Chapter 3
Chapter 3
Chapter 3
Influences in consumer
behavior
Chapter 3
What is what makes
a family? a family?
Popular definition on Wikipedia
says,
One consumer says, I was from convent background, my family was really
strict and old school. When I was initially married, I realized my family and
my husband’s lifestyle are to an extend different on a great level. The
values we follow or they follow are change. He is working in a multinational
company, and has a good PR. He told me after our first social hangout
together to wear more modernized clothes, to ‘Fit-in’, so I ditched kurta
suit and bought jeans and dresses. I even have to approve my haircut now.
Key factors affecting the families &
households and helps Marketers to
monitor or predict changes in demand
for specific products and categories:
• Young Singles
• Newly Married Couples
• Full Nest I, II, III
• Married, No Kids
• Empty Nest I, II
• Older Singles
• Solitary Survivor
• Retired Solitary Survivor
Newly weds:
Families with no kids, both partners working.
Decent saving, luxurious spending.
Full Nest 1:
Families in the Full Nest 1 classification have more
children in the home than adults. The kids in the house
are all younger than 6, the parents rely primarily on
credit for purchases and buy mainly household
necessities. People purchase home-related items the
most during the Full Nest 1 stage.
Full Nest 2:
Full Nest 2 families have children 6 and older.
The house is still dominated with children, but these
individuals tend to have a little more control over their
finances, as wives who took off work to raise children
are likely returning to work around this time.
Necessities, such as groceries and children's
clothing, are still the main purchases in these homes.
Full Nest 3
Full Nest 3 status, its children are older, and in many
cases, the children in the family are also working or in
college. A large portion of the family's money goes to
fund the children's education, and parents are more likely
to buy high-end furniture items and purchase vacation
packages.
Empty Nest 1
Empty Nest 1 families have adult children who are no longer
living at home. Home ownership is very common for this group.
Those in the Empty Nest category are very likely to spend
money on vacations and hobbies and have plenty of retirement
money saved.
Empty Nest 2
Empty Nest 2 families have taken a reduction in income, as the
breadwinner is retired. People in this category most likely
spend significant money on medical care and prescriptions
and will often assist their children and grandchildren
financially.
Solitary Survivor and Retired Solitary Survivor
This can consist of either a widow/widower who are
still working or who are retired. Their main focus is on
savings and their purchases are dominated by
accommodation and medication mostly.
Implications of Family Life Cycles
FLC affects demand for many products
Descriptions of life stages can be combined with
additional information about consumer markets
to analyze consumer's needs, identify niches,
and develop consumer-specific marketing plans
Family and household spending The FLC is an
important predictor of family or household
spending
In the last decade, consumers have changed
their household spending from “things” to
“services”
You’ve got 5 mins? Watch these
Family based commercials and
understand how marketers
influence buying behaviors:
https://www.youtube.com/watch?v=cz
HhfzH0gss&has_verified=1
The end!