Group Influence: Households and Families (handout)

1. Group Influence:Households and Families(handout)

2. Learning Outcomes Understand trends taking place in the U.S. population with respect to households. Understand the Household Life Cycle, including the different household stages and some of their defining characteristics LO1 LO2

3. Household Types/Definitions LO1 Family household - consists of two or more related persons, one of whom owns or rents the living quarters • Nuclear Family - father, mother, children • Extended Family - includes other relatives (grandparents, aunts, uncles, cousins, in-laws) Nonfamily household - made up of people who live alone or with others to whom they are not related (30% of all HHs) • Single people • Roommates living together

4. Household Trends LO1 • Overall: Number of households is growing • • Especially nonfamily households • Delayed Marriage - Marrying at an older age • • Average age for women=24.4, men=26.5 • • More “established” when you do marry • Cohabitation - Living together outside marriage • • More individual-oriented in behavior • Dual-Career Families - Both heads working • • More discretionary $, less time available • • Important to distinguish between women who consider their job a career and women who consider it “just a job”

5. Household Trends LO1 Divorce/Single Parent Households - growing • Adopt single habits, single parent concerns • Significant role strain • Strong need for convenience items Fewer Children - trend to avoid large families • average HH size is smaller • creating larger discretionary incomes (more money to spend per child!) More children over 18 living with their parents • Shifting roles within the family?

6. All Households Families Married couples Children under 18 at home Children over 18 at home No children under 18 at home Single fathers Single mothers Other families Nonfamilies Men living alone Women living alone Other nonfamilies 110,140 77,705 60,969 24,286 5,318 31,365 1,523 7,473 7,741 32,434 10,898 16,278 5,258 100.0% 70.6 55.4 22.1 4.8 28.5 1.4 6.8 7.0 29.4 9.9 14.8 4.8 117,696 80,193 61,266 23,433 6,884 30,950 1,660 7,779 9,488 37,503 12,577 18,578 6,347 100.0% 68.1 52.1 19.9 5.8 26.3 1.4 6.6 8.1 31.9 10.7 15.8 5.4 6.9% 3.2 0.5 (3.5) 29.4 (1.3) 9.0 4.1 22.6 18.0 15.4 14.1 20.7 Family and Nonfamily Households:2000-2010 LO1 Percent Number Percent Number Percent Change (000) (000) 2000-2010

7. Household Life Cycle LO2 • The traditional Family Life Cycle:

8. Based on age and marital status of the adult members of the HH and the presence and age of childrenAssumes that HHs move into a variety of distinct and well-defined categories over timeEach stage in the life cycle poses a set of problems that HH decision makers must solve; solutions to these problems are typically based on lifestyle... Household Life Cycle LO2

9. Stages of the Household Life Cycle LO2

10. Stages of the Household Life Cycle LO2 • Younger (under 35): • Single I: young, under 35 unmarried individuals • convenience-oriented HH products, vacations, financial portfolios; bars, movies, and concerts • Young married: shared lifestyle, dual income • savings, first homes, HH furnishings, insurance • Full nest I: addition of first child; altered lifestyle; • baby clothes, furniture, and food • vacation choices, restaurants, automobiles • Single parent I: unique problems/needs arise

11. Stages of the Household Life Cycle LO2 Full Nest I: Young Married with Children Income and expenditure change from childless to young child.

12. Stages of the Household Life Cycle LO2 • Middle-aged (35-64): • Single II: generally live alone, higher incomes, more money to spend on lifestyle; nice condos, restaurants, luxury cars, travel • Delayed full nest I: similar to full nest I, but more income • Full nest II: kids getting older and have more input into HH decisions, lessons, dentists, sodas, snacks, “soccer moms” • Empty nest I: still working, more free time; dining out, second homes, nice vacations, financial services • Single parent II: serious financial pressure, working, no time, children bear responsibilities

13. Stages of the Household Life Cycle LO2 • Older (64+): • Empty nest II: fully or partially retired, lots of time on their hands, RVs, cruises, grandkids • Single III: older singles, typically female, widowed, rapidly growing category

14. Roles within the Household LO2 The one who “finds out”. The one who can affect the decider. The one who makes the decision. The one who has to “go get”. The one who CONSUMES! Either equally likely, but not both Jointly made decisions Information gatherer: Influencer: Decider: Purchaser: User: Autonomic: Syncratic:

15. Determinants of Family Purchase Roles LO2 Culture and subculture Role specialization Involvement/expertise Personal characteristics Does the wife bring economic resources to the household? What is the gender orientation of the household?