Proceedings of the International Conference on Business Management & Information Systems, 2012

A Study on Children Influence on Family Purchase Decision in India

Sunita Kumar
Department of Management Studies, Christ University, Bangalore
E-mail: [email protected]

ABSTRACT
The children influence on family purchase decision depends on a number of parameters and situations. The children exercise various methods to influence the parents decision. The children influence varies from products to products. It depends on parents education, profession, income, single parent working or both parents working, and type of family. This research considers the children in the age group of 812 years in India. The Descriptive statistics are used to summarize variables in terms of central tendency and measures of dispersion. The Reliability test has been done using Cronbachs alpha. Pearsons product correlation, one-way ANOVA, Two-way ANOVA has been done using SPSS version 18.0. The regression is used to prove the causality between Independent variables on Dependent variable. The childrens influence is maximum for products like bicycle, Ice Creams/chocolates/Juice and CDs/DVDs. There are a few products like CDs/DVDs, video games and hobby activities, which are used by the whole family and still children influence is higher than their parents on family purchase decision. The ANOVA analysis of parents perception of children influence indicates that parents income impacts the childrens influence. The quadratic relation is observed between children influence and family income.

Keywords: Children Influence, Family Purchase, Income, High-Value Product, Low-Value Product

Introduction
The emergence of increasing competition and changing social and economic environment, it becomes essential for the marketers, to be customer oriented. Buying behaviour of customers in the marketplace plays a significant role in the strategic marketing planning. The recent awareness of consumer behaviour has introduced many new dimensions in the marketing philosophy and practices. It is both, relevant and important for every business enterprise to know its customers and understand their buying behaviour. Family as a consuming and decision making unit is a central phenomenon in marketing and consumer behaviour (Commuri and Gentry, 2000, p. 1). Generally, there are many joint decisions made by the consumers with the family members, which affects on other family members desire and attitude (Foxall, 1977). Family always plays very important mediating function. It combines individual with a larger society, where the person learns various roles suitable for an adult life (Foxall, 1977). Family communications with other elements of society are intimate and immediate (Commuri and Gentry, 2000). There are different types of families existing in this world. The high mobility of the restless society and its rapid technical and industrial change (Brown, 1979, p. 337) has led to the distribution of married children far from their parents and from each other (Brown, 1979). If we look at India, there are large extended families comprising of multiple generations, which exists and they reside in one common household. This kind of family rarely exists in developed countries (e.g. Western countries) (Brown, 1979). One of the very important influences operating on family purchase behaviour is the influence of children on the budget allocation and purchases and consumption. The birth of a child creates a demand

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for a wide variety of products a couple never needed or considered purchasing previously. In addition, children influence the purchase of many products both directly and indirectly. Thus in a child-centred culture such as it exists in Indian society, children tend to dramatically affect family expenditures. When children are part of a family, their influence may or may not be felt. However, it is found that the child centeredness of mothers may increase their receptivity to the child. The similar influence is observed in other countries as shown in Figure 1.

Figure 1. Extent of Influence of 814 Years Old in Parents Purchase Decisions Across Nations

Sources: Meenakshi N., Emerging Marketing Paradigms in the Teenage consumer Market in India, Journal of Marketing and communication, Jan-Apr 2007, Vol 2, Issue 3.

Children in India have become the most important object in such research. India has one of the largest populations of children in the world, and Indian children have substantial economic power and unique influence of their parents. These characteristics of indian chldren are energiging research scholars. Research indicates that children play a significant role in some family purchase decisions, and their influence varies by-product categories and decisional stages (Moschis 1987). In general, for products in which the child is directly involved in consumption, the child is expected to have at least some influence on the decision. Few studies however have attempted to distinguish patterns of influence by a product user (i.e., products for children, for parents, or for family use); and most studies have measured childrens influence only for the purchase of breakfast cereal, or for major family purchases. There has also been no investigation of the relationship between product importance perceptions and childrens perceived influence on decision making by family. This particular paper attempts to address the major research question; that is, to examine the perception of the parents about childrens influence on family purchasing decisions in relation with some factors such as the number of children in the family, product type, parents profession, income and working status of the parents. The analysis will allow us to ascertain if these factors are important for the childrens influence on the familys purchasing decision and increase understanding of the relation between these factors and childrens influence on the familys purchasing decision. This study has been conducted in India the findings contributing to our understanding of childrens influence on family purchasing decision in this country and providing an opportunity to conduct cross-national studies.Men as they acquire more decision a higher level of education and higher income. When the woman is more begins to earn economic self-sufficiency, this does not lead to a proportional distribution of decision-making power, but greater disagreement between partners about whom and what decisions can and should take. This observation of the decrease in agreement between the partners would not be due to measurement problems or desirable answers in the surveys, but the fact that men and women not react the same way to control over economic resources. Most women use their increased economic power not to exercise real power because they different value system than men. For women, the emphasis is indeed on solidarity and altruism, making them unaware of their economic power will not converting. The author even suggests that this disagreement between the partners of the causes may of a divorce (Bracke, 1997). A dual earner family thus provides a different environment for a child than a family in which one parent works. The fewer children present in a household, the more money can be spent on each child and the more power that way each child gets. The direction of the relationship between the impact and number of children is still

