SURVEY ON ROLE OF CHILDREN IN FAMILY PURCHASE DECISION

Area:
S. No. :
INTERVIEW QUESTIONNAIRE
This survey is being carried out to assess the role/ influence of children in family decision
making in purchasing. This is being done to find out how much influence children have
on their parents in buying various items. This survey is being carried out by the M.B.A.
students of Institute of Management Technology (Nagpur) and the result is purely for
academic purpose. Your help in this regard will be highly appreciated.
Name of the respondent:
Age:

Sex:

Male

Female

Occupation:

Telephone No. :

Date:

Signature:

1)

How many children do you have?

2)

Which of the following appliances do you have in your house?

Car

Air Conditioner

DVD Players
3)

4)

Microwave

Washing Machines

Two Wheelers

What proportion of your monthly income do you spend on your child?

5%

10%

15%

20%

Above 20%

While buying the following products how much influence does your child
have on you?
[Rate them on a scale of 1 to 5, with 1 Very Low, 2 Low, 3 Neither Low nor
High, 4 High, 5 Very High.] (Please the appropriate box)
1

5)

i.

Food Items

ii.

Confectioneries

iii.

Snacks/Soft Drinks

iv.

Entertainment (Holidays/Movies)1

What role do the children play in family purchase decision?

[Rate them on a scale of 1 to 5, with 1 Very Low, 2 Low, 3 Neither Low nor
High, 4 High, 5 Very High.] (Please the appropriate box)
a. Idea Generator (Bringing up the idea to buy the new product)
1

b. Educator (Educating the family members about the product)

1

c. Influencer (Influencing the frequency of use by family members)

1

d. Decider (Deciding about the product)

1
6)

How much influence does your child have in determining the brands at the
time
of first purchase? (Brand Identifier)
[Rate them on a scale of 1 to 5, with 1 Very Low, 2 Low, 3 Neither Low nor
High, 4 High, 5 Very High.] (Please the appropriate box)
1 12 23 34 45 5

7)

How often do you give in to your childs demand even when you donot want
to purchase that particular item?
[Mark1- Always, 2- Very Often, 3- Not Sure, 4- Not Often ,5- Never] (Please the
appropriate box)
1

1 1212132132413243524354354545 5

*************************
NOTE:
1. For Question No. 2,
if all items are owned by a respondent then 5 points are ginen
if 1 item is not owned then 4 points are given
if 2 items are not owned then 3 points are given
if 3 items are not owned then 2 points are given
if 4 items are not owned then 1 points is given
2. For Question No. 3,
if monthly income spent is 5% then give 1 point
if monthly income spent is 10% then give 2 points
if monthly income spent is 15% then give 3 points
if monthly income spent is 20% then give 4 points
if monthly income spent is above 20% then give 5 points

Types Of Research
Initially the exploratory research was carried out to know the important factors. It
involved secondary data collection and analysis. This was followed by descriptive
research , in which a questionnaire was designed based on the insights gained through
exploratory research.
The questionnaire was given to various people and the data collected was analyzed on
SPSS.
Data Collection
Data collection method was using a questionnaire instrument.
The questionnaire was structured and consisted of 13 important set of statements
relating to perceptions and attributes of the children in family purchase decision.
Respondents were asked to indicate on a 5 points of scale with these 13 statements.
The detailed questionnaire is given in the Appendix for a meaningful appreciation of
this Research Study.
The 13 statements are as under:
1. The number of children respondents have
2. The various appliances owned by the respondents
3. The proportion of monthly income spent by the respondents on their children
4. The influence children have on parents while buying Food Items
5. The influence children have on parents while buying Confectioneries
6. The influence children have on parents while buying Snacks/Soft Drinks
7. The influence children have on parents while deciding for entertainment
8. The role played by children in the family purchase decision as an Idea
Generator
9. The role played by children in the family purchase decision as an Educator
10. The role played by children in the family purchase decision as an Influencer
11. The role played by children in the family purchase decision as a Decider
12. The influence children have while determining the brands at the time of first
purchase
13. The number of times parents give in to the childs demand even when they
dont want to purchase that particular item
Sampling Plan
Sampling Frame

