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Chapter 4
Family & Reference groups
Goals
Understand the functions and life cycle of families as well
as each family member’s role in buying
Create effective marketing strategies based on the
influence of family on consumer behaviours
Identify all types of reference groups and their influence
on consumer behaviours
Apply the influence of reference group on consumer
behaviours in marketing
1. Family
1.1 Definition
A family is a group of
members who share a
certain connection
(usually marriage,
bloodline or adoption)
and live together for a
long time.
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1. Family
1.2 Functions of families and their effects on consumption
Labour regeneration fuction
Nurturing and education function
Economic function
Elder-care function
1. Family
Labour regeneration
fuction
• Reproduction
• Recovery
1. Family
Nurturing and education function
• A family is an important part of an individual’s
socialization. Personality, beliefs and personal standards
are formed through the family’ s education
• The family’s product consumption makes a part of their
own characteristics
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1. Family
1. Family
Economic function
• method of contribution and the use of the family’s fund
affect consumbing behaviours
1. Family
Elder-care function
• Physical and mental health-care products for elders gain
incerasing attention as the ratio of elders is rising
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1. Family
1.3 Family Life Cycle
Parent- Parent-
Post
Bachelor Honey- hood hood
parent- Elderhood
hood mooners (small (grown up
hood
children) children)
1.3 Family Life Cycle
Bachelorhood
• Fashion
• Entertainment
• Electronics
• Sports
• Transportation
1.3 Family Life Cycle
Honeymooners
• Entertainment
• Dining and friend party
• Traveling
• Furniture and kitchen appliances
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1.3 Family Life Cycle
Parenthood with young children
• Real estate
• Finance & insurance service
• Household appliances
• Medical service
• Baby & kid products
• Food
1.3 Family Life Cycle
Parenthood with grown up children
• Education service
• Entertainment
• Fastfood
• Transportation
• House maintenance
• Furniture
1.3 Family Life Cycle
Post-parenthood
• Entertainment
• Traveling
• Health-care products
• Dining and friend party
• Jewelry and cosmetics
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1.3 Family Life Cycle
Elderhood
• Medical and health-care service
• Housing
• Traveling
1.4 Family member’s roles in purchase decisions
Role Description
Initiator The person who brings up the idea or identifies a
need.
Ex: A child asked his mom to buy a new toy in the
store
Influencer Family member who provides information to other
members about a product or service
Ex: The child describes the toy to his mom.
Role Description
Gatekeeper Family member who control the flow of information about a
product or service into the family
Ex: A mom didn’t tell her son about a toy she saw in the
store
Decider Family members with the power to detemine unilaterally or
jointly whether to shop for, purchase, use, consume or
dispose of a specific product or service
Ex: The father decided which kind of TV to buy after
evaluating all models and their prices
Buyer Family members who makes the purchase of a particular
product or service
Ex: The mother went to the store to buy the toy for her kid
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Role Description
User Family members who actually use the product or service
VD: The kid played with the toy
Maintainer Family members who service or repair the product so that
it will provide continued satisfaction
Ex: The father repaired the toy so that his kid can continue
to play with it
Disposer Family members who initiate or carry out the disposal or
discontinuation of a particular product or service
Ex: The mother decided not to buy that toy again next time
because it broke down quickly
1.5 Children’s role in buying
The degree of children’s influence in purchase decisions
depends on the product category, their age and their parents’
point of views.
Tactics that children use to influence their parents
Tatics Description
Pressure tactics The child makes demands, uses threats, or intimidation
to persuade parents to comply with his/her request
Upward appeal The child seeks to persuade parents, saying that the
request was approved or supported by an older member
of the family, a teacher or even a family friend
Exchange The child makes an explicit or implicit promise to give
tactics you some sort of service such as cleaning the house or
babysitting younger siblings in return for a favor
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Tactics that children use to influence their parents
Tatics Description
Coaliation Children seek the aid of others to persuade their parents
tactics to comply with their request or uses the support of others
as an argument for parents to agree with them
Ingratiating Children seek to get their parents in a good mood or
tactics think favorably of them before asking their parents to
comply with a request
Rational Children use logical arguments and factual evidence to
persuasion persuade parents to agree with their request
Tactics that children use to influence their parents
Tatics Description
Inspirational Children makes an emotional appeal or proposal that
appeals arouses enthusiasm by appealing to their parents’ values
and ideas
Consultation Children seek their parents’ involvement in making a
tactics decision
1.6 Marketing application of family
• Family life cycle as a way of segmenting the market
• Identify each family member’s role for each
product/service to have a suitable marketing strategy
• For cultures that value family attachment, marketing
strategies should concentrate on family happiness rather
than personal interest.
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2. Reference groups
2.1 Definition
A reference group is an
actual or imaginary
individual or group that
significantly influences an
individual’s evaluations,
aspirations, or behavior
Why do you follow somebody’s words when
you buy something?
2.2 Social powers
• Referent power
• Information power
• Legitimate power
• Expert power
• Reward power
• Coercive power
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2.3 Classification of reference groups
Associative reference groups consist of people we know.
We might belong to these groups, whether face-to-face or in
an online environment.
We don’t know those in aspirational reference groups, we
admire them anyway.
We also deliberately do the opposite if we want to distance
ourselves from dissociative groups.
2.4 Influence of reference groups
Reasons to use reference groups
information search (information influence)
personal benefits (utilitarian influence)
building a self-concept image (value-expressive influence)
2.4 Influence of reference groups
Reference group influence on products and brands
PRODUCTS/ Weak reference Strong reference
BRAND group influence group influence
Strong reference Public necessities Public luxuries
group influence Influence: weak Influence: strong
product, strong product and
brand brand
Weak reference Private necessities Private luxuries
group influence Influence: weak Influence: strong
product and product, weak
brand brand
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2.5 Marketing applications of reference groups
Use famous people/celebrities to advertise products
Type Definition
Testimonial Use an individual/ a celebrity to confirm the quality of a
product/service
Approval The celebrity allows the advertiser to use his/her name and
image to represent a product/service that he/she isn’t an
expert about.
Placement The celebrity introduces the product/service as a part of their
life or their show
Spokeperson The celebrity represents a brand for a long time
2.5 Marketing applications of reference groups
Use experts to advertise products: consumers trust experts
Use ordinary people to advertise products to create
sincerity
Viral marketing and buzz building: Stimulate WOM to
build buzz (an aura of excitement) around a product or
service, and then sit back and let your customers do the
heavy lifting
Discussion
1. Create a scenario in which all family members participate
in the purchase of a product (a car, a house or a tour). Clarify
each member’s role in the process.
2. Which of the following products do reference groups
influence the most?
Laptop Footwear
Cooking oil Smartphone
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