Introduction
The first attempts to create a theory of consumption are associated with a number of key figures in social science in the 19th and 20th centuries, but more concrete studies of consumer behavior began to appear much later. The sequence is as follows: economic science gave rise to marketing, one section of which is consumer behavior. From marketing, the separate discipline of consumer behavior was then developed (Peter & Olson, 2009). Historically, there were two worldviews in the understanding of consumer behavior: modern and postmodern. These two directions differ significantly in their understanding of the consumer. The first worldview represents consumers as rational, organized, planning, and perhaps loyal. Postmodernism, in turn, looks at consumers as irrational, inconsistent, contradictory, and perhaps even immoral individualists.
There are four basic approaches to the formation of a correct understanding of consumer behavior:
- The consumer is always independent;
- The motivation and behavior of consumers are studied through marketing research;
- Consumer behavior is susceptible to influence;
- Consumer behavior is socially legitimate.
The behavior of the consumer is guided by a specific goal, and this is a manifestation of independence. Goods and services can be either accepted or rejected by the consumer, depending on their compliance with the consumer’s requests and desires. The enterprise achieves the greatest success if it is able to give the consumer a choice and a real benefit from the transaction being made. One of the important requirements for the survival of an enterprise in a highly competitive environment is an understanding of what is required to meet the needs of the consumer and permanent adaptation to consumer behavior. The behavior of consumers is influenced by various factors. First, there are the factors of the external environment. The most important individual-difference factors among consumers include income, motivation, level of knowledge, preferences, hobbies, demographic characteristics, etc. (Bauer & Auer‐Srnka, 2012).
Internal factors affect the behavior of the consumer as an individual, and external factors affect the consumer as a member of a social group. The latter mainly affect the social aspects of consumer behavior, while internal factors relate to the psychological aspects of behavior, which have a greater impact on consumer behavior. The behavior of consumers is influenced by different stages of the family life cycle: unmarried young single people, young families without children, young families with young children, mature married families with older children, elderly couples living without children, and elderly single people. At each stage of the life cycle, the family has certain needs, which will be discussed in more detail in the chapter Stages of the Family Life Cycle and their Impact on Purchasing Behavior (Peter & Olson, 2009).
Stages Of The Life Cycle Of A Family And Their Impact On The Purchasing Behavior Of A Person
Goods and services that people buy change with time. Preferences in food, clothing, furniture and leisure often depend on age. The buying process also depends on the life cycle of the family. The concept is based on the assumption that the development of families goes through a number of stages, each of which has its own special characteristics and consumption patterns. In America, as a leading country for the consumption of various goods and services, the concept of the family life cycle was first introduced. The idea of a household’s life cycle is one of the most common frameworks used to classify households in the United States. To describe the life cycle, five variables were identified:
- Age of adult family members;
- Family status;
- The presence in the house of one or more adults;
- Presence of children in the house;
- Age of children (if children are present)
Next, we will consider the stages of the family life cycle in more detail.
Single: this group includes young single people, usually up to 35 years of age and with bachelor/unmarried marital status. These people visit bars, cinemas, and restaurants. Expenditure on entertainment, clothing, consumer electronics and gasoline is above average. The group includes independent people living separately and those who live with their families.
Communication is an additional, but not unimportant, variable. Positive skills, such as listening, empathy, and moral support, enable family members to share their needs and preferences among themselves. Negative communication skills—excessive moralizing, unreasonable criticism, and duplicity—are obstacles to the exchange of feelings and emotions and weaken the cohesion of families and their ability to adapt. In order to understand the satisfaction of family members with their purchases, it is necessary to find out how communication processes take place in the family (Bauer & Auer‐Srnka, 2012).
The approach to studying families from the point of view of the life cycle assumes that role relationships change in connection with some decisive events. Such close attention to changes in priorities that occur over time is particularly important for predicting the demand for a certain commodity after a certain time.
The concept of the Family Life Cycle is significant not only for the US, where it originated, but has also become relevant in Russia, as the social structure of Russian society is experiencing significant changes in connection with the development of market relations and is adapting more to the market economy.
