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ABSTRACTThe influence of children on the processes of family purchase decision depends on a number of parameters and situations. Children exercise various methods to influence their parent's decision of buying. This influence varies from one product to another. It depends on the education of the parents, their profession, income, whether the parent is single and working, or both parents work and also the family type, types of product (high, low, and child centric product) among others.This research considers children in the age group of 8-12 in India. Descriptive statistics are used to summarize variables in terms of central tendency and measures of dispersion. Reliability test has been done using Cronbach's alpha. Pearson's product correlation, one-way ANOVA, Two-way ANOVA has been done using SPSS version 18.0. Regression is used to prove the causality between independent variables on dependent variable. The children's 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's influence is higher than their parents on family purchase decision. The ANOVA analysis of parent's perception of children influence indicates that parent's income impacts the children's influence. The quadratic relation is observed between children influence and family income.Keywords: Children's influence, decision, family purchase, family structure, income, high-value product, low-value product.INTRODUCTION:In the context of increasing competition and changing social and economic environment, it becomes essential for the marketers to be customer-oriented. Buying of customers in the marketplace plays a significant role in the strategic marketing planning. The recent awareness of consumer 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).Family always plays a very important mediating function. It combines the individual with a larger society, where the person learns various roles suitable for an adult life (Foxall, 1977). The way children learn to become consumers in our society may be largely the result of family influence (Ward, 1974). Since culture exerts considerable influence on the family unit, it is also likely that cultural variables influence the socialization process of the children. The Fig. 1 highlights the stages for children becoming a consumer.One of the very important influences operating on family purchase is the influence of children on the budget allocation and purchases and consumption. The birth of a child creates a demand 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. A similar influence is observed in other countries as shown in Fig. 2.INDIAN CULTURE AND ITS IMPACT ON CHILDREN'S ROLE IN FAMILY DECISION MAKING:Indian society to a greater extent differs from the west in terms of family composition and structure, norms, values, and behaviour. Hence it becomes important to understand children's influence in the purchase decision making in families in the Indian context (Jain and Bhatt, 2004). They not only influence markets with regard to parental decision making on purchasing certain kinds of products, but they also act as future consumers. …
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