Family decisions are often similar to organizational buying decisions. Each decision made iwthin the family reflects on each family member. It works with the organization in the same way. Decisions that are made within the company have an impact on each department or employee in that organization.
Family needs and expenses change over time as they move to the different stages of the particular cycle. The family life cycle consists of the bachelor stage, newly married couples, full nest 1 2 3, empty nest and solitary survivor. The bachelor stage: young and single individuals up to the age of 30. This stage either lives independently or with their parents. This stage group has an average age up to 24 and lives a very on-going life and is more carrier oriented.
They don’t have any financial obligations and do have extra amounts of money to satisfy and need or want they wish to. Newly married couples: new married couples without children. From living two separate lives they now live a joint life style.
This stage has dual incomes and are not concerned with pricing of goods and services. Full nest 1: a young married couple with a single child. With the addition in the family little expenses are involved but don’t affect a big change in reducing their funding’s.
Full nest 2: older married couples with two or more children. Having more children leads to more expenses. Expenses include education, books, insurance etc. Parents start spending less on themselves and have to purchase products that satisfy their kids not the parents. Full nest 3: older married couples with dependent children. Children are employees and don’t have any financial obligations towards parents. Parents are not concerned in purchasing new products.
They are experienced buyers and believe in the products that they’ve been using for a longer period of time. Empty nest: older married couples with no children. They have no expenses towards second groups. They have income that can provide themselves luxury products and more expensive brands. Solitary survivor: Single elderly individuals that are retired. Life for them is very lonely and their income is high and can offered pricy products