Relationship Between Family Life Cycle And Marketing Activities
Importance Of Studying The Family For Marketing
The formation of various market segments according to people’s ages is understandable. However, age by itself, in relation to consumer needs and consumer behavior, is less important than the concept of the family life cycle.
Consequently, consumer needs do not depend only on age—for example, the age of a female consumer—but also on whether she is married, whether she has completed her education, whether she earns money, expects a child, etc. (Bauer & Auer‐Srnka, 2012). Certain phases of the family life cycle may be skipped by some people, but this also means that similar people may be in different market segments. If we talk about marketing breakfast cereal, toward whom should the marketing program and advertising campaign be oriented: the mother, father, children, or the whole family? Corn Flakes are designed to attract children through good taste and mothers through utility.
The importance of the family as a separate consumer unit is growing, and there are two reasons:
- Many goods are bought by the whole family;
- The buying decisions of individuals can largely depend on the influence of other family members.
Decisions about purchases made in families and households depend on the roles that their different members play in the acquisition and consumption of products, as well as on the individual influence of each family member, which we mentioned in the first chapter. Goods necessary for a household, such as food or shampoo, are bought by one family member and used by everyone, whereas personal items, cosmetics, or shaving cream are bought and used individually by each family member (Johnson, Pham & Johar, 2007). On the other hand, spouses usually buy houses and cars together, possibly with the participation of children or other members of the extended family. In addition, before buying, a father can consult with his daughter or son about the color and options of a future car, but he will go with his wife to make the purchase. The whole family goes to the shopping center for clothes and various accessories, and each member has a certain influence: the children choose clothes that parents approve and pay for, and adolescents can influence the choice of clothes for parents.
An important role in a purchase is played even by those family members who are not personally present when the product is purchased. For example, if one parent of two minor children purchases food for the whole family and acts as an individual consumer in the market, this does not mean that other family members do not influence her (or his) decision. Even people who live alone may prefer the same (or a fundamentally different) style of furniture or type of butter to which they were accustomed in their family home. In addition, although marketing communications are directed, as a rule, to individual consumers, specialists choosing specific methods of communication and advertising should take into account the situation of consumption and the composition of the family of target consumers (Johnson, Pham & Johar, 2007).
Stages Of Family Life Cycle And Marketing Activities
In this part, we will look at the marketing activities that companies carry out in relation to different stages of the family life cycle. All stages have their own characteristics, which need to be remembered, and if companies properly interpret them and base their marketing activities on them, they can achieve a significant increase in sales.
The First Stage Is Young Single People
The first stage is young single people. Young people can live separately or together with their parents, and it is difficult to define an exact cost structure. All earned money is most often spent on new furniture, food, meals outside the house, alcoholic beverages, and, less often, the purchase of a separate apartment or car. During this period, young people are unlikely to need to create pension savings, and there are no serious financial obligations.
Some of the companies that target young people between the ages of 15 and 25 are Coca-Cola and PepsiCo. Regarding the consumption of non-alcoholic carbonated drinks among young people aged 14 to 24, respondents prefer large and world-famous brands of carbonated beverages. For example, more than half of the representatives of the Russian youth audience, among the brands represented in the carbonated-beverage market, most often choose the two most famous: Coca-Cola and/or Pepsi (Moschis, 2007).
Coca-Cola stands for the comprehensive development of youth and implements programs that are designed to promote the development of leadership qualities and increase self-esteem among young people. The company conducts creative contests, exhibitions, and charitable actions, which contribute to the formation of the image of the youth brand. In addition, many initiatives are aimed at stimulating physical activity. Since 2007, the program for the reconstruction of municipal sites for mass sports has been successfully implemented. Mass football tournaments sponsored by the company are becoming traditional for residents of many cities in Russia. All these activities help to increase customer loyalty.
PepsiCo, like Coca-Cola, is betting on youth. In its advertising strategy, there is a clear desire to create an image of a company that wholeheartedly supports a healthy lifestyle. To this end, it sponsors major sporting events, especially those that are of interest primarily to young people. The brand is associated with youth, activity and sport.