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not entirely clear, but some of the findings suggest that it also plays very vital role in children influence on family purchase decision.

Literature Review
Singh and Kaur (2011) studied the impact of advertisements in Haryana (cities like Hisar, Sirsa, Sonepat and Karnal). They also studied the impact based on income (lower, middle and high) and occupation (service, business and profession). They observed that TV and advertisement have evolved as integral part of society. Their findings, that children and family try to buy product when they see the advertisements on TV, were in support of other researches done in different parts of the world. It was suggested that the educational value of the product should be included in advertisements. Ali and Batra (2011) examined the impact of children on parents buying decisions regarding children and family-related product groups. This study was conducted on the mother along with children aged between 6-14 years were studied in Delhi (India). The results of the study mostly supported the findings of previous researchers with certain exceptions. Moreover, the influence of child on parents buying decisions is found to be dependent on some demographic variables. According to Kaur and Medury (2010), urban Indian adolescents have a significant influence on the family decision-making process. In the 11 sub decisions (six for high-technology products and five for vacation) examined in their study, teenage childrens role in decision making was found to be more than the mid-value in all cases except in the financial decision how much to spend. There are many other factors which, boost newer aspirations and dictate consumptions. These factors are early consumer socialization, busy parents, rising media influence and susceptibility to peer influences. Schdeva (2009) mentions that a few decades ago Indians copied baby boomer from US and that most of the families were more than two children. It was considered a matter of pride having a big and bustling family. Now more and more couples are going for nuclear families with one child. Another important change is related to working status where both parents are working and creating a strong financial base, and it provides one of the best facilities International schooling, high standard of materials for the day to day activities and costly games, tennis, are becoming normal for the children. These factors are moving the child to the centre of attraction for families. Now children are more like friends to their parents. Sharma (2008) observed that society is getting conscious for brands and children being part of the society is also fashion conscious. That is why if you see there are many top international brands that have children specific products, whether it is a shoe (from Reebok or Adidas) or clothes (from United Colours of Benetton (UCB) or Jini Johny) or beverages (from Real or Horlicks). Most of these brands are associated with a cartoon or comic characters which children can relate to and get along. Tinson et al. (2008) suggested that the level of childrens influence correlates with the product type. This implies that children generally have a greater influence if the product is designed for their personal consumption than if it is a family product. Flurry (2007) reveals that children have a greater influence when the product is designed for their personal consumption, some research has concluded that for some family products such as family holidays or automobiles, children, especially those living in a single-parent household, have an indirect influence on the family decision-making process jointly. This has to do with the fact that children have an elevated, almost equal status and will often be consulted in family product decision making.

Methodology
Statement of the Problem
The researcher has made an effort to understand the degree of influence exercised by the children in

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family purchase decision. Hence the statement of the problem is to study the parent perception of childrens influence on family purchase decision.

Scope of the Study

The study is carried out in India. The marketer will get insight on the children influence on family purchase decision for High value low value and child centric products.

Objectives of the Study

To analyse the children influence in the double income family (where both parents are working) To examine the level of influence on various categories of products (high/low/child) between parents and children To study the relative influence of children in family purchase decision with respect to family income, type and the number of children.

Design of the Study

This research applies a quantitative approach, and this approach has followed the deductive logic in order to test the theory. The present study employed descriptive research design. This design is for summarizing the set of factors and variables. The survey method is followed in this study, and a set of questionnaires was used for collecting primary data.

