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Organizational and Household Decision Making

Paper Outline

Purchase decisions for products

Customers purchase certain products depending on whether they are single, married, or divorced.

How purchase decisions for each of the following five product categories—groceries, automobiles, vacations, furniture, and appliances— are influenced by whether or not a couple has children.

III. Advertising for these products

How would you change your advertising for these products to target couples with children vs. those without.

Organizational and Household Decision Making
Making decision to purchase a product is a process that is affected by social and personal factors of the customer. Customers purchase certain products depending on whether they are single, married, or divorced. On the other hand couples with children have different purchasing behaviors compared to those who do not have children (Rohan (n.d.).
Purchase Decisions for Products
Purchase decisions for groceries are determined by the number of people consuming the products in the family. Couples with children have higher demands for healthy products and will tend to buy groceries to maintain the health of their children. The decision to purchase these products is mainly made by the mothers but in some cases the fathers also contribute towards the decision making process. On the other hand, children may be consulted about the best products they want. House-helps also contribute a lot to the kind of products to be consumed within the family. It is observed that couples with children purchase large amounts of groceries because they have children to eat them. On the other hand, couples without children have low demand for groceries compared to those with children. Decision about purchasing groceries can be made by either of the couple.
Couples without children have a higher demand for automobiles than those with children. On the other hand couples with children have higher demand for products which suit the family, for example a family car. Couples without children seek luxury and comfort in the automobile products they purchase. The purchasing behavior of vacations for couples with children shows that couples decide on the sites which will favor children. Such couples tend to purchase vacation products near their home and which can accommodate everybody. Couples without children have higher demand for vacations far away from their homes. They prefer expensive and luxurious places, and are concerned about privacy.
Furniture is bought depending on the size of the family. Couples with children tend to have higher demand for furniture which are spacious and which can accommodate a large number of people. Couples without children have high demand for fashion and style. The purchasing behavior for appliances shows that couples with children demand products which are focused on the welfare of the children. Such couples purchase appliances depending on the family size. Children have a stake in making the decision to purchase appliances (Mangleburg, 1990). On the other hand, couples without children demand appliances which are stylish and that have sense of youth.
Advertising for these Products
Advertising for groceries should target mothers and house-helps more than fathers and children because mothers and house-helps are the key decision makers about the products to be purchased. Adverts for automobiles should focus more on fathers and children than on the mothers and house helps. Fathers and children have higher tendency to purchase these products and should be targeted by adverts for automobile products. Advertising for vacations should target couples without children because they like luxury. Adverts for vacations which focus on children should be focused to couples with children. Adverts for furniture should be based on the fashion and style if the target group of customers is the couples without children. Advertising appliances should focus fathers and children more than mothers. Couples without children should also be focused to ensure they are provided with such products.
Mangleburg, T. F. (1990), “Children’s influence in purchase decisions: a review and critique.” Association for Consumer Research. Advances in Consumer Research, 17: 813-825.
Rohan (n.d.), Consumer behavior. Retrieved November 05, 2010 from; http://www-rohan.sdsu.edu/~renglish/370/notes/chapt05/index.htm.

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