Pricing Rules with Constituency Criteria Household vs Ind

I am really trying to dig into Pricing Rules but am getting confused with Constituent Criteria, specifically with Constituency.

Does the Constituency value you select in the drop down (Ie- Board Member), look at the Household or the Individual?

We process orders at the Household level. But a Board Member's constituency is at the Individual level.

I noticed in the 7/8/15 Pricing Rules in Action Webinar at minute 4:05 the BRD (Board) constituency was in parenthesis, meaning the constituency was at the Individual level, but the transaction/order was being done on the Household account, but the Pricing Rule did fire.

So does that indeed mean that constituency criteria in Pricing Rules look at Individual records within a Household record to see if they meet the pricing rule criteria?

Thanks!

Jessica