Consumer Buying Behaviour

1.
INTRODUCTION
Today, marketing has become an increasingly complex process just like every other activity of our daily
lives. The rising competition has forced us marketers to innovate our arsenal with new weapons such as
internet marketing, SMS, in - film marketing, mobile vans and much other weaponry. However the consumer
has always found a strong shield in the comfort zone of his loving family to which our most weapons can’t
penetrate. He uses words like my wife will kill me, my son doesn’t like it, and my mother won’t approve of
it. My attempt is to find out how today’s marketers can breach this jacket by understanding the psyche of the
family members and how much does it influence our target - the buyer.
Family as a consuming and decision making unit is a central phenomenon in marketing and consumer
behavior. However, in the recent past, there has been a decline in interest in family as a unit of analysis. Yet,
at the same time, the family -- as an institution -- is undergoing a metamorphosis and currently stands at the
threshold of significant transformation. The family unit is usually considered to be the most important
“buying” organization in society. As marketers we should be particularly interested in the roles and relative
influence of the husband, wife and children on the purchase of a large variety of products and services.
There is evidence that the traditional husband-wife buying roles are changing. Almost everywhere in the
world, the wife is traditionally the main buyer for the family, especially in the areas of food, household
products and clothing. However, with increasing numbers of women in full-time work and many men
becoming “home workers” (or “telecommuting”) the traditional roles are reversing.
IIPM/FW/08-10/MUM/HR/133 Page 1 of 64
The challenge for a marketer is to understand how this might affect demand for products and services and
how the promotional mix needs to be changed to attract male rather than female buyers.
In order to explore the various trends and variations going on in the Indian Family and its influence on the
individual I will attempt to break it down in the following manner.
Primary Research
Secondary Research
Analysis
Examples in today’s scenario
Recommendations
2. CONSUMER BUYING BEHAVIOUR
Personal & Environmental
Factors
Psychologi
Personal Social Cultural
cal
Evaluation
Problem Informati Purchas Postpurchas
of
Recogniti on e e
Alternative
on Seeking Decision Evaluation
s
Marketing
Factors
Product Pricing Promotion Place
What influences consumers to purchase products or services? The consumer buying process is a complex
matter as many internal and external factors have an impact on the buying decisions of the consumer.
When purchasing a product there are several processes, which consumers go through. These will be
discussed below.
a. Problem/Need Recognition
How does one decide that he wants to buy a particular product or service? It could be that the DVD player
stops working and now he has to look for a new one, all those DVD films he purchased he can no longer
play! So he has a problem or a new need. For high value items like a DVD player or a car or other low
frequency purchased products this is the process the consumer would take. However, for impulse low
frequency purchases e.g. confectionery the process is different.
b. Information search
So we have a problem, our DVD player no longer works and we need to buy a new one. What’s the solution?
Yes go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up?
Or stay clear of that? Consumers often go on some form of information search to help them through their
purchase decision. Sources of information could be family, friends, neighbours who may have the product
you have in mind, alternatively you may ask the sales people, or dealers, or read specialist magazines like
What DVD? to help with their purchase decision. You may even actually examine the product before you
decide to purchase it.
c. Evaluation of different purchase options
So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate attribute
factors to certain products, almost like a point scoring system which they work out in their mind over which
brand to purchase. This means that consumers know what features from the rivals will benefit them and they
attach different degrees of importance to each attribute. For example sound maybe better on the Sony
product and picture on the Toshiba , but picture clarity is more important to you then sound. Consumers
usually have some sort of brand preference with companies as they may have had a good history with a
particular brand or their friends may have had a reliable history with one, but if the decision falls between the
Sony DVD or Toshiba then which one shall it be? It could be that the a review the consumer reads on the
particular Toshiba product may have tipped the balance and that they will purchase that brand.
d. Purchase decision
Through the evaluation process discussed above consumers will reach their final purchase decision and they
reach the final process of going through the purchase action e.g. The process of going to the shop to buy the
product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase
of the product can either be through the store, the web, or over the phone.
e. Post Purchase Behaviour
Ever have doubts about the product after you purchased it? This simply is post purchase behaviour and
research shows that it is a common trait amongst purchasers of products. Manufacturers of products clearly
want recent consumers to feel proud of their purchase, it is therefore just as important for manufacturers to
advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a
strong and reputable organisation. This limits post purchase behaviour. i.e. You feel reassured that you own
the latest advertised product.
3.FACTORS INFLUENCING BEHAVIOUR OF BUYERS
Consumer behaviour is affected by many uncontrollable factors. Just think, what influences you before you
buy a product or service? Your friends, your upbringing, your culture, the media, a role model or influences
from certain groups?
Culture is one factor that influences behaviour. Simply culture is defined as our attitudes and beliefs. But
how are these attitudes and beliefs developed? As an individual growing up, a child is influenced by their
parents, brothers, sister and other family member who may teach them what is wrong or right. They learn
about their religion and culture, which helps them develop these opinions, attitudes and beliefs (AIO) . These
factors will influence their purchase behaviour however other factors like groups of friends, or people they
look up to may influence their choices of purchasing a particular product or service. Reference groups are
particular groups of people some people may look up towards to that have an impact on consumer behaviour.
So they can be simply a band like the Spice Girls or your immediate family members. Opinion leaders are
those people that you look up to because you respect their views and judgments and these views may
influence consumer decisions. So it maybe a friend who works with the IT trade who may influence your
decision on what computer to buy. The economical environment also has an impact on consumer behaviour;
do consumers have a secure job and a regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a particular product or service.
People’s social status will also impact their behaviour. What is their role within society? Are they Actors?
Doctors? Office worker? and mothers and fathers also? Clearly being parents affects your buying habits
depending on the age of the children, the type of job may mean you need to purchase formal clothes, the
income which is earned has an impact. The lifestyle of someone who earns Rs 250000 would clearly be
different from someone who earns Rs 25000. Also characters have an influence on buying decision. Whether
the person is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and
purchases via online or mail order) again has an impact on the types of purchases made.
Maslow’s Hierarchy of Needs
Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve.
He set out his answer in a form of a hierarchy. He suggests individuals aim to meet basic psychological
needs of hunger and thirst. When this has been met they then move up to the next stage of the hierarchy,
safety needs, where the priority lay with job security and the knowing that an income will be available to
them regularly. Social needs come in the next level of the hierarchy, the need to belong or be loved is a
natural human desire and people do strive for this belonging. Esteem need is the need for status and
recognition within society, status sometimes drives people, the need to have a good job title and be
recognized or the need to wear branded clothes as a symbol of status. Self-actualization the realization that
an individual has reached their potential in life. The point of self-actualization is down to the individual,
when do you know you have reached your point of self-fulfillment?
But how does this concept help an organization trying to market a product or service? Marketing is about
meeting needs and providing benefits, Maslows concept suggests that needs change as we go along our path
of striving for self-actualization. Supermarket firms develop value brands to meet the psychological needs of
hunger and thirst. Harrods develops products and services for those who want have met their esteem needs.
So Maslows concept is useful for marketers as it can help them understand and develop consumer needs and
wants.
Types of buying behaviour.
There are four typical types of buying behaviour based on the type of products that intends to be purchased.
Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of
information before the purchase is made. Habitual buying behaviour is where the individual buys a product
out of habit e.g. a daily newspaper, sugar or salt. Variety seeking buying behaviour is where the individual
likes to shop around and experiment with different products. So an individual may shop around for different
breakfast cereals because he/she wants variety in the mornings!
To summarise:
• There are five stages of consumer purchase behaviour

