Social and Cultural Factors affecting Consumer Behaviour
Consumer Behaviour Notes B.Com 5th Sem CBCS Pattern
Social-Cultural Factors affecting Consumer behaviour
Social Factors: The second major groups of factors
that influence consumer decision making are social factors, which include all
effects on the buying behaviour that result from interactions between a
consumer and the external environment. The social factors such as reference groups,
family, and social status affect the buying behaviour as follows:
A. Reference Groups: A reference group is a small group of
people such as colleagues at work place, club members, friends circle,
neighbours, family members, and so on. Reference groups influence its members
as follows:
Ø They
influence members’ values and attitudes.
Ø They
expose members to new behaviours and lifestyles.
Ø They
create pressure to choose certain products or brands.
B. Family: The family is the main reference group that
may influence the consumer behaviour. Nowadays, children are well informed
about goods and services through media or friend circles, and other sources.
Therefore, they influence considerably in buying decisions both FMCG products
and durables.
C. Friends: Friends
may influence in two major ways. First they make a recommendation. As they are
friends, we are more likely to trust their judgement than that of an acquaintance,
or indeed a total stranger. Second, friends may buy us a gift.
D.
Relatives: The level of influence may depend upon the closeness of the
family in emotional terms, and its ethnicity. Families of Indian or West Indian
origin, for example, tend to be more close-knit. If someone is planning to buy a
car, that person may seek the opinion or guidance of a friend or relative who
is thought to know about cars.
E. Social
Status: Status is how we measure our position in society relative to
other people, and status symbol is the products that we use as benchmarks in
this comparison. A person who owns a luxury car has more status than a person
who owns a mid size car and a person who owns a mid size car has more status
than a person who owns a small car. People choose products that communicate
their role and status in society.
Cultural Factors: Culture includes race and religion,
tradition, caste, moral values, etc. Culture also include subcultures such
sub-caste, language, religious sects etc and Social class:
A. Culture: It influences consumer behaviour to a great
extent. Cultural values and elements are passed from one generation to another
through family, educational institutions, religious bodies, social environment,
etc. Cultural diversity influences food habits, clothing, customs and
traditions, etc. For instance, consuming alcohol and meat in certain religious
communities is not restricted, but in certain communities, consumption of
alcohol and meat is prohibited.
B. Sub-Culture: Each culture consists of smaller sub-cultures
that provide specific identity to its members. Subcultures include sub-caste,
religious sects (Roman Catholics, Syrian Catholics, Protestant Christians,
etc), geographic regions (South Indians, North Indians), language (Marathi, Malayali,
Tamilian, Guajarati) etc. The behaviour of people belong to various
sub-cultures is different. Therefore, marketers may adopt multicultural
marketing approach, i.e., designing and marketing goods and services that cater
to the tastes and preferences of consumers belonging to different sub-cultures.
C. Social class: Consumer
behaviour is determined by the social class to which they belong. The
classification of socioeconomic groups is known as Socio-Economic
Classification (SEC). Social class is relatively a permanent and ordered
division in a society whose members share similar value, interest and
behaviour. Social class is not determined by a single factor, such as income
but it is measured as a combination of various factors, such as income,
occupation, education, authority, power, property, ownership, life styles,
consumption, pattern etc.
👉👉Consumer Behaviour Notes
Cultural Influences on consumer
Culture is the
most fundamental determinant of a person’s want and behaviour. The growing
child acquires a set of values, perception preferences and behaviours through
his or her family and other key institutions. Culture influences considerably
the pattern of consumption and the pattern of decision-making. Marketers have
to explore the cultural forces and have to frame marketing strategies for each
category of culture separately to push up the sales of their products or
services. But culture is not permanent and changes gradually and such changes
are progressively assimilated within society.
Culture is a set
of beliefs and values that are shared by most people within a group. The
groupings considered under culture are usually relatively large, but at least
in theory a culture can be shared by a few people. Culture is passed on from
one group member to another, and in particular is usually passed down from one
generation to the next; it is learned, and is therefore both subjective and
arbitrary.
