Term Paper

Topic: Identify Suitable Family Life Cycle stage

of Bangladeshi people & the consumption
pattern at different stages of life. Give reasons
why it is suitable and justify.

Course Name: Consumer Behavior

Submitted to
S.M. Towhidur Rahman
(Associate Professor)

Submitted By
Name ID
Suvashish Debnath 110326
Shuvro Kumar Paul 110317
Sabina Arjuman 130307
Mousumi
Md. Saddam Hossain 130332

Date of Submission: 29 May, 2016

Business Administration Discipline
Khulna University
 Table of Contents

1. Introduction.................................................................................... 1
2. Bangladesh...................................................................................... 2
3. Family and Family Life Cycle........................................................2
3.1 Family.......................................................................................... 3
3.2 Family Life Cycle.......................................................................3
4. Consumption Pattern of different stages of Family Life Cycle
and Justification.................................................................................. 7
4.1 Consumption Pattern in different FLC stages and reasons
............................................................................................................ 8
4.2 Summary of Consumption Pattern.......................................10
4.3 Marketing Implications..........................................................11
5. Conclusion..................................................................................... 13
References........................................................................................... 1

1
1. Introduction

We are born into families. Our first relationships, our first group,
our first experience of the world are with and through our
families. We develop, grow, and hopefully die in the context of
our families. Embedded within the larger sociopolitical culture,
the individual life cycle takes shape as it moves and evolves
within the matrix of the family life cycle (Carter & McGoldrick,
2004). Consumers buying decisions are affected by different
social groups. Family is a primary social group that affects the
decision making procedure for consumers. Family influence that
brand and product category choices (Chowdhury & Hossain,
2000). As marketers frequently wish to influence the decisions
made by families, it is essential to understand how consumption
decisions are made within the family. Marketers should
understand that each member plays some role in family decision
making. They should also understand that during a particular
purchase decision, one member may play an active role, where
others passive, and vice versa (Chowdhury & Hossain, 2000).

As we all grow and enter different phases in our lives, we go

through various challenges and conquer milestones unique to
that phase. For example, in the first few years of life, a baby is
dealing with learning to trust his or her caregivers, whereas the
main task of a teen is the need to figure out their own identity.
(Mazarin, 2003)

A family is two or more people living together who are related by

blood or marriage. It is a part of a household which consists of
individuals living singly or together with others in a residential
unit. Consumer behavior is influenced not only by consumer
personalities and motivations, but also by the relationships within
families. Consumer socialization is one of the most important

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functions of the family and comprises processes through which
people, especially children, acquire skills, knowledge, and
attitudes, relevant to their functioning in the marketplace (Khan,
2007).

2. Bangladesh

The peoples republic of Bangladesh is a country in south Asia. It

is a low lying riverine country located between the foothills of the
Himalayas and the Bay of Bengal. Bangladesh is now worlds
eighth populous country having about 150 million people, but
occupying only 3000th part of the worlds land space. Such a
huge population are squeezed in a small area gives the
population density more than thousand persons per square km.
The official language of Bangladesh is Bangla which originated
from Sanskrit and is used widely all over the country Bangladesh
has a rich diverse culture. Its deeply rooted heritage is
thoroughly reflected in its architecture, dance, literature, music,
painting, festival and clothing. The three prime religions of
Bangladesh (Islam, Hinduism and Buddhism) have had a great
influence on its culture. A series of festivals varying from race to
race are observed here. Some of the Muslim rites are Eid-e -
miladunnabi, Eid-ul-Fitr, Eid-ul-azha, Muharram etc. Hindu
observe Durga puja, Saraswati puja, Kali puja and many other
pujas (Murshed, 2010). Christmas is observed by the Christian
community. Consumer behavior is influenced by the culture. It is
very important to know about the culture of the people to market
products or brand products (Schiffman, et al., 2009).

3. Family and Family Life Cycle

Families comprise people who have a shared history and a shared

future. They encompass the entire emotional system of at least

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three, and frequently now four or even five, generations held
together by blood, legal, and/or historical ties (Carter &
McGoldrick, 2004). In a family, members must satisfy their
individual and shared needs by drawing on a common and
shared, relatively fixed supply of sources (Khan, 2007). The
individual family is a strong, most immediate and most pervasive
influence on decision-making. The husband, wife and children
influence each other and are influenced by others (Khan, 2007).

To understand how individuals evolve, we must examine their

lives within the context of both the family and the larger cultural
contexts with their past and present properties, which change
over time. Each system (individual, family, and cultural) can be
represented schematically (Carter & McGoldrick, 2004).

