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Influence of Children on Family Purchase Decisions

by Rizwan Raheem Ahmed (Author) Nofel Ameen (Author) Emad Shaikh (Author) Fahad Shahzad Memon (Author)

Research Paper (postgraduate) 2015 43 Pages

Communications - Public Relations, Advertising, Marketing, Social Media

Excerpt

Table of Contents

1.0 Introduction
1.1 Significance of Research
1.2 Problem Statement
1.3 Research Questions
1.4 Hypothesis
1.5 Research Objectives
1.6 Scope
1.7 Justification
1.8 Limitations
1.9 Assumptions

2.0 Theoretical Framework
2.1.1 Parent’s demographics
2.1.2 Employment status
2.1.3 Socio Economic Status
2.1.4 Family Communication
2.1.5 Childs demographics (Age of the child)
2.1.6 Number of children
2.1.7 Gender
2.1.8 Type of product
2.1.9 Proposed Model

3.0 Literature Review
3.1 Role and importance of children in purchase decision
3.1.2 Children role in Family purchase decision in Pakistan
3.1.3 Relation with Product Type
3.1.4 Concern of children towards purchasing typical products
3.1.5 Children related products
3.2 Impact through Demographics and Geographical changes
3.2.1 Age of child
3.2.2 Change in Country
3.2.3 Social Class & cultural changes
3.2.4 Income Level and price of a product
3.3 Exposure towards information (Socialization & Advertisement)
3.4 Influence in the purchases of same Branded and unbranded products
3.4.1 Frequency of stimuli exposure

4.0 Research Methodology
4.1 Research Design
4.1.1 Quantitative Research:
4.1.2 Qualitative Research:
4.2 Procedure
4.3 Population Following is the criteria of our target market:
4.4 Data Collection
4.4.1 Sampling Method:
4.4.2 Sample Size

5.0 Quantitative and Qualitative Analysis
5.1 Correlation Analysis
5.2 Regression Analysis
5.3 Interview Responses

6.0 Conclusion, Discussion and Recommendation

7.0 References

8.0 Appendix

Acknowledgment

This Humble research Project owes to hard work and restless efforts of our team mates Nofel Ameen, Fahad Shahzad & Emad Shaikh. If there had been no encouragement from these ends, we would not have accomplished our plan and project.

We find no words to pay thanks to such beneficiaries. Special gratitude goes to Dr. Rizwan Raheem Ahmed whose consistent supervision and guidance assisted us to develop the concept knowledge and overall tools in making this research project a success

Lastly we would also like to pay special gratitude to all our respondents who helped us in responses of the questionnaire and giving us their precious time for interviews. We couldn ’ t had accomplished our project without their responses.

Abstract

In the recent years the influence level of the children have shown dramatic changes and major variations depending upon factors and different norms and values. Over family purchase decision are being influenced by children by a greater extent. Hence all these developments and changes have resulted in creating the need to gauge and identify certain variables which impact children to influence their family in purchase decision making. Moreover, this would also highlight the overall importance and role of children within the family. Therefore the aim of this study was to test certain factors which creates impact on children to influence their parents. This was supported by conducting of quantitative (questionnaires) and qualitative survey (unstructured interviews). In order to achieve the research objectives around 230 respondents through quantitative and 5 through qualitative approach were analyzed.

This research will be beneficial for the store owners & marketers/researchers to identify and create effectives strategies which would impact the children to influence their parents in the purchase decisions. However this research is limited to Karachi only as a result of budget and time constraints, therefore for further study this research can also be based on a wider scope i.e., outside Karachi including maximum variables that can affect the children to influence in the family purchase decision. This would allow to further analyze and get more insights over the topic.

CHAPTER NO. 1 1.0 Introduction

The children have established an important place for market positioning in our culture compared to the parents that ever had. They not act as consumer but have a demonstrative participation on their parents purchase choices. The disturbing effect which the children display over their parents is growing on daily basis with the progress in system of small family in which children continues to be the center of importance. The cultural background tends to play a vital part in the participation of broods. This study commences to assess the Impact of influential factors on Children that have influenced on family purchase decision.

