred in our society over the last ten to fifteen years. Family units, singles, and relationships between couples have changed and are continuing to change. Your group assignment is to go to a local grocery store and observe the product categories on the grocery shelves. Consider product line mixes and any perceived changes from a few years ago. For example, which is more dominant—single-serving items or multiple-serving items? Assess what you see. Next, interview a store manager and get his or her impressions on the changing grocery customer. Match this material to the information provided in the chapter. Write a short paper that summarizes your observations, your interview, and your discoveries. To complete this assignment, your group could follow these steps: 1. Observation at a Local Grocery Store: • Visit a local grocery store and observe the product categories on the shelves. • Note any changes in product line mixes compared to a few years ago. For example, observe the dominance of single-serving items versus multiple-serving items. • Pay attention to how products are displayed, any promotions or discounts, and the overall layout of the store. 2. Interview with a Store Manager: • Approach the store manager and request an interview. • Ask about their impressions of the changing grocery customer. Focus on how family units, singles, and relationships between couples have influenced their product offerings and marketing strategies. • Inquire about any specific changes they have noticed in customer behavior, preferences, or demands over the past decade. 3. Analysis and Paper Writing: • Summarize your observations from the grocery store visit, including any changes in product categories and product line mixes. • Include insights from the interview with the store manager, highlighting their perspective on the changing grocery customer. • Connect your findings to the information provided in the chapter, discussing how demographic changes have influenced the grocery store industry. 4. Conclusion: • Conclude your paper by summarizing the key findings and discussing the implications for the grocery store industry. • Consider how grocery stores can adapt to meet the evolving needs of their customers in the future. By following these steps, your group can gather valuable insights into the changing landscape of grocery stores and how they are adapting to demographic changes in society. Instructor’s Discussion This is a good project to help the group master observation and assessment. The group will find that many changes have occurred in the grocery store. How does information technology assist the grocery store in tracking changes (e.g., bar codes)? Read the best of the papers to the class and discuss the perceived changes. Do the changes match the information provided in the chapter? S.T.A.R. Project #3 Ask any bride what the major problem with holding her wedding was and she will probably respond, “the planning and all the tension it brought.” As experts in human behavior studied this problem, a simple solution was derived — have someone else do the planning and bear the tension. Today, this is all possible (with a minimal cost) by using the Internet. Many brides-to-be have been thrilled to discover that such Web sites as Bride.com (www.bride.com) and the Wedding Channel (www.weddingchannel.com) take the burden off of their beautiful shoulders and place it where it should be—with the experts. Does the process work? Your assignment is to see. In other words, plan your own wedding using the sites above. Once you have made the attempt, write a short evaluation paper that describes your experience. What connections did the merchants involved attempt to make with you as a potential consumer? What do you perceive to be the principle value of such sites? What problems did you encounter? What other services besides wedding planning could such sites undertake? To complete this assignment, you can follow these steps: 1. Visit Bride.com and the Wedding Channel: • Go to Bride.com (www.bride.com) and the Wedding Channel (www.weddingchannel.com). • Explore the wedding planning tools and resources available on these sites. 2. Plan Your Wedding: • Use the planning tools provided by the sites to plan your own hypothetical wedding. • Consider aspects such as venue selection, catering, attire, invitations, and other details. 3. Evaluate Your Experience: • Write a short evaluation paper describing your experience using the sites. • Discuss the ease of use, the range of services offered, and any specific features that stood out to you. 4. Merchant Connections and Value: • Describe the connections that merchants attempted to make with you as a potential consumer. • Discuss the value of using such sites in terms of saving time, reducing stress, and accessing expert advice. 5. Encountered Problems: • Identify any problems or challenges you encountered while using the sites. • Discuss how these issues could be addressed to improve the user experience. 6. Other Potential Services: • Consider other services that such sites could undertake besides wedding planning. • Discuss how these additional services could enhance the overall user experience and value proposition. 7. Conclusion: • Conclude your paper by summarizing your overall experience and the value you perceive in using wedding planning websites like Bride.com and the Wedding Channel. By following these steps, you can evaluate the effectiveness and usefulness of these websites in planning a wedding and identify areas for improvement or expansion of their services. Instructor’s Discussion Yes, even males find this assignment interesting. Students can begin the assignment by listing all the advantages to using such services. Follow with disadvantages. How do the two lists compare? Do such services have a role to play in other events? Could funerals, moving, child birthing, choosing a college, picking a mate, or other tension events be aided through such sites? Students normally have fun discussing this subject. As I have discovered, it is not unusual for a bride-to-be to plan her whole wedding in such a manner. Would there be a cultural stigma associated with such a bold move? Think about it. Solution Manual for Consumer Behaviour Leon G. Schiffman, Leslie Lozor Konuk, S. Ramesh Kumar 9789332555099, 9780134734828