Current LectureChapter 10: Organizational and Household Decision MakingDecision RolesThe Modern FamilyFamily Life CycleFLC ModelsLife-Cycle Effects on BuyingSex Roles and Decision-making ResponsibilitiesChildren as Decision MakersConsumer SocializationMKTG 305 1st Edition Lecture 21 Outline of Last Lecture I. PersuasionII. Elements of CommunicationIII. New Message FormatsIV. SourceV. Star PowerVI. Nonhuman EndorsersVII. Message VIII. AppealsOutline of Current Lecture I. Decision RolesII. The Modern FamilyIII. Family Life CycleIV. FLC ModelsV. Life-Cycle Effects on BuyingVI. Sex Roles and Decision-making ResponsibilitiesVII. Children as Decision MakersVIII. Consumer Socialization Current Lecture Chapter 10: Organizational and Household Decision MakingDecision Roles- In collective decisions, one may play any (or all) of the following roles:These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Initiator: brings up idea or identifies need- Gatekeeper: conducts information search- Influencer: sways outcome of decision- Buyer: actually makes the purchase- User: winds up using productThe Modern Family- Before 1900s: extended family- 1950s: nuclear family (mother, father, and children)- Today, many households:- Married couples less than 50% of households- Majority of adult women live without spouse- Unmarried opposite sex couples- Same-sex couples- Pets are treated like family membersFamily Life Cycle- Factors that determine how couples spend money:- Whether they have children- Whether the woman works- Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income- As we age, our preferences/needs for products and activities tend to changeFLC Models- Useful models take into account the following variables in describing longitudinal changes in priorities and demand for product categories:- Age- Marital status- Presence/absence of children in home- Ages of children- Such factors allow us to identify categories of family-situation typesLife-Cycle Effects on Buying- FLC model categories show marked differences in consumption patterns- Young bachelors and newlyweds: exercise, go to bars/concerts/movies- Early 20s: apparel, electronics, gas- Families with young children: health foods- Single parents/older children: junk foods- Newlyweds: appliances- Older couples/bachelors: home maintenance services- http://www.npr.org/blogs/money/2014/04/01/297289442/more-house-less-booze-how-spending-changes-from-age-25-75?utm_medium=facebook&utm_source=npr&utm_campaign=nprnews&utm_content=04012014Sex Roles and Decision-making Responsibilities- Who makes key decisions in a family?- Autonomic decision: one family member chooses a product- Wives still make decisions on groceries, toys, clothes, and medicines- Syncretic decision: involve both partners- Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service- As education increases, so does syncretic decision makingChildren as Decision Makers- Children make up three distinct markets:- Primary market: kids spend their own money (e.g., choose their brands of toothpaste, shampoo, etc.)- Influence market: parents buy what their kids tell them to buy (parental yielding; “I saw this in a TV show”)- Future market: kids “grow up” quickly and purchase items that normally adults purchase(e.g., Kodak encourages kids to become photographers; cell phones)Consumer Socialization- process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace- Children’s purchasing behavior is influenced by:- Family (e.g., Parents)- Television and the