1

Family Life Cycle describes how a traditional family evolves from bachelorhood to children to solitary retirement. Its a sociological concept that describes changes in families across time, emphasizing effects of marriage, divorce, births and deaths on families and changes in income. FLC comes under Demographic Segmentation FLC a series of stages determined by combination of age, marital status and presence of children.
2

FLC Model
Young divorced NO Children

Middle-Aged divorced NO Children

Middle-Aged married NO Children

Young Single
Bachelor

Young
Married NO Children

Young
Married

WITH
Children

MiddleAged married WITH children

MiddleAged married NO
Dependent

Older
Married

Older Unmarried

Usual Flow Recycled Flow

Traditional Flow

Young divorced WITH Children

MiddleAged divorced WITH Children

Middle-Aged divorced NO dependents

3

The Family Life Cycle

A way of segmenting the family market at different stages of the life cycle to determine the product and services that people buy at each stage. The model describes the stages, which consumer in their life as they have family. Key Variables Age Marital Status Career Disposable Income Presence or absence of children
4

Young Single Bachelor Stage Young Single people not living at home.

Low Income but high discretionary income.

Decisions influenced by individuals peer reference group. Few financial burdens. Fashion and opinion leaders. Recreation orientated Buy:- Basic Kitchen Equipments, Basic Furniture,

Cars, Clothes, Holidays.

5

Newly Married Couples With No Children

Better off financially than they

will be in the near future. High Income but likely to have high mortgage commitment. High level of purchase of homes

durable goods.
Buy:- Cars, white goods, durable furniture, Vacations, Life Insurance.
6

Young Married Couples With Children Home purchasing at peak. Liquid Assets low. Dissatisfied with financial position and amount of money saved. Interested in new products.

Buy:- Washers, Dryers, Television, Baby food, Chest rubs,

Cough medicines, Vitamins, Toys.
7

Middle-Aged married With Children Financial position still better.

More wives at work.

Some children get jobs.

Hard to influence with advertising.

High average purchase of durables. Buy:- New and more tasteful furniture, auto travel, dental services, magazines, Boats.
8

Middle-Aged married
Without dependent Children. Home ownership at peak. Most satisfied with financial position and money saved.

Interested in travel, Self

Education. Make Gifts and contributions. Not interested in new products.

Buy:- Vacations, Luxuries,

Home improvements.
9

Older married Drastic Cut in Income.

Keep Home.
Buy:- medical Appliances, Medical care, Products that aid health, sleep and digestion. Older Unmarried

Drastic Cut in Income.

Special need for attention, affection and security. Buy:- medical and products that aid health.
10

Full Nest I Youngest child under Six.

Income low-high debts.

Home purchasing at peak. Liquid assets/savings low. Reliance on credit. Child dominated household.

Spending dominated by childrens needs.

Buy:- Necessities.

11

Full Nest 2 Youngest child Six or over. Improving Income. Lower Mortgage burden

Improvement in financial position

some wives return to work. Still child dominated household. Children and Childrens needs exert

considerable influence on household

spending. Buy:- Necessities.
12

Full Nest 3 Older married Couples with dependent children

Older children at work other in further/ higher education.

Financial position better. More wives at work. School and exam dominated household. Expenditure to support childrens

education.
Buy:- more tasteful furniture, vacations

13

Empty Nest 1 Older married Couples no children at

home, head of family still in work.

Income at highest level. Expenses Low. Home Ownership at peak. Interested in travel, recreation, self

education.
Satisfied with financial position and money saved. Buy:- Luxuries, Home Improvements.
14

Empty Nest 2
Older married Couples no children at home, head of family retired Significant cut in income. Concern with level of pension

and savings.
Some spending on hobbies and pastimes. Buy medical appliances or medical care. Products to aid Health, sleep and digestion. Assist children and grandchildren.
15

Solitary Survivor 1 Widow/ Widower but still in labor force. Income still adequate but likely to sell family home and purchase smaller accommodation. Concern with the level of savings and pension.

Some spending on hobbies and pastimes.

Worried about security and dependence.

16

Solitary Survivor 2 Widow/ Widower and retired. Significant cut in income.

Additional medical requirements.

Special need for attention, affection and security. May seek sheltered accommodation. Possible dependence on others for personal financial management and control.

17

Uses of the model

A method of segmenting the market. Provides an understanding of changes in consumer buying behavior. Used in targeting e.g.: in the leisure and travel industries.

18

The Importance of Families and Households on Consumer Behaviour

Marketers must exercise care in analyzing consumer behaviour. Consumers often turn down what appears to be a winning offer. As soon as managers believe that they understood their consumers, buyer decisions are made that appear to be irrational. But what looks like irrational behavior to a manager is completely rational to the consumer. Buying behavior is never simple.
19

 It is affected by many different factors.

Yet understanding it is the essential task of marketing

management. People coming from the same subculture, social class and occupation may have quite different lifestyles. A lifestyle is a persons pattern of living as expressed in his/her activities, interests and opinions. Lifestyle portrays the whole person interacting with his environment. A person belongs to many group: family, clubs and organizations.

20

Family Decision Making

Two decision-making styles exist: spouse-dominant (either wife or husband is responsible) joint decision making (most decisions are made by both husband and wife). Increasingly, preteens and teenagers are assuming these roles for the family, given the prevalence of working parents and single-parent households.

21

Nature of Family Purchase

Six roles of individual family members in the purchase process Initiators Information gatherer Influencer Decision maker Purchaser User

22

Family Decision Making

Whether to buy; Which product to buy (pick-up or passenger car?); Which brand to buy; Whereto buy it; and

When to buy
The decision maker may specify what kind of product to buy, but not which brand;

The purchaser may have to make a substitution if the

desired brand is not in stock; The purchaser may disregard instructions (by error or

deliberately).
23

The End
24

Presented By Saumiya

25