Article
Why kids hold the key to household decision making
Our latest research, featured in Preschool News, highlights how decision-making power is shifting within the family dynamic.
A shift in the family dynamic
The need to consider the family in today’s marketplace is becoming ever more crucial. Brands have to appeal to parents and kids, and also understand how those relationships function together. Over the last 12 months, Kids Insights data has shown that decision-making power is shifting within the family dynamic.
57%
of UK parents with kids aged 1 to 3 agree their child influences which household essentials they purchase.
The Insights Family, Kids Insights, UK, 2021 to 2022.
As preschoolers gain more ground in family decisions, it is important for brands to understand how to appeal to younger consumers. A range of interactions, preferences and behaviours combine to form a household that is always switched on, and that requires a broad set of demands to be catered for across an ever-growing number of touchpoints. Building appeal across the family increases the likelihood that brand advocacy is passed down the generations and shared with other friends and family.
Households are getting more democratic
Families are not just getting smarter, they are getting more democratic too. Our real-time data measures both kids’ and parents’ influence across a range of categories, from books to TV subscriptions. Comparing 2020 with 2021, the influence of preschoolers in particular grows across the board. As kids become more central in family decisions, we see a shift away from the more traditional habit of parents deciding alone.
Indirect influence beyond the toy aisle
The sway kids have over purchasing power is well understood when it comes to more kid-relevant products such as toys and board games. In Europe, 82% of parents with kids aged 1 to 6 say their child influences what toys they buy. Move outside those conventional kid-friendly sectors, though, and a more indirect influence from preschoolers comes into play.
82%
of European parents with kids aged 1 to 6 say their child influences what toys they buy.
The Insights Family, Parents Insights, Europe, 2021 to 2022.
Parents are implicitly considering the wants and needs of the very youngest children when deciding what to purchase. Among parents in the UK this has increased in the case of larger household decisions such as smartphones, up 14%, kitchen appliances, up 13%, and new cars, up 10%.
Influence over luxury purchases
There have also been significant increases in kid influence over luxury purchases. Over the last six months, more parents with kids aged 3 to 5 report that their preschoolers influence decisions concerning treats, up 12%, restaurants, up 10%, and holidays, up 10%.
At a global level, the economy, finances and money make up three of the top five biggest concerns within the family space on average. As expenditure occupies such a large space in family decisions, it makes sense that parents look to appease their kids as well as themselves. When it comes to non-essential purchases, parents are likely to lean more on their children for input as they look to treat them and create memories together.
What it means for brands
As kids become more influential from a younger age, the family must be considered as a whole, with parents making purchase decisions on behalf of all family members. Understanding the attitudes, behaviours and consumption patterns of young consumers will ensure brands can appeal to kids and carve a space for themselves in the family ecosystem.
Data from Kids Insights and Parents Insights, comparing 2020 and 2021 and the six months to early 2022.
This article first featured in Preschool News.
