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CH 6 Consumer Behavior Notes

by: Antonio Castillo

CH 6 Consumer Behavior Notes MARK 3324

Marketplace > University of Texas at Arlington > Marketing > MARK 3324 > CH 6 Consumer Behavior Notes
Antonio Castillo
GPA 3.8

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Notes include points mentioned in textbook. Extremely detailed.
Consumer Behavior
Adwait Khare
Class Notes
Consumer Behavior, Marketing, Marketing 3324
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This 7 page Class Notes was uploaded by Antonio Castillo on Monday February 22, 2016. The Class Notes belongs to MARK 3324 at University of Texas at Arlington taught by Adwait Khare in Spring 2016. Since its upload, it has received 48 views. For similar materials see Consumer Behavior in Marketing at University of Texas at Arlington.


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Date Created: 02/22/16
CH 6  Households are important not only for their direct role in the consumption process but also for critical role in socializing children o Purchasing and consumption patterns are among those attitudes that are socialized  Meaning that whatever is consumed as kids, people will be inclined to continue buying habits  Household- all the people who occupy a housing unit  There are different types of households: o Family household- having at least two members related by birth, marriage, or adoption, one is the householder o Nonfamily household- householder living alone or exclusively with others to who he or she is not related  Traditional family household has been important focus for marketers o Traditional family- a married opposite-sex couple and their own or adopted children living at home  This family has declined over time—today, only about 20% are traditional families  Step Families are also important and are growing o Step Family- a married- couple family household with at least one child under the age of 18 who is a step-child (i.e son or daughter through marriage)  Due to high divorce and remarriage rates  But there are many unmarried couples that see themselves as families o 6.2 million unmarried-partners (opposite and same sex) households in the US  Family life cycle is that most families pass through an orderly progression of stages, each with its own characteristics, financial situations and purchasing patterns o Used to be simple—married by 20’s, had several children who grew up and had their own families; the original couple retired and the male would eventually die, followed after a few years by the female o Now it is more complex  Researchers have developed several models of household life cycle (HLC) o Based on age marital status of the adult members of the household and presence and age of children o HLC assumes that households move into a variety of relatively distinct ad well defined categories over time o Each category in the household life cycle poses a set of problems that household decision makers must solve  HLC stages: o Single I- consists of young adults ages 18-34, unmarried. 68% men and 60% women. Single I is basically the unmarried members of the Generation Y’ers.  Can be subdivided into those who live with or or both parents and those who live alone or with other individuals o Young Couples: No Children- Marriage is much more lively for the 25 to 34 year olds (50%) than it is under 25 crowd (14%). Lifestyles altered by living together. Savings, household furnishing, major appliances and more comprehensive insurance coverage are among the new areas of problem recognition and decision making  Most have dual incomes o Full Nest I: Young married with children- Roughly 6% are married with children. Addition of first child creates a significant change— wife may withdraw partly or fully from the labor force, the couple may have to move to a bigger place, choices of vacation/restaurants etc. will change.  Moms across the HLC possess 1.7 trillion in spending power o Single Parent I: young Single Parents- birth or adoption by singles is increasingly common. Roughly 40% of children are born to unmarried mothers. 40% of these children may actually be born to cohabiting unmarried parents  9% of American households are single-parent family  younger members of tis group tend to have low incomes and less education o Middle-Aged Single- made up of people who have never married and those who are divorced and have no child-rearing responsibilities. Are in the 35-64 age category which is primarily the Gen X and baby boomers. Typically have higher incomes and thus have more money to spend on their lifestyle and they are willing to indulge themselves o Empty Nest I: Middle Aged Married with No Children- households represent second marriages in which children from first marriage are not living with the parent. Also includes married couples whose children left. 55% of married couples in this age group  Both will typically have jobs so they are very busy and have plenty of money to spend on indulging themselves o Delayed Full Nest I: Older Married with Young Children- Baby Boomers and Gen X who waited to have their first child until their mid 30’s. Represent nearly 15% of all households and 71% of all married couples with children under 18. MAJOR difference between “delayed full nest I” and younger new parents is income. Older new parents have significantly larger incomes. In addition, delayed full nest I can also spend more on non child expenditures such as food, alcohol and entertainment. o Full Nest II: Middle-Aged with Children at Home- A major difference between this group and delayed full nest I is age of the children. The children of the full nest II are generally over age six and are becoming more independent. Greater demands for space create a need for larger homes and cars. These factors, coupled wit heavy demand for clothing and an increased need to save for college, create a considerable financial burden on housed holds in this stage. o Single Parent II: Middle-Aged single with children at Home-Are in the 35 to 64 who have children are often faced with serious financial pressures. The children of this segment are given extensive household responsibilities. Many in this position are inclined to use time-saving alternatives such as ready to eat food, and they are like to eat at fast food restaurants. o Empty Nest II: Older Married Couples- There are about 11million household in this segment. Many Couples in the over 64 age group are either fully or partially retired. The younger members of this group are healthy and active and are usually financially well off. They also spend considerable time and money on grandchildren. A this stage and the next distribution of valued family assets such as family heirlooms, property and money also become important. o Older Single- There are around 17 million older single in the united states. About 70% all older single are female and roughly two thirds live alone. Being older, single and generally retired create unique needs for housing, socialization, travel and recreation. Financial firms have set up special programs to work with these individuals. A recent study labeled consumers who were single as the result of the death of a souse as “single by circumstance”. People who fall in such category are less innovative, more risk averse, more price sensitive, and more likely to engage in coping behaviors.  