3.1 Family
A family is an important social unit for at least two consumer
related reasons. You know that a large number of food, shelter,
recreational, and other products and services are consumed
jointly by the family members. Moreover, the purchase and use
of many products and services, which we think of as individually
consumed, are usually influenced by the family. Thus, consumers
attitudes toward spending and saving and even the brands and
products purchased have been influenced by the families they
grew up (Chowdhury & Hossain, 2000).

The term family is very difficult to define because of its

composition or structure. A family may be defined as a group of
two or more people related by blood, marriage, or adoption living
together in a household. This term is used to designate a variety
of distinct social groups. Persons constituting a family may be
described as members of the most basic social group who live
together and interact to meet their personal and mutual needs.
Families are like organizations which are formed to accomplish

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particular functions more effectively and efficiently than
individuals can do on their own (Chowdhury & Hossain, 2000).

Culture influences decision making process. Cultural influences

have broad effects on family buying behavior because they
permeate our daily lives. Culture determines what we buy and
use, and how we buy them (Schiffman, et al., 2009).

3.2 Family Life Cycle

Families experience many transitions, from early marriage, to the
addition of children, parenting teens, moving to empty nest,
retirement, and senior years. The family life cycles bring joy and
trials and each cycle can bring emotional challenges. Each
developmental stage of the family life cycle is a shock to the
system because roles have to be reassigned, values reoriented,
status positions shifted, loss and mourning dealt with, and needs
met through new channels (Framo, 1994). The family life cycle is
defined as the period beginning with the formation of the
emerging adult to joining of families through marriage, the
addition of children, families with adolescents, launching children
and families in later life (Carter & McGoldrick, 1980).

Gerson defines the cycles as starting as an unattached young

adult, moving to coupling, then to expansion with the addition of
children, and then to contraction where the children leave the
home and begin their own family life cycle (Gerson, 1995).

Family life cycle is the classification of family and non-family

households based on the assumption that these entities, like
individuals, move through a series of relatively distinct and well-
defined stages with the passage of time (D.L., et al., 1983).

Marketers are using the concept of family life cycle over last 60
years. To know the behavioral patterns of people, researchers
have identified various stages of family life cycle and
characteristics of each stage. It combines age, marital status,

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presence or absence of children, and the ages of children. Family
life cycle describes the orderly progression of stages through
which households tend to pass during their lives. Not all people
will go through the nine stages of family life cycle (Chowdhury &
Hossain, 2000).

The nine stages of family life cycle according to Chowdhury and

Hossain are

1) Bachelor Stage
2) Newly Married Couples
3) Full Nest 1
4) Full Nest 2
5) Full Nest 3
6) Empty Nest 1
7) Empty Nest 2
8) Solitary Survivor in Work Force
9) Solitary Survivor Retired

Bachelor Stage: Young and single is characterized by being young

which can stretch up to 35 years of age and not married. Some singles
live with their family, others live independently. They have an average
age of about 24 and are free from worldly cares, live an active and
carefree life. They do not have financial obligations. They manage their
affairs themselves, and are fond of sports and other recreational
activities (Khan, 2007). They are usually fashion opinion leaders.
People of this stage are recreation oriented (Chowdhury & Hossain,
2000).

Newly Married Couples: Young no children (empty nest). After

getting married, the life style changes slightly. They lead a joint life
style. They share new experiences and responsibilities. Start spending
on furnishing and household goods (Khan, 2007). Coupling is when the
two people come together and make a commitment. This is the
merging of two people with unique families of origin to create the new
family lifestyle (Gerson, 1995). They are usually better off financially
than they will be in near future. Highest purchase rate and highest
average purchase of durables are the two other characteristics of this
stage of family life cycle (Chowdhury & Hossain, 2000). They also tend

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to have a dual income and spend heavily on outings, vacations, luxury,
restaurants, meals, etc (Khan, 2007).

Full Nest 1: This stage brings joy but also added stress. Framo
states, Since parenthood is romanticized in our culture, like
marriage, the couple is often shocked by the reality of taking care
of a baby, by the loss of freedom, and by the way their marriage
is affected (Framo, 1994). The focus abruptly moves from a
couple centered to baby or child centered. The movement toward
mutuality in relations with parents during adolescence sets the
stage for the development of childrens psychosocial competence
(Aquilino, 1997). A change is brought about in the lifestyle and
most activities revolve round the care of the child. Discretionary
funds are also reduced (Khan, 2007). The stage continues up to
the youngest child becomes six years of age. Their liquid assets
are found to be low. They are also found to be dissatisfied with
their financial position and amount of money saved (Chowdhury
& Hossain, 2000).