It influences consumer behaviour to a great extent. Cultural
values and elements are passed from one generation to another through family,
educational institutions, religious bodies, social environment, etc. Cultural
diversity influences food habits, clothing, customs and traditions, etc. For
instance, consuming alcohol and meat in certain religious communities is not
restricted, but in certain communities, consumption of alcohol and meat is
prohibited.
The nature of cultural influences is such that we are seldom aware
of them. One feels, behaves, and thinks like the other members of the same
culture. It is all pervasive and is present everywhere. Material culture
influences technology and how it brings cultural changes like use of
telephones, mobile phones, clothing styles and fashions, gives the marketers a
chance to improve the product, packing, etc. to meet the needs of the
customers. Norms are the boundaries that culture sets on the behaviour. Norms
are derived from cultural values, which are widely told beliefs that specify
what is desirable and what is not. Most individuals obey norms because it is
natural to obey them.
Culture outlines many business norms, family norms, behaviour
norms, etc. How we greet people, how close one should stand to others while
conducting business, the dress we wear and any other patterns of behaviour.
Culture keeps changing slowly over time; and is not static. Changes take place
due to rapid technologies. In case of emergency, war, or natural calamities,
marketers and managers must understand the existing culture as well as the
changing culture and culture of the country where the goods are to be marketed.
Major companies have adapted themselves to international culture and are
accepted globally. Coca Cola is sold all over the world. Procter & Gamble
and other companies give cross-cultural training to their employees. By making
cross-cultural mistakes, many companies have difficulty in pushing their
products for example; (i) Coca Cola had to withdraw its 2 litres bottle from
Spain, because it did not fit in the local refrigerator; (ii) Many countries
are very traditional and do not like women displayed on the products. This acts
as a detriment to business in those countries.
Impact of Sub-culture on consumer behaviour
Each culture consists of smaller sub-cultures that provide
specific identity to its members. Subcultures include sub-caste, religious
sects (Roman Catholics, Syrian Catholics, Protestant Christians, etc),
geographic regions (South Indians, North Indians), language (Marathi, Malayali,
Tamilian, Guajarati) etc. The behaviour of people belong to various
sub-cultures is different. Therefore, marketers may adopt multicultural
marketing approach, i.e., designing and marketing goods and services that cater
to the tastes and preferences of consumers belonging to different sub-cultures.
Sub-culture categories are (Different basis for division of
sub-cultural):
Ø Nationality:
Indian, Srilanka, Pakistan
Ø Geographic
regions: South India, North-eastern India
Ø Religion:
Hinduism, Islam
Ø Race:
Asian, black, white
Ø Age:
young, middle aged, elderly
Ø Sex: Male,
Female
Ø Occupation:
Farmer, teacher, business
Ø Social
class: upper, middle, lower
1. Regional, Ethnic, and Religious Influences on Consumer
Behaviour: The three major aspects of culture that have important effects on
consumer behaviour are regional, ethnic, and religious differences.
Firstly, consumption patterns may differ in various regions of India
and the world, and marketing strategy can sometimes be tailored specifically to
these regions.
Secondly, our country has a number of different ethnic groups, and
population trends will dramatically alter the demographic profile of the
country in the next 50 years. The very diverse Asian American subculture
is described as young and having higher socioeconomic status, placing strong
value on the family and the group, and being strongly brand loyal. In spite of
its diversity, marketing strategies can be developed for this group.
Finally, religious beliefs and values can influence consumer. Many
marketers are now becoming multicultural in their marketing activities
by trying to appeal to a variety of cultures at the same time. Although
the diversity of the Indian melting pot may be unique, there are many important
ethnic groups in other areas of the world.
2. Age, Gender, and Household Influences on Consumer Behaviour: Among the
four major age groups, Teens, who need to establish an identity, are the
consumers of tomorrow and have an increasing influence on family
decisions. The somewhat disillusioned Generation consists of smart and
cynical consumers who can easily see through obvious marketing attempts.
