case study 9.1 - responding to the growth in lone person households in australia
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Case Study 9.1:Responding to the growth in lone-person household in Australia.TRANSCRIPT
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Case Study 9.1:
Responding to the growth in lone-person household in Australia.
Presentation by:Alice ScottCharles ThorneHongyi Shi
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Overview
• Proportion of lone person households rose from 19.3% in
1991 to 25.29% in 2011 and will continue to grow to 3.2
million, i.e. 28% of all households by 2031.
• Reasons:
Population ageing and longer life expectancy
Delay of marriage while seeking flexibility and freedom
Relationship breakdown or becoming widowed
• Implications for marketers who target families, as families are
getting smaller but more in number. (ABS year book 2012; Rindfleish 2014)
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Overview (cont.)
1991 2011 20310
3
6
9
12
19.3% 25.29% 28%
Figure 1: Past and Projected Lone-Person Households
Lone-Person Total
(Mil
lion
)
Source: ABS 1993, Census of Population and Housing, Table B34; ABS 2010, Household and Family Projections, Australia, 2006 to 2031
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How is Consumer Decision-Making Affected?
(Schiffman et al. 2014)
• Input:
Marketing inputs: companies adjust strategies accordingly
Sociocultural environment: due to different demographic composition
• Process:
Role in decision making: only for me
Psychological concepts, e.g. needs and
motivation
In turn influence the acts of making a
decision
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How is Consumer Decision-Making Affected? (cont.)
• Output:
Single person in post-purchase
evaluation
Not only to purchase but also to
judge
Companies be more careful in
dealing with their expectation
Judger
Influencer
etc.
BuyerUser
Decider
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Types of Goods and Services in Higher Demand?
• Adult education classes
e.g. for cooking meals, spending a weekend alone (divorcees or widows)
• Spontaneous travel
no dependants, higher disposable income - need for flexibility and freedom
• Entertainment
e. g. alcohol, movies, health treatments, books
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Types of Goods and Services in Higher Demand? (cont.)
• Takeaway food and single serve
meal options
e.g. Cup a soup, frozen meals, McDonalds,
Subway
• Impulse purchases on luxury goods
e.g. gourmet ice cream
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How can Marketers Communicate with, and Appeal to Them?
• Have more time
Company create and organise brand
communities, encourage online and social
networks
• Less influenced by families
Information of products focusing on life
shared with friends and colleagues, etc.
(Hawkins & Mothersbaugh 2011)
Freedom!
Flexibility
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Most Influential Reference Groups?
Reference group:
• Person or group that serves as comparison (or reference) for forming values,
attitudes or a specific guide for behaviour of individuals.
• Frames of reference for either their purchase or consumption decisions
• Influence to the extent that
attitudes, values and behaviours
of its members represent
standards which are voluntarily
used in making judgements and
evaluations
(Schiffman et al. 2014)
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(Schiffman et al. 2014, Figure 8.3)
Most Influential Reference Groups? (cont.)
• Family is less of an influence in
buying decisions
• Friendship groups highly important
(share tastes, shop together)
• Work groups - informal friendships
formed (during coffee or lunch
breaks- movies, restaurants and
forms of entertainment are
discussed).
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How can Marketers Utilise these Reference Groups?
• Friendship groups will most likely be the most influential
reference group to single household dwellers
• Luxuries and publicly consumed necessities are most influenced
by friendship groups
• The following advertisement for an automobile (publicly
consumed necessity) is a good example of how marketers can
utilise this reference group to appeal to single household dwellers
http://www.youtube.com/watch?v=d60VGritY_k
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Marketing Communications Messages Appealing to Single Household Dwellers
The following advertisement for McCain Healthier Choice is a
good example of a marketing communication message which
appeals to those living in single person households.
http://www.youtube.com/watch?v=WwPoppH1vVk Q&A