The paper "Consumer Behavior and Building Marketing Strategy" is a perfect example of a Marketing Case Study. The family is the basic social institution; it is the original avenue where individuals learn attitudes, values, and behavior that are essential in shaping their future personality (Calantone, Yeniyurt, Townsend and Schmidt, 2010). Traditionally, the family structure comprises of a married couple and children. Across the world, family and household growth patterns play a vital role in forming new trends in consumer behavior. Studies have revealed that the growth in number, size, and structure, and the age of the householder plays a significant role in purchasing and consumption behavior.
Household life cycle models are essential for marketing segmentation as they mark stages rather transitions related to definitive trends in expenditure for goods and services. The household life cycle concept comprises of the lifestyle, income and expenditure pattern differences that are brought about by family role tradition (Quester, et al. , 2007). Additionally, the household’ s pattern of production, consumption, resource allocation, and decision-making are also key determinants of economic behavior. Studies have established that there are six stages of household life cycle based on demographic data; these stages are young single people; young couples with no children, young couples with the youngest child under six years; couples with dependent children; older couples without children at home; and older single people.
Each stage has its own characteristics with regard to purchasing patterns and financial circumstances. This paper seeks to discuss the changing trends in households and the implication of these changes on the marketing strategy. In this regard, the paper will explore the consumption behavior of the middle-aged married with children at home (full nest II).
Characteristics of this household life cycle stage in terms of income, social activities, purchasing habits, and housing will be discussed. Household Life Cycle The structure of the family and non-family households changes with regard to time. The family life cycle was designed to enable an easy understanding of the structural differences in households over their life span (Calantone et al. 2010). The basic assumption by many researchers is that family life cycle undergoes a systematic progression through stages; each stage has its own characteristics with regard to the financial situation and purchasing patterns (Quester, et al. , 2007).
Owing to the fact that a growing proportion of households are non-family households it is imperative to the extent the concept of the family life cycle to that of the household life cycle. Different household life cycle models have been developed by different researchers depending on the age and the marital status of the adults together with the presence of children. According to Quester et al (2007) household life cycle applies to both family and non-family households.
In this regard, the assumption is that all persons go through a series of relatively distinct and definite stages as time passes. Consequently, there are various paths into these stages, and the passage from one stage to another often occurs. For instance, it is more obvious for singles to get married and divorce without having children; one can become a single parent through a divorce, and having a child without a cohabiting partner. However, the path to each stage defines rather influences family life. In this regard, a single-parent family with a sibling under six years has similar characteristics in terms of consumption with another family with the same profile.
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