Baby boomers grew up in a very dynamic and fast-changing world, and this has
affected their values for individualism and freedom. The 50 and older
segment can be divided into two groups-the young again and the gray
market. Neither group likes to be thought of as old. The affect of
gender differences on consumer behaviour is examined next.
Sex roles are changing. Women are becoming more professional and
independent, and men are becoming more sensitive and caring. Also, men
and women can differ in terms of traits, information processing,
decision styles, and consumption patterns. Gender is consistent throughout lifetime,
influencing customer values and preferences. Gender shows different consumption
patterns and perceptions of consumption situations –E.g. the wedding
ceremony.
Households play a key role in consumer behaviour. Households also
exert an important influence on acquisition and consumption patterns.
First, household members can play different roles in the decision
process (gatekeeper, influencer, decider, buyer, and user). Second, husbands
and wives vary in their influence in the decision process, depending on
the situation husband- dominant, wifedominant, autonomic, or synchronic.
3. Psychographics: Values, Personality, and Lifestyles: The roles
of psychographics in affecting consumer behaviour are detailed below.
Values are enduring beliefs about things that are important. They
are learned through the processes of socialization and acculturation.
Our values exist in an organized value system, with some values being
viewed as more important than others. Some are regarded as terminal values and
reflect desired end states that guide behaviour across many different
situations. Instrumental values are those needed to achieve these
desired end states. Domain specific values are those that are relevant within
a given sphere of activity. Western cultures tend to place a relatively high
value on material goods, youth, the home, family and children, work and
play, health, hedonism, and technology. Marketers use tools like value
segmentation to identify consumer groups with common values.
Personality consists of the distinctive patterns of behaviours,
tendencies, qualities, and personal dispositions that make people
different from one another.
Marketers also measure lifestyles, which are patterns of behaviour
(or activities, interests, and opinions). These lifestyles can provide some
additional insight into consumers’ consumption patterns.
Finally, some marketing researchers use Psychographic techniques
that involve all of these factors to predict consumer behaviour. One of the
most well known Psychographic tools is the Values and Lifestyle Survey (VALS).
The newer VALS2 identifies eight segments of consumers who are similar in their
resources and self-orientations.
Social class and its impact on consumer behaviour
Consumer
behaviour is determined by the social class to which they belong. The
classification of socioeconomic groups is known as Socio-Economic
Classification (SEC). Social class is relatively a permanent and ordered
division in a society whose members share similar value, interest and
behaviour. Social class is not determined by a single factor, such as income
but it is measured as a combination of various factors, such as income,
occupation, education, authority, power, property, ownership, life styles,
consumption, pattern etc.
Characteristics
of Social Classes:
a) Persons
within a given social class tend to behave more alike
b) Social
class is hierarchical
c) Social
class is not measured by a single variable but is measured as a weighted
unction of one’s occupation, income, wealth, education, status, prestige, etc.
d) Social
class is continuous rather than concrete, with individuals able to move into a
higher social class or drop into a lower class.
There are three
different social classes in our society. They are upper class, middle class and
lower class. These three social classes differ in their buying behaviour. Upper
class consumers want high-class goods to maintain their status in the society.
Middle class consumers purchase carefully and collect information to compare
different producers in the same line and lower class consumers buy on impulse.
Factors showing social class differences
1. Lower level: Lower level occupation with no authority, less income,
and no education or minimum education. For example, labour class or
clerks etc.
2. Middle class: Graduates, or postgraduates
executives’ managers of companies with authority, drawing handsome
salary of which certain amount can be saved and invested. For
example, executives or middle level managers of companies.
3. Higher class: Authoritative person, drawing handsome salary,
very often professionally qualified, working in a very senior
position or a person born into a rich family, with a good background of
education.
