Traditional life cycles show the various stages that families have experienced. These stages range from singleness (single), marriage (couple), family maturity (parenting: having children), downsizing stage family (children who grow up and leave home for school or work), to dissolve (sole survivor: death of one of the spouses) at random. Based on that, classic FLC may be broken down into 5 fundamental stages, which are as follows:
Stage I: Single: Male or female young adults who are single and living independently from their parents.
Phase II: Honeymoon: Newlyweds
Stage III: Parenthood: At least one kid of the marriage is a resident of the home.
Stage IV: After Parenting: A senior couple without children resides at home. Kids have left the house to go to school or job.
Dissolution, Stage V: Only one surviving spouse.
Following is an explanation of these stages, consumption habits, and product preferences:
Initially: Single: The scenario features a young adult living alone and far from his parents (male or female). Due to the fact that they are just beginning their careers, their salary is low, but so are their financial obligations. Because they have a lot of money to spend, these bachelors.
They tend to prioritize buying things like kitchenware, basic furniture, and rent when making purchases. They value amusement and enjoy spending money on extreme activities (motor racing, bungee jumping, etc.), clubs, health products, apparel, and fashion accessories. They also enjoy traveling and hiking.
Marketers should take note of this since single people typically have a lot of discretionary income, and they are a desirable market for sports, travel, entertainment, and fun.
Stage II: The honeymoon, which lasts until the birth of the couple's first child, involves newlyweds. Both members of the couple might be employed or just one. Compared to the following period, they are financially better off. When both people are employed, the income is higher. When both partners are employed, the couple has more cash available to support a comfortable lifestyle and make purchases or put money away.
They tend to spend money to make a home for themselves. Purchase preferences. They spend money on things like vehicles, furniture, upholstered items, gadgets, kitchen appliances, and travel.
Marketing implications: Because they have the greatest purchase rate among categories, they make up an appealing segment for marketers. During this time, the average cost of durable goods was at its highest.
Parenthood is stage three. There are families performing on stage. Three phases, Full Nest I, Full Nest II, and Full Nest III, make up this phase, which lasts for roughly 20–25 years. During these phases, the family's composition and size steadily change, and priorities affect how much money is made and spent. Financial expenses rise quickly when a child is born in a Full Nest I and progressively decline as they get older and more independent until they are in a Full Nest III.
First Patriarch I: The family member who is six years old or younger and the youngest child.
Costs are high, but cash liquidity is low, therefore preferences and preferences for purchases are both high. Spending on baby food, diapers, cold and cough remedies, doctor appointments, kids' activities and toys, school supplies and fees, and insurance coverage. Costs for child care rise.
Marketing implications: Since purchasing is at its highest at this time, marketers are drawn to this market. The future purchasing power of the family's children begins to affect those decisions.
Full nest II: The youngest member of the family who is at least six years old. Children between the ages of 6 and 12 typically make up this stage.
Purchase preferences and preferences: When one starts to advance, their financial status improves. The children are the "baby children" if the wife is employed. Families spend money on things like food, kids' clothes, education, insurance, and investments. Additionally, they cover medical costs, particularly for dental care. They conduct business, purchase larger-sized shipments, and save packages. The primary needs, for instance, include fast food, designer clothing and accessories, video games, etc.
Meaning for Marketers: Since this time bracket still has the largest purchasing power, marketers are drawn to this market. Adolescents and kids still have an impact on family purchases. A possibility for home-delivered goodies like pizza and hamburgers is lock-on children.
Nest III consists of elderly couples who cohabit the home with dependent and/or independent children. Children advance in education, and one of them can start working for a living.
Purchase preferences and preferences: As a family's income rises, expenses also grow. Families continue to spend money on things like food, children's clothing, college tuition, and the resale of durable assets acquired during the honeymoon or Full Nest I. New furniture, gadgets, home appliances, and automobiles are purchased by families. The average level of durable goods is hence high. The family also makes investments in apartments, houses, and/or other real estate. They continue to spend money on medical costs, particularly dentists, and visit the general practitioner for regular checkups.
Marketing implications: At this point, as one of the children begins to earn money, the family's income begins to increase. This stage offers opportunity for marketers as costs rise.
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Stage IV: Once Parenting: This stage starts after the kids move out of the house. Prior to leaving for work, they first head off to school. They progressively leave the house and the nest when they finish their education and find employment. As a result, this stage is also split into the Empty Nest I and Empty Nest II phases. The size and makeup of the family alter as a person progresses through Empty Nests I and II (quite similar to Parenthood and Full Nest stages I, II, and III).
When at least one child has moved out of the house, the empty nest stage I begins. He or she has finished school, found employment, and moved out to start a new life. He or she is self-sufficient and capable of managing. The parents continue to work while the kids are able to launch their own enterprises.
Purchase inclinations and preferences: Families are getting smaller over time. The highest levels of savings and spare income are available because parents are still earning a living and because costs are going down. Spending on food, mortgage or rent payments, dependent children's college tuition, and dentist, physiotherapy, and heart-related medical costs. They can pass their free time by watching TV, going to the movies, or even taking vacations.
Marketing implications: At this point, the couple will once again have cash available. Children's financial responsibilities start to decrease. At this point, marketers have the opportunity to offer services like entertainment, travel, and vacations.
Nest II: During this time, the couple had given up their jobs and all of the kids had moved out of the house. They rely on social security savings and pensions to support themselves. If their health permits, they will work part-time.
Purchase preferences and preferences: Couples have lower expenses and more disposable income thanks to investments and savings. They make the decision to spend all they have considered but are unable to spend due to family obligations. They spend money on things like food, travel, and holidays. They also watch TV and join hobby clubs. After retirement, they upgrade their homes or might even relocate to newer ones. The price of medicine has also gone up. The situation is very different for older retired couples who don't have much of an income from sufficient savings and investments, though. Their income experienced a significant decline.
Marketing implications: The theater industry is very lucrative for those working in the leisure sector. As part of their "Premium Citizen Benefits," many sectors of the economy provide special discounts on lodging and travel. Additionally, banks and other financial organizations offer senior citizens extra services, including greater interest rates on savings.
Stage V: Dissolution: When one of the spouses passes away and leaves the surviving spouse, FLC enters this stage.
Purchase preferences: Things become a little easier when one of you is still employed or earning income from savings and investments. He or she will live frugally, though, if they are not employed. The main costs are for medication, doctor visits, and a restricted diet.
Marketers should be aware of the implications of this stage, which is marked by a widow/widow with a lower income and the least amount of shopping and spending.