Full Nest 2: This stage starts when the youngest child

becomes six year or over (Chowdhury & Hossain, 2000). Older
married with children. More children lead to more expenses.
Children start going to school and there is more expenditure on
books, stationery and college fees. Toys, bicycle, insurances also
become a part of the expenses, parents start spending less on
themselves (Khan, 2007). Family financial position is found to be
better at this stage. This is because of the career progress of the
husband. Moreover, wife is found to start finding employment
and earns money contributing to total family income. Families of
this stage are found to be influenced less by advertising
(Chowdhury & Hossain, 2000). As with couples moving through
the cycles, the relationship between the parents and the child are
continually being renegotiated and transforming (Aquilino, 1997).

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Full Nest 3: Older married with dependent children. Income is
high at this stage. Parents grow older. They become experienced
buyers and are less interested in new product purchases.
Expenditure high due to replacement buying luxury products
(Khan, 2007). Family financial position still remains better.
Advertising can hardly influence people of this stage in the family
life cycle (Chowdhury & Hossain, 2000).

Empty Nest 1: It consists of older married couples having no

burden of children as they leave their parents (Chowdhury &
Hossain, 2000). As couples move from the distractions of daily
parenting to the cycle when they have the time to focus on each other,
several outcomes could be expected. They may realize they have
forgotten how to be a couple, they may mourn the absence of their
child(ren), they may find themselves in a honeymoon like state. There
are no defined right or wrong ways to transition to empty nest
(Gorchoff, et al., 2008). Financial position stabilizes and there is no
expense on children. The couple is free to enjoy their own
pursuits and spend on luxury or self-improvement items and
medical care (Khan, 2007).

Empty Nest 2: It consists of older married couple, no children

living at home and the family head is retired. The couple is free
to enjoy their own pursuits and spend on luxury or self-
improvement items and medical care (Khan, 2007). The family
head retires, family income drops at this stage. But, as the wife
continues to work, family income is usually not dissatisfactory at
this stage (Chowdhury & Hossain, 2000).

Solitary Survivor in Work Force: This stage usually consists of the

wife. She still works and has a good income in the sense that she can
spend the entire amount of her income solely for herself (Chowdhury &
Hossain, 2000). Older single retired people. Retired people living alone
after the death of a partner. Life becomes lonely and income may
reduce due to retirement. This again changes the consumption pattern
and living style of old people (Khan, 2007).

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Solitary Survivor Retired: This is the last stage of the family life
cycle. It usually consists of wife who retires from the active work, and
as a result family financial position drastically falls. Moreover,
emotional difficulties start at this stage. Family requires special need
for attention, affection and security (Chowdhury & Hossain, 2000).

Another point to note, is that the family life cycle concept segments
the families on the basis of demographic variables, and ignores the
psychographic variables (families interest and opinions) of family
members. Family life cycle is also related to the spare time and the
available income, education, etc. A marketer has to take these
elements into consideration (Khan, 2007).

4. Consumption Pattern of different stages of

Family Life Cycle and Justification

The stages at which families find themselves, affect the nature of the
goods and services required, their wants and consumption patterns, as
well as the volume of consumption on specific products (Mazarin,
2003). The traditional view of the family life cycle has been criticized
for failing to recognize that a single family unit may not exist
throughout the life of an individual (Khan, 2007). Families may be
created by second marriages, and these may involve children from
prior marriages. The traditional model also ignores the existence of
single parent households. The modern family life cycle which takes into
account the existence of working women, is a more complex and more
useful model than the traditional model (Khan, 2007).

Matin Khan in his book of consumer behavior states, It is realised that

various purchasing tasks are performed by various members of the
family. The products are bought for joint use of the family. Refrigerator,
TV, sofa set, car, etc. The product is to be purchased by family funds
where more than one person may be contributing to the fund.
Sometimes the funds are not enough and other products may have to
be sacrificed to own an expensive product. Some family members may

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not be agreeable to the choice made for the product, and may consider
it as a profligate expenditure. These are the main influences in the
family decision making, which are the outlets preferred by the family
members for the purchase of the product (Khan, 2007).

Buying behavior and consumption vary according to the stage in the

family life cycle. The rational for the family life cycle approach is that
buying relates more to stage of family development than to any single
demographic factor within the life cycle composite (Chowdhury &
Hossain, 2000). There is a relationship between buying behavior and
family life cycle stages (D.L., et al., 1983). Consumers arrival at each
stage of the life cycle initiates needs for new classes of products. When
single persons move into a separate apartment, they need to buy basic
household equipment. Each stage of the family life cycle opens new
vistas of needs that can be met by marketing people who watch for
these opportunities (Chowdhury & Hossain, 2000).

