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 Variables Age Marital Status Career Presence/Absence of Children Income Disposable – Take-home Discretionary – Mad Money

Bachelor Stage Young single, not living at home Low disposable, but high discretionary income Decisions influenced by their peers/reference groups Few financial burdens Fashion/Opinion leaders Recreation oriented Buys basic kitchen stuff, basic furniture, cars, clothes, travel, products for the “mating game”

Newly Married Couples Young, no children Better off financially than they will be in the near future High income, but high financial commitments Homes Durable goods Buys cars, white goods, furniture, travel, life insurance

Full Nest I Youngest child under 6 Income low / high debt Liquid assets/savings low Reliance on credit Home purchasing at peak Spending dominated by children’s needs Buys necessities Purchases shift to focus on child: furniture, car, vacations, entertainment

Full Nest II Youngest child over 6 Income improving Lower mortgage burden Spending dominated by children’s needs Buys necessities Purchases continue to focus on child’s needs: furniture, activities, education, clothing, transportation

Full Nest III Older married with dependent children children at work/higher education Financially sound More wives at work Mortgage burden even less School dominated household Money spent to support kids education Buys 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 luxuries Purchases 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 retired Significant cut in income Concern with retirement, health Grandchildren 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 II Spouse has died, retired Significant cut in income Additional medical needs Special need for attention and security Dependence on others May sell home and move to community living Limited spending

Alternative Life Cycles Young 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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