Rpw Final Repaired)

8/6/2019 Rpw Final Repaired)

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Chapter 1

INTRODUCTION


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INTRODUCTION

1.1 MARKETING INDUNDATION AND THE YOUNGER GENERATION

Increasing levels of social stimulation is inundating todays younger lot. Particularly

caught in the web of marketing information are children, teenagers and young college and

university-goers. Marketers over the globe are targeting this younger lot, which

interestingly makes up for a large (more than 50%) share of Indias total population, as

they have proven to be influential vehicles of marketing and prospective adult consumers.

These adults have their own purchase power and influence over the buying decisions of

family. Since my study concerns teenagers, in the age group of 13 to 19 years, I shall be

focusing on this segment only.

Adults contribute in the various stages of decision making process of various products in

families. Different factors could underlie their role. Adulthood is a stage where teenagers

are supposed to have had enough interaction with the external environment. This stage is

also characterized by an appreciable sense and ability of decision making as regards the

purchase of individual or family-owned goods and services. Today children have more

autonomy and decision-making power within the family than in previous generations.

The amount of influence exerted by children varies by product category and stage of the

decision making process. There is great concern about children as viewers of

advertisements primarily because young children are exposed to thousands of

commercials each year in India as well as in the West. All these considerations have

opened a plethora of new avenues for manufacturing and service firms catering to

children segment of the world market and India is not behind in the fray.


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1.2 AN OVERVIEW OF FAMILY

Family is defined as two or more people related by blood, marriage or adoption who

reside together. (Consumer Behaviour, Kanuk and Schiffman).

The family is a complex and ever-evolving core institution in many of the worlds

societies and nations. It is also a major influence on the consumer behavior of its

members among which children form an important and indispensable part. A child learns

how to enjoy a product from the market by observing an older brother or sister and learns

the use and value of money by listening to and watching his or her parents. Decisions

about a new car, vacation, shopping for getting necessary equipments for a typical Indian

wedding etc are all tabled before an entire family. The family commonly provides the

opportunity for product exposure and trial and imparts consumption values to its

members. As a consumption unit a family is also a prime target for many products and

services. To determine how the family goes about making its purchase and how family

affects the future purchase behavior of its members, its of vital importance to understand

the power of influence each member possesses from a marketers point of view.


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1.3 TYPS OF FAMILIES

THERE ARE MAIN THREE TYPES OF FAMILIES:-

a) THE MARRIED COUPLE:-

The simplest type of family, in number of member, is married couple-a husband and a

wife. As a household unit, the married couple generally is representative of new marriedwho have not yet started a family, and older couples who have already raised there

children.

b) THE NUCLEAR FAMILY:

A husband and wife and one or more children constitute a nuclear family. This

type if family is still commonplace but has been on decline.

c) THE EXTENDED FAMILY:

The nuclear family, together with at least one grandparent living within the

household, is called an extended family.


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1.4FAMILY LIFE CYCLE

The FLC is a composite variable created by systematically combining such commonly useddemographic variables as material status, size of family, age of family members(focusing on the

age of the oldest or youngest child),and employment status of the head of household. The ages of

the parents and relative amount of disposable income usually are inferred from the stage in the

family life cycle.

TRADITIONAL FAMILY LIFE CYCLE:

The traditional family life cycle is a progression of stages through which many families pass,

starting from brotherhood, moving on the marriage (and the creation of the basic family unit),

then to family growth (with the birth of children), to family contraction (as grown children leave

the household), and ending with the dissolution of the basic unit (due to the death of the spouse).

The traditional FLC models can be synthesized into just five basic stages, as follows

1) STAGE I BACHELORHOOD: Young single adult living apart from parents.

2) STAGE II HONEYMOONERS:Young married couple.

3) STAGE III PARENTHOOD: Married couple with at least one child living at home.

4) SATAGE IV POST PARENTHOOD: An older married couple with no children living

at home.

5) STAGE V DISSOLUTION: One surviving spouse.


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1.5 FAMILY SPECIFIC CHARACTERISTICS

There are a number of additional variables that have been found to influence the nature ofpurchasing decisions made within the family. There are certain influencing factor given below

CULTURE:

The role of husband and wives may differ dramatically from culture, which may result in

numerous difference in there decision making and also there children.

SUB- CULTURE:

In addition to cultural variations from one country to another, there are also subculture or ethnic

variation in consumer behavior within a countrys heterogeneous population.

SOCIAL CLASS:

Several studies on the relationship of socioeconomic class and joint participant in purchase

decision-making have indicated that a curvilinear relationship exists.

STAGE IN LIFE CYCLE:

The nature of family decision making changes over the life cycle. FOR EXAMPLE:- wives

with pre-school-age children have considerably less independent responsibility for economic

decision than do other wives. But the trend is being changing, now the children have good

participation in the decision making process.

GEOGRAPHICAL LCATION:

Limited research on the influence of place of residence on family decision-making indicates that

rural families have a higher frequency of joint decisions than do urban families. In urban area the

childrens participation in decision making is higher than rural areas children.


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CHILDREN:

Based on a study of purchasing-decision process by families as opposed to couples without

children, husbands tended to dominate decision making more in families.

