Literature Review: The Family Decision Making Process

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1.1 The family decision making process
Early research on family purchase decisions centered on spousal influence across various decision stages (Davis, 1971). But gradually the scenario changed a lot. (Morwick, 1983) said that children and adolescents do form an important part of the family purchase decision process and they are also to be considered while making purchase decisions.
Influence is said to occur when an individual acts in such a way as to intentionally change the behavior of another individual (Cartwright, 1959). Perceived influence involves family members ' perceptions that they have engaged in actions that have a meaningful impact on the purchase decisions. Influence is “relative to” the influence
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Studies show that children exert more influence on the family purchasing decision for products they use than for those they do not. However, children have a significant influence on the purchase of products and services used by all the family. According to one study, children exert considerable influence on the purchase of cars, holidays, TV and other technological products (Soni and Singh, 2003). Such influence is directly proportional to the financial risk and level of the need of the child for the product in question (Mangleburg and Tech, 1990). The more expensive the products demanded by the children are, the more rejecting are the parents (Guven and Babaogul, 1997). The importance of the product for the child and the knowledge of the child related to this product influences the purchasing decision for this product. The children’s influence on the family purchasing decision is highly limited for the high risk products about which the child has limited knowledge (Wolf, 1998). Ozkan (1986) showed that children are effective in the purchase of electrical house tools; Foxman et al. (1989) determined that children exert largest influence on the purchase of cheap products and products they use; Roberts et al.…show more content…
Jenkins (1979) reports that children influence on the family purchasing decisions is much more intensive in families with high income levels. Similarly, Tansujah et al. (1991) has shown that the higher the income of the family, the more influential is the role of children to select the restaurant where they will eat. Beatty and Talpade (1994) verify that in the case where both parents are working the child exerts intensive influence on the purchase of durable products. However, this is not valid for the products the child uses. Lee and Collins (2000) stated that gender of the child has influence on the purchasing decisions of the family. Yeh and McNeal (1997) investigated the influence of Chinese children on the purchasing decision of their families and found that in 21 products the influence of boys and girls was equal. Also Wang et al. (2007) found no gender effect in child influence across all stages of family purchasing decisions. Other research showed that parents socialized their sons and daughters equally in regard to the amount of time spent with them, as well as in discipline and communication (Demo and Cox,

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