Households: a systematic unit of analysis through history

Abstract

PurposeThe purpose of this paper is to extend and apply the systems model of the household proposed by Dixon, his colleagues, and his students to situations in which vulnerable consumers are not able to follow the purely rational models of economics. The case of homeless families is examined.Design/methodology/approachThe paper presents a literature review, an introduction of Baker et al.'s concepts of consumer normalcy and consumer vulnerability, and an application of expanded model to consumer studies of homeless persons published by Ronald Hill and his colleagues.FindingsThe same household systems models might be used to unfold the complex problems that can undermine the functioning in a household, causing it to be unproductive and potentially fail. Applications of the concepts of “consumer normalcy” and “consumer vulnerability” provide a useful platform to develop public policy recommendations, the example of homeless persons will be considered as an illustration.Research limitations/implicationsThe extension and application is limited in that it is applied to analyze data collected approximately 20 years ago. The research should be extended to actual homeless households in the present day, and to additional “types” of households who are likely to encounter vulnerabilities as consumers (e.g. persons with disabilities).Practical implicationsThe four levels of household processes (employment, purchasing, home‐production, and consumption) provide a useful framework for examining households in which vulnerabilities occur. This approach is useful in identifying the gaps in the household processes that can slow down productivity and instead introduce confusion and demoralization, plus continue the spiral of economic deprivation.Social implicationsFor over 50 years, the work of Goffman has played an important role in identifying individuals and households that did not fit societal norms, resulting in their possibly experiencing conditions of stigmatization. Examining specific household types in terms of the functionality or dysfunctionality of their use of inputs may allow researchers to recommend various types of support, training, or assistance related to the household as a system, rather than focusing on the individual without considering the household dynamics.Originality/valueThis paper takes a general systems approach in applying the concepts of consumer normalcy and consumer vulnerability, both based in behavioral theories in the social sciences, to the economic approach to the household emphasizing rational decision making and orderly production functions.