1.5 FAMILY ROLES

Marketers recognize the family as the basic decision-making unit, even though they

frequently analyze the attitudes and behavior of the one family member or members

whom they believe to be the principal decision makers. In some cases they also examine

the attitudes and behavior of the person most likely to be the primary user of the product

or service.

Family Roles

For a family to function as a cohesive unit, roles or tasks such as doing the laundry,

preparing meals, setting the dinner table, taking out garbage et al must be carried out by

one or more family members. In a dynamic society, family-related roles are rapidly

changing. For example, given the substantial number of married women working outside

the home, growth in the middle-class income and a shift towards more responsibility on

young adults of looking after the household needs in the absence of their parents,

marketers must be particularly sensitive to how shifting family roles is bringing about a

paradigm shift in the power and balance or imbalance of influence of members on each

other. Additionally, they must be careful to phrase their marketing strategies, promotional

campaigns, advertisements in ways that are appropriate and acceptable to their target

markets.


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Key Family Consumption Roles

The marketing experts have chalked out eight distinct roles in the family decision making

process. A closer look at these roles provides an insight into how family members

interact in their various consumption-related roles:

Influencers: Family members(s) who provide information to other members about

a product or service.

Gatekeepers: Family members(s) who control the flow of information about a

product or service into the family.

Deciders: Family member(s) with the power to determine unilaterally or jointly

whether to shop for, purchase, use, consume, or dispose off a specific product or

service.

Buyers: Family member(s) who make the actual purchase of a product or service.

Preparers: Family member(s) who transform a product into a form suitable for

consumption by other family members.

Users: Family member(s) who use or consume a particular product or service.

Maintainers: Family member(s) who service or repair the product so that it will

provide continued satisfaction.

Disposers: Family member(s) who initiate or carry out the disposal or

discontinuation of a particular product or service.


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1.7CHILDREN TO TEENAGERS

Children

As parents know young children attempt to influence family decisions as soon as they

possess the basic communication skills needed to interact with other family members.

Older children are more likely to participate directly in family consumption decisions.

The parent-child relationship, as it relates to consumer behaviour, can be viewed as an

influence-versus-yield situation. Specifically children attempt to influence their parents to

make a purchase (to yield). They not only attempt to influence their parents to make

purchases of particular interest to them (video games, chocolates etc) but also products of

remote or family interest (refrigerator, TV etc).

Teenagers

Experts on the teen market have identified a variety of factors as to why they are a

particularly significant target market. According to one expert there are six key reasons

why teenagers deserve marketers special attention.

1.Teens spend a lot of money: The sheer buying power of

teenagers make them an attractive consumer audience. They spend huge money of

their own; more than 65% of them have a savings account while about 20% have a

credit card.2.Teens also spend family money: Teenagers spend a lot of their

family money besides their own. This is especially critical, because many

households with teenagers have both parents working full-time and, therefore,

more of the familys shopping responsibilities are being delegated to teen children.


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3.Teens influence what the family buys: When shopping

with their parents, teens influence their family purchases; they suggest their

preferred brands, even when they are not shopping with their parents, when their

parents seek their advice or when they ask for a gift.

4.Teens are trendsetters:Teens also influence fads and fashion in

many different product categories.

5.Teens are a growing market:The teen population is a ballooninggrowth-path and its increasing by the day. It may even be encroaching on other

consumer groups

6.Teens are future consumers: Most developing countries of the

world are experiencing a peculiar population growth. India has lots of potential

teen market waiting in near future and its an opportunity to make out of them

loyal and devoted customers and consumers. This is a strategically important

move because teens represent the future lifeblood for many brands.


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FUTURE MARKET:

A large number of marketers target children and parents, not only due to the pester power of

children, but also to build their loyalty toward the brand. Children are future customers and their

aspiration in the present affects their future preferences. Forexample, a boy who admires his

father and observe him using Gillette aftershave lotion everyday, associate the brand with his

father. The brand loyalty in children generally develops from inter-generational socialization and

from marketing targeted to positively influence children and convert them early into brand loyal.

In this cradle to grave strategy, marketers try to touch all aspects of childrens life and to

meaningful to them. An example is an adult wear brand entering the youth and kids market. This

leads to strong affiliation with the brand early in life in case of a positive usage experience.


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1.9CONSUMER DECISION MAKING PROCESSES

Traditionally, consumer researchers have approached decision making process from a rational

perspective. This dominant school of thought views consumers as being cognitive (i.e., problem-

solving) and, to some but a lesser degree, emotional. Such a view is reflected in the stage modelof a typical buying process (often called the consumer information processing model).

The Consumer Information Processing Model

Problem Recognition

Information Search

Evaluation and Selection of Alternatives

Decision Implementation

Post-purchase Evaluation


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In this model, the consumer passes through five stages: problem recognition, information

search, evaluation and selection of alternatives, decision implementation, and post-purchase

evaluation.

