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
Buys cars, white
 Durable goods
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
Buys necessities
Purchases continue to focus
on child’s needs: furniture,
activities, education,
clothing, transportation




Youngest child over 6
Income improving
Lower mortgage burden
Spending dominated by
children’s needs
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 and Single
Young and Single
Young single /children
Newlywed
Newlywed
Middle aged single
/children
Full Nest I
Young, divorced/no
children
Middle aged single /no
children
Retired sole survivor
Young,
divorced/children
Middle aged
divorced/children
Empty Nest/divorced
Retired sole survivor
Middle aged
divorced/no children
Retired sole survivor
http://tutor2u.net/business/presentations/marke
ting/familylifecycle/default.html