“CHILDREN INFLUENCE ON HOUSE HOLD BUYING”

METHODS OF BUSINSS RESEARCH

SUBMITTED TO: SIR, QAZI SALMAN

PREPARED BY: SYED SYED AKBAR SHAH

M.B.A (MORNING)

REG NO#54140

DATE: 4TH-MAY-2011
 TOPIC:
“CHILDREN INFLUENCE ON HOUSE HOLD BUYING”
 ACKNOWLEDGEMENT

Respected sir,

I would like to extend sincere thanks to my respected teacher ‘’MR QAZI

SALMAN” who is well known for his vast expertise, for guiding me in the
writing report further providing me a great opportunity to learn the
implementation of the courses. I believe that this experience have not only added
value to my knowledge but has also strengthen the core knowledge of the previous
courses at PAF-KIET. It was his dedication in supervising the project that made
me study and learn practical life matters in a well-defined manner. He, with his
vast experience and knowledge, lead me in every step during the course and also in
the preparation of this report.

Sincerely,
Syed AKBAR SHAH Kazmi (54203)
 TABLE OF CONTENTS:

ABSTRACT 3

INTRODUCTION 3

LITERATURE REVIEW 3

METHODOLOGY ERROR! BOOKMARK NOT DEFINED.

HYPOTHESIS 3

QUESTIONAIRE 3

DATA ANALYSIS 3

DATA ANALYSIS 3

REFERENCE: ERROR! BOOKMARK NOT DEFINED.

CONCLUSION 3

LITERATURE REVIEW REFRENCES 3

 ABSTRACT:

C
hildren have long been acknowledged as playing an important role within family purchase
decisions, with their ability to directly and indirectly influence decisions. The research discussed
in this paper arose from an identified opportunity to develop knowledge surrounding the
important role that children play within family purchasing by including them as direct research
respondents. The methods adopted included an in-depth interview with parents and children
separately, and the completion of a decision mapping tool followed by a family interview. The
findings address a specific and important aspect of the data, namely the influence behavior
adopted by children during high-involvement family purchase decisions. The children in all of
the respondent families were found to have direct influence over the purchases discussed. They
demonstrated a range of sophisticated influence behaviors that included justifying and
highlighting the benefits of purchases, forming coalitions, compromising and remaining
persistent. These behaviors were underpinned and enhanced by the use of product-related
knowledge and information, which was viewed positively and encouraged by parents.
 INTRODUCTION

My project topic is “children influence on the house hold buying decisions”. I select this topic
because as a marketier I feel that very less consideration is given to children’s demand. I
thought that our marketier are not very much aware of consumer behavior and children’s
potential to influence house hold decisions in buying. I think that is the reason why mostly
marketing plan fails.

For this purpose I choose households live in North Nazimabad and North Karachi because I
think these are the areas which represent big variation in lower class middle class and upper
middle class residents.

For collection of data I designed a questionnaire and floated it to 30 house hold. I interview
with some children of age 6 to 12 and evaluate their responses regarding what kind of things
they want to buy more frequent and what kind of product don’t attract them.

Through this analysis I tested my hypothesis, which shows the pre adolescent age group is more
influential in low involvement products while post adolescent group is more influential in high
involvement product.
 LITERATURE REVIEW

The family has been identified as the most important decision making and
consumption unit (Assael,
1998). Therefore the domain has attracted the interest of marketers and marketing
academics over the years (e.g., Kim and Lee, 1997; Moore et al., 2002; Shoham & Dalakas,
2005). Much research carried out on children’s influence in family decision making
emphasizes that children have at least some influence on decisions for a wide array of
products and some even report that children have an increasing role in family purchase
decisions (Ahuja et al.,
1998; Atkin, 1978; Berkman et al., 1997; Berey & Pollay, 1968; Caruana & Vassallo, 2003;
Chavda et al., 2005; Darley & Lim, 1986; Davis, 1976; Ferber,
1973; Isler et al., 1987; Jenkins, 1979; Mangleburg,
1990; McDonald, 1980; Miller et al. 1982; Nelson,
1978; Scanzoni, 1980; Swinyard & Sim, 1987; Szy- billo et al., 1977; Tufte, 2003; Ward &
Wackman,
1972). As children’s role in family decisions increases, so does the need for research that
includes children (Foxman et al., 1989, p. 482).
The purpose of this paper is to examine parents’ perception of their children’s (5-13-year-
olds) participation in and general influence on the family decision making process when
purchasing in 14 different product categories. Focus is on three sub decision stages:
suggesting buying the product category, deciding on the brand, and deciding on the model.
Based on a re- view of the literature within the area of family decision making, our goal is to
study whether the type of influence characterizing a purchase decision will depend in part on
product type, in part of the sub decision stage, and in part of the children’s buying
role (initiator or not), age and gender. These different variables are proposed to
explain children’s im- pact on family decisions. Hypotheses about children’s influence
patterns and various variables are developed, tested and discuss
1978; Scanzoni, 1980; Swinyard & Sim, 1987; Szy- billo et al., 1977; Tufte, 2003; Ward & Wackman,
1972). As children’s role in family decisions in- creases, so does the need for research that
includes children (Foxman et al., 1989, p. 482).
The purpose of this paper is to examine parents’ perception of their children’s (5-13-year-
olds) participant- tion in and general influence on the family decision making process when
purchasing in 14 different product categories. Focus is on three sub decision stages:
suggesting buying the product category, deciding on the brand, and deciding on the model.
Based on a re- view of the literature within the area of family decision making, our goal is to
study whether the type of influence characterizing a purchase decision will depend in part on
product type, in part of the sub decision stage, and in part of the children’s buying
role (initiator or not), age and gender. These different variables are proposed to
explain children’s im- pact on family decisions. Hypotheses about children’s influence
patterns and various variables are developed, tested and discussed
 METHODOLOGY