This study has admitted that offspring have impact over family purchase decisions for an extensive product range. This study was conducted to survey the overall influence of children purchase related decision made by families regarding children and family related products. In this case a sample of parent’s having children aged up to 6 to 13 will be considered in this project research.

Children are serving as the role of consumers these days and are influencing in the purchase decision directly and indirectly. Children of today are generally known as consumers, buyers, spenders, shoppers and in general influencers towards purchasing decisions. Nowadays children have more autonomy and dominancy within the families as compared to the previous generations, so it makes a clear picture that children are vocal about their needs and wants towards their parents. Generally study of children as a influencer plays a very important role for markers, researchers in identifying the factors which tends to stimulate the kids in influencing their parents for making the purchase decision.

Families tend to play an important role for giving diversified trends of purchasing behavior patterns to the marketers and researchers. The process as a whole syndicates the individuals with a big society where the individual tend to learn diversified roles which plays an important part in adult life (foxall, 1977). The means in which the broods are becoming customers or large influencers is due to family influence (Ward, 1947). This culture of family influence has now shifted its phase towards influences of children towards the buying decision process

The involvement of each family member in the purchasing of certain products & services and the ones that is utilizing the benefit out of that product or service is an important piece of information for marketers and researchers. Researches have suggested that generally in families the small member enjoys a lot of great influence when purchase decision is being made. The emerging conditions of today have dramatically affected the structures of the family as well as their areas of responsibilities. Generally the demographical and the social shifting have led to decrease in the influences of parents and it has rather passed on to their children. The influence level of children has reached the highest level in all times (Flurry, 2006). Topic of influences by child on purchase decision has got the attention of many researchers and marketers (laroche, Yang, Kim, & Richard, 2007). Manufacturers do realize the fact that generally small families tend to have higher disposable incomes which is why they aim to target and get children more involved towards the impact in the buying decision of the product and the service.

Past researches have suggested that kids’ impact in the family purchase decision is found to be varied, based on the decision related factors to the product, as well as with family characteristics and parental child. In the past researches there were a number of problems identified with the level of construct, too much of dependence was seen on the survey technique followed by non existence of theoretical model based issues of influence of the children. In the early times researches were generally done in identification of the differences in the influence of spouse; and the part of kid was overlooked, (Berey, Lewis A, & Richard W. Pollay, 1968); (Ferber, 1973); (Davis, 1976); (MacDonald , 1980); (Scanzoni, 1980); (Miller et al, 1982). In the recent times children’s importance in the family purchase decision has been increasingly valued, therefore while researching on the purchase decision influence, researchers should include children as an important factor for tracking down the influence patterns of purchase decision within the families.

1.1 Significance of Research

In the Scenario of today’s increased competition and the rapid changes in the socio-economic environment, it is becoming increasingly crucial especially for marketers to become consumer oriented i.e., focusing more towards what consumers wants. Generally the purchasing behavior of consumer plays an important role in the strategic market scheduling especially for the marketers and researchers. In the recent years there was quite an increase in the consumer behavior, which has resulted in the development of new dimensions and increased knowledge scope of marketers and researchers. Keeping this in view, it is very much important for the entrepreneurs to know about the insights of the consuumers and to gauge those elements which result in the way in which the consumers respond towards any product / service.

Hence in order to gauge the rapid shifts in the cultural and social class aspect, this research will intend to identify and explain and likely changes that that have led the children to become immediate consumers of the product and in some cases have become major influencer in the purchase decision within the family. This research will help the marketers in understanding the various roles of children within a family; moreover it would help to analyze how the influence and dominance of children varies based on diversified range of the product categories. Marketers will also have an idea of what are the stimulating factors within different product categories and that the level of socio-cultural changes which have caused rapid changes in the purchase influence of children within a family.

1.2 Problem Statement

- To study various aspects of offspring influence on family purchase decisions, role of demographic factors/variables and parental profession on children in family buying decisions.
- Study the practical aspects of theoretical model for influence of child on family purchase decision and its relation to variables factors.
- How children influence result in re-socialization of parents.

1.3 Research Questions

Q1: What are the roles of children in decision of purchases within a family?

Q2: What are the Demographic factors which results in stimulating children to influence in the family buying decision?

Q3: What are the diversified product categories which results in varies children influences on purchase decision and whether the influence is high or low in branded or unbranded products?