Data Collection
Data collection was done from primary as well as secondary sources.

Primary Data Questionnaires

The questionnaire consisted of two sections. The first section included nine demographic questions, and the second section contained 17 questions measuring the influence of children in the purchasing decision of the family. Three kinds of products were included high value products, low value products and child centric products. The products in each category are selected from the literature (Belch et al., 1985; Mitchell and Moschis, 1986; Isler et al., 1987; Foxman et al., 1989; McNeal, 1992; Yeh and McNeal, 1997; Lee and Kim, 1997; Mindy and McNeal, 1999. Further it was modified and validated using a 5-point Likert scale for the present study. Secondary data was collected from journals, websites, textbooks, company brochures, magazines and newspapers.

Samples for the Study

The present study is restricted to India only. Respondents are the parents of 8-12-year-old children and children. In this study, we study how much influence children have on family purchase decision. Uit de literatuur blijkt datOm op de vragenlijst te kunnen Ook de kinderen uit het vijfde en zesde leerjaar werden ondervraagd.De groep kinderen komt overeen met de leeftijdsgroep 9-13 jaar.

Sample Size
For the study, 400 samples were chosen from the population which included 200 parents and 200 children from Bangalore city. The questionnaire was administered to 400 samples, and the response rate was 390, which includes 195 children and 195 parents.

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Statistical Tools and Techniques

Considering the amount and nature of data for this research, it is necessary to use statistical tools .Following descriptive and inferential statistical methods were employed in the present investigation. The statistical techniques which are used in the study are given below in brief: Descriptive statistics is used to summarize variables in terms of central tendency and measures of dispersion. Reliability test is used to check the measurement error and ensure the goodness of data. One-way ANOVA is utilized to find the gap on various factors based on independent variables. All the statistical methods were carried out through the SPSS for Windows (version 18.0) and for calculation and data preparation, MS-Excel 2007 was used.

Data Analysis and Interpretation

This chapter processes the data and churns out interpretation and inferences. The survey data has been analysed with descriptive statistics and percentages and one-way ANOVA. The results have been shown in tables and figures for better interpretation. Table 1. Decision Making on the Product Category Parents vs. Children
TV Refrigerator Home theatre Car Computer/Laptop Vacation choice Fruits/Vegetables Toothpaste Newspaper Bread Detergent/Soap Cereals Bicycle Hobby activity Video games CDs/DVDs Ice Creams/Chocolates/Juice 2.32 1.53 2.33 2.59 2.56 2.83 2.86 3.25 2.05 2.49 2.35 3.50 4.03 3.61 4.14 3.76 4.23 Parents Mean SD 0.80 0.79 1.04 0.99 0.92 0.88 1.01 1.12 0.99 1.04 0.99 0.96 0.82 0.89 0.75 0.98 0.81 Children Mean 2.71 1.72 2.10 2.93 2.36 2.75 2.48 3.13 2.17 2.49 2.20 3.12 4.19 3.41 3.58 3.63 3.80 SD 0.52 0.63 0.99 0.55 0.93 0.81 0.94 0.81 0.99 0.95 0.93 1.02 0.45 1.12 1.09 0.82 0.76 Parent-Children Mean 6.369 2.682 5.210 7.667 6.313 7.687 7.323 10.451 4.810 6.549 5.487 11.287 16.908 12.528 15.046 13.903 16.067 SD 2.705 1.987 3.752 3.285 3.572 3.337 3.881 5.099 3.610 4.082 3.698 5.227 3.859 5.562 5.763 5.314 4.599

This survey analysed the decision making by parents, children Joint (parents and children) for various products and services. From Table 1, in specifics of the same: Parent decision making: The influence was found the maximum in case of purchase of a refrigerator (with a mean score of 1.53). This was followed by newspaper and TV (with mean scores of 2.05 and 2.35, respectively). Home theatre and detergent/soap followed with mean scores of 2.33 and 2.35 respectively were parents decided on the purchase of the product. Children decision making: The influence was found the maximum in case of purchase of the bicycle (with a mean score of 4.19). This was followed by ice creams/chocolates/juice and

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CDs/DVDs (with mean scores of 3.80 and 3.63, respectively). Video games and hobby activity followed with mean scores 0f 3.58 and 3.41, respectively were children decided on the purchase of the product. Parent-children decision making: The influence was found the maximum in case of purchase of the bicycle (with a mean score of 16.91). This was followed by ice creams/chocolates/juice and CDs/DVDs (with mean scores of 16.067 and 15.046, respectively). Video games and hobby activity followed with mean scores of 13.903 and 12.528 respectively were joint decisions by parents, and their children were made while purchasing the product.