SAMPLING UNIT

The sampling was done in two different areas of Karachi.

These areas include

North Nazimabad and North Karachi

SAMPLE SIZE

Sample size is 30 which represent the influence of children on household buying

decision

CATEGORY RESERCH

For the purpose of this study convenience sample and of survey instrument is
use.

MEASUREMENT TECHNIQUE

The technique used in this research was questionnaires

CODING OF DATA

The coding of question was also done before entering the data in to the spss

(STATISTICAL PACKAGE OF SOCIAL SCIENCE)

 HYPOTHESIS

HYPOTHESIS 1:

The house hold buying decisions are more influence by the children in the age 6-
12

Hypothesis (o):

The house hold decisions are not influenced by the children in any age.

Hypothesis (2):

hypothesis1:

The house hold buying decisions are more influenced by the children in those
families where expenditure is fewer than 30,000.

Hypothesis o:

The house hold decisions are not influenced by the children in any family.
 QUESTIONAIRE

CHILD AGE : 6 7 8 9 10 11 12

SEX : GIRL/BOY

1. THINGS THEY MOST LIKE

1. CAR

2. HOUSE

3. PERSONAL BEDROOM

4. MOVIES

5. BOOKS

2. WHAT YOU LIKE TO EAT

1. MC DONALD

2. PIZZA HUT

3. CANDY /CHOCOLATE

4. WHAT MAMA MADE AT HOME

3. WHERE YOU LIKE TO GO FOR HAVIN FUN

1. COUSON HOUSE

2. FRIEND HOUSE

3. PARKS

4. MUSEUM
 5. SINDBAD

4. WOULD YOU LIKE TO HAVE YOUR POCKET MONEY? HOW MUCH?

……………………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………………..

5. HOW YOU LIKE TO SPEND YOUR POCKET MONEY?

……………………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………………..

6. WHAT THING YOU THINK IS THE WORST ABOUT YOUR FAMILY LIFE STYLE?

……………………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………………..
 DATA ANALYSIS

Independent variables:

Locality: Areas which I choose for my research work are North Nazimabad,
North Karachi, because these areas show a noticeable variation of living standard
of residents in these areas.

Age: Ages of children interviewed is 6 -12

Adolescence:

Pre –adolescence (1 to 15 years)

Post adolescence (above 15 years)

Gender:

Boys/Girl

Dependant variables:

 House
 Car
 Park/outing places
 Life style

Data analysis:
I floated 30 questionnaires, 20 by hand 5 by interview and 5 by asking questions
on phone.

Data is analyzed by calculating total number of responses with respect to

independent variables to dependant variable respectively.

LOCALITY

AGE

ADOLSCENCE

GENDER

With age, adolescence, locality,and gender.

Practical implications:
Parents and their children usually engage jointly in family decision making. Marketers should
address the needs of both parties and work to help to resolve any conflict that may arise
 CONCLUSIONS

After data collection and data analysis I would like to share the results of analysis.

Hypothesis 1:

Null hypothesis is rejected. There is a strong influence found on both pre

adolscents, and post adolescents group.Pre adolescent group is more influential
in low involvement products.post adolescent is more influential in high
involvement product.

Hypothesis 1 is approved.

Hypothesis 2

The null hypothesis is rejected. Alternative hypothesis is approved. As I found a

relationship between variables .I found mixed influence on high and low
involvement products in, fewer than 30,000 expenditure group.
 LITERATURE REVIEW REFRENCES:

BELCH, G.C, M.A BELCH AND G.CERESINO.1985

BOCKER, FRANZ.1986

DARLEY.WILLIAM K.AND JEN-SU LIM.1986

JOHNSON, MELISSA, JANELLE MCPHAIL AND OLIVER H.M.YAU.1994.

MANGLEBURG, TAMARA F.1990

MEHROTRA, S, TORGES S.1977

WARD, SCOTT AND DANIELB.WACKMAN, 1972

ISLER, LESLIE, EDWARD T.POPPER, AND SCOT WARD.1987.

NELSON, JAMES E.1979

FOXMAN ELLENR., PATRIYA S.TANSUHAJ, AND KARIN M.EKSTORM.1989.

SAUNDERS, J.R.C...P.SAMLI AND E.F.TOZIER.1973.

JENKINS, ROGER L.1979.

HALL, JOHN, MIKESHAW, MELLISSA JOHNSON, AND PETER OPPENHEIM.1995.