I have hierarchical data of individuals nested into families. For each individual, I have independent variables such as age, gender, education, and familiarity with product. For each family unit, I also have covariates such as household income, purchase behavior, and distance to retail centers.
The dependent satisfaction measure is only recorded at the family level. More specifically, satisfaction is asked of a head-of-household respondent, who ideally represents the household. While satisfaction is measured on a 5-point scale, we typically re-express it as dichotomous (top 2 box).
I would like to take into consideration the individual-level effects as well as the family-level effects in modeling product satisfaction propensity. Is it appropriate to explore multilevel modeling when the outcome is only measured at the second level? If not, is there a different approach I should be following?