Again there could
be education considerations. A rich but not so educated people will not normally
buy a computer. We should consider another factor of social mobility where a
person gets up in the social ladder (for example, poor can become middle class
and middle class become rich or the children of uneducated family can attain
higher education) or down in the social ladder (for example, rich can become
poor or the children of a highly educated family may not continue study).
Therefore
marketing managers are required to study carefully the relationship between
social classes and their consumption pattern and take appropriate measures to
appeal to the people of those social classes for whom their products are meant.
Higher
positions imply higher status. We can say that Social class is more of a
continuum, i.e., a range of social positions, on which each member of society
can be place. But, marketing
managers have divided this continuum into a small number of specific
classes. Thus, we go by this framework, social class is used to assign
individuals or families to a social-class category. We can now define social
class as the division of members of a society into a hierarchy of distinct
status classes, so that members of each class have relatively the same status
and the members of all other classes have either more or less status.
Summary of Impact of social class on consumer behaviour
a) Provides a
sense of identity
b) Imposes a
set of ‘normative’ behaviours
c) Classes
share values, possessions, customs and activities
d) Marketing
response to customers of different economic means
e) Marketing
to the low-income consumer
f) Some
marketers ambivalent as not perceived as long-term customers constitutes a
substantial group
g) Target
with value-oriented strategies.
Opinion Leadership and Consumer Behaviour
Opinion Leadership is the process by which one person (opinion
leader) informally influences the actions or attitudes of others, who may be
opinion seekers or merely opinion recipients. The definition of opinion
leadership emphasises on informal influence. This informal flow of opinion related
influence between two or more people is referred to word -of- mouth
communication.
There are three situations in which opinion leadership takes
place:
1) When an
individual actively seeks advice from others
2) When an
individual voluntarily provides information to others
3) When
information is generated in the course of normal interaction of a group
Dynamics of Opinion Leadership
1. Credibility: Opinion seekers regard opinion leaders as
trustworthy and a credible source of information pertaining to a particular
product or brand – the opinion leaders have no hidden commercial motives, like
cash rewards, in promoting a brand. Also opinion seekers seek their help in
decision making because they have expertise or usage experience with a product
or brand, which considerably reduces the perceived risk of the opinion seeker.
The information given by the opinion leader can be either positive or negative,
based on personal experience, and this further strengthens their credibility.
2. Information and Advice: Opinion leaders are a source for
product or brand specific information as well as advice. They might just share
casual information about a certain product that they have used, they might even
aggressively advice o0pinion seekers whether to buy it or not. The information
passed can be related to which product or brand to purchase and from where.
3. Category-specific: Opinion leaders can have expertise in one
product category, but can reverse the role to opinion seekers in case of
another product category in which they are not knowledgeable. A person known for
his/her cooking talent may be an expert in the ‘what’ and ‘how’ of packed
edible food products, spices, food nutrition, etc, but when he or she has to
buy a bike, is more likely to seek information from another person whom he/she
regards as knowledgeable about bikes. Therefore, an opinion leader in one
product may be an opinion seeker in another product.
4. Two-way communication: Opinion leadership phenomena are
face-to-face communication between opinion givers and opinion seekers. Both
parties communicate with their respective experience with each other. Some scholars,
thus, believe that the difference between opinion giver and opinion seekers is
somewhat artificial as the person who is knowledgeable about a certain product
and gives related advice to opinion seekers, is also most likely to listen to
others’ comments regarding the product.
5. Specific
Characteristics: Opinion leaders possess distinct personality traits. These include self confidence and
gregariousness. They are socially inclined, outspoken and are knowledgeable.
Types
of Opinion Leaders
Opinion leaders, in general, are people who have expertise in one
subject/product. Activity and have the capability of influencing others.