Hypothesis-wise Analysis: Parent Decision Making by ANOVA

H1: The influence of parents and children for purchase of various products (categories: high-value, low-value, & child-centred) are same. Table 2. One-Way ANOVA Result
N High-value products Children Parents Total Low-value products Children Parents Total Child-centred products Children Parents Total 195 195 390 195 195 390 195 195 390 Mean 2.43 2.36 2.39 2.60 2.75 2.68 3.72 3.95 3.84 SD 0.43 0.70 0.58 0.69 0.71 0.70 0.64 0.54 0.61 14.883 .000* 4.648 .032* F 1.368 Sig .243

Rating scale score close to 1 is parent dominated and close to 5 is child dominated.

The inferences from Table 2 are as follows: High value products: The children respondents gave this category a mean score of 2.43 while the parents gave this a mean score of 2.36. The ANOVA table shows the F value is 1.368, and the significance value is 0.243. Since it is >0.05, the mean difference existing between parents and children for the purchase of high-value products is not statistically significant at the 5% level. Thus, the null hypothesis is accepted. The value closer to 1 is parents dominated than the child but hypothesis cannot be proved significantly. Low value products: The children respondents gave this category a mean score of 2.60 while the parents gave this a mean score of 2.75. The ANOVA table shows the F value is 4.648, and the significance value is 0.032. Since it is <0.05, the mean difference existing between parents and children for the purchase of low-value products is statistically significant at the 5% level. Thus, the null hypothesis is rejected and alternate hypothesis is accepted. Child centred products: The children respondents gave this category a mean score of 3.72 while the parents gave this a mean score of 3.95. The ANOVA table shows the F value is 14.883, and the significance value is 0.000. Since it is <0.05, the mean difference existing between parents and children for the purchase of children-cantered products is statistically significant at the 5% level. Thus, the null hypothesis is rejected and alternate hypothesis is accepted. H2: Childrens influences on the family purchase decisions are same irrespective of the working status of the parents.

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From the Table 3, it is inferred that respondents from the category of single child and two children seem to have a high score of 6.23 and 6.53 respectively on both parents working while compared with single parents working, which means are 6.17 and 6.19 respectively. In total, the both parents working seem to have influenced the parents-children interaction score, that is, children are more predominant compared with single parent working. Table 3. Two-Way ANOVA: Working Status and Number of Children on Parents-Children Interaction Score
Working Status Both parents working Dependent Variable: Parents-Child Interaction Score Number of Children Mean SD Single child 6.23 2.11 Two children 6.53 2.16 Total 6.34 2.12 Single child 6.06 2.23 Two children 4.14 0.82 Total 5.78 2.19 Single child 6.17 2.14 Two children 6.19 2.19 Total 6.18 2.15 N 90 49 139 48 8 56 138 57 195

Single parents working

Total

In order to justify the outcome of the mean score, two ways ANOVA is employed and shown in Table 4. In this, model, independent variables are working status of parent and the number of children; dependent variable is the parents-children interaction score. To know the effect of working status and number of children on parents-children interaction as main effect and interaction effect two ways ANOVA is used and shown in the above table. Since sig. value is significant in all categories, i.e. Working status, number of children and interaction (Working status * number of children) F value showed higher in the working status category on parents-children interaction, i.e. 8.25. But the number of children F value is 3.30 and sig. value is >.05 it is not statistically significant. However the interaction effect showed sig. value is <.05, it is significant. R square indicating the explained variance of independent variables (working status of parent and Number of children and dependent variable) is the parents-children interaction score is 4.5%. Table 4. Two-Way ANOVA: Parents Interaction Score by Working Status and Number of Children
Tests of Between-Subjects Effects Dependent Variable: Parents-Child Interaction Score Source Corrected Model Intercept Working status of parents Number of children Interaction (Working status * No of child) Error Total Corrected Total R square .045 Type III Sum of Squares 40.13 2,972.92 37.05 14.81 27.45 857.36 8,342.00 897.48 df 3 1 1 1 1 191 195 194 Mean Square 13.38 2,972.92 37.05 14.81 27.45 4.49 F 2.98 662.30 8.25 3.30 6.12 Sig. 0.03 0.00 0.00 0.07 0.01

H3: Statistically, there is a linear relation of children influence with family income, family type and the number of children in the family.

