Family Life Cycle FLC

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Family Life Cycle describes how a

traditional family evolves frombachelorhood to children to solitary

retirement.

Its a sociological concept that

describes changes in families acrosstime, emphasizing effects of

marriage, divorce, births and deaths

on families and changes in income.

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FLC comes under Demographic

Segmentation

FLC a series of stages determined

by combination of age, marital

status and presence of children.



Young

SingleBachelor

Young

Married

NO

Children

Young

Married

WITH

Children

Middle-

Aged

married

WITH

children

Middle-

Aged

married

NO

Dependent

Older

Married

Older

Un-

married

Middle-Aged

married NO

Children

Middle-Aged

divorced NO

Children

Young

divorced

NO

Children

Young

divorced

WITH

Children

Middle-

Aged

divorced

WITH

Children

Middle-Aged

divorced NO

dependents

Traditional Flow

Usual Flow

Recycled Flow

FLC Model

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The Family Life Cycle

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A way of segmenting the family

market at different stages of thelife cycle to determine the

product and services that people

buy at each stage.

Key Variables

AgeMarital Status

Career

Disposable Income

Presence or absence of children

The model describes the stages, which consumer in their lifeas they have family.



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.

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Fashion and opinion leaders.

Recreation orientated

Buy:- Basic Kitchen Equipments, Basic Furniture,

Cars, Clothes, Holidays.



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.

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Buy:- Cars, white goods, durable furniture, Vacations, Life

Insurance.



Young Married Couples

With Children

Home purchasing at peak.

Liquid Assets low.

7

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.



Middle-Aged married

With Children

Financial position still better.

More wives at work.

Some children get jobs.

8

Hard to influence with advertising.

High average purchase of durables.

Buy:- New and more tasteful furniture, auto travel,

dental services, magazines, Boats.

http://larsen-family.us/2006_01_07-Family_Picture.jpg



Middle-Aged married

Without dependent Children.

Home ownership at peak.

Most satisfied with financial position and money saved.

9

Interested in travel, Self – Education.

Make Gifts and contributions.

Not interested in newproducts.

Buy:- Vacations, Luxuries,

Home improvements.



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.

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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 children’s needs.

Buy:- Necessities.

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Still child dominated household.

Children and Children’s needs exert considerable influence on household

spending.

Buy:- Necessities. 12

Full Nest 2

Youngest child Six or over.

Improving Income.

Lower Mortgage burden

Improvement in financial positionsome wives return to work.



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 children’s

education.

Buy:- more tasteful furniture, vacations

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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.

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Satisfied with financial position and money saved.

Buy:- Luxuries, Home Improvements.



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.

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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.

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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.

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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.



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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 person’s 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.



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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.



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Nature of Family Purchase

Six roles of individual family members in the purchase

process

• Initiators

• Information gatherer

• Influencer

• Decision maker

• Purchaser

• User



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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).



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The End



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Presented By

Saumiya

Family Life Cycle FLC

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