1.4 Hypothesis

- H1: Family decisions are significantly impacted by children.
- H2: Children are more concerned about purchasing products which are related to their interest than ones which relates to family interest.
- H3: Children tend to impact more on family purchase decision, with the Moderation of changes in the demographics.
- H4: Children are likely to have less influence in the repeat purchases of unbranded products

1.5 Research Objectives

The main objectives of this research include:

- To study the changes in the amount of influence applied by children in the buying of same branded / unbranded products.
- To study the impact of children, mother and overall characteristics of family on children’s influence on parents buying decisions.
- To analyze the effect of Demographics on family purchase decision making.
- To examine the role of children in family buying decisions with respect to family and children related products

1.6 Scope

The study emphases on outcome of the children influence on family buying decision and which categories of products are more appealing to children. Furthermore, it aims to find the impact of demographic factor; social shifting and categories of products change have on family buying due to children in any period of time. For this purpose, we will carry out measurable research keeping primary and secondary data.

1.7 Justification

The purpose of this research is to provide help to the Marketing personnel and Superstore holding personnel in managing their resources to right direction. For example, allocating the categories of products for children, demographical factors and the social shifting. Which actively have impact on the prior mentioned areas and create a firm influence in family’s decision. In general, using both quantitative and qualitative will ensure:

- More consistent and concrete information
- Usage of statistics to oversimplify a finding
- Reduction and restructuring a compound problem to a limited number of variables
- Looking at connections between variables which can establish cause & effect in extremely controlled circumstances
- Testing of hypothesis & theories

1.8 Limitations

Although the study applied a wide variety of perception but there are some limitations to it. Within our research we will use parents as our core respondents and hence it will allows to get their perception on children’s influence. This accuracy of the perception may or may not be true. It would be pertinent to include the perception of children also, and then compare these perceptions. However, this may not valid enough to execute and evaluate children’s influence in a collective manner especially where a family possess more than one child.

- Convenience sampling is one o the limitation of this research. This research is conducted only in Karachi because of the mobility issues. To reach a representative sample and reduce the effect of this limitation interviews were conducted in different region of Karachi.
- Language problem will also be confronted during conducting the interview especially with (housewife). They might not be comfortable using the English language, hence the interview will be conducted in Urdu language, therefore while translating the interviews questions, the true crux of the words might be lost.
- The findings of qualitative research will be altered when they are regarded as conclusive and are used to make generalizations to the population of interest.
- Budget constraints will also be faced.

1.9 Assumptions

- Families should provide the needful information regarding their children responses about products.
- Families should to select products more beneficial for their children.
- Family decisions in purchasing the product should be based upon the benefits of children, rather than their interest.

Selection of economical products should be kept in view

CHAPTER NO. 2l2.0 Theoretical Framework

The above model is adapted from (Adya sharma, Vandana sonwaney, 2014). This original model explains that learning is two way process and that parents tend to learn even from their children to become consumers. These days, children are a major element in the family which have too much power in influencing and convincing their parents in family purchasse releted decisions. Generally Children found in Pakistan were purchase by themselves, gave significance to brand .When making purchase decisions children who are more involved in family decisions will practice greater pleasure with decision. While conducting the market research there has been an increase in the requirement to comprehend the effect of broods on numerous different types of family purchase related choice/decisions.

2.1.1 Parent’s demographics

For the most part the Role of family the most vital component of socialization for kids and it has been considered on opportune premise. Parents are distinguished to be relied on upon their children as an administrators of socialization in regards to family buy. This typically happens when a parent does not have a spouse to impart to the encounters. A study led in India depicted that folks who intend to co overview, clearing up and show kids the TV ads could help them to deal with their obtaining response inside family principles Families on socialization. Joint families are portrayed as families where parents and youngsters live respectively.

2.1.2 Employment status

Employment status plans to has imperative impact in the lives of the youngsters. Mother is generally considered to be the the most noteworthy part in the socialization process of their kids, and this has been emphasized in various researches. The effect of mother's association on Socialization of youngsters was highlighted and moms were delegated every regular. However the position of Fathers is by all accounts exceptionally lower when contrasted with the mother in general family correspondence's example. At the interim study show that working moms have a incline of disgrace of not possessed the capacity to giving much time to her youngsters. Mothers generally compensate in a way that they tend to spend money and giveaways to their children. Furthermore mother's unlucky deficiency has extended the large portion of choices making taken by kids. For this reason it has affected / expanded the influence o the children through a greater extent.

