Mother-Child Interactions in Youth Purchase Decisions1 Ágnes Neulinger Associate Professor, Marketing and Media Institute, Corvinus University of Budapest, Budapest, Hungary E-mail: [email protected] Boglárka Zsótér PhD Student, Marketing and Media Institute, Corvinus University of Budapest, Budapest, Hungary This study examines the impact of mother-child interactions on youth purchase decisions with a clear focus on dependent young adults living in the parental home. Two studies were carried out using both quantitative and qualitative approaches in order to understand the characteristics of young adults’ purchase decision-making. In the first study, a survey was distributed among young adults, and in the second study, several short essays from pairs of young adults and their mothers were analysed. Findings suggest that mother-child communication has a significant impact on children’s consumer decision-making style. Furthermore, these results draw particular attention to the laissez-faire communication style, which is relevant due to both its prevalence and its influence on youth decision-making. We also conclude that the product or service category is a critical consideration when the independence of young adults is evaluated in relation to their purchases. Keywords: family, youth, communication, purchasing, marketing, study JEL-code: M31 1. Introduction Cultural trends accelerate the process of leaving home, while economic trends hinder the same process. In 1999, Alders and Mantils forecast that the dates of young adults leaving 1 This work was supported by the OTKA under Grant PD83779. 1 home will be increasingly delayed in some Central and Western European countries. The truth of this prediction is evident today through the observed changes in social norms and through prolonged education or the economic downturn, which further supports the trend of delayed independence of young adults (Beaujot 2006). The same trend can be observed in the EU27 (Eurostat 2010b), the US (Goldscheider 2000), Canada (Boyd and Norris 2000, Turcotte 2006) and Australia (Cobb-Clark 2008). ‘Should I stay or should I go?’ ask Billari and Liefbroer (2007) in their study, and their question represents the dilemma of young people on the threshold of adulthood. Generally, young adults between ages 18 and 25 complete schooling, start working and create new households (Mulder et al. 2002). The postponement of the first marriage, however, contributes to a situation with a higher proportion of young adults living in the parental home and a higher proportion of people living alone (Alders and Mantils 1999). Another consequence of delayed marriage/cohabitation is the postponement of full adulthood, which creates ‘an ambiguous life course stage between the ages of 18 and 25 or so marked by semi- adulthood’ (Goldscheider 2000). Arnett (2000, 2006) described this life phase as ‘emerging adulthood,’ while Cote and Bynner (2008) agreed that this transition to adulthood has changed and become more protracted. Two distinct groups can be observed among adult children living in their parental home. Those who never left home form the first category, while the second category consists of those who returned home after a certain period of independent living. The latter are often called ‘boomerang kids.’ According to Turcotte (2006), there is a difference between these two groups in terms of parents’ experiences in that parents who are living with boomerang kid(s) are more likely to feel frustration regarding their family situation. The time and process of leaving home can be determined by social norms and social institutions as well as by the economic state of countries (Cobb-Clark 2008). Furthermore, the time and process depend on gender, race and ethnicity; social class; and religious background (Goldscheider and Goldscheider 1987, Settersten and Ray 2010). In developed societies, parents can afford to provide more support to their children with space and services within the parental home currently compared to the 1980s (Goldscheider 2000). The recent financial crisis, however, limits the economic opportunities of families (Settersten and Ray 2010) and eventuates an uncertain society (Marga 2010). Furthermore, the family type influences whether an adult child lives at home, namely, married parents are more likely to live together with their adult children than divorced/single parents (Turcotte 2006). 2 These trends have resulted in a longer and possibly more demanding path into adult life (Settersten and Ray 2010), whilst at the same time, the living arrangements of families are becoming more intergenerational in nature (Cobb-Clark 2008). Furthermore, as long as adult children live together with their parent(s), an intergenerational financial transfer can be realised (Ermisch and Di Salvo 1997, Cobb-Clark 2008). As a result, consumption-related and decision-making processes, together with communication patterns within the family, are altered because an adult child is living in the parental home. When discussing the influence of children, childhood needs to be defined broadly. On the one hand, there is a tendency for children to start influencing family decisions at a younger age (Isler et al., 1987), while on the other hand, not only young children but also young adults living at home have a significant influence on family consumption patterns (Chavda et al. 2005). In Europe, 71% of women and 81.5% of men aged 18 to 24 lived with at least one of their parents, according to the data collected by Eurostat (2010a). At the same time, 54.8% of young adults declared that they were still enrolled in educational programmes in the EU27 (Eurostat 2010b). This study uses the term of children in family context regardless of the age of the offspring in order to emphasize the role of children in family networks. The purpose of this study is to understand the decision-making independence of young adults