PROBLEM RECOGNIYION:

In this information processing model, the consumer buying process begins when the buyer

recognizes a problem or need. For example, Doug may realize that his best suit doesnt look

contemporary any more. Or, a girl, Sana, may recognize that her personal computer is not

performing as well as she thought it should. These are the kinds of problem that we as

consumers encounter all the time. When we found out a difference between the actual state

and a desired state, a problem is recognized. When we find a problem, we usually try to solve

the problem. We, in other words, recognize the need to solve the problem.

INFORMATION SEARCH:

When a consumer discovers a problem, he/she is likely to search for more information. Sana

may simply pay more attention to product information of a personal computer. She becomes

more attentive to computer ads, computers purchased by her friends, and peer conversations

about computers. Or, she may more actively seek information by visiting stores, talking to

friends, or reading computer magazines, among others. Through gathering information, the

consumer learns more about some brands that compete in the market and their features andcharacteristics. Theoretically, there is a total setof brands available to Sana, but she will

become aware of only a subset of the brands (awareness set) in the market. Some of these

brands may satisfy her initial buying criteria, such as price and processing speed (consideration

set). As Sana proceeds to more information search, only a few will remain as strong candidates

(choice set).

EVALUATION AN SELECTION ALTERNATIVE:

How does the consumer process competitive brand information and evaluate the value of the

brands? Unfortunately there is no single, simple evaluation process applied by all consumers or

by one consumer in all buying situations.


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One dominant view, however, is to see the evaluation process as being cognitively driven and

rational. Under this view, a consumer is trying to solve the problem and ultimately satisfying

his/her need. In other words, he/she will look for problem-solvingbenefits from the product.

The consumer, then, looks for products with a certain set of attributes that deliver the benefits.

Thus, the consumer sees each product as a bundle of attributes with different levels of ability ofdelivering the problem solving benefits to satisfy his/her need. The distinctions among the

need, benefits, and attributes are very important. One useful way to organize the relationships

among the three is a hierarchical one. Although simplified, Figure below is an example of how a

bundle of attributes (i.e., a product or, more specifically, personal computer) relates to the

benefits and underlying needs of Sana.

Hierarchical View of Needs, Benefits, and Attributes

Underlying Needs

Benefits

AttributesSize

Portability

PriceCPU Speed

Computational

Horse PowerEconomy

Hard Drive Size

Software

Bundle

Helps Me Survive

Babson MBA Pogram

Doesnt Break

down

Brand

Reputation

Warranty

lobeNet

Ready


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From this figure and the preceding discussion, we might recognize that the product attributes are

relevant and important only to the extent that they lead to a certain set of benefits. Likewise,

benefits are meaningful only if they can address the problem and be instrumental to satisfy the

underlying need. As the underlying need is often personal, consumers differ as to their beliefs

about what product benefits and attributes are more (or less) important and relevant in satisfying

their needs. Based on their personal judgment on importance of benefits and attributes,

consumers develop a set of attitudes (or preferences) toward the various brands. One may

express his/her preferences of the brands in terms of ranking, probability of choice, and so forth.

DECISION IMPLEMENTATION:

To actually implement the purchase decision, however, a consumer needs to select both specific

items (brands) and specific outlets (where to buy) to resolve the problems. There are, in fact,

three ways these decisions can be made: 1) simultaneously; 2) item first, outlet second; or 3)outlet first, item second. In many situations, consumers engage in a simultaneous selection

process of stores and brands. For example, in our Sanas personal computer case, she may select

a set of brands based on both the products technical features (attributes) and availability of

brands in the computer stores and mail-order catalogs she knows well. It is also possible, that

she decides where to buy and then chooses one or two brands the store carries. Once the brand

and outlet have been decided, the consumer moves on to the transaction (buying).

POST-PURCHASE EVALUATION:

Post-purchase evaluation processes are directly influenced by the type of preceding decision-

making process. Directly relevant here is the level of purchase involvement of the consumer.

Purchase involvement is often referred to as the level of concern for or interest in the purchase

situation, and it determines how extensively the consumer searches information in making a

purchase decision. Although purchase involvement is viewed as a continuum (from low to high),

it is useful to consider two extreme cases here. Suppose one buys a certain brand of product

(e.g., Diet Pepsi) as a matter of habit (habitual purchase). For him/her, buying a cola drink is a

very low purchase involvement situation, and he/she is not likely to search and evaluate product

information extensively. In such a case, the consumer would simply purchase, consume and/or

dispose of the product with very limited post-purchase evaluation, and generally maintain a high

level of repeat purchase motivation .

Low Involvement Purchas

Purchase Product UseSimple

EvaluationDisposition

Repeat Purchase

Motivation


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However, if the purchase involvement is high and the consumer is involved in extensive

purchase decision making (e.g., personal computer), he/she is more likely to be involved in more

elaborate post-purchase evaluation often by questioning the rightness of the decision: Did I

make the right choice? Should I have gone with other brand? This is a common reaction aftermaking a difficult, complex, relatively permanent decision. This type of doubt and anxiety is

referred to as post-purchase cognitive dissonance.

Elaborate Post-purchase Evaluation

According to the research, the likelihood of experiencing this kind of dissonance and themagnitude of it is a function of:

i

y The degree of commitment or irrevocability of the decision,

y The importance of the decision to the consumer,

y The difficulty of choosing among the alternatives, and

y The individuals tendency to experience anxiety.

