AN APPRAISAL OF FAMILY DECISION MAKING AND PURCHASE ROLES A CASE STUDY OF NESTLE PLC
ABSTRACT
The research proffers an appraisal of family decision-making and purchase role. Understanding the family as a market segment and its decision and purchase role is significant to adopting appropriate marketing strategies and products to meet the need and demands of the family.
The research elucidates the nature of the family and its decision and purchase roles it provides a case study of family decision making and purchase roles in Nestle Plc.
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 decisions 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 differs in many ways from decisions made by an individual.
Family purchases are often compared to organizational buying decisions, 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 processes have important impacts on 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 requires 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 organizations do not endeavor to appraise the family decision-making process in the selected target market regarding the organization's 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, the 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 are 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, a joint decision is likely to occur.
INITIATOR: The family member who first recognizes a need or starts the purchase process.
INFORMATION GATHERER: The individual who has expertise and interest in a particular purchase.
INFLUENCER: The person, who influences the alternatives, evaluated the criteria considered and the final choice.
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