• Problem/Need Recognition
• Information search.
• Evaluation of purchases.
• Purchase decision.
• Post purchase behaviour.
• Culture has an impact on the company.
• Marketers should take into account Maslows hierarchy of needs.
4. FAMILY AS A DECISION MAKING UNIT
Family as a consuming and decision making unit is a central phenomenon in marketing and consumer
behavior. However, in the recent past, there has been a decline in interest in family as a unit of analysis. Yet,
at the same time, the family -- as an institution -- is undergoing a metamorphosis and currently stands at the
threshold of significant transformation. While it has been argued that consumption patterns vary across
stages of the family life cycle, it has also been proposed that these changes can also be explained by
differences in incomes. Similarly, though it has been established that decision roles and relative influence
vary across products and stage in decision making, these differences are also due, in part, to differences in
the occupational status of wife and sex-role orientation. Conflict minimization has been identified as a
dominant agenda driving family decision-making, and the role of children has been found to vary by product
category and by the personal resources of the child
Classification of Families
Research that attempted to classify families on parameters that are meaningful from a marketing perspective
appeared in the early years of the Journal of Marketing, with the first attempt at examining families through
a meaningful classification scheme being undertaken by Kaplan (1938). Implying that families bear
relevance to a marketer when an examination was based on their incomes, Kaplan examined consumption
patterns across two classes of families -- high and low income families. Kaplan noted that food constituted
the most important category of consumption across high and low-income families, followed by housing.
While decision making behavior within family was not examined, this research was important all the same
because of its attempt to consider family as the unit of consumption
Relevance of the Family Life Cycle
As noted above, one dimension of the research on family consumption behavior has been the relevance of
the stage in the family life cycle- While Schaninger and Lee (2000a,b) have attempted to investigate
differences in various forms of the family life cycle, no standard framework has been found to be sufficient.
"Second families" represent different consumption processes as the young child is very likely to be raised
under conditions associated with greater material wealth, and the forty-some father will definitely be a
different consumer from his same-aged counterpart just entering the empty nest stage. Family circumstances
must be considered, but so must standard demographics such as age and income. More development of
structures that combine family composition (including the ages of children as well as the number of them)
with demographics is needed, and that structure which is most explanatory of consumption patterns needs to
be adopted by the government agencies which provide the vast reams of secondary data on families. Also, it
is time to look beyond the trajectory nature of the family life cycle and to focus more on the transition
between stages (Gentry et al. 1995). Once families acclimate to a new stage, a steady-state marketing
mentality may be applicable. However, the stress encountered during transition may well be associated with
major changes in consumption patterns and, as such, there may be many opportunities for marketers to
induce brand switching far more easily than once adjustment to the new stage has taken place.
5. ROLE OF CHILDIN PURCHASE DECISION
The first attempt, in marketing, to understand the role of children was made by Berry and Pollay (1968).
They measured the assertiveness of the child (in favor of a brand preferred by the child) and the child-
centeredness of the mother in the case of purchase of a brand of breakfast cereal. They found that high child-
centered mothers purchased the child's favorite brand less frequently, implying that when a mother is child
centered, she would purchase a brand that is good for the child and not necessarily one that is preferred by
the child. Berry and Pollay also found that the assertiveness of the child enhanced the recall of the child's
favorite brand among mothers. Examining shifts in such influence across age, Ward and Wackman (1972)
found that attempts by children at influencing purchase were negatively related to the age of the child;
however, the tendency of mothers to yield to such influence rose with the age of the child but varied across
product categories. Mehrotra and Torges (1977) suggested that the extent to which mothers yielded to the
influence of the child also depended on the extent to which mothers and children were exposed to advertising
together. Attempting to refine the construct of influence by the child, Atkin (1978) found that while children
do tend to make forceful demands at the point of purchase, their success depended on whether they "ask" or
"tell." Atkin reported a greater success rate in the case of children that "tell" rather than "ask."
Belch, Belch, and Ceresino (1985) later studied the diversity in the influence of children and reported that
the extent of such influence varied with product and stage in the decision making process, thus supporting
the assertions of Szybillo and Sosanie (1977) that the roles of husbands, wives, and children vary across
stages of decision making. They found that while the role of the teenage child was most prominent at the
initiation stage, it was limited thereafter. They detected that while children attributed greater influence in
decision making to themselves, they consistently attributed more influence to the father than the mother.
Research that addressed the parent-child interface in decision making found that influence varies across the
age of the child, the child's personal resources, the product expertise of and usage by the child, the product,
and the stage in decision making. Further, the pattern of influence depends upon how many members in the
household are questioned and how many members are included in the evaluation process.
Role of child in purchase decision
A full 67 percent of families buying a new car base their purchasing decision on advice given by their
children -- who are too young to drive? That 62 percent of mobile phones and 65 percent of clothing brands
are bought by parents under the influence of their kids' opinions?
We're not talking only about American kids, but kids across the globe, in countries as diverse as India, Japan,
Brazil, Spain, Turkey, Germany, Thailand and Denmark. The power this young generation wields over their
parents has been shown to be nothing less than mind blowing
The data comes from the world's largest study on kids and their relationship with brands. It was conducted
for BRANDchild, the book written by Patricia Seybold. I call this emerging generation the tweens. They fall,
roughly, between the ages of 8 and 14.
Research institute Millward Brown interviewed thousands of kids in 14 countries and 70 cities for the study.
Among many startling findings that emerged, overwhelming evidence shows brand purchase decisions are
increasingly being made by the children of the household. This is true across the board, in almost every
product category from snacks and soft drinks to cosmetics and house wares.
In light of these findings, every message targeting the adult market must be reconceived and reframed.
Marketers will increasingly have to consider how to capture the attention of two very distinct audiences in
one message. They must appeal to the adult purchaser, as well as to the kid who influences them.
What does all this mean for your online strategy? As it's becoming increasingly clear you ignore this young
audience at your peril, it's vital you structure your message to appeal to both markets. This will be
challenging, but it must be part of your site. Obviously, some features appeal more to parents, others to their
kids. The challenge is to determine what appeals to each age group, then let your site reflect this something-
for-everyone. At the same time, maintain the integrity of your core message.
One method would be to build in a separate section where kids can explore your products in a more dynamic
way. Language would be kid-friendly and graphically appropriate to secure their full attention.
The BRANDchild survey shows that combining a structured product presentation appeals to the adult
segment, whereas a product presented in its environment appeals more to tweens. If your brand belongs the
80 percent of all product categories heavily influenced by tweens, your site should combine both product
presentations. If you sell cars, you'll need to place the car in its "natural" environment, as well as in a more
"clinical" space where you can demonstrate the technical facts and features. The same applies to selling
home decorations.
Use of color is critical. The BRANDchild study found some colors are more appealing than others. This is
dependent on what product category is offered, as well as the context in which the brand is presented. Colors
you select should appeal to both audiences. It would be a mistake to think in greys.
This dual marketing is breaking through. Year after year, Toyota in Australia has maintained a top-selling
position using chicks, puppies and kittens in commercials. Strange as it may sound, it works. Remember
bunches of balloons waving in front of car dealerships? A small example, but fairly obvious once you're
faced with the statistics of how children influence parents' purchase decisions.
Marketing to kids is so much more than simply pestering them (and their parents). It's about achieving
balance. Be totally honest. Completely fulfill whatever it is you promise to deliver. This generation can
detect "phony" from miles away. Youth deserves the highest ethical standards you can deliver. They're our
future -- and your future brand customers!
6. FAMILY INFLUENCE ON CONSUMER BEHAVIOUR