They may or may not be he users of the product and/or brand that they recommend to
others. Opinion leaders can be of varying types based on their knowledge,
and influence on the purchase decision of the opinion receiver and/or opinion
seeker. There
are some special types of opinion leaders, like generalised opinion leaders,
market mavens,
surrogate buyers and purchase pals:
1. Generalised Opinion Leader: Generalised Opinion Leaders are masters of
various subjects (say, all kinds of consumer durable products, books, etc.) and are
very hard to find. Usually, opinion leaders are knowledgeable about one
product category and have high involvement in some related areas.
2. Market Maven: Market mavens belong to a special category
of opinion leaders who have market involvement, rather than product involvement
of the normal opinion leaders. They are people who actively seek market
information which they feel may be useful from friends and relatives and are a
great source
of information like – which place offers the best deals, where there
are discounts at that time of the year, what new products/brands are in the
market, which outlets to visit for which product, the new outlet in town, etc.
3. Surrogate buyer: Surrogate buyer is the term used for the
professionals hired by actual purchasers to filet the huge amount of store, product and
brand information available, evaluate the product options available and
make recommendations. Sometimes, they also make transactions on behalf of their
employer. Surrogate
buyers play a wide variety of roles like tax consultants, wardrobe consultants,
interior designers,
stock brokers, etc. The reasons for hiring a surrogate buyer can range from
personal reasons
like high perceived risk, lack of time, lack of expertise or product knowledge,
or low interest
in shopping to environmental issue like limited product availability.
4. Purchase pals: Purchase pals are people who accompany an
individual on shopping trips. Purchase pals are considered to be quality
influential opinion leaders at the point of purchase (in store) in consumer decisions.
The major benefit of purchase pals is that they help reduce the stress and
anxiety an individual
experiences while make a purchase, especially in a high involvement expensive
product. The
other benefit is information support they provide like better product
knowledge, better bargaining skills and better knowledge of outlets, prices
and products. Thus the choice of purchase pals depend on the relationship they have
with the individual and the type of purchase they make.
Reference group – Meaning, Types and Factors
A group is two or
more persons who share a set of norms and whose relationship makes their
behaviour interdependent. A reference group is a group of people with whom an
individual associates. It is a group of people who strongly influence a
person’s attitudes values and behaviour directly or indirectly. Reference
groups fall into many possible grouping, which are not necessarily to be
exhaustive (i.e. non over-lapping). The various reference groups are:
1. Membership or contractual groups: They are those groups to which the person
belongs, and interacts. These groups have a direct influence on their member’s
behaviour.
2. Primary or normative groups: They refer to groups of friends, family
members, neighbours co-workers etc whom we see most often. In this case, there
is fairly continuous or regular, but informal interaction with cohesiveness and
mutual participation, which result in similar beliefs and behaviour within the
group.
3. Secondary groups: They include religious groups, professional
groups etc, which are composed of people whom we see occasionally. These groups
are less influential in shaping attitudes and controlling behaviour but can
exert influence on behaviour within the purview of the subject of mutual
interest. For example, you can be member of a philately or literary club where
you can discuss on mutually interesting subjects.
4. Aspiration group: These are group to which a person would like
to join as member. These groups can be very powerful in influencing behaviour
because the individual will often adopt the behaviour of the aspirational group
in the hopes of being accepted as a member. Sometimes the aspirational groups
are better off financially, or will be more powerful; the desire join such
groups is usually classed as ambition.
5. Dissociative or avoidance groups: These are groups whose value an individual
rejects and the individual does not want to be associated with.
6. Formal groups: These groups have a known list of members,
very often recorded somewhere. An example might be a professional association,
or a club. Usually the rules and structure of the group are laid down in
writing. There are rules for membership and members’ behaviour is constrained
while they remain part of the group.
7. Informal groups: These are less structured, and are typically
based on friendship. An example would be an individual’s circle of friends,
which only exists for mutual moral support, company and sharing experiences.
Although there can be even greater pressure to conform than would be the case
to a formal group, there is nothing in writing.