living in their parental home. Furthermore, this research aims to explore interactions between young adults and their mothers in youth purchase decision-making, particularly through the choice of mobile phone devices and mobile phone service providers. As a result, this study only focuses on the social influence within the family, while other relevant factors in relation to the selection of mobile phone devices and mobile phone service providers like the impact of personality (Horváth and Mitev 2009), the role of physical environment (Kenesei and Kolos 2011), the influence of product design (Horváth and Malota 2004), the role of cultural values (Hofmeister Tóth and Simányi 2006) and the issue of ethical concerns (Hofmeister Tóth et al. 2011) was not considered in this analysis. Nonetheless, this focus offers the opportunity to study the independence of young adults in a rather individualistic decision-making setting (device choice) and also in a group decision-making situation (service provider choice). Furthermore, this study considers single-parent and two-parent families to understand the family form related main drivers of differences. The study uses family communication patterns as a theoretical framework, and evaluates the relationship between family communication patterns and young adults’ consumer decision-making styles in the case of different product categories. It focuses on mother-child communications 3 because mothers are predominantly considered to be in charge of household purchases and their role in the process of children’s consumer socialisation is decisive (Moore et al. 2002, Gavish et al. 2010). As a result, mothers’ purchasing-related communication styles are assumed to have a significant impact on their children’s consumer decision-making styles. 2. Literature review 2.1. Youth purchase decisions and their influence on the family decision-making process Households are the main buyers of different products and services, which make families important consumption and decision-making units. The change in traditional family forms is accompanied by the complexity of daily family life and altered parent-child interactions during family purchasing processes. As a result, the study of children’s contributions to family routines is a key factor (Family Platform 2011). Noticeably, the contemporary child has a higher disposable income than children of previous generations (Lintonen et al. 2007) and thus has a significant influence on family decision-making processes (Shoham and Dalakas 2005; Belch et al. 2005). According to Spiro (1983), in order to understand family consumption behaviour, research should focus on the nature of children’s purchase influence, moreover, studies must also examine the process flow beyond the outcomes of family decision-making. In the last few decades, children and adolescents have often been described as competent consumers (Gronhoj 2007). The relative influence of children differs with the aim of the product usage and the perceived relevance of the product for them. As a result, children have a greater influence in purchase decisions involving products for their own use, e.g., clothes, school supplies or breakfast cereal (Kaur and Singh 2006; Beatty and Talpade 1994; Belch et al., 1985). Additionally, the involvement of youth is also greater in the case of products that are more relevant for them, e.g., family leisure time, vacations, entertainment, cable TV, and eating out (Foxman et al. 1989, Swinyard and Sim 1987, Darley and Lim 1986). Furthermore, children’s influence varies with the decision stage: they show the highest influence in the problem recognition and information search stages (Belch et al. 1985). Studies identified that the ages of children play a decisive role in their impact on purchase-related decision making processes (Shoham and Dalakas 2003). Prior analyses have found that older children have significantly more influence than the younger ones (Ward and Wackman 1972, Mangleburg 1990). As McNeal (2007) suggested, older children have more 4 marketplace and product experiences, and they can understand more complex phenomena and more abstract concepts. According to Shoham and Dalakas (2003), adolescents have - to varying degrees - a greater influence on purchase decision-making processes than their fathers, even in the case of durable and expensive products. Compared to previous generations, contemporary children become consumers at a younger age. As a result of the higher proportion of dual-working and one-parent families, children play a more important role in family decision-making processes (Ekström 2007). According to Holdert and Antonides (1997), modern families have a more balanced power structure, which leads to a greater involvement of the children within it. Teenagers become trendsetters and often have more information about products than their parents (Zollo 1995). Adolescent girls can be role models and fashion markers, even for their mothers, due to the idealisation of youthfulness and anti-aging trends (Gavish et al. 2010). According to Sorce et al. (1989), over two-thirds of middle-aged children influence their elderly parents by providing information or advice to them. Ekström (2007) found that adolescents and young adults disseminate information to their parents during purchase. Apparently, adolescents and young adults can address new technologies easily and can handle more difficult consumer choices related to higher levels of technological complexity, such as in the case of mobile phones. As the proportion of young adults living in the parental home today has increased as compared to earlier years, studies that aim to understand the influence of children and young adults on the purchasing patterns of their parents and their subsequent independence in making purchases are of increasing importance. 