The analysis of scientific references shows that consumer behaviour is a continuous process including
actions of an individual ranging from appearance of a problem, which can be solved through acquisition of
particular goods to reaction in regard of already purchased goods. Like any other phenomenom consumer
behaviour can be described by certain peculiarities and characteristics. That is why the present paper seeks to
analyse how the family as a social factor influences consumer behaviour. The analysis of the role of the
family in consumer behaviour helps to forecast consumer behaviour in the future.
The family forms the system of values and being members of the family we learn how to create the
environment of cognition and learning and develop our role in social life. Certain consumer behaviour of the
family members develops already in the family. The family being a social unit of the community is important
both as a unit of influence on the consumer and as an economic unit.
Lately it has been more and more often classified as a separate consumption unit as most of goods are
purchased for the whole family and purchasing decisions depend on the influence of other family members.
There are numerous particular roles related to family consumer behaviour. D. Statt distinguishes six types of
roles, which are more often found in scientific references: initiator, influence maker, decision maker,
purchaser, consumer and watcher. The roles, which are played by the family members at a particular time,
would also depend on who of the spouses dominates. The dominance of one family member quite often
depends on the type of a particular product (e. g. car, household object). The article presents four strategies
for solving conflicts which arise in the family, solving disagreements regarding decisions to purchase one or
any other object. It also depicts the characteristics of family consumer behaviour at particular stages of the
family lifetime.
To summarize the views of researchers dealing with consumer behaviour it can be asserted that the family
plays the most important role in the formation of consumer behaviour of an individual. If to follow scientific
references the influence of the family on consumer behaviour would depend on the family situation, a
number of children and their age, stage of the family lifecycle, employment status, the roles related to
consumer behaviour, dominance of family members, strategies applied in the family for the settlement of
conflicts. Indirect influence of parents in selecting goods is felt during the entire lifetime of an individual.
7. THE INDIAN FAMILY
In India, people learn the essential themes of cultural life within the bosom of a family. In most of the
country, the basic units of society are the patrilineal family unit and wider kinship groupings. The most
widely desired residential unit is the joint family, ideally consisting of three or four patrilineally related
generations, all living under one roof, working, eating, worshiping, and cooperating together in mutually
beneficial social and economic activities. Patrilineal joint families include men related through the male line,
along with their wives and children. Most young women expect to live with their husband's relatives after
marriage, but they retain important bonds with their natal families.
Despite the continuous and growing impact of urbanization, secularization, and Westernization, the
traditional joint household, both in ideal and in practice, remains the primary social force in the lives of most
Indians. Loyalty to family is a deeply held ideal for almost everyone.
Large families tend to be flexible and well-suited to modern Indian life, especially for the 67 percent of
Indians who are farmers or agricultural workers or work in related activities . As in most primarily
agricultural societies, few individuals can hope to achieve economic security without being part of a
cooperating group of kinsmen. The joint family is also common in cities, where kinship ties can be crucial to
obtaining scarce jobs or financial assistance. Numerous prominent Indian families, such as the Tatas, Birlas,
and Sarabhais, retain joint family arrangements even as they work together to control some of the country's
largest financial empires.
The joint family is an ancient Indian institution, but it has undergone some change in the late twentieth
century. Although several generations living together is the ideal, actual living arrangements vary widely
depending on region, social status, and economic circumstance. Many Indians live in joint families that
deviate in various ways from the ideal, and many live in nuclear families--a couple with their unmarried
children--as is the most common pattern in the West. However, even where the ideal joint family is seldom
found (as, for example, in certain regions and among impoverished agricultural laborers and urban
squatters), there are often strong networks of kinship ties through which economic assistance and other
benefits are obtained. Not infrequently, clusters of relatives live very near each other, easily available to
respond to the give and take of kinship obligations. Even when relatives cannot actually live in close
proximity, they typically maintain strong bonds of kinship and attempt to provide each other with economic
help, emotional support, and other benefits.
With Westernization and technological improvements, the world has been introduced with the concept of
nuclear families where a newly- wed couple start their life alone. They have to nurture their children with
their own knowledge and earnings. Though this fever has caught up in India to some extent, the rural parts,
which form the main part of India, still follow the joint family norms.
In such an Indian family the father, mother, grandfather, grandmother, sons, daughters, sons-in -law,
daughters-in law, their children, etc all live under the same shade sharing the same food and earnings. Such a
gathering of almost three generations is a common sight in many of India's villages. The men are the sole-
bread winners and they are responsible for the financial security aspect of the household. The women do all
the house chores without any hassles as they share their work of cooking, cleaning, doing the dishes,
washing, etc. This is in sharp contrast to the nuclear woman, who has to do all the jobs, single-handedly, yet
also attend to outside work to make both ends meet. The children have a wonderful time as they have lots of
children to play with and elders to guide them both spiritually and physically. But the modern day nuclear-
kid comes home from school to find an empty house with none to move around with and he would be fast
asleep when his parents return back from work.
Mostly the Patriarchal system is followed throughout India, but in some states like Arunachal Pradesh in
North -West India, the matriarchal system is followed where the house is ruled by the women members of
the family and the men while their time by playing and gossiping! Kerala also follows this system to some
extent, in that its female members control the decision making process in a family.
The joint family system transfers its knowledge about the culture and traditions of the country to the new
generations. So the younger generation learns to live a disciplined life. Financial stability is brought about in
the family. Any imbalance between spouses is easily measured out since there are many elders to guide and
hence India has a low rate of divorcees in the world.
8. CHARACTERISTICS OF INDIAN CONSUMER
The Indian consumers are noted for the high degree of value orientation. Such orientation to value has
labeled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a
unique pricing strategy in order to get a foothold in the Indian market.
Indian consumers have a high degree of family orientation. This orientation in fact, extends to the extended
family and friends as well. Brands with identities that support family values tend to be popular and accepted
easily in the Indian market.
Indian consumers are also associated with values of nurturing, care and affection. These values are far more
dominant that values of ambition and achievement. Product which communicate feelings and emotions gel
with the Indian consumers.
Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer
behavior is quite unique. Perhaps, only in India, one sees traditional products along side modern products.
For example, hair oils and tooth powder existing with shampoos and toothpaste.
The characteristics of modern Indian families now closely correspond with the concept of liberalization,
individualism, tolerance of new roles, behavior and attitudes, with a newly seen empowerment of the
individual and openness to new people and experiences.
9. PRIMARY RESEARCH
Sample size - 300
Objective - To understand how the Indian consumer behaves and how important is the role of the family in
his purchase decision
Method - Field survey
Method of choosing the sample - Random Sampling
QUESTIONNAIRE
1. Age
15 - 20 20 - 30 30 - 40 40 – 50
2. Income
15k - 25k 25k - 35k 35k - 45k 45k +
3. Family size
2 3 4 5 5+
4. Marital Status
Married Unmarried
5. How much are your expenses in a month?
10k-15k 15k-20k 20k-25k 25k-35k More than 35k
6. How often do you shop in a month?
1 time 2 times 4 times
7. Do you consult your family while making purchases?
Yes No
8. Do you get influenced by your family while making purchases?
Yes No
9. Whom do you consider as the final authority at home?
Father Mother Spouse Yourself
10. Who takes the decision while purchasing FMCG goods at home?
Mother Father Children
11. Who took the decision while purchasing your last white good?
Mother Father Child / Self
12. Who took the decision while purchasing your car? Assuming you have one
Mother Father Child / Self
13. Do you often discuss products and brands with your family?
Yes No Sometimes
Analysis of the Primary Research
1. Age?
Analysis
Survey was conducted with around 300 people. Out of which 30 people fall between 15 to 20 age group.
Majority of them come under 20 – 40 age group. Majority of the purchase is done by this age group.
2. What is your family income?
income
18%
37% 15k - 25k