Because dissonance is uncomfortable, the consumer may use one or more of the following

approaches to reduce it:ii

y Increase the desirability of the brand purchased.

y Decrease the desirability of rejected alternatives.

y Decrease the importance of the purchase decision.

y Reject the negative data on the brand purchased.

urchase roduct selaborate

valuationisposition

issatis action

Repeat urchase

otivation

ost-purchase

issonance


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If the dissonance about the purchase is not reduced, the anxiety may transform into a

dissatisfaction (general or specific). Certainly, this negative experience leads to a new problem

recognition (Figure 1), and the consumer will engage in another problem solving process. The

difference, however, is that in the next round of process, memory of the previous negative

experience and dissatisfaction will be used as part of information. Therefore, the probability for

the unsatisfactory brand to be re-selected and repurchased will be significantly lower than before.


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Thereare fivestages of consumerbehavior:

1) Problem recognition.

2) Information search.

3) Alternative evaluation.

4) Purchase decision.

5) Post- purchase decision.

Problemrecognition

:

Perceivinga need

Informationsearch:

Seekinvalue

Alternativeevaluation:

Assessing value

Purchasedecision:

Buyingvalue

Post-purchasebehaviour:

value inconsumption or

use


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1.10STAGES DECISION MAKING

The process of decision making consists of three key stages: (1) Need

recognition, (2) information search and (3) evaluation of alternatives.

Need recognition

The recognition of need is likely to occur when a consumer is faced with a

problem. Among consumers, there seem to be two different need or problem

recognition styles. Some consumers are actual state types, who perceive that they

have a problem when a product fails to perform satisfactorily (e.g. a wrist watch

no longer keeps accurate time). In contrast, other consumers are desired state

types, for whom the desire for something new may trigger the decision process.

Need or problem recognition can also be viewed as eithersimple or complex.

Simple problem recognition refers to the needs that occur frequently and that can

be dealt with almost automatically and in a swift manner e.g. feeling hungry and

buying something to eat to feed the hunger. Complex problem recognition,

however, is characterized by as a state in which a problem develops over time, as

the actual state and the desired state gradually move apart. For example, after

several years of driving a car, the owner may begin to consider trading it in for a

new one to avoid growing repair bills.

Information search

Information search begins when a consumer perceives a need that might be

satisfied by a purchase and consumption of a product. The recollection of the past

experiences (long term memory storage) might provide the consumer with

adequate information to make the present choice. On the other hand, when the

consumer has had no prior experience, he or she may have to engage in extensive

search of the outside environment for useful information on which to base the

choice. Past experience is considered to be the internal source of information


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regarding a given consumption related need. The greater the relevant past

experience, the less external information the consumer is likely to need to reach a

decision. The degree of perceived risk can also influence this stage of decision

making. In high-risk situations, consumers are likely to engage in complexinformation and evaluation; in a low-risk situation, they are likely to use very

simple search or evaluation tactics.

Evaluation of alternatives

When evaluating potential alternatives, consumers tend to use two types ofinformation: (1) list of brands from which they plan to make their selection

(evoked set) and (2) the criteria they will use to evaluate each brand.

Evoked set: within the context of consumer decision making, the evoked set refers

to the specific brands a consumer considers in making a purchase within a

particular product category e.g. in the sports shoes brands like Nike, Addidas,

Campus, etc. A consumers evoked set is distinguished from his or her ineptset,

which consists of the brands the consumer excludes from purchase considerations

because they are felt to be unacceptable and from the inertset, which consists of

the brands the consumer is indifferent toward because they are perceived as not

having any particular advantage. The evoked set consists of the small number of

brands the consumer is familiar with, remembers and finds acceptable.


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FEEDBACK

CONSUMER DECISION MAKING PROCESS

PROBLEM

RECOGNITION

INFORMATION

SEARCH

EVALUATION

OF

ALTERNATIVE

PURCHASE POST-

PURCHASE

EVALUATION

DIVESTMENT


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CONSUMER DECISION MAKING CYCLE

NEED

RECOGNITION

INFIRMATION

SEARCH

EVALUATION

ALTERNATIVE

PURCHASE

DECISION

PURCHASE

EVELUATION


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Howard Howard Howard Howard ?

London

Wharton Wharton Wharton

Copenhagen

Ross Ross Ross Ross

Stanford Stanford Stanford Stanford

Columbia

Kellogg

TOTAL

SET

AWERENESS

SET

CONSIDRAT-

IO

N SET

CHOICE

SET

DECISIUON


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Chapter 2

Study and Research

Methodology


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2.1 Objective of the studyObjectives

(a) To study the role teenagers play in the family purchase decision-making.

(b) To study the orientation of teenagers influence between products for family

consumption and individual consumption.

(c) To study the out factors that give teenagers power to influence the decision-

making process.