4.1 Consumption Pattern in different FLC stages and

reasons
Now Purchase behavior of people in different life cycle stages and its
reason for the behavior is given below

Bachelor Stage: In Bachelor stage, earnings are usually low as the

individual starts his career. Yet again, due to limited financial burden,
family can spend more on personal care items, clothing, recreation,
and, travel (Chowdhury & Hossain, 2000). They tend to spend their
money on house rent, basic furniture and kitchen equipment. They are
recreation oriented and like to spend on purchase of automobiles
(particularly motor bikes), travel (trekking and holidays), adventure
sports (motor racing, bungee jumping etc.), health clubs, clothes and
fashion accessories) (Murshed, 2009).

Newly Married Couple: As the newly married couple is financially

better off, they buy lot of items, particularly durables. They buy
refrigerators, televisions, stereos, sensible and durable furniture, and
vacations (Chowdhury & Hossain, 2000). They tend to spend on
creating a home for themselves. They spend on cars, furniture, curtains
and upholstery, electronics, kitchen appliances and utensils, and
vacations (Khan, 2007). They are also found to buy appliances, cars,

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and lot of clothing at this stage. They may also start investing to build
a reserve for the future. The marketers of such goods, including
financial services, and apartments may successfully target this group
(Chowdhury & Hossain, 2000).

Full Nest 1: When the first child is born, the full nest 1 stage begins,
and the presence of child alters family consumption pattern overnight.
Here, home purchasing reaches at the peak. Lot of money is being
spent on child related purchases. Families are found to be interested in
new products at this stage (Chowdhury & Hossain, 2000). While
liquidity of cash is low, expenses are high. The family spends on baby
food, diapers, medicines for cough and cold, doctor visits, child toys
and games, school admissions and fees and insurance policies. There
are increased expenses on child care (Murshed, 2009).

Full Nest 2: In the full nest 2 stage child oriented purchases continue.
But, as the familys financial position improves, family still remains
oriented toward new purchases (Chowdhury & Hossain, 2000). Financial
position gets better as one begins to rise up the ladder. If the wife is
also working, children are latchkey kids. The family spends on food,
clothes for children, education of children, insurance policies and
investments. They also pay for medical expenses and particularly,
dental treatment (Khan, 2007). They go in for deals; buy larger-size
packages, and economy packs. Junk food, fashion clothing and
accessories, video games etc. are prime demands (Murshed, 2009).

Full Nest 3: In the full nest 3 stage familys financial position further
improves. They spend lot of money on children education as their
studies begin. Advertising can influence less at this stage as the family
becomes more experienced in purchasing (Chowdhury & Hossain,
2000). The family income continues to increase and so do expenses.
The family continues to spend on food, clothes for teenagers, higher
education of children, and also repeat purchase of durables that were
bought in honeymooning stage or Full Nest I. The family buys new
furniture, electronic goods and appliances and cars. Thus there is high
average purchase of durables. The family also invests in real estate
and property and/or flats. They continue to spend on medical

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expenses, particularly dentists and visit general physicians for regular
checkups (Solomon, 2014).

Empty Nest 1: During the empty nest 1 stage home ownership

reaches at the peak. Families become interested in travel, recreation,
and self-education at this stage (Chowdhury & Hossain, 2000). The
family size gradually begins to shrink. Parents are still earning;
expenses gradually reduce, and so there is highest level of savings and
disposable income at hand. The family spends on food, installments for
real estate/house, higher education of the dependent children, and,
medical expenses on dentist, physiotherapy and heart. They have
leisure time in hand, and watch television, movies, and may even go on
a vacation. Families make lot of gifts and contributions at this stage
(Mazarin, 2003). Families are not interested in new products at this
stage, rather buy vacations, and luxuries, as well as spend money on
home improvements (Chowdhury & Hossain, 2000).

Empty Nest 2: In Empty nest -2 stage, all the children have left home,
and the couple has retired from occupation. They live on pension and
other social security investments. If health permits, they take up part-
time jobs (Geoffrey, 2009). Familys income falls, and couple spend
much of their time at home. They buy medical appliances, spend
money on medical care, buy products which aid health, sleep, and
digestion (Chowdhury & Hossain, 2000).