13% 25k - 35k
35k - 45k
45k+
Analysis 32%
The family income of the majority households within the sample size lies between 15k to 35k p.m. which is
around 69%. Due to the DINK families that are on the rise in the recent past new products such Single
bedroom houses as well as many others luxury products have been on the rise. There has also been a
considerable change in the spending habits of these young couples with larger disposable incomes and fewer
responsibilities. However this may not be true for entire India as the research was limited to the urban
pockets of the country.
3. What is the family size?
Family size
5% 13%
8%
2
3
4
5
32%
5+
42%
Analysis
About 75% of the respondents have a family size of 3 - 4. however this may not hold true for the entire
country as the research was conducted in Mumbai yet this seems to be the trend in the entire country as
the newer generation have started to understand the benefits of a smaller family. The joint family concept
is also fast fading away as the nuclear family gains importance the marketing and advertising has also
concentrated on this changing trend e.g. McDonalds which always show one kid in the ad to substantiate
the point the sales of smaller cars is on the rise, then there are ads of Maggi, Kurkure which also show the
trend.
4. Marital Status?
Analysis
Around 60% of people interviewed are married. The size of the married people are bigger in size and
therefore, the expenditures incurred by them is more as compared to those who are unmarried.
5.The Effect of Marital Status on spending?
Marital status - Spending Power
Count of Sl.no
240
200
160
Expenses
25000 - 35000
20000 - 25000
120
15000 - 20000
10000 - 15000
>35000
80
40
n y
Marital Status
Analysis
The graph clearly indicates that no unmarried person has an expense of above Rs 35000 p.m. whereas the
expenses of a married person increase with time. This gives marketer opportunities of marketing holiday
resorts, as well as products like small cars. The major reason for this possible increase in spending power
is due to the availability of double income families. This also gives us the insight that there is greater
financial independence amongst each member of the family which thereby reduces the pressure or
influence of the family on the individual.
6. Age group - Frequency of Shopping?
The age group of frequent shoppers
Frequency of shopping in a month