: The households, people visiting the shopping malls, and other

convenient sources of data were targeted as Sampling Frame

Unit of Analysis

: House wives and parents

Sampling Method used: A representative stratified random sampling procedure was

adopted, having selected respondents from various localities
having various backgrounds and coming from different
communities.
INTERPRETATION
Descriptive Statistics:
Mean
INCOME
EXPDTRE
FOODITEM
CONFECTI
SNACKS
ENTNTMNT
IDEAGENE
EDUCATOR
INFLUENC
DECIDER
ACCMPSHP
BRANDIDN
CHLDWILL

4.05
2.26
3.10
3.32
3.05
3.25
3.58
2.96
2.94
3.36
3.29
2.53
3.49

Std. Analysis N
Deviation
.91
129
.87
129
1.37
129
1.19
129
1.27
129
1.35
129
1.16
129
1.31
129
1.25
129
1.27
129
1.09
129
1.14
129
1.26
129

1. DESRIPTIVE STATISTICS: the table of descriptive statistics shows the mean and
standard deviation of different variables with INCOME showing highest mean
indicating that sample is taken from high income group
2. CORRELATION MATRIX: the correlation matrix shows different correlation
between different variables among each other separately ,with the diagonal matrix
valued at 1.00 showing correlation from itself.

Correlation Matrix:

Correlatio
n

INCOME

INCOME EXPDT FOODITE CONFECT SNACKS ENTNTMN IDEAGEN EDUCATOINFLU

RE
M
I
T
E
R
1.000
.731
.058
-.052
.086
.180
.170
.002

EXPDTRE
FOODITE
M
CONFECT
I
SNACKS
ENTNTMN
T
IDEAGEN
E
EDUCATO
R
INFLUENC
DECIDER
ACCMPS
HP
BRANDID
N
CHLDWIL
L
Sig. (1- INCOME
tailed)
EXPDTRE
FOODITE
M
CONFECT
I
SNACKS
ENTNTMN
T
IDEAGEN
E
EDUCATO
R
INFLUENC
DECIDER
ACCMPS
HP
BRANDID
N
CHLDWIL
L
a Determinant = 9.592E-02

.731
.058

1.000
-.002

-.002
1.000

-.064
-.135

.025
-.021

.072
-.103

.123
-.008

-.053
-.103

-.052

-.064

-.135

1.000

.047

-.079

-.073

-.118

.086
.180

.025
.072

-.021
-.103

.047
-.079

1.000
-.098

-.098
1.000

.051
.157

-.046
-.034

.170

.123

-.008

-.073

.051

.157

1.000

-.011

.002

-.053

-.103

-.118

-.046

-.034

-.011

1.000

.112
.159
.181

.036
.144
.127

.031
.002
-.057

.019
.059
.054

-.028
.063
.172

.051
.030
.062

.009
-.025
.105

-.059
-.067
-.157

.340

.581

-.220

.025

-.060

.036

.151

-.028

.127

.092

-.138

.010

.054

.205

.652

-.012

.000

.256

.279

.167

.021

.027

.492

.490

.234
.063

.391
.408

.208
.123

.083
.466

.275
.124

.297

.186

.205

.092

.134

.284
.037

.302
.349

.000
.256

.490

.279

.234

.063

.167
.021

.391
.208

.408
.123

.297
.186

.134

.027

.083

.466

.205

.284

.037

.492

.275

.124

.092

.302

.349

.452

.103
.036
.020

.342
.052
.076

.364
.493
.261

.417
.253
.271

.378
.241
.026

.284
.367
.243

.460
.388
.118

.255
.225
.038

.000

.000

.006

.388

.248

.341

.044

.376

.077

.149

.060

.454

.271

.010

.000

.446

.452

SIG-1 TAIL TEST: You may see a table of significance values. These are p-values
for testing whether the corresponding correlations are different from zero.