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The Pearson correlation test is employed in order to know the relation between or among the variables. In this study, correlation is used to test the relation between parameters (X1: Family income, X2: Family type and X3: Number of children) based on the dependent variable (Y: Children influence). The Pearson correlation test, in Table 5, suggests that out of 3 independent variables, X1 has highest relation with Y and significant at minimum 5% level. Hence regression has to be tested. Remaining two variables are showing neither relation nor significance. Hence other regression methods have to be estimated. Table 5. Correlation Score
Family Income Pearson Correlation Sig. (1-tailed) N .155 .015 195 Family Type .045 .267 195 Number of Children .031 .333 195

Regression analysis, in Table 6, was used to find the effect of independent variables on the dependent variable. For family income, it is seen from the table that the R square (goodness to fit) is 14.2%. The R square of the quadratic relation (14.2%) is better than linear relation (2.4%) and hence the quadratic relation exists between family income and the dependent variable. For remaining two variables (X2: Family Type and X3: Number of children), neither showing any relations (quadratic relation and linear relation) nor significance. Table 6. Model Summary and Parameter Estimates
Model Summary Equation Family Income Family Type Number of children Linear Quadratic Linear Quadratic Linear Quadratic R square .024 .142 .002 .002 .001 F 4.777 15.938 .390 .390 .187 df1 1 2 1 1 1 df2 193 192 193 193 193 Sig. .030 .000 .533 .533 .666 Parameter Estimates Constant 90.496 128.848 93.756 95.622 98.068 .000 b1 2.439 32.495 2.799 .000 .896 .000 .000 .933 6.418 b2

Hence dependent variable Y can be expressed in terms of X1: Family income as equation (1) Y = a (128.848) + b1 (-32.495)* X1 + b2 (6.418)* X12 ...(1)

Figure 2. Graph of Y (children influence) in Terms of X1 (family income)

From Figure 2, the influence decreases till the family income 3 lakh and after that influence increases. As family income starts increasing, the influence of children on family decision making increases.

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Hence, statistically there is no linear relation between children influence and family income, family type and the number of children, although the quadratic relation exists between children influence and family income.

Summary and Conclusion

Major Findings of the Study
Table 1 indicates that for products like refrigerator, newspaper and TV, home theatre and detergent/soap, which are used by the entire family, parents take a major decision to buy these products. Table 1 indicates that for products like bicycle, ice creams/chocolates/juice and CDs/DVDs, video games and hobby activity, both children and parents believe that children have been influenced more in purchasing these products. Table 1 indicates that the combined influence of parent and children is maximum for products like bicycle, ice creams/chocolates/juice and CDs/DVDs. Table 2 indicates that for high value products, parents influence more than children. For low value and child centric products, children influence more than parents. Table 3 indicates that children are having more influence in the family where both parents are working compared with the family where the only single parent is working. Table 6 and Figure 2 indicates that childs influence depends on family income as quadratic equation. Table 6 also indicates that childs influence does not depend on family type and number of children.

Conclusion
The children influence is analysed from various aspects. The low/high-value products as well as directly used by children are taken for the study. For low value products and products directly used by children, it is mostly decided by children themselves. The descending order of influence for products are Bicycle, Ice Creams/Chocolates/Juice, CDs/DVDs, Video games, Hobby activity, Toothpaste, Cereals, Car, Vacation choice and TV. The children are the centre of attraction in any family irrespective of country and culture. They have been participating in all activities of the family. In the same way, they have been voicing their opinion for purchase of various products. Products directly used by children are mostly decided by children themselves. There are few family products where children influence is observed higher. Western literature has given a broad insight of family influences in childrens behaviour. The literature has focused only on fatherchild or mother-child relationship. The influences of siblings would give a broader picture and deeper understanding of family influences in children purchase decision. Hence, further research required in this area. Further research should also be carried out on indirect influence children would have on family purchase decision. This would help to understand the family as a socialisation agent in more detail.

References
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