2.2 Hypothesis

1. Teenagers exert considerable influence on family purchase decisions.

2. Teenagers have greater say as regards decisions related to purchaseof their own consumption rather than those of family or general

consumption


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2.3 Research Methodology

Nature of the study

y

Exploratory in naturey Largely based on primary data

y Sampling method: Convenience sampling

y Sample size = 150

y Study conducted in Kanpur city

y Period of study: April, May 2009

Respondents

y Age group 13 to 19

y Mostly school-going teenagers

y Kanpur city residents

2.4 Data collection technique

A questionnaire containing 18 statements was administered to 150 respondents. 11

of the statements were analyzed using a 5 point rating scale while the remaining 7

had options against them.


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Chapter 3DATA ANALYSIS AND INTERPRETATION


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Statistics

Gender

N Valid 150Missing 0

Frequency Percent Valid PercentCumulative

Percent

Valid Male 92 61.3 61.3 61.3Female 58 38.7 38.7 100.0

Total 150 100.0 100.0

Female

Male

gender


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Data Analysis and Interpretation

The data has been analyzed using the software Statistical Package for Social

Sciences (SPSS). For statements ranging from 1 to 11 a five point rating scale has

been used to elicit the right degree of respondents agreement/disagreement or their

indifference to a given statement.

The symbols used in the charts or graphs are as under:

Statements ranging from 12 to 18 are followed by four options and the respondents were asked to

tick off the one that most appropriately represented their choice or preference.

Strongly Agree: SA

Agree: A

Neither agree nor disagree: NAND

Disagree: D

Strongly Disagree: SD


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Statement1

I play anactiveroleingatheringinformationabouta productto beboughtby me/my

family:


Percent

Valid SA 43 28.7 28.7 28.7

A 91 60.7 60.7 89.3

NAND 14 9.3 9.3 98.7

D2 1.3 1.3 100.0

Total 150 100.0 100.0


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Interpretation: As is clear from the figures, with around 28 and 70 per cent of therespondents strongly agreeing and agreeing respectively with the statement, teenagers are

found to be active participants in the early decision making stages in family purchase

decision process.

Q1

DNANDASA

F

requency

100

80

60

40

20

0

Q1


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Statement 2

My parents/eldersaskme to collect informationabouta product orservice in the

market:


Percent

ValidSA 41 27.3 27.3 27.3

A 47 31.3 31.3 58.7

NAND 42 28.0 28.0 86.7

D 16 10.7 10.7 97.3

SD 4 2.7 2.7 100.0

Total 150 100.0 100.0


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Interpretation: The statement tries to see whether teenagers by themselves look for

information about family purchases or its their parents who ask them to do so. 27 percent

strongly agree while 31 percent agree that their parents influence their information

seeking. A little over 10 percent have shown disagreement to this statement, while 28

percent have exhibited indifference.

Q2

SDDNANDASA

Frequency

50

40

30

20

10

0

Q2


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Statement 3

I gatherinformation withoutmy parents/eldersaskingmeto do it:

Frequency Percent Valid Percent

Cumulative

PercentValid

SA27 18.0 18.0 18.0

A38 25.3 25.3 43.3

NAND36 24.0 24.0 67.3

D29 19.3 19.3 86.7

SD20 13.3 13.3 100.0

Total150 100.0 100.0


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Interpretation: This statement aimed at checking the degree of independence

regarding teenagers seeking information. A mixed response has been shown by

respondents with a tilt towards their agreement with the statement.

Q3

SDDNANDASA

Frequency

40

30

20

10

0

Q3


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Statement 4

I dontaccompany my parentsto shoppingbutthey certainly keep inmindmy likes

anddislikes whilethey shop:


Percent

Valid

SA61 40.7 40.7 40.7

A54 36.0 36.0 76.7

NAND19 12.7 12.7 89.3

D14 9.3 9.3 98.7

SD2 1.3 1.3 100.0

Total 150 100.0 100.0


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Interpretation: Major chunk of the respondents agree with the statement that their

parents care about their choices even when they dont accompany their parents to

shopping. This shows the influence todays teenagers exert on their family purchase

decisions or the role they play.

Q4

SDDNANDASA

Frequency

60

40

20

0

Q4


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Statement 5

I take partinthedecisionmaking only whenitisa product ofmy interest or use:


Cumulative

PercentValid

SA46 30.7 30.7 30.7

A61 40.7 40.7 71.3

NAND 30 20.0 20.0 91.3

D6 4.0 4.0 95.3

SD7 4.7 4.7 100.0

Total150 100.0 100.0


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Interpretation: With over two-third of the respondents attesting to the view that they

take part in the purchase process when its about a product of they own use, its testimony

enough that teenagers are an important party to the decision making process.

Q5

SDDNANDASA

Freq

uency

60

40

20

0

Q5


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Statement 6

I haveno say when purchase ofa product of family useisbeingdecided upon:


Percent

Valid

SA 34 22.7 22.7 22.7

A 36 24.0 24.0 46.7

NAND 51 34.0 34.0 80.7

D 18 12.0 12.0 92.7

SD11 7.3 7.3 100.0

Total 150 100.0 100.0


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Statement 7

The purchasedecisionrelatedto a product ofmy useentirely rests with me:


Cumulative

PercentValid

SA56 37.3 37.3 37.3

A51 34.0 34.0 71.3

NAND32 21.3 21.3 92.7

D9 6.0 6.0 98.7

SD2 1.3 1.3 100.0

Total 150 100.0 100.0


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+

Interpretation: The response is of significance for marketers who want to reach out

to teenagers with products of their use as the above chart clearly indicates the

independence they enjoy regarding the purchase of their own products.