KMO AND BARTLETTS TEST: THE kmo test aalong with the bartletts test is
done to know whether factor analysis is useful for our analysis or not. The value of
KMO is greater than .5 (> 0.5) ie .561 indicating that probabably factor analysis is
right for our study
KMO and Bartlett's Test
KaiserMeyerOlkin
Measure
of
Sampling
Adequacy.
Bartlett's
Test of
Sphericity

.561

Approx.
ChiSquare
df
Sig.

287.948
78
.000

COMMUNALITIES : Communalities indicate the amount of variance in each

variable that is accounted for. The high extraction communalities shows that
variables are highly correlated
Communalities
INCOME
EXPDTR
E
FOODITE
M
CONFEC
TI
SNACKS
ENTNTM
NT
IDEAGEN
E
EDUCAT
OR
INFLUEN
C
DECIDER
ACCMPS
HP
BRANDID
N
CHLDWIL
L

Initial Extraction
1.000
.754
1.000
.864
1.000

.690

1.000

.623

1.000
1.000

.610
.658

1.000

.784

1.000

.565

1.000

.664

1.000
1.000

.540
.508

1.000

.677

1.000

.799

Extraction Method: Principal Component Analysis.

TOTAL VARIANCE EXPLAINED:

Total Variance Explained

Initial
Eigenvalues

Extraction
Sums of
Squared
Loadings
Compone
Total % of Cumulativ
Total
nt
Varian
e%
ce
1
2.462 18.940
18.940
2.462
2
1.570 12.076
31.016
1.570
3
1.360 10.463
41.479
1.360
4
1.220 9.388
50.866
1.220
5
1.105 8.497
59.363
1.105
6
1.019 7.841
67.204
1.019
7
.954 7.338
74.543
8
.835 6.424
80.966
9
.745 5.734
86.700
10
.735 5.652
92.352
11
.469 3.607
95.959
12
.327 2.513
98.472
13
.199 1.528 100.000
Extraction Method: Principal Component Analysis.

Rotation
Sums of
Squared
Loadings
% of Cumulativ
Total
Variance
e%
18.940
12.076
10.463
9.388
8.497
7.841

18.940
31.016
41.479
50.866
59.363
67.204

% of Cumulativ
Variance
e%

2.140
1.765
1.315
1.227
1.157
1.133

Eigen values explained amount of variances explained by each factor. More than
67% of total variance of the sample is explained by 6 factors. Only factors with Eigen
values greater than 1 are retained

16.459
13.578
10.113
9.437
8.901
8.717

16.459
30.037
40.150
49.586
58.487
67.204

7. COMPONENT MATRIX: A matrix showing the correlation between different

variables and the factors
Component Matrix
Componen
t
1
2
3
4
5
6
EXPDTRE
.793
-.449
-.149 -2.252E-03-5.418E-02 9.734E-02
INCOME
.762
-.355
-.106
.183
-2.486E-02 5.535E-02
BRANDID
.656
-.225
-.155
-.402
2.000E-02
.102
N
CHLDWIL
.508
.729
3.060E-02 8.365E-03 -1.747E-02 8.402E-02
L
IDEAGEN
.509
.673
-6.145E-02
.192
-3.714E-02
.169
E
ACCMPS
.333
4.737E-02
.588
.137
-4.515E-02 -.170
HP
SNACKS 9.952E-02 2.483E-02
.528
.156
-.284
.465
CONFECT -4.207E-02-2.949E-02
.472
-.421
.428
.194
I
FOODITE
-.144
-.203 -6.692E-02
.779
-.126
2.703E-02
M
INFLUENC 3.460E-02
-.131
-.204
.254
.664
.315
EDUCATO -9.369E-02 7.712E-02
-.450
-.298
-.498
.104
R
ENTNTMN
.303
.277
-.187
8.646E-02
.311
-.591
T
DECIDER
.246
-.248
.409
-2.412E-02 -.180
-.467
Extraction Method: Principal Component Analysis.
a 6 components extracted.