4
2
1
0
15 - 20 20 -30 30 - 40 40 - 50
Age Group
Analysis
Shoppers in the younger age group of 15 - 20 have a higher frequency of shopping in a month. Whereas
people in the various other age groups mostly shop around 2 times a month. There are very few people
who shop only once a month. Hence this gives us a belief that there is a need for more brands and
shopping malls hence there exists a huge opportunity for food chains as well as multiplexes as it is the
people from the younger age groups whose frequent the malls. The consumption has also changed from
need based products to a variety of shopping goods such as apparels, shoes, watches and other designer
products.
7. Consultation with Family prior to Purchase?
Analysis
Around 80% of people do consult their family before purchasing any product. This leads to the change in
the buying decision of an individual, because every individual will have their own likes and dislike and
their own preferences. Only 20% of people said no for this. out of this 20% majority were unmarried.
8.The Influence of Family on the Individual due to Size of the family?
Family size - Influence on the individual
270
240
210
180
150
do you get influenced by family
y
120 n
900
60
30
2 3 4 5 5+
Family size
Analysis
The graph indicates that as the family size increase the influence of the family on the individual also
increases. He tends to take the opinion of every member of the family before making an actual purchase
decision. Hence there is a stronger bond that lies within larger families and it is evident from the Maruti
Versa ad which was changed within a few months of its launch ad which had Amitabh and Abhishek
Bachchan.
9.The Ultimate Authority at Home?
Age - Ultimate authority
Count of Sl.no
250
210
180
150 who is considered as the final authority
Spouse
120
self
Mom
90 dad
60
30
0
15 - 20 20 -30 30 - 40 40 - 50
Age Group
Analysis
The major influencer in the youth of a child is the mother. He considers her as the ultimate authority at home
and wants to emulate her. This makes the mother as the major influencer for the purchase of teen products as
well many a times she is the purchaser. Hence in order to reach the kids it could be a viable option utilized
by marketers if they talk to the mother. As the kid grows up his dependence on his mother deteriorates and
he develops self confidence. He considers himself as the final authority or asks his spouse to help him decide
the purchase of the product as the couple is recently married decisions are jointly taken and it would be
important to talk to both of them instead of any one. As the person gets into his 30s he starts taking decision
even more independently as considers himself as the final authority. At this point in the age life cycle the
marketer can address the individual instead of talking to both of them. He shows more maturity and self
confidence in the purchase of brands he prefers the influence of family for personal products tends to reduce
at this stage in life. As the person enters into his 40’s the family once again starts taking an important part of
his life here along with the spouse children become major influencers for making big ticket purchases such
as cars, computers. At this stage again it would be important to address the entire family instead of the
individual. The nuclear family matures into a complete decision making unit.
10.Purchasers and Major Influencers in the family Across Products?
Fast Moving Consumer Goods
FMCG
33%
Mom
Dad
Child
59%
8%
Analysis
For FMCG products the graph substantiates the marketing strategies currently used by marketers when they
are mostly talking to the mother. even today about 60 % of the household purchases are done by the lady of
the house. Whereas talking to the father would be absolutely a waste of time and effort as he does not make
FMCG purchases neither does he influence the buying behaviour of the lady. However the other 33% which
is the child or the teenager is also not ignored in the bargain as shown by the ad campaigns of Surf Excel,
Colgate Max Fresh. This brings us to the conclusion that the most important person in the family to address
for FMCG products would be the mother after which the confidence of the individual should be addressed.
TVC storyboards >> Surf
A lady walks out Another man