Q7

SDDNANDASA

Frequency

60

50

40

30

20

10

0

Q7


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Statement 8

My choiceisthe first priority inevery stage ofdecision-making:


Percent

Valid

SA 61 40.7 40.7 40.7

A 54 36.0 36.0 76.7

NAND 29 19.3 19.3 96.0

D 6 4.0 4.0 100.0

Total 150 100.0 100.0


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Interpretation: Decision making is not an instantaneous process. There are some

stages and a considerable time involved in the whole process. The figures above again

show the influence of teens at all stages. Marketing lessons could be drawn from this

response.

Q8

DNANDASA

Frequency

60

40

20

0

Q8


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47

Statement 9

I enjoy completeindependence when finally purchasingthe product:


Percent

Valid

SA 56 37.3 37.3 37.3

A 50 33.3 33.3 70.7

NAND 33 22.0 22.0 92.7

D 7 4.7 4.7 97.3

SD

4 2.7 2.7 100.0

Total 150 100.0 100.0


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Interpretation: This statement aimed to gauge whether the earlier responses which

showed a definite influence on the decision making was just a half-truth or teenagers

really had a say. The figures testified to the fact the last stage of purchase decision

making was also considerably influenced by teenagers.

Q9

SDDNANDASA

Frequency

60

50

40

30

20

10

0

Q9


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Statement 10

My favoritebrand/productisalways consideredinthedecisionmaking:


Cumulative

PercentValid

SA36 24.0 24.0 24.0

A69 46.0 46.0 70.0

NAND 33 22.0 22.0 92.0

D8 5.3 5.3 97.3

SD4 2.7 2.7 100.0

Total150 100.0 100.0


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Interpretation: 70 percent of the respondents attested to the view that their brand or

product preferences are always considered in the decision making process. A clear

indication for brand managers or marketers to focus upon reaching out to this segment

with well thought-out marketing programs.

Q10

SDDNANDASA

Frequency

60

40

20

0

Q10


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Statement 11

My parentsalwaysimposetheir preference overthat ofmineinthe purchase of

products of family use:


Percent

Valid

SA23 15.3 15.3 15.3

A 26 17.3 17.3 32.7

NAND45 30.0 30.0 62.7

D40 26.7 26.7 89.3

SD16 10.7 10.7 100.0

Total150 100.0 100.0


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Interpretation: A statement in disguise to check on the view whether parents forced

their opinion on teenagers was met with a mixed response with majority showing

indifference while close to 37 percent not favoring the view.

Q11

SDDN

ND

SA

Fre

e

cy

50

40

30

20

10

0

Q11


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Statement 12

I initiatethe purchase:a) Always: __________b) Often: __________ c) Sometimes: ___________

d) Rarely: _________ e) Never: __________


Percent

ValidAlways

30 20.0 20.0 20.0

Often22 14.7 14.7 34.7

Sometime70 46.7 46.7 81.3

Rarely18 12.0 12.0 93.3

Never10 6.7 6.7 100.0

Total150 100.0 100.0


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Interpretation: With around 47 percent saying they sometimes initiate the purchase,

the statement shows a bit of digression from the past responses may be because teenagers

feel a bit insecure making the first move at a crucial stage.

Q12

NeverRarelySometimeOftenAlways

Frequency

60

40

20

0

Q12


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Statement 13

I accompany my parentsto theshopping place/market:

a) Always__________b) Often ____________ c)Sometimes:_________

d) Rarely ___________e) Never _____________

e)

Q13


Percent

ValidAlways 21 14.0 14.0 14.0

Often 72 48.0 48.0 62.0

Sometime 22 14.7 14.7 76.7

Rarely 28 18.7 18.7 95.3

Never 7 4.7 4.7 100.0

Total 150 100.0 100.0


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Interpretation: 72 percent of the teenagers accompany their parents to shopping

places. Much like exposure to the products and services influences the behaviour of

consumers, exposing teenagers to the shopping situations will obviously tend to engage

them more and more in the decision making process.

Q13

NeverRarelySo etimeOftenAlways

80

60

40

20

0

Q13

Frequency


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Statement 14:

I go shopping with my parentsbecause

(a) I enjoy going out with them ______ (b) They valuemy suggestions_____

(c) They rely uponmy suggestions______(d) They forcemeto go with them______

Frequency PercentValid

PercentCumulative

Percent

Valid

I enjoy 47 31.3 31.3 31.3

Value mysuggestions 66 44.0 44.0 75.3

rely on me 25 16.7 16.7 92.0

They force me 12 8.0 8.0 100.0

Total 150 100.0 100.0


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Interpretation: Majority of the respondents (44 %) say that they go shopping with

their parents because their suggestions are given importance by their parents, while 31

percent are of the view that they simply enjoy shopping with their parents and that is their

prime motivation.