Since childwill and idea generation shows good correlations with both factors 1 &
2,therefore we have done rotation for more clear picture

ROTATION
Rotated Component Matrix

Compone
nt
1
2
3
4
5
6
EXPDTRE
.9222.858E-02 9.940E-02 5.208E-02 2.440E-02 1.281E-02
INCOME
.818
.115
.147
.190
.118-3.920E-03
BRANDIDN
.7318.419E-02-1.404E-02
-.345
-.112-6.191E-02
CHLDWILL 6.275E.879 5.324E-02
-.125-4.166E-02-4.576E-02
02
IDEAGENE
.112
.874-3.794E-02 6.905E-02 8.484E-03 3.032E-03
DECIDER
.161
-.153
.692-1.412E-02-6.418E-02-8.108E-02
ACCMPSH 7.287E.207
.633-3.453E-02
.186
.153
P
02
FOODITEM -5.495E-.111 8.660E-03
.783
.210
.132
02
CONFECTI -8.417E- -9.137E- 8.999E-02
-.656
.362
.197
02
02
EDUCATOR 4.850E- -2.363E-.329 7.021E-03
-.674 1.849E-02
02
03
INFLUENC
.150 -2.618E-.441 4.779E-02
.662-7.183E-02
02
SNACKS 1.042E.179
.222 3.137E-02 6.264E-02
.724
02
ENTNTMNT 4.976E.295
.195 3.172E-02
.133
-.715
02
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser
Normalization.
a Rotation converged in 11 iterations.

8. Scree plot is a two dimension sketch between eigen values and different factors
indicating the no. of factors by the no. of breakage

Scree Plot
3.0

2.5

2.0

1.5

Eigenvalue

1.0

.5
0.0
1

10

11

12

13

Component Number

FINAL OUTPUT
As evident from the TOTAL VARIANCE EXPLAINED table ,we find that the six factors extracted
together account for 67% of the total variance . hence we have reduced the number of variables
from 13 to 6 underlying factors

Looking at the rotated matrix,we see the variables expenditure ,brand identification &
income have high factor loadings with factor 1(0.922,0.731 & 0.818). therefore this factor
can be interpretated as factor 1

Now for factor 2 ,we see that childwill and idea generation have high factor loadings with
factor 2 (0.879 & 0.874) indicating that factor 2 is a combination of these two variables

Now for factor 3, we see that decider and accompaniship have factor loadings of 0.692 &
0.633. so these variables can be clubbed into a single underlying dimension .

For factor 4, we see that fooditem has loading of 0.783,so this might be itself a factor

Factor 5,we see that influence has loading of0.662 indicating that factor 5 constitutes with
this variable alone ,which makes this factor 5 itself as INFLUENCE FACTOR

For factor 6 only snacks shows a loading of 0.724. it is surprising that snacks is not coming
in the food item, it may be an anomaly because of sampling error

** for our convenience we have taken only those loadings with value greater than 0.4
The confectionary ,educator and entertainment showing very less factor loadings with all factors
viz.-0.656,-0.674 and -0.715 were not considered for any of above factors ,meaning here the
market doesnt consider these factors as having any impact on the parents decision building and
they dont consider that there children act as educator to them ,only those above factors are
important
FACTOR SCORES
These factors so generated can be used for subsequent multivariate analysis by arranging factors
scores as provided in COMPONENT SCORE COEFFICIENT MATRIX TABLE
Factors which are linear combination of original variable can be estimatede by
using factor scores coefficient as weights as follows :
F1= 0.380X1 + 0.447X2.+0.357X12 - 0.052X13
DETERMINE THE MODEL FIT
The difference between observed correlation ( as given in the input matrix correlation matrix) and
the reproduced correlations ( as estimated from the factor matrix-not computed here) could be
examined to determine the model fit. These difference are called residuals

CONCLUSION

Six factors extracted together account for 67% of the total variance . hence we have reduced the
number of variables from 13 to 6 underlying factors. Childwill and idea generation are another
twoi factors where the child can influenece. For food item and snacks the child can influence
his/her parents. In these areas one should concentrate if he/she wants to strengthen its presence
in childs goods market.