with two buckets of repeats the same.
water. MVO: "Mrs. MVO: "Mr
Sharma." Jingle: Kulkarni." Jingle:
"Do bucket pani ab "Do bucket pani ab
rozana hai rozana hai
bachaana." bachaana."
He is followed by Two girls on a
another scooty get two
gentleman. MVO: buckets. MVO:
"Mr. Mehta." "Miss Rupali."
Jingle: "Do bucket Jingle: "Do bucket
pani ab rozana hai pani ab rozana hai
bachaana." bachaana...
...hai, bachaana Shabana Azmi
hai, bachaana." informs the public,
Next shot shows "Agar apke pass
hordes of people Surf Excel Quick
gathering together Wash hai to aap
with two buckets of bhi rozana do
water. bucket pani
bachaa...
...sakte hain. Zara ...Anya powderon
sochiye sare se alag Surf Excel
Hindustan mein Quick Wash mein
kitna pani hai kam jhaag
bachaga.... vala...
...formula. Ab MVO: "Surf Excel
daag bhi jayega, Quick
do bucket pani bhi Wash."
bachega."
11.White Goods?
10% White Goods
47% Mom
Dad
Child/self
43%
Analysis
For the white goods categories there is no dominating majority in the family as the category is further
divided into various sub categories like washing machine, computers, TV etc. and each category is talking to
the different member of the family. However except for the refrigerator and the washing machine sub sector
it is the father and the child that dominate the decision making of consumer durables. Here the child has a
major say in the purchase of the product which again correlates with the increasing use of kids in the ads of
consumer durables e.g. LG
12.Automobiles?
Automobiles
20%
35%
Mom
Dad
Child / Self
45%
Analysis
The concept of family consumer behaviour will not be as important in any other sector as in the automobile
one. Purchase of a car has always been a family decision in India. Every member of the family is asked for
opinion and his wishes before taking the final decision. However a very important voice is of the child, he is
usually the initator and one of the major influencer while choosing a car. The father who is the purchaser will
keep all the conditions into perspective and make the final purchase. The small car segment like the Maruti
800 as well as Esteem have caught upon this trend and communicated this behaviour through their ads -
TVC storyboards >> Maruti Esteem
Sitting in her dad's Getting a “no” from

