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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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Stages in the Household Life Cycle
13–6
Young Single Stage
• Two subgroups
–
–
Living at home
Independent
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–7
Young Married: No Children Stage
• High level of disposable income
• Often DINKs
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–8
Full Nest I: Young Married
with Children Stage
• One partner stops working
• About 61% keep dual income
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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:
http://www.abs.gov.au/Ausstats/abs%40.nsf/94713
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Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–10
Middle-Aged Single II Stage
• Small group of the population
• High disposable income
• Travel often
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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)
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–15
Empty Nest II: Older Married
Couple Stage
• Either still working or
fully retired
• Financial situation in
decline
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–16
Older Single III Stage
• Typically female
• Growing segment as
baby boomers age
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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
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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.
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–23
Household Decision Making (cont.)
• Individual’s role within the household
–
–
–
–
–
Information gatherer
Influencer
Decision maker
Purchaser
User
• Cultural and social changes
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–24
Family-Member Influence at Various
Stages of the Decision-Making Process
13–25
Conflict Resolution
Approaches used to resolve purchase conflicts:
1. Bargaining
2. Impression management
3. Use of authority
4. Reasoning
5. Playing on emotions
6. Additional information
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–26
Consumer Socialisation
• Young people acquiring skills, knowledge and
attitudes relevant to their functioning as consumers
in the marketplace
• Consumer socialisation and advertising
–
advertising standards
• Role of the household in socialisation
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–27
Managerial Framework for Evaluating the
Household Decision-Making Process
13–28
Household Trends Over
the Next 25 Years
• Single households to double
• Average household size down*
–
–
2.6 (1996)
2.2 (2021)
• Families without children more than ‘with children’
by 2016
• One-parent families up by 30% to 66%
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–29
The Importance of the Family Pet:
Ownership in 1998
13–30
Computers and Video Games
in Households
• Large number of household have Internet access
• Opinion of being ‘online’ and video games is now
more favourably accepted by experts
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–31
Households and the Purchase
of Services
• High use of services
• Food
–
–
eating-out more frequent
fast food frequently purchased
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–32
Implications…
• 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’
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–33
Summary
•
•
•
•
•
•
•
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
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–34
Summary (cont.)
•
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.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–35
Next Lecture…
Chapter 14:
Group Influence and
Communication
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
13–36