8. Automatic groups: These are those groups, to which one belongs
by virtue of age, gender, culture or education. These are sometimes also called
category groups. Although at first sight it would appear that these groups
would not exert much influence on the members’ behaviour, because they are
groups, which have not been joined voluntarily, it seems that people are
influenced by group pressure to conform. For example, when buying clothes,
older people are reluctant to look like a teenager and hence they normally do
not buy jeans.
9. Indirect groups: In this case, the customers are not in direct
contact with the influencers. For example, a film star like Shah Rukh Khan
pitches for Santro car, it obviously has a deep influence over the blind fans.
10. Comparative groups: The members of this group are those with whom
you compare yourself. For example, you may compare yourself with your brother
or sister (sibling rivalry) or the colleagues and try to emulate by possessing
some unique products or brands like Modava watch or Christian Dior perfume.
11. Contractual group: The group with which we are in regular
contacts like college friends, office colleagues.
Factors
that Affect Reference Groups Influence
The degree of influence that a reference group exerts on an
individual’s behavior usually depends on the nature of the individual and the
product and on specific social factors. This section discusses how and why some
of these factors operate to influence consumer behavior.
1. Information and Experience: An individual who has firsthand
experience with a product or service, or can easily obtain full information
about it, is less likely to be influenced by the advice or example of others.
On the other hand, a person who has little or no firsthand experience with a
product or service, and does not expect to have access to objective information
about it (e.g., a person who believes that relevant, advertising may be
misleading or deceptive), is more likely to seek out the advice or example of
others. Research on imitative behavior provides some interesting insights on
how insufficient experience or information concerning a product makes consumers
more susceptible to the influence either positive or negative, of others.
2. Credibility, Attractiveness, and Power of the Reference Group: A
reference group, which is perceived as credible, attractive, or powerful can
induce consumer attitude and behavior change. For example, when consumers are
concerned with obtaining accurate information about the performance or quality
of a product or service, they are likely to be persuaded by those they consider
to be trustworthy and knowledgeable. That is, they are more likely to be
persuaded by sources with high credibility. When consumers are primarily
concerned with the acceptance or approval of others they like, with whom they
identify, or who offer them status or other benefits, they are likely to adopt
their product, brand, or other behavioral characteristics.
3. Conspicuousness of the Product: The potential influence of a reference
group varies according to how visually or verbally conspicuous a product is to
others. A visually conspicuous product is one that can be seen and identified
by others, and that will stand out and be noticed (e.g., a luxury item or
novelty product). Even if a product is not visually conspicuous, it may be
verbally conspicuous it may be highly interesting or it may be easily described
to others. Products that are especially conspicuous and status-revealing (a new
automobile, fashion clothing, home furniture) are most likely to be purchased
with an eye to the reactions of relevant others. Products that are less
conspicuous (canned fruits, laundry soaps) are less likely to be purchased with
a reference group in mind.
4. Reference Group Impact on Product and Brand Choice: In some
cases, and for some products, reference groups may influence both a person’s
product category and brand (or type) choices. Such products are called pro-
duct-plus, brand-plus items. In other cases, reference groups influence only
the product category decision. Such products are called product-plus,
brand-minus items. In still other cases, reference groups influence the brand
(or type) decision. These products are called product-minus, brand-Plus items.
Finally, in some cases, reference groups influence neither the product category
nor the brand decision; these products are called product-minus, brand-minus
items.
5. Reference Groups and Consumer Conformity: Marketers are
particularly interested in the ability of reference groups to change consumer
attitudes and behavior (i.e., to encourage conformity). To be capable of such
influence, a reference group must:
Ø Inform or
make the individual aware of a specific product or brand;
Ø Provide
the individual with the opportunity to compare his or her own thinking with the
attitudes and behavior of the group;
Ø Influence
the individual to adopt attitudes and behavior that are consistent with the
norms of the group; Legitimize an individual’s decision to use the same
products as the group.