car a little girl her father she
checks out the comes with the next
power windows and question, “then you
asks, “dadda, you got birthday present
got first rank in gift?” as she takes a
office?” look at the
airconditioner.
The repeated “no” ...armrest, she
does not stop the buzzes, “haan, you
little girl from promoting?” At this
questioning her the father first
father again. This corrects her,
time inspecting the “promotion” and
backseat central... then answers,
“nahin baba”.
Tired of her guesses Listening to this the
now she innocently father breaks into a
asks, “then whose laughter. VO:
big car is this?” "Maruti Suzuki
Esteem...
...The easy to own ...car keys from her
big car." Super: “dadda” and
"Big on mileage. Big announces, “my
on savings." As daddy's big car!”
the car stops at her leaving her father
school, the little smiling on the other
girl grabs the... side of the car.
13. Discussion with family regarding product or brand?
Analysis
Majority of married people always ask their family members regarding PRODUCTS AND BRANDS. There
are some unmarried people who also fall in this category. The decision of those who fall under ALWAYS
AND SOMETIMES category are the one who get influenced a lot.
11. CONCLUSION
The research analysis gives us the clear picture of what role does each individual play in the family across
products. To make it simpler for understanding the various roles played by family members across categories
have been put down in a table format below.
Product FMCG White Goods Cars Apparel
categories
Family member
Father Watcher, Influencer, Decision Purchaser,
consumer purchaser, maker, consumer
consumer purchaser,
consumer
Mother Decision Decision Influencer, Influencer,
maker, maker, consumer purchaser,
purchaser, consumer consumer
consumer
Child Influence Initiator, Initiator, consumer
maker, Consumer influencer,
consumer consumer
12.TODAY’s SCENARIO
No study of the Indian consumer is complete if it doesn’t look at the Indian family. Unlike in the west, we
are society of consensus - seekers. We rely a great deal on our family. Even our purchase decisions are made
jointly. Is this because of the hangover of the past where we were used to living in large joint families have
we not adapted to the nuclear family concept. Today, the situation is coming under pressure. Partly because
of the media boom which has made us more aware about the wider opportunities out there. The dotcom
boom and the frequent success stories of Indians who have made it big internationally make us believe we
can too.
- The head of the family: in the old days, the father was the unquestioned head. Today, there is
recognition that even the parents don’t have all the answers. Kids prefer to go to their peers or seniors
for career advice. However, there is greater appreciation of parental advice when it comes to areas like
managing interpersonal relationships.
- The Evolving Father: In earlier days the father was almost an authoritative figure and his decision was
considered final with no questions asked. However the scenario is changing in modern times today the
father asks the family members before making purchase decisions. He allows his kids to take up their
choice of careers and the opinion of his family matters to him.
- The Evolving Mother: The Indian mother is becoming more assertive, seeking a bigger role in life,
today’s mother is educated is not just confined to the household chores. She moves out and has evolved
into a smart consumer. She has begun to take her rightful place in the family and be heard. She has
started influencing the family in purchase decisions such as cars, electronics as well as investment
options, these decisions were pre - dominantly male in the past but things are changing now.
- The Evolving Kid : Gone are the days when the kids were considered immature and their opinions as
gibberish. The Indian kid has emerged as key influencer in purchase decisions within a household.
Exposure to media like TV channels and magazines has made the current lot highly brand conscious,
with strong brand preferences. The challenge marketers is to get a slice of this groups mindshare.
13. FINAL CONCLUSION
There have been numerous researches conducted in the area of individual consumer buying behaviour
however there is not enough work done in the field of family consumer behaviour due to the complexity
involved, the changing dynamics and the repetition involved from the previous works in the area. With this
research I have tried to draw attention towards the influence exercised by the family on the individual across
categories. While conducting the secondary and the primary research the important points that have come to
light are :-
1. The larger the family the more is the influence on the individual
2. The role of kids in deciding the brands has been on the increasing trends due to the media boom as well
the changing attitudes of parents.
3. The father has an important role to play when it comes to big ticket items as he is still considered the
head of the family and will be the purchaser of the product.
4. We have witnessed changing trends in the FMCG sector which predominantly concentrated on the
mother but as there has been a scope to address the individual companies like Colgate.
5. The frequency of shopping in a month has increased as opposed to the past where it was done once a
month or two months it has come down to once in 2 weeks. The age of these frequent shoppers lie
between 20 - 30. Also the shopper on the weekend is the family shopper. Hence there is a scope to put
up stalls of household products during the weekends and during the weekdays youth oriented products
can be on the display.
Finally to conclude I would like to say that due to higher and double income spends, the size of the family
becoming smaller and with every individual especially the kid having a greater say in purchasing brands,
products such as small size family cars, smaller homes, vacation packages have a great scope to exploit
this opportunity.
BIBLIOGRAPHY
Sources
• www.onlymarketing.com
• Marketingpractice.blogspot.com
• www.indiatimes.com
• www.yahoo.com (search engine)
• www.google.com (search engine)
• Indian Management Magazine
Response Sheet No: 1
Name: Sarvesh Agarwal
ID NO: IIPM/FW/08-10/MUM/HR/133
Questionnaire: Basic structure of the thesis has been prepared.
Date when the Guide was consulted: 02/07/10
The outcome of the discussion: Discussions were made on following
1. Understanding of the topic