Solitary Survivor in workforce: In the solitary survivor (in labor

force) stage, more money is spent on vacations, recreation, and health
oriented products. Out of these expenditures, the major portion is
spent on health care and medical care purposes (Chowdhury &
Hossain, 2000). When one of the spouses is still earning, or earns
money from savings and investments, things are little easier. However,
if he/she is not earning, he/she follows a lifestyle that is economical.
The primary expenditure is on medicines, checkups with doctors and
restrictive diet (Khan, 2007).

Solitary Survivor Retired: In the last stage the financial condition

deteriorates as source of income become absence in this period. Most
of the family income is being spent on paying medical bills and buying

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medicines. Many people move to old home in this stage for their
security (Chowdhury & Hossain, 2000).

4.2 Summary of Consumption Pattern

In short the consumption pattern of Family life cycle stages can be
shown with consumption pattern and family position. It will clear the
consumption pattern where causes are described above.

Family Stage Consumption Pattern

Young Bachelor Stage Outdoor sporting goods, sports
single cars, fashion clothing,
entertainment and recreation
services.
Young Newly Married Recreation and relaxation,
married Couple insurance, home furnishings,
with no travel, home appliances, high
children purchase rate of durables.
Young Full Nest-1 Baby food, clothing, and furniture,
married invests in housing insurance,
with child washer-dryers, medical
services/supplies for children, toys
for children.
Middle aged Full Nest-2 & 3 Childrens lessons, large food
with purchases, dental care, higher
children at priced furniture, auto and
home housing, fast-food restaurants
With no Empty Nest -1 & Luxury products, travel,
children at 2 restaurants, condominiums,
home recreation, make gifts and
contributions, high discretionary
income, solid financial position.
Older Solitary survivor Health care, home security,
(married or in workforce specialised housing, food
single) products, recreation geared to the
retired, general cash poor.
Retired Solitary survivor Money-saving products, frozen
Single retired foods, rental house, child care,
time-saving appliances and food,
cash poor.

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 Table 1: Consumption Pattern with FLC Stages

4.3 Marketing Implications

Now we can see the marketing implications of those FLC stages
for specific consumption patterns.

Stage Marketing Implications

Bachelor Stage Marketers realize that bachelors
possess large disposable income;
they find in them an attractive
segment for sports, travel,
entertainment and fun.
Newly Married Couple They form an attractive segment
for the marketer as they form the
highest purchase rate amongst
segments. The highest average
purchase of durables takes place in
this stage.
Full Nest-1 At this stage, purchasing is at the
peak, and so this is an attractive
segment for the marketer. The
children in the family begin to
impact family purchases, and are a
huge potential for future.
Full Nest-2 At this stage, purchasing is still at
the peak, and so this is also an
attractive segment for the
marketer. The children, as also
teenagers continue to impact
family purchases. The latchkey kids
are a potential for home delivered
junk food like pizzas and burgers.
Full Nest-3 At this stage, income begins to
increase as one of the children
begins to earn. As expenses see a

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 rise, the stage offers a potential for
marketers.
Empty Nest -1 At this stage, the couple beings to
again have disposable income in
hand. Financial responsibilities
towards children begins to
decrease. This stage offers
potential for marketers who are
involved in providing services like
leisure, travel and holiday.
Empty Nest -2 The stage is lucrative for those
involved in the entertainment
industry. Many industries provide
special discounts in travel and stay
as Senior Citizen benefits, for
example, hotels, airlines and
railways. Banks and financial
institutions also have special
facilities for those above 60,
especially higher rates of interest
on deposits.
Solitary survivor The stage is characteristic of a
widow/widower with lower income
and least shopping and expenses.
Table 2: Marketing Implications for different FLC Stages

So, it is very important for a marketer to know the consumption

pattern in different stages to make decision for his brand or
product which is to be marketed.

5. Conclusion

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Consumer Behavior Term Paper
Identification of different family life cycle stages are very
important. Because consumption pattern depends on family life
cycle stages. People are influenced by the primary social group
family. It is more important for a marketer to identify the life
cycle stages. In this term paper we have identified the family life
cycle stages of Bangladeshi People and the consumption pattern
with causes. Marketing implications must be done for getting
perfect results in the market. Consumer behavior is the most
important thing a marketer should consider before marketing a
product. And in case of consumer behavior, Family life cycle
stages are very important factor to be considered. The stages
show us the behavioral patterns for Bangladeshi people. It is to
be noted that not all the behaviors are considered universal
because the research is operated on Bangladeshi perspective.
And not all the people goes through all of the stages. Some might
skip some stage. But it is important for a marketer to consider all
of the stages and causes for the specific consumption behavior.

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