Family and its role in consumer behaviour
Meaning: A family is a group of two or more persons related
by blood, marriage, or adoption who reside together. The nuclear family is the
immediate group of father, mother, and children living together. The extended
family is the nuclear family, plus other relatives, such as grandparents,
uncles and aunts, cousins, and parents-in-law. The family into which one is
born is called the family of orientation, whereas the one established by
marriage is the family of procreation. In a more dynamic sense, the individuals
who constitute a family might be described as members of the most basic social
group who live together and interact to satisfy their personal and mutual
needs.
There are two
types of families in the buyer’s life viz. nuclear family and Joint family.
Nuclear family is that where the family size is small and individuals have
higher liberty to take decisions whereas in joint families, the family size is
large and group decision-making gets more preference than individual. Family
members can strongly influence the buyer behaviour, particularly in the Indian
contest. The tastes, likes, dislikes, life styles etc. of the members are
rooted in the family buying behaviour. The
family influence on the buying behaviour of a member may be found in two ways:
i) The family
influence on the individual personality, characteristics, attitudes and
evaluation criteria and
ii) The influence
on the decision-making process involved in the purchase of goods and services.
In India, the head of the family may alone or jointly with his wife decides the
purchase. So marketers should study the role and the relative influence of the
husband, wife and children in the purchase of goods and services.
Family life cycle stages and their buying behaviour
Stage of life cycle
|
Explanation
|
Single/Bachelor stage
|
Single
people like student, unemployed youth or professionals at their age tend to
have low earnings, but also have low outgoings so have a high discretionary
income. They tend to be more fashion and recreation orientated, spending on
clothes, music, alcohol, eating out, holidays, leisure pursuits and hobbies.
They may buy cars and items for their first residence away from home.
|
Newly married couples
|
Newlyweds
without children are usually dual-income households (Double Income No Kids
commonly known as DINK) and therefore usually well off. They still tend to
spend on similar things to the singles, but also have the highest proportion
of expenditure on household goods, consumer durables and appliances. Appear
to be more susceptible to advertising.
|
Full nest I
|
When
the first child arrives, one parent usually stops working outside the home,
so family income drops sharply. The baby creates new needs, which alter
expenditure patterns: furniture and furnishings for the baby, baby food,
vitamins, toys, nappies and baby food. Family savings decline, and couples
are usually dissatisfied with their financial position.
|
Full nest II
|
The
youngest child is over 6, so often both parents will work outside the home.
The employed spouse’s income has risen due to career progression, and the
family’s total income recovers. Consumption patterns still heavily influenced
by children: bicycles, drawing or swimming lessons, large-size packages of
breakfast cereals, cleaning products, etc.
|
Full nest III
|
Family
income improves, as the children get older. Both parents are likely to be
working outside the home and both may have had some career progression; also,
the children will be earning some of their own money from part-time jobs,
etc. Family purchases might be a second car, replacement furniture, some
luxury items and children’s education.
|
Empty nest I
|
Children
have grown up and left home. Couples are at the height of their careers and
spending power, have low mortgages, very reduced living costs. Often go for
luxury travel, restaurants and theatre, so they need fashionable clothing,
jewellery, diets, spas, health clubs, cosmetics or hairdressing.
|
Empty nest II
|
Main
breadwinner has retired, so some drop in income. Expenditure is more health
orientated, buying appliances for sleep, over-the-counter (OTC drugs like
Crocin, Disprin, Gellusil) remedies for indigestion. They often buy a smaller
house or move to an apartment in suburbs.
|
Solitary survivor
|
If
they still are in the workforce, widows and widowers enjoy a good income.
They may spend more money on holidays, as well as the items mentioned in
empty nest II.
|
Retired solitary survivor
|
Same
general consumption pattern is evident as above, but on a smaller scale due
to reduced income. They have special needs for love, affection and security,
so may join local clubs for aged etc.
|
The family life
cycle is a useful rule-of-thumb generalisation, but given the high divorce rate
and the somewhat uncertain nature of career paths, it is unlikely that many
families would pass through all the stages quite as neatly as the model
suggests.