A Report Exploring the Changing Trends in Households and its Implications of These Changes on Marketing Strategy OutlineIntroductionDescriptionFull nest IIStatisticsThe role of household in consumer behavior processInformation gatherersInfluencerDecision makerPurchaserUserImplications of Changing Household trends on the marketRecommendationsConclusionIntroductionHousehold life cycle is very important to a marketer for segmentation activities. Understanding the stages of household life cycle enables a marketer to decide on what products or services to offer and what marketing strategy to apply. There are different life cycles stages of household are: The Single people, young married with no children, full nest I with children, full nest II, Full nest III, Empty Nest I, empty nest II, solitary survivor, and solitary survivor.
Consumption patterns of goods and services are different among the different stages of household life cycle. As family progresses from being single, getting married, having children and becoming grand parents involves planning and issues to do with finances. Each stage has its own needs, responsibilities and market trends. In this report I will discuss the full nest II stage the household life cycle. DescriptionFull nest II is a stage in household life cycle for middle-aged married couple at age between 35years and 64 years.
The couple has older children with the youngest child being about 6 years of age just the right age for school. There is improvement in income for the employed spouse because earning is established. Generally, there is improvement fin the family’s financial position, although it consumes more and in very large quantities. Since the family is big there is need for larger home, big car and. large-sized packages of food. Children influence consumption patterns; a computer, music lessons, sports equipment, bicycles, clothing, and so on.
Most advertisers attract teenagers of these households through their advertisements. This stage of household life cycle has teenagers whose spending is discretional. Those in high school (of age 7 and 12) are interested in fitness and sports. Teenage boys of age 16 and 19 spend their money buying and watching movies, clothing, dating, vehicle and entertainment as well as dating. Girls at the same age send their money on fragrances, cosmetic and clothing. The single people and the married with no children spend their money on paying college fees or college loans while still learning how to budget and deal with financial issues.
The married with children invest their money in high education funds and save for their retirement. Full Nest II with children emphasizes their spending on fees for their children’s college education. According to Australian Bureau of Statistics (2006-2007), there has been a decrease of couple families with children (Full nest II) over the last ten years. In 1997 48% of total families were Full nest II, in 2003 they were at 46% and by 2007 they had reduced to 45%.
This can be explained for the increase of couple families without children of any particular age. According to the statistics number of couple families with dependent children are 217,700 with 8, 928, 000 people and 4,143,000 dependent children. Dependent children are full-time dependent students age 15-24 years or children under 15 years of age. The couple families with dependent children are 471,000 with 1,577,000 children.