Q14

They force merely on meValue my suggestionsI enjoy

Frequency

60

40

20

0

Q14


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Statement 15

I alwaysactively take partin

a) Gathering productinformation_________b)Evaluatingalternatives:__________

c) Final purchase: __________d) All oftheabove:________e) None ofthe

above:_________

Q15


PercentCumulative

Percent

Valid Product

Information 43 28.7 28.7 28.7

Evaluation16 10.7 10.7 39.3

Final Purchase16 10.7 10.7 50.0

All Above64 42.7 42.7 92.7

None11 7.3 7.3 100.0

Total150 100.0 100.0


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Interpretation: Major chunk of the respondents are of the opinion that they

play an active part in all the decision making stages.

Q15

NoneAll AboveFinal PurchaseEvaluationProduct Information

60

40

20

0

Q15

Frequency


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Statement 16:

My choiceisinfluencedby

a) My parents:___________b)My friends_________ c)Advertisements:___________

d) None:_______e)Others, pleasespecify:_________

Q16


Percent

ValidParents 65 43.3 43.3 43.3

Friends42 28.0 28.0 71.3

Ads 14 9.3 9.3 80.7

None27 18.0 18.0 98.7

Others 2 1.3 1.3 100.0

Total 150 100.0 100.0


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Interpretation: To know whether their choices are influences by some other person,

the respondents showed that parents are the prime influencers followed by friends.

Q16

OthersNoneAdsFriendsParents

Frequency

60

40

20

0

Q16


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Statement 17:

I play greaterroleinthe purchase ofa) Products for my own use:__________ b) Products for family

use:_____________


Percent

Valid Own use 95 63.3 63.3 63.3Family use 55 36.7 36.7 100.0Total 150 100.0 100.0

Interpretation: 62 percent of the respondents are of the view that they have greater

say in the products of their individual consumption.

Q17Family useOwn use

Percent

60

40

20

0

Q17


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Statement 18:

I play animportantroleintheentiredecisionmaking processbecause

a) I have more access to market information (TV, Internet, Friendsetc)___________

b) Only I do theshopping formy family ___________c) My parents highly valuemy choices ____________d) Others, pleasespecify ____________

Q18


PercentCumulative

Percent

Valid

Marketinformation 53 35.3 35.3 35.3

Only I shop

31 20.7 20.7 56.0

value mychoices 61 40.7 40.7 96.7

Others

5 3.3 3.3 100.0

Total

150 100.0 100.0


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Interpretation: Majority of the respondents attest to the fact that they play an active

role in the entire process of decision making because their parents value their choices. Agood portion of the respondents said that they do so because they have access to the

information media and an edge over the market information.

Q18

Othersvaluemy choicesOnly I shop arketinformation

Frequency

60

40

20

0

Q18


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Chapter 4

Conclusion and Limitations


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4.1 ConclusionTeenagers form a significant part of the target of all businesses and in India this fact will

acquire more importance in the years to come. This small survey which was aimed at

gauging the influence the young blood exerts on the purchase decision making in their

families, despite its limited scope does yield some results both for the society as well as

business marketers and managers.

The first objective of the study was to know what role teenagers play in the family

purchase decision making process. As the data analysis depicts it, teenagers are no longer

passive spectators when it comes to purchase of goods and services for either their own

consumption or for general family use. They have been found to be active throughout the

whole process. For the marketers who are vying for market share and space, there are

lessons of significance to be drawn. They have to have the foresight of the trends that are

taking place in the world of teens. As it has been highlighted at the very beginning of this

study that teenagers have hold on the family money and moreover todays world offers

them opportunity to earn while learn. Besides this teenagers are future consumers and

smart marketers know its costs five times less to have a loyal customer than win a new

one. Losing the loyalty of customers has very negative repercussions for business

organizations. They need to devise marketing strategies, especially when its related to

the market of teens. Its a difficult job to get the teens stick to one kind of brand be it of a

product or service.

Thus the results show it that even in places where teenagers have not yet got the kind of

exposure that their counterparts in (say) Indias metro cities have, teenagers have jumped

into the fray of deciding for themselves about what they eat, wear, like to wear, the

college they would like to go to after higher secondary etc. The overall decision making

ability has seen a paradigm shift thanks to the increasing influence and proliferation of

electronic and digital media. Therefore the hypothesis that teenagers exert considerable

influence on the family purchase process has been tested and is true.

The second objective as to what was the orientation of the teenagers vis-a-vis their

interest in the products and services of their individual use and family use, the response

from teenagers regarding their say in the products of their own use or interest has

dominated those who opined for products of family consumption. About two-third

teenagers are more inclined towards products of their own use rather than the general

family use. This proves the second hypothesis that teenagers have greater say when it


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comes to decision related to products of their own consumption or interest rather than

those of general or family interest.

A third objective was to factor out what influences teenagers to indulge in the family

purchase decision process. Majority of the teenagers have opined that because their

parents value their contributions followed by others saying that since they have greater

access to information media like TV, internet, friends at school or college and most

importantly the market place itself.