2.2. Parent-child communication The understanding of family dynamics can provide meaningful insights into the understanding of household decision-making (Shoham and Dalakas 2005). Family communication patterns are one of the main drivers of these processes, as behavioural scientists stated, a ‘culture reproduces itself through the communication activities of its members’ (Viswanathan et al. 2000, p. 406). Social learning defines the nature of parent-child interaction as a primary mechanism in the socialisation process (Carlson et al. 1990, Carlson et al. 1992, Rose et al. 2002). Studies in this field concluded that family communication affects children's influence on family decision-making (Kaur and Singh 2006). Furthermore, the method of parent-child communication has proven to be more important than the frequency or the quantity of these interactions (Carlson et al. 1990, Moschis ad Moore 1979). 5 This communication method can be described by the concept of family communication patterns, which have two distinct dimensions: socio-orientation and concept-orientation (Carlson et al. 1990). Socio-oriented communication emphasises the harmonious social relationship within the family and urges the appreciation of parents, while concept-oriented communication encourages children to develop their own views, skills and competences in the marketplace (Caruana and Vassallo 2003, Moschis and Moore 1979). The combination of these two dimensions defines four distinct communication profiles: Laissez-faire (low in both dimensions), Protective (low in concept-orientation and high in socio-orientation), Pluralistic (high in concept-orientation and low in socio-orientation) and Consensual (high in both dimensions). Empirical results support the relationship between family communication patterns and children’s influence on family decision-making processes. The more concept- oriented the parents (pluralistics and consensuals) the more receptive they are towards children’s influence and co-shopping, while less concept-oriented parents (laissez-faires and protectives) are less receptive towards the same (Carlson et al. 1990). Furthermore, socio- oriented parents refuse children’s requests more often than their less socio-oriented counterparts (Carlson et al. 1990). In line with these results, Caruana and Vassallo (2003) concluded that children of concept-oriented parents have a higher influence on family purchase decisions because their parents encourage them to develop their own consumer views, skills and competences. Rose et al. (2002) confirmed these findings in different cultural settings, namely in the USA and in Japan. The present study aims to understand the nature of mother-child communication related to socio-oriented and concept-oriented patterns. Prior studies in this field show that the impact of family communication patterns on the consumer decision-making style of young adults has been explored less in Hungary and in Central and Eastern Europe than other related areas. As a result, this study focuses on the relationship between the purchasing style of family communication and decision-making style of young adults who live in the parental home. 3. Methodology 3.1. Study 1 Data were collected from 293 young adults who have a regular connection with their parental households, either by living at home permanently or by frequently visiting home while being 6 financially dependent on their parents. Out of our sample, 61.3% of young adults live away from their parental homes temporarily due to their studies, but 78.3% of these young adults visit their parents at least bi-weekly. Among the respondents, 19.5% live together with a single parent, while 80.5% live in full families. Our sample represents 58.3% females and 41.7% males, respectively. The ages of the young adults ranged from 19 to 25 years with a mean age and mode of 20.0 and a standard deviation of 1.17. The form of data collection used was a convenience sample, where the respondents were university students who typically represent the urban, high- to middle-class families within Hungary. The assessment of young adults’ consumer decision-making styles involved a total of 20 items based on the decision-making styles suggested by Kim, Lee and Tomiuk (2009). Factor analysis (principal component with varimax rotation) of the 20 items produced six factors that explained 61.8% of the total variance. Table 1 shows the six factors along with their factor loadings. Based on these results, we conclude that these items cover four of the seven decision-making styles suggested by Kim, Lee and Tomiuk (2009), while an additional two factors were identified. Based on their item content, two factors were loaded with the same meanings but with fewer items compared to Kim, Lee and Tomiuk’s consumer decision-making styles (‘Careful and deliberate’ and ‘Well-informed’), while two groups of items were identical in terms of their factors (‘Perfectionism and high quality conscious’ and ‘Recreational and hedonistic’). Additionally, four items were loaded into two different factors that reflect distinct meanings (‘Budget planning’ and ‘Label conscious’). The internal reliability for all scales are satisfactory and ranged from moderate to high levels, with a minimum of 0.65 for the ‘Careful and deliberate’ factor and a maximum of 0.88 for the ‘Perfectionism and high quality conscious’ and ‘Recreational and hedonistic’ factors. The mean scale values for the six factors ranged between 3.12 and 4.07 (see Table 1). Table 1. Results of the Factor Analysis on the Consumer Decision-Making Style Factor Statement Factor Loading Careful and I compare prices and brands before buying something that costs 0.78 deliberate a lot of money. (∝=0.65, M=4.07) I shop around before buying something that costs a lot of 0.72 money. I carefully study the choices available before I buy something 0.72 that costs a lot of money. I look carefully to find the best value for my money. 0.70 7 The more expensive brands are usually my choices. -0.61 I compare prices to find lower-priced products. 