The role of the extended family in high-involvement family purchase decisions: an emerging market perspective
Creators: name: Nguyen, Lien
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 350601
subject: Consumer behaviour
classificationCode: 350605
subject: Marketing management (incl. strategy and customer relations)

description: This thesis examines the role of extended family in the decision-making process of the nuclear family in the context of a high-involvement purchase decision in an emerging market. Specifically, this research explores the role and influence of extended family, in particular that of older parents in their adult children's decision-making, in the context of a housing purchase in Vietnam. Further, this study investigates how the rapidly changing socioeconomic environment of an emerging market affects the roles of and relationships between the extended and nuclear family in the context of consumption behaviour.

The family as a primary consuming and decision-making unit has long been an important research area in marketing and consumer behaviour. However, research exploring family purchase decision-making has mainly explored the traditional nuclear family, with little investigation into the influence of extended family members on this process. This is an oversight given that extended family have been recognised as having an important influence on many other aspects of family life, such as health, career development, marriage, and financial issues. In addition, there is limited understanding of the family's collective journey in undertaking major consumption decisions. Furthermore, most research on family purchase behaviour has been undertaken in developed markets, even though more than 80% of the world's consumers live in emerging markets. Emerging markets have become major players in the global economy and a primary source of economic growth in the 21st century.

Adopting a grounded theory approach, 56 in-depth interviews were conducted, primarily face-to-face, with 18 families in Ho Chi Minh City and Ha Noi, the two largest cities in Vietnam. These interviews capture the experiences of both nuclear and extended family members. Adopting a 'family perspective' in collecting data across two generations provides a more holistic understanding of the role of extended family in a high-involvement purchase decision in the context of a country undergoing significant socio-cultural change.

The findings reveal four key roles that extended family members, in particular the parents of adult children, can occupy in the family purchase decision-making process: facilitator, peacekeeper, cultural mentor and patriarch. This study also identifies the critical factors that determine the role and influence of the older parents, including financial contribution, expertise and traditional parental influence as well as the living arrangements of extended and nuclear families. However, as the goals and priorities of the younger generation evolve in response to the economic and socio-cultural changes associated with Vietnam's transition to modernity, this study reveals two critical tensions that arise in family relationships in this context. First, the younger generation must negotiate the traditional generational hierarchy, which involves respecting and deferring to their parents, while trying to fulfil their own aspirations. Second, the younger generation, in particular women, must navigate the traditional gender hierarchy - trying to achieve a greater voice in decision-making while respecting the culturally entrenched norms of a patriarchal society. To manage these tensions, the younger generation adopts strategies that enable them to balance traditional values with their individual goals: preserving cultural and family traditions, mediating family relationships, forming family alliances, and demonstrating capability and responsibility.

This thesis makes several contributions to the literature on consumer behaviour, family purchase decision-making, extended family, and emerging markets. First, this study adds to the existing knowledge of family purchase decision-making by identifying the critical role and influence of extended family members, particularly parents. Second, in the context of emerging markets, this study enhances the understanding of how economic and socio-cultural change influences family relationships, particularly in a consumption context. Finally, this research makes a methodological contribution by capturing the perspective of both the nuclear and extended family to provide a more holistic understanding of family dynamics and interactions.

This study has managerial implications for local and international businesses in emerging markets, especially in terms of developing sales and marketing strategies that cater for the critical roles of extended family in the family purchase decision-making process. In addition, there are implications for government bodies or social agencies in emerging countries seeking to support family relationships and wellbeing during a time of significant socio-cultural change. Future research should consider exploring other product categories, other emerging market contexts, and evolving sources of influence on family purchase behaviour in emerging markets, such as media, peers, expert opinions and social influencers, as well as influences of family on purchase via online platform.