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4.2 Recommendations

Marketing to kids is no longer kid stuff, a marketing expert has rightly observed. And

this hold even more to the teenagers as this is a stage where with their age they acquire

the decision making ability. Some recommendations which could be drawn from the

study for marketers are as follows:

y Teenagers are a growing market and they need to come up with marketing

programming especially focusing on them.

y The policies they devise shouldnt be cheating or deceiving as if at this stage

teens get a false impression about a firm, its products, employees etc it would

prove dear to the company in the longer run.

y Teenagers have considerable hold on the family money , the products must be

designed keeping in view the family budget of the target market. A deeper

analysis and research would give then ideas as where they would find a balance

between their product cost, price and the depth of teenagers pockets.

y The marketers should concentrate more on the products which teenagers directly

use for their own purposes rather that devise programs which involve teenagers

indulging in products of family purchase.

y The integrated marketing programs would be of immense good to marketers and

the firms they serve since teenagers are at some point or the other influenced by

the other social groups.

y Right communication channel need to be zeroed in on while targeting teenagers.

E.g. TV, Internet.


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4.3Limitations

Paucity of time was a major constraint.

Limited study material on this subject as very few studies have been conducted in

this field especially in Indian context.

The sample size is probably too small to generalize the findings on a large

population.

The respondents might have been biased in responding to the statements meant to

elicit honest responses.

Most of my respondents were school going teens who either might not have

understood the context of the study or they were found to be in hurry.


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BIBLIOGRAPHY

References

Books consulted

ChaudhariArjun Emotion and Reasoning;Kanuk and Schiffman Consumer Behavior, , sixth edition

AmmiChantalGlobal Consumer Behavior;

Fromthe web...

y

http://www.amsreview.org/article/kaur08-2006.pdfy http://www.consumeraffairs.com

Journalsandrelated publications

Seoul Journal of Business

Teenagers Influence On Purchase Decision-Making;Dr Julie TinAson

Children in family purchase decision making; Pavleen Kaur, Raghbir Singh


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QUESTIONNAIRECOLLEGE OF MANAGEMENT STUDIES,MC.ROBERT GANJ,KANPUR

Dear respondent,

I solicit your responses to the following questions regarding my dissertation work,

Teenagers influence on family purchase decisions , which is a part of MBA

course I am pursuing in the College of management studies, Mc.Robert ganj,

Kanpur. The information you provide shall be treated as highly confidential.

__________________________________________________________________

Demographics:

Age: ______years

Gender: Male______ Female______

Next to each statement please mark one response that best expresses the

extent to which you agree or disagree with the statement. Remember, there are

no right or wrong answersI just want your opinions.


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STATEMENT SA A NAND D SD

I play an active role in gathering information

about a product to be bought by me/my

family:

My parents/elders ask me to collect

information about a product or service in the

market:

I gather information without my

parents/elders asking me to do it:

I dont accompany my parents to shopping

but they certainly keep in mind my likes and

dislikes while they shop:

I take part in the decision making only when

it is a product of my interest or use:

I have no say when purchase of a product of

family use is being decided upon:

The purchase decision related to a product of

my use entirely rests with me:

My choice is the first priority in every stage of

decision-making:

I enjoy complete independence when finally

purchasing the product:

My favorite brand/product is always

considered in the decision making :

My parents always impose their preference

over that of mine in the purchase of productsof family use:


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PLEASE READ EACH STATEMENT CAREFULLY AND ANSWER THE QUESTION

BY FILLING IN THE APPROPRIATE BOX(S) THAT REPRESENTS YOUR

RESPONSE OR RESPONSES.

1. I initiatethe purchase:

(a) Always: __________ (b) Often: __________ (c) Sometimes: ___________

(d) Rarely: _________ (e) Never: __________

2. I accompany my parentsto theshopping place/market:

(a) Always__________ (b) Often ____________ (c) Sometimes:_________

(d) Rarely ___________(e) Never _____________

3. I go shopping with my parentsbecause

(a)I enjoy going out with them _________ (b) They valuemy

suggestions______________

(c)They rely uponmy suggestions________(d) They forcemeto go with

them___________

4. I alwaysactively take partin

(a) Gathering productinformation:_________ (b) Evaluatingalternatives:__________

(c) Final purchase: __________ (d) All oftheabove:________(e) None ofthe

above:_________

5. My choiceisinfluencedby

(a)My parents:___________ (b) My friends_________ (c) Advertisements:___________

(d) None:_______ (e) Others, pleasespecify:_________


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6. I play greaterroleinthe purchase of

(a) Products formy own use:__________ (b) Products for family use:_____________

7. I play animportantroleintheentiredecisionmaking processbecause

(a)I havemoreaccessto marketinformation (TV, Internet, Friendsetc)___________(b)Only I do theshopping formy family _______________(c)My parents highly valuemy choices _______________(d)Others, pleasespecify _________________


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THANK YOU!!


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i Hawkins, Del I., R. J. Best, and K. A. Coney (1983), Consumer Behavior: Implications for Marketing Strategy,Plano, Texas: Business Publications Inc.

ii Ibid.

Documents

Rpw Final Repaired)