Sometimes, to attract young consumers, a company needs to completely change its concept, as did the McDonald’s fast-food chain (Moschis, 2007). The main trends of the 21st century—environmental friendliness, naturalness and closeness to nature—especially affect the purchasing behavior of young people, who are more susceptible to new trends. The corporate color of the company, instead of red, is now green, which symbolizes the naturalness of ingredients and the desire for a healthy lifestyle. In Europe, the design of restaurants has already changed: instead of bright neon colors, there are muted green and brown tones, and instead of plastic, there is wood. On the menu, you can now find carrot sticks and salads, juices and milk for children. We can note that at the moment the company has identified new market segments in which it intends to improve its position. Such segments include smart and fashionable youth and people who care about the environment. Focusing on these segments, a rebranding was carried out, the success of which has already been demonstrated in Germany and the UK by increased sales.
The Second Stage – Newlyweds
The next stage of the life cycle is newlyweds. In the second stage, there are already two sources of income, so the financial situation improves significantly. The main items of expenditure are durable goods, such as furniture and household appliances. Young families are receptive to advertising. They are willing to spend money on travel; it is obvious that families with children go abroad much less often.
Travel companies and hotels provide discounts and special promotions for newlyweds, for example, discounts on accommodation, gifts from the hotel, and a romantic dinner. When planning a honeymoon trip, the couple will most likely pay attention to special offers, and these offers can influence the final decision on buying a tour (Moschis, 2007).
Manufacturers of household appliances say that their products help save space in the apartment, which is especially important for a young family, and are convenient and safe to use. Bosch highlights such features of its products: new Bosch washing machines can boast the optimal set of programs for the modern Russian family. For the first time in narrow washing machines, the VarioPerfect function is implemented, which takes care of both saving time and reducing electricity bills.
The Third Stage Is A Full Nest
The third stage of the family life cycle is a full nest (Baek & Hong, 2004). The structure of expenses changes significantly with the appearance of the first child in the family; it becomes necessary to buy children’s toys, clothes, and medicines. A significant part of income is spent on the education and upbringing of children. Parents may start planning repairs because the old layout of the apartment is no longer so convenient. An important issue becomes deciding which spouse will be at home with the children more often and whether it is necessary to hire a nanny.
A vivid example of marketing activities may be provided by toy manufacturers. The guarantee of the commercial success of toys and products for children is a competent advertising policy. One of its important components is the promotion of products directly at points of sale. Recently, more and more techniques and tools for influencing consumer preferences have emerged that take into account the psychological characteristics of buyers of all ages.
Children’s products need to be promoted at points of sale, according to Vasily Ponomarev, deputy director of the retail-sales department of LLC Company S-toy. The assortment of a retail toy store consists of 1,000-2,000 items (Graham & Isaac, 2002). As a rule, a buyer entering the store hardly knows for sure what exactly he came for. In most cases, he is interested in only half the range—for boys or for girls. In some cases, he focuses on the product brand, but the basic need of an adult shopper is to bring joy to the child. In addition, the basic need of the child buyer is to get joy from the game. Therefore, the selection criteria for both groups are very vague. This is where technologies for promotion at points of sale come into play. They help the buyer make a choice and may favor the toys of the company that actively promotes its products in the store. Promotions and various competitions increase sales by 3-4 times. After that, there is usually no further increase in buyer activity. Probably, this is because the promotion ends, all advertising materials are removed, and people stop thinking about the product or service that has just been actively advertised. However, there are activities after which sales continue to increase for a certain period of time. In my opinion, this indicates the quality of the promotion held.
Equally important in the promotion of these products is merchandising; the store must be designed so that the buyer wants to enter and view all the toys. Sellers or promoters should demonstrate how the toys work more often. Therefore, summing up, we will outline the main methods of influencing purchasing behavior when selling goods for children:
- Promotion begins with outlets—manufacturers, distributors and retailers should work together on this;
- Promotions and competitions can increase sales by 3-4 times, but the result will not be lasting;
Do Not Forget About Merchandising.
Shopping centers for the whole family, such as MEGA, carry out the following marketing activities to attract customers: interactive game programs and children’s parties, including the Day of Protection of Children with MEGA. Shopping centers have children’s rooms, which make it easier for parents to make purchases while children do not get tired or bored (Baek & Hong, 2004).
