CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
A family is a group of two or more
persons related by blood, marriage or adoption who reside together. There are
two main types of family, nuclear and extended family. The nuclear family is
the immediate group of father mother and children living together. The extended
family includes the nuclear family plus other relatives such as grandparents,
uncles and aunts, cousins, and in-laws. The family into which one is born is
called the family of orientation, whereas the one established by marriage is
the family of procreation. Household is another term frequently used by
marketers when describing consumer behavior. Household differs from family, in
that household describe all the persons both related and unrelated who occupy a
housing unit. Families have higher median incomes than do households because of
the greater number of employed individuals in families. For both families and
households the four structural variables that impact purchasing decisions most
and that are therefore of primary interest to marketers are the age of head of
household or family, marital status, presence of children and employment
status. However, the way families make decision can be better understood by
consulting sociological dimensions such as cohesion, adaptability and
communication.
Family decision making is the process
by which decisions that directly or indirectly involve two or more family
members are made. Decision making by a group such as family members differ in
many ways from decisions made by an individual.
Family purchase are often compared to
organizational buying decision, while this can produce useful insight, it fails
to capture the essence of family decision making. Organizations have relatively
objective criteria such as profit maximization that guide purchase. Families
have such explicit, overarching goods.
Most importantly
many families purchase are inherently emotional and affect the relationships
between the family members. The process families use to make purchase decisions
and the outcomes of those process have important impacts in the well-being of
the individual family members and the family itself. Thus while family decision
making has some things in common with organizational decision making it is not
the same.
1.2
STATEMENT OF THE
PROBLEM
Formulating an effective marketing
strategy for most consumer products require a thorough understanding of the
family decision-making process in the selected target marketers with respect to
that product. It is pertinent to discover which family members are involved at
each stage of the decision process, determine what their motivations and
interest are and then develop a marketing strategy that will meet the needs of each
participant.
However many organization do not
endeavor to appraise family decision making process in the selected target
market regarding the organizations product. They do not endeavor to determine
which family members are involved at each stage of the decision process neither
do they know what their motivations and interest are.
Therefore the problem confronting this
research is to appraise family decision making and purchase roles with a case
study of Nestle Plc.
1.3
RESEARCH QUESTION
1. What
is the nature of family decision making?
2.
What
is the nature of family purchase roles?
3.
What
is the nature of family decision making and purchase roles in Nestle Plc?
1.4
OBJECTIVE OF THE
STUDY
1. To determine the nature of family decision making.
2.
To
determine the nature of family purchase roles.
3.
To
appraise the nature of family decision making and purchase roles in Nestle Plc.
1.5
SIGNIFICANCE OF TE
STUDY
The study shall provide a structural
appraisal of the nature of family decision making and purchase role with a case
study of Nestle Plc. It shall also serve as a source of information to managers
and other professionals.
1.6
STATEMENT OF
HYPOTHESIS
1. Ho
level of family patronage in Nestle plc is low.
Hi level of family
patronage in Nestle plc is high.
2.
Ho
family decision making and purchase role is not given significant attention in
Nestle plc.
Hi family decision
making and purchase role is given significant attention in Nestle plc.
3.
Ho
the impact of family decision making and purchase role in Nestle plc is low.
Hi the impact of
family decision making and purchase role in Nestle plc is high.
1.7
SCOPE OF THE STUDY
The study focuses
on the appraisal of family decision making and purchase roles with a case study
of Nestle plc.
1.8
DEFINITION OF
TERMS
FAMILY DEFINED: A family is a group of two or more
persons related by blood, marriage or adoption who reside together.
FAMILY DECISION MAKING: Family decision
making is the process by which decisions that directly or indirectly involve
two or more family members are made.
DECISION MAKER: The person who makes the final
decisions, of course joint decision is likely to occur.
INITIATOR: The family member who first recognizes a
need or start the purchase process.
INFORMATION GATHERER: The individual who
has expertise and interest in particular purchase.
INFLUENCER: The person, who influences the
alternatives, evaluated the criteria considered and the final choice.
REFERENCES
David .Land Albert
.J. (2002) Consumer Behavior, New Delhi
Del .I. H, Roger
.J. and Renneth .A. (2011) Consumer Behavior Building Marketing Strategy New
York
Eric .A, Linda .P,
and George .Z (2002) Consumer; New York Mcgran Hill
James F.E, Roger D.B
and Paul W.M (1990) Consumer Behavior USA, The Dryden Press