2.1.3 Socio Economic Status

Financial status of a family sometimes have a strong affect on the impact of family on kids. Hence young people from better financial status by and large tend than mingle speedier when contrasted with youngsters from lower SEC. As the kids have a tendency to mingle speedier they take in more and their data compass about the business sector and general information of the items builds, this permits them to impact their guardians.

2.1.4 Family Communication

In foreseeing the socialization of tyke, effective parental correspondence has had significant impact. However the general impact of parental correspondence in Child's apparent impact still stays new. Study additionally exhibited that Child's apparent to impact predominant for Plurastic and Consensual folks. Youngsters with folks that have unrivaled level of thought introduction will keep up more impact than offspring of folks with predominant level of socio introduction. Folks with thought arranged correspondence counsel their kids and quality their conclusion.

2.1.5 Childs demographics (Age of the child)

Numerous different theeoretical models have focused on the impact of age on the children to influence in the family purchase decision. Furthermore with develop in age , impact of youngsters has been found to addition in family purchase, Older kids liked to pick a more noteworthy a greater amount of their attire for Older youngsters were found to impact family decisions about gaining furniture and autos and more established kids were more brand and cost mindful than more youthful kids.

2.1.6 Number of children

Research explains that as the no. of childre in a particular family inccreases, the approach of parents intends to become more preventive. Contrary, those children which have smaller families tend to become gain consumer capabilities before. This factor is really important as the impact of influence of the children on family decisions also tend too depend on the number of children that each family possess. Those families which have less no. of children tend to have less talks about the usage and overall precurement of thee products as compared to those families which have large of children.

2.1.7 Gender

Difference in the gender and its likely impact on the children to influence in the purchase related decisions have been explained in various studies. Some other researches describe that there is no association with gender i.e., no different in the influential level of male and female. While some studies targeted females as a strong influencer while other targeted male as a strong influencer.

2.1.8 Type of product

Type of the product also plays an important part in impacting the children. Generally it is identified that children with those products which are related to their interest level tends to have more influence as compared to those products which are not related to their interest level. According to Pakistan aspects researches suggests that children have more influence on selection of their related choice of products as compared to those products which are used for family consumption.

2.1.9 Proposed Model

However, keeping in view our current research study and scope we have amended and proposed the below model and have focused on those variables which in turn impact the children to influence their parents, which results in overall influence in the family purchase decision. We have selected the below five elements and have tested through quantitative research, the overall impact that these variables tend to have on children to influence on the overall family purchase decision

CHAPTER NO. 3 3.0 Literature Review

3.1 Role and importance of children in purchase decision

The powers of children in family buying process are because of numerous reasons. They exercise their influence through various ways, which varies in relation to products. Children influence significantly based on the parent education, their occupation, earnings, whether single working parent or both. Our research thesis is based on children in the age group of 6-13 in Pakistan.

The children tend to pressurize their parent maxim+6um for the products relating to their hobbies. Significant important influence operating on family purchase behavior is the budget allocation, and consumption pattern. The birth of a child generates need for products that couple never considers for buying previously. The current development of consumer behavior has established much new scope in the field of marketing. Family as customer has preserved important role in marketing and consumer behavior. With passage of time as children emerge as a consumer; their influence on family buying may also be increase. It is likely to say that, the cultural variables effect the process of socialization of the children.

1. Settled with parent observation.
2. Request and settled with parent decision.
3. Informed parent and selecting with their permission
4. Informed parent and making independent purchases
5. Going alone and making independent purchases

[...]

Details

Pages
43
Year
2015
ISBN (eBook)
9783668056893
ISBN (Book)
9783668056909
File size
915 KB
Language
English
Catalog Number
v305644
Institution / College
Shaheed Zulfikar Ali Bhutto Institute of Science & Technology
Grade
Tags
influence children family purchase decisions

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Title: Influence of Children on Family Purchase  Decisions