Manufacturers of bottled water are also guided by families with children. Schoolchildren and preschoolers are one of the main target audiences of bottled-water companies. Due to the prevailing culture of water consumption, many families order clean water not for themselves but for their children. Therefore, bottled-water companies try to involve schools and kindergartens in the consumption of clean water most actively through discounts and special price offers (Graham & Isaac, 2002). For example, the company Pure Water held a promotion for children’s groups: classes, kindergarten groups, sports sections, clubs, and music schools. All participants in the promotion who ordered Noringa water received a free pump or cooler; a special price was applied to the water.
The Fourth Stage Is The Empty Nest
The next stage is the empty nest. Its features are that the children have left the house and the financial situation of the spouses has stabilized. Money is spent on satisfying the desires of the spouses and receiving additional education or pursuing hobbies. Advertising for consumers who are at this stage of the family life cycle can be placed in print media, such as Forbes and Vogue. In Forbes, ten rare courses for adults in Moscow were presented. This combination of training and recreation, the unusual nature of the courses, and the right choice of publication for advertising helped attract new customers.
More than half of modern dads and mothers, having sent their children on a free voyage, undertake to fulfill all the dreams that they could not realize for many years. Some begin to engage in extreme sports—getting on snowboards, jumping from a springboard or going down mountain rivers on rafts. Even those who are used to being at home more often spend less time ironing, cooking and cleaning, and rarely go shopping (Peter & Olson, 2009).
At the present time, parents whose children leave the house to study at a university or work are much less likely to be out of work, as happened to most parents in the past. Conversations about the fact that forty is the new twenty are not accidental. Society is revising ideas about age and about what prospects open up to a person at every stage of life.
Conclusions
In conclusion, it is worthwhile to say once again that each stage of the life cycle has its own influence on marketing. In addition, marketers should carefully study each stage, considering all the nuances and changes in the transition from one stage to another.
For each stage, there are certain types of marketing activities. For example, in order to attract honeymooners, given their opportunities and interests, there are various promotions and discounts for tourist trips and special offers for visiting SPA salons. Spending on advertising messages addressed to newlyweds and people in a full nest should be much higher than spending for an empty nest. The younger the family, the more susceptible it is to advertising. It is also worth remembering children because they also influence purchase decisions, as some car manufacturers address their print ads to children who often travel with their parents. For the empty-nest stage, marketing events are needed not only to talk about the benefits of a product or service but also to reveal the emotional side—the pleasure of consumption is much more important.
Summarizing this work, we should draw the following conclusion. Before a company begins to plan its development, it is necessary to select certain marketing activities and identify the specific factors that most influence its choice. In our course, we discussed the impact of the family life cycle on consumer behavior and marketing research, since the family is one of the most important factors. Therefore, marketers should monitor all changes occurring in families and trace the transitions of family members from one stage of the life cycle to another in order to meet their needs on time.
References
Peter, J. P., & Olson, J. C. (2009). Consumer Behavior & Marketing Strategy. Dana.
Johnson, E. J., Pham, M. T., & Johar, G. V. (2007). Consumer Behavior and Marketing. Applications of Social Psychology. https://doi.org/10.5539/ijms.v4n2p121
Bauer, M., & Auer‐Srnka, K. J. (2012). The life cycle concept in marketing research. Journal of Historical Research in Marketing, 4(1), 68–96. https://doi.org/10.1108/17557501211195073
Moschis, G. P. (2007). Life course perspectives on consumer behavior. Journal of the Academy of Marketing Science, 35(2), 295–307. https://doi.org/10.1007/s11747-007-0027-3
Graham, F., & Isaac, A. G. (2002). The behavioral life-cycle theory of consumer behavior: survey evidence. Journal of Economic Behavior & Organization, 48(4), 391–401. https://doi.org/10.1016/S0167-2681(01)00242-6
Baek, E., & Hong, G. S. (2004). Effects of family life-cycle stages on consumer debts. Journal of Family and Economic Issues. https://doi.org/10.1023/B:JEEI.0000039946.59422.5f
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