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5/17/2018 Family Life Cycle FLC - slidepdf.com
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5/17/2018 Family Life Cycle FLC - slidepdf.com
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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.
2
FLC comes under Demographic
Segmentation
FLC a series of stages determined
by combination of age, marital
status and presence of children.
5/17/2018 Family Life Cycle FLC - slidepdf.com
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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
3
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The Family Life Cycle
4
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.
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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.
5
Fashion and opinion leaders.
Recreation orientated
Buy:- Basic Kitchen Equipments, Basic Furniture,
Cars, Clothes, Holidays.
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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.
6
Buy:- Cars, white goods, durable furniture, Vacations, Life
Insurance.
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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.
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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.
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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.
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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.
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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
13
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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.
14
Satisfied with financial position and money saved.
Buy:- Luxuries, Home Improvements.
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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
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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
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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