0.58 Perfectionism and In general, I usually try to buy the overall highest quality 0.85 high quality products. conscious I make a special effort to choose the highest quality products. 0.82 (∝=0.88, M=3.91) Getting good quality is very important to me. 0.77 When it comes to purchasing products, I try to get the very best 0.64 or the perfect choice. Recreational and Shopping is a pleasant activity for me. 0.88 hedonistic Going shopping is one of the most enjoyable activities of my 0.87 (∝=0.88, M=3.14) life. I enjoy shopping just for the fun of it. 0.75 Well-informed (∝=0- I know a lot about the different brands of the products I buy. 0.75 77, M=3.41) I am a knowledgeable consumer. 0.73 I know a lot about different types of stores. 0.71 Budget planning I keep track of the money I spend and save. 0.83 (∝=0.73, M=3.32) I plan how to spend my money. 0.82 Label conscious I sometimes read product labels before deciding which brand to 0.88 (∝=0.80, M=3.12) buy. I carefully read most of the things that are written on packages 0.85 or labels. Source: authors The decision-making roles were measured within a total of 11 product categories. This study had an interest in individualistic and group decision-making situations, while purchasing roles for durable and non-durable products and youth-relevant and non-relevant decisions were also involved. According to these considerations, the following product categories were applied: books, sport shoes, snacks, MP3 players, soft drinks, shampoos, mobile phones, suits/women's suits, toothpastes, bicycles, and mobile phone operators. To assess the communication patterns within the family, young adults reported the degree of concept-orientation and socio-orientation of their mothers on the same 8-item and 5-item measures employed by Kim et al. (2009, FCP scale). The internal reliability for the 8 scale of family communication patterns proved to be satisfactory, with 0.69 for socio- orientation and a 0.77 for concept orientation (due to low consistency, one statement was eliminated). The detailed descriptive statistics, number of items and the composite reliabilities for these scales are reported in Table 2. Table 2. Scale Items and Properties of Family Communication Patterns Variable Nr. of Mean Range SD Alpha items (original) Socio-oriented family communication 5 (5) 12.86 5 - 25 3.65 0.69 Concept-oriented family communication 7 (8) 23.25 7 - 34 5.37 0.77 Source: authors Demographic data on gender, age, members of a household unit, settlement type and financial background were also recorded. The local version of the applied scales was created using a back translation procedure to achieve an equivalence of meaning (Malhotra 2002). Items were evaluated on five-point Likert scales and the questionnaire was pre-tested among university students (Malhotra 2002). 3.2. Study 2 The solid understanding of family decision-making and family communication processes requires studying different parties within the family (Caruana and Vassallo 2003, Kim and Lee 1997, Ekstrom et al. 1987). To ensure the appropriate interpretation of our quantitative results, 8 mother-child (young adult) dyads were applied in the form of structured essay writing by the pair of subjects. These dyads allowed the study of the diverse perspectives of mothers and their children together with the understanding of different interactions among family members. The essays were evaluated by content analysis using a double encoding procedure. By using mixed methods in our research, we apply an interpretative approach to the same degree as researchers in similar studies (Moore et al. 2002, Gavish et al. 2010). During this qualitative analysis, only mother-daughter dyads were applied to eliminate any gender bias. In the sample, 5 full families and 3 single-mother families were involved. Mothers and young female adults living within the same household answered one well-defined question related to the latest mobile phone device and operator choices. The responses were guided by selected sub-questions, such as the description of the situation, the 9 criteria of decision-making, the roles of the family members during the decision-making process and the importance of the decision. Data collection used a convenience sample and mothers were aged between 42 and 58 years, (mean age: 49), while the age range for their children varied between 19 and 24 years old (mean age: 21). 4. Results 4.1. Study 1 Young adults’ influence on purchasing The present study measured the independence of young adults in different product categories. Young adults' answers to our question (Who makes the decision about buying the following products?) ranged from ‘My parents entirely’ to ‘Myself entirely.’ Among the eleven product categories that were measured, young adults had the greatest influence during the purchasing of books and sport shoes, representing non-durable and youth-relevant categories. The perceived influence is higher in relation to mobile phones than to mobile operators, which achieved the lowest mean overall. According to the present results, this purchase represents either joint decision-making by parent(s) and children, or parents alone choose mobile providers. Considering the influence of family type, the majority of the tested items proved to be non-significant between single-parent and full families. The mean scores in Table 3 demonstrate that young adults take part in the decision-making process related to several product/service categories; moreover, young adults tend to make highly individual decisions. These results support that young adults dependent on the parental home are largely independent in their purchasing. Table 3. Means and Std. Dev. of perceived influence of young adults Product Mean Std. Dev. Books 4.62 0.78 Sport shoes 4.60 0.61 Snacks 4.57 0.78 MP3 player 4.40 0.76 Soft drinks 4.34 0.98 Shampoo 4.19 1.23 10