Spending Power of Children Essay -- Marketing

In present day to day life, kids play a vital role in the purchase behaviour of the family. This paper focuses on the effects of retail communication on the purchase decision of children. The various factors which influence child’s behaviour have been studied. The methodology adopted includes thorough observation of a kid from entry to exit in the store followed by a personal interview of the accompanying person. Further, the kid’s interaction with the accompanying person has been studied and his/her evaluation of the request is noted. After analysing the complete behaviour, a framework has been proposed which depicts the complete process and the various factors which influences child’s behaviour in the store. Introduction Nowadays children’s share in the family expenditure occupies a significant place. It is also believed that this share is spent by the elders to buy necessary things for the children but now the scenario is changing. The children have the major say in deciding what things they want and what they don’t. According to one of the researcher, spending power of children or young consumers is expected to be over  £200m in the UK alone (Nicole Weiner, 2004). So now it can be estimated that how much it would have been risen over the last 7 years. Markets are also influenced by this kind of behaviour and mould themselves accordingly. We can see a large variety of child centric things in the markets, which are making huge profits despite being not much of necessity. This study is done to find out the various factors involved that influence a kid’s behaviour at a retail store and the percentage of accompanying persons that yield to the various types of influence attempts made by the kids at the store. Litera... ... ‘crying’, and ‘hitting’ contributes (33.33%), (50%)& (16.67%) respectively. For those who made simple purchasing attempts, ‘simple requesting for the product’ was their first preference with (86.67%) & ‘pointing towards the product’ was the second with 53.33% and the rest like ‘grabbing it from the shelf’ and ‘naming a product’ were at the back with 40%, 33.33% respectively. Accompanying person initiated demands are defined as those in which the accompanying persons willingly offer the product to their child. This includes voluntarily asking about child’s product preference, suggesting a certain product, inviting them for the product selection. In this ‘voluntarily asking about their product preference’, ‘suggesting a certain product’, ‘inviting them for the product selection’ contributes 44.44%, 55.55% and 44.44% respectively towards the AP initiated dema nd.