The HLC is an important segmentation tool given its relation to differences in needs, wants, constraints, and consumption patterns that are unique to each stage  HLC/Occupational Category Matrix- the vertical axis is the stage in the HLC, which determines the problems the household will likely face; the horizontal axis is a set of occupational categories, which provide a range of acceptable solutions o Found to be useful across a range of products in segmenting the market and developing appropriate marketing strategies  Research in the form of focus group interviews that is used to determine the following information for each relevant cell o What products/service are now being used to meet the need or perform the activity? o What, if any, symbolic or social meaning is associated with meeting the need or use the current products? o Exactly how are the current products or services being used? o How satisfied are the segment members with the current solutions, and what improvements are desired?  Attractive segments are those that are large enough to meet the firm’s objectives and have needs that current product is not satisfying  Family Decision making- the process by which decisions that directly or indirectly involve two or more family members are made o Many family purchases are inherently emotional and affect the relationships between the family members  There are 6 roles that occur in family decision making: o Initiator- the family member who first first recognizes a need or starts the purchase process o Information gatherer- individual who has expertise and interest in a particular product o Influencer- person who influences the alternatives evaluated, the criteria considered, and the final choice o Decision maker- individual who makes the final decision o Purchaser- the family member who actually buys the product (typically an adult or teenager) o User- The end user of the product (usually there are multiple)  Family decision have been categorized as o husband-dominant, traditionally occurred with purchases of products like cars, liquor and life insurance o wife-dominant, were more common in purchase of household maintenance items, food and kitchen appliances o joint, were most likely when buying a house, living room furniture and vacations o individualized  how family members interact in a purchase decision is largely dependent on the culture and subculture, the role specialization, the degree of involvement each has in the product area, and the personal characteristics of the family members  There are 6 basic approaches that individuals use to resolve purchase conflicts after they have arisen o Bargaining o Impression management, misrepresenting the facts in order to win o Use of authority, claiming superior expertise o Reasoning, using logical argument to win o Playing on emotion, using the silent treatment or withdrawing from the discussion o Additional information, getting additional data or third part opinion  Family provides the basic framework of consumer socialization o Consumer Socialization, is the process by which young people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketing place o Process refers to how children learn about consumption  Younger children have limited liabilities to process certain types of information  Piagets stages of cognitive development are widely accepted set of stages of cognitive development for children o Stage 1: The period of sensorimotor intelligence (0 to 2 years old)- behavioral is primarily motor child does not yet “think” though cognitive development is seen o Stage 2: The period of preoperational thoughts (3 to 7 years old)- characterized by the development of language and rapid conceptual development o Stage 3: The period of concrete operations (8 to 11 years old)- the child’s cognitive structures reach their greatest level of development and the child becomes able to apply logic to all classes of problems o Stage 4: The period of formal operations (12 to 15 years old)- the child’s cognitive structures reach their greatest level of development and the child becomes able to apple logic to all classes of problems.  The content of consumer learning can be broken down into 3 categories o Consumer skills, those capabilities necessary for purchases to occur such as understanding money. Budgeting product evaluation etc. o Consumption related preferences, the knowledge, attitudes and values that cause people to attract differential evaluations to products, brands, and retail outlets  Parents may teach kids that Calvin Klein is a “prestigious” brand and then later affects their buying patterns o Consumption related attitudes, cognitive and affective orientations toward marketplace stimuli such as ads, salespeople, warranties etc.  Parents teach kids that “you get what you pay for”, thus assuming a strong price-quality relationship  Parents these consumer learning both deliberately and casually  Consumer socialization can happen in different ways like through advertisements and friends  Instrumental Training- occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement o i.e a parent might try to directly teach their kid which snack goods should be eaten by talking about nutrition  Modeling, occurs when a child learns appropriate or inappropriate consumption behavior by observing others o Usually occurs without direct instruction o Children can learn both positive and negative consumption patterns through modeling  Mediation, occurs when a parent alters a child initial interpretation of or response to a marketing or other stimulus  Professor James McNeal developed a 5 stage model of how children learn to ship by visiting supermarkets and other retail outlets with parents o Stage I: Observing- Starts at median age of two months. At this stage children make sensory contact with the market place and begin forming mental images of marketplace objects and symbols. This stage ends when children understand that a visit to the market may produce rewards beyond the stimulation caused by the environment o Stage II: Making Requests- Starts at the median age of 2. Children begin requesting items in the store from their parents. They use pointing and gesturing as well as statements to indicate that they want an item. In the latter months of stage II they begin to make requests for items at home, particularly when they are seen on television o Stage III: Making Selections- Actually getting an item off the shelf without assistance is the first act of independence. Soon, children will remember the store location and desired item. o Stage IV: Making assisted purchases- most children learn by observing that money needs to be given in order to get things from a store. Soon they are allowed to select and pay for items with their own money. They are now Primary consumers (median age of 5and a half years old) o Stage V: Making Independent Purchases- Making a purchase without a parent to oversee it requires a fairly sophisticated understanding as well as the ability to visit the store. Most children remain in stage IV for a long time (median age of 8)  Marketing to children is full of ethical concerns o Concerns that advertisements may produce undesirable values in children that result in inappropriate diets and unhealthy levels of family conflict  This is due to the limited information processing skills in young children  Only the older children could fully engage in the analogical reasoning required to completely understand the ad  Used to be that you would market to kids in Saturday morning cartoons but now there are more options o i.e National Geographic Kids magazine, site o Many firms target Kids Clubs but unfortunately these clubs can sometimes engage in sales techniques that are controversial


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