2. Different players involved in the decision
3. Discussion on the theory related to the topic
Discussion on above topics helped me to understand the topic in a broader way.
The Progress of the Thesis: Introduction and abstract of thesis topic has been started, information for the
same has been obtained from the Guide.
Questionnaire: Basic structure of the thesis was discussed.
1. Basic structure was checked
Discussions on above topics helped me to understand the different aspects of consumers.The shift in the
buying decission.
The Progress of the Thesis: Introduction and abstract has been finished and additional information has been
gathered for main part of the thesis.
Questionnaire: Questionnaire has been prepared.

• Questionnaire was discussed
• Maslow theory was discussed
The Progress of the Thesis: Survey has been started. And also primary and secondary findings have been
started.
The outcome of the discussion: Discussions were made on the findings from the survey, findings were
analyzed, and sir examined the secondary data found by me.
The Progress of the Thesis: Survey has been completed. Findings from the survey are being arranged in the
thesis.
The outcome of the discussion: Discussions were made on the conclusion of the thesis. Sir checked my entire
thesis and told me to make some changes.
The Progress of the Thesis: Primary Findings and analysis has been completed and conclusion of the thesis
has been started.
The outcome of the discussion: Sir went through my final thesis, made some changes in the structure and
approved it.
The Progress of the Thesis: Conclusion has been finished. Full thesis has been completed after making
necessary changes in it.

Consumer Buying Behaviour

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1.

3.FACTORS INFLUENCING BEHAVIOUR OF BUYERS

Maslow’s Hierarchy of Needs

Types of buying behaviour.

• There are five stages of consumer purchase behaviour

Relevance of the Family Life Cycle

Role of child in purchase decision

6. FAMILY INFLUENCE ON CONSUMER BEHAVIOUR

7. THE INDIAN FAMILY

8. CHARACTERISTICS OF INDIAN CONSUMER

Sample size - 300

Method - Field survey

Method of choosing the sample - Random Sampling

15k - 25k 25k - 35k 35k - 45k 45k +

5. How much are your expenses in a month?

10k-15k 15k-20k 20k-25k 25k-35k More than 35k

6. How often do you shop in a month?

7. Do you consult your family while making purchases?

8. Do you get influenced by your family while making purchases?

9. Whom do you consider as the final authority at home?

Father Mother Spouse Yourself

Mother Father Children

Mother Father Child / Self

Analysis of the Primary Research

2. What is your family income?

37% 15k - 25k

3. What is the family size?

5.The Effect of Marital Status on spending?

6. Age group - Frequency of Shopping?

Frequency of shopping in a month

7. Consultation with Family prior to Purchase?

8.The Influence of Family on the Individual due to Size of the family?

150 who is considered as the final authority

10.Purchasers and Major Influencers in the family Across Products?

A lady walks out Another man

10% White Goods

Sitting in her dad's Getting a “no” from

Name: Sarvesh Agarwal

Questionnaire: Basic structure of the thesis has been prepared.

Date when the Guide was consulted: 02/07/10

The outcome of the discussion: Discussions were made on following

1. Understanding of the topic

Discussion on above topics helped me to understand the topic in a broader way.

Name: Sarvesh Agarwal

Questionnaire: Basic structure of the thesis was discussed.

Date when the Guide was consulted: 09/07/10

The outcome of the discussion: Discussions were made on following

1. Basic structure was checked

Name: Sarvesh Agarwal

Questionnaire: Questionnaire has been prepared.

Date when the Guide was consulted: 16/07/10

The outcome of the discussion: Discussions were made on following

Name: Sarvesh Agarwal

Questionnaire: Questionnaire has been prepared.

Date when the Guide was consulted: 30/07/10

Name: Sarvesh Agarwal

Questionnaire: Questionnaire has been prepared.

Date when the Guide was consulted: 06/08/10

Name: Sarvesh Agarwal

Questionnaire: Questionnaire has been prepared.

Date when the Guide was consulted: 13/08/10

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