Way of segmenting the family market by different stages of the life cycle to determine the products (g & s) that people buy at each stage.

Way of segmenting the family market by different stages of the life cycle to determine the products (g &

s) that people buy at each stage

Key VariablesAgeMarital StatusCareerPresence/Absence of Children

IncomeDisposable –

Take-homeDiscretionary – Mad Money

Bachelor StageYoung single, not living

at homeLow disposable, but high

discretionary incomeDecisions influenced by

their peers/reference groups

Few financial burdensFashion/Opinion leadersRecreation oriented

Buys basic kitchen stuff, basic furniture, cars, clothes, travel, products for the “mating game”

Newly Married Couples

Young, no childrenBetter off financially than they will be in the

near futureHigh income, but high financial commitments

HomesDurable goods

Buys cars, white goods, furniture, travel, life insurance

Full Nest IYoungest child under 6Income low / high debtLiquid assets/savings

lowReliance on creditHome purchasing at

peakSpending dominated

by children’s needs

Buys necessitiesPurchases shift to focus

on child: furniture, car, vacations, entertainment

Full Nest IIYoungest child over 6Income improvingLower mortgage

burdenSpending dominated by

children’s needs

Buys necessitiesPurchases continue to focus

on child’s needs: furniture, activities, education, clothing, transportation

Full Nest IIIOlder married with dependent children

children at work/higher educationFinancially sound

More wives at workMortgage burden even less

School dominated household

Money spent to support kids educationBuys more tasteful furniture, non-

necessary household items, vacations

Empty Nest I

Older married couple, no children at home

Head of family still works

Expenses low!Interested in travel,

recreation, self-education

Buys luxuriesPurchases shift to self:

home improvements, travel, care of self and exploration of interests

Empty Nest II

Older married couple, no children at home

Head of family retiredSignificant cut in

incomeConcern with

retirement, healthGrandchildren create

new influence for money and time

Spending on hobbies, interests, medical care

Spending on children and grandchildren

Sole Survivor I

Spouse has died, but still in workforce

Income adequate, but likely to downsize home

Concern with retirement and savings

Worried about security and dependence

Spend on hobbies and interests

Sole Survivor IISpouse has died, retiredSignificant cut in incomeAdditional medical

needsSpecial need for

attention and securityDependence on othersMay sell home and move

to community living

Limited spending

Alternative Life CyclesYoung and Single

Young single /children

Middle aged single /children

Middle aged single /no children

Retired sole survivor

Young and Single

Newlywed

Full Nest I

Young, divorced/children

Middle aged divorced/children

Empty Nest/divorced

Retired sole survivor

Young and Single

Newlywed

Young, divorced/no children

Middle aged divorced/no children

Retired sole survivor

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