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Article information:
To cite this document:
Martina Bauer Katharina J. Auer-Srnka, (2012),"The life cycle concept in marketing research", Journal of
Historical Research in Marketing, Vol. 4 Iss 1 pp. 68 - 96
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Katharina J. Auer-Srnka
Department of Business Administration, University of Vienna, Vienna, Austria
Abstract
Purpose This research seeks to provide a historical review of the life cycle concept in marketing.
The paper aims to show the development of traditional life cycle models and links to the life course
perspective.
Design/methodology/approach The authors relate to life events and transitions in consumers
life trajectories, life status, role transitions, and role identities as determinants of consumer behavior.
The paper reveals future research potential in the field. Essentially, the authors demonstrate the need
for life cycle models grounded on empirical data and discuss related methodological issues.
Findings This paper provides a temporal systematization of theoretical and empirical life cycle
research. The major outcome is an outline of conceptual and methodological research directions that
enable researchers to follow the life course perspective and to derive empirically grounded life cycle
models.
Research limitations/implications Providing chronological literature compilations and an
evolutionary review of life cycle research, the authors identify future research directions. To encourage
empirical development of the concept, the article also refers to the related methodological literature.
Practical implications Both marketing thought and practitioners benefit from the insights
presented. Marketing managers may better address consumers changing needs over their lifetime,
strengthen customer loyalty and reduce brand switching, thereby enhancing customer lifetime value.
Originality/value This paper adds to the study of the consumer life cycle by providing a
comprehensive anthology of life cycle research from 1910 to 2010. It shows major research streams and
reveals future research potential in marketing.
Keywords Consumer life cycle, Life course, Transitions, Role identity, Research methodology,
History of marketing thought, Marketing, Marketing theory
Paper type General review
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idea. In the beginning, life cycle research has a mainly sociological background. Life
cycle researchers focus on families and study the impact of life stage on income, debt,
and consumption. Loomiss (1936) sociological study relates directly to Rowntrees
work. Glick (1947) shows at which ages married US American couples reach the
various life cycle stages, based on census data.
In the path-breaking consumer behavior book edited by Clark (1955), authors
investigate the topic from different perspectives: Barton (1955) studies the
consumption of nondurable goods, whereas Lansing and Morgan (1955) analyze the
family financial situation across life cycle stages. Lansing and Kish (1957) compare age
and life cycle characteristics with respect to family financial situation and purchase of
certain goods (home, new car, TV sets). This first period of life cycle research widely
ignores differing social and economic settings. However, Farber (1961) significantly
advances family life cycle research by rejecting the previously predominant static view
of the life cycle and describing the family as a set of mutually contingent careers. He
defines career as the progressive occupation of different roles in the family referring to
the sociological role-concept defined as patterned sequence of intended actions or
deeds to be performed by a person in an interaction situation (p. 278).
In the following years, authors from other disciplines of the social sciences
(particularly marketing, economics, and psychology) adopt the concept considering it
helpful in explaining differences or changes in consumer behavior. Marketing scholars
introduce the life cycle concept in the 1960s to their field (Wells and Gubar, 1966) and
propose it as predictor of shopping behavior or consumer decision making (e.g. Rich
and Jain, 1968). A decade later, economists identify the concepts potential (Ghez and
Becker, 1975; Stampfl, 1978) and use life cycle stage as a determinant of household
expenditures (Arndt, 1979; Wagner and Hanna, 1983). The concept is updated,
recycled, and modernized in various ways in this period to overcome the substantial
limitations of the traditional family life cycle. Essentially, authors stress the
importance of social and historical context (e.g. Glick, 1977). Scholars in the 1970s
argue that individual transitions (education, professional career, etc.) should be
considered (e.g. Elder, 1978; Hareven, 1978). They propose adopting a life course
orientation that includes both changes in the family structure and individual
developments. The authors hold that life cycle models need to account for the changes
over the life course and the timing of life events and transitions. Research in the 1970s
and 1980s is also concerned with different segmentation methods. Numerous studies
compare the life cycle with alternative variables (see subsection 3.2) mostly supporting
the usefulness of life cycle segmentation (Hisrich and Peters, 1974; Darden and
Perreault, 1976; Fitts and Mason, 1977; Dominguez and Page, 1981). Lawson (1988)
reviews the life cycle in light of the demographic and social circumstances in the UK
and assesses the applicability of this mainly US-focused concept.
In subsequent decades, the life cycle concept is extended to account for the
developments in modern societies such as the increasing number of elderly (e.g.
Hamermesh, 1984; Krisjanous, 2001), single parent families (Hill, 1986; Sundeen, 1990),
lesbian families (Slater, 1996), and gender issues (e.g. Gentry et al., 2003). Empirical
research applies the life cycle concept as determinant of consumption of numerous
product categories including leisure activities (e.g. Danko and Schaninger, 1990a),
vacations (e.g. Lawson, 1991; Fodness, 1992), and health care (e.g. Cunningham, 1990;
Hong and Kim, 2000). A significant stream of research develops around family decision
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making (decision making styles, family members influences on joint decisions and
changing influence patterns over time). Consumer research first focuses on
husband/wife interactions (e.g. Wolgast, 1958; Davis, 1970; Kirchler, 1995; Commuri
and Gentry, 2000). Subsequently, however, the influence of children on parents buying
decisions that has occasionally been studied (Atkin, 1978; Jenkins, 1979) or pointed out
in earlier research (e.g. Lawson, 1988, p. 18) gains more interest (e.g. Kim et al., 2009;
Nancarrow et al., 2011; Dauphin et al., 2011). Another significant development in the
early 2000s is the empirical validation of accepted life cycle models in various cultural
contexts, such as Spain (Redondo-Bellon et al., 2001) or South Africa (Van Rooyen and
Du Plessis, 2003). Although life cycle research is generally declining towards the end of
the 2000s, the work by Lienard (2010) or Brown and colleagues (Brown and Venkatesh,
2005; Brown et al., 2006) suggests that business disciplines can inspire research in both
the humanities and information technology.
Table I provides a chronological overview of life cycle research published from 1910
to 2010. The timetable is by no means exhaustive. Rather, it shall give an instructive
overview of significant contributions in various disciplines. The overview shows how
life cycle research in marketing started in the mid-twentieth century, culminated in the
1980s, and subsequently faced consolidation. New directions have been suggested in
the second half of the 2000s (Du and Kamakura, 2006) to make the life cycle concept
more practice-oriented. The following sections elaborate on the adoption of the life
cycle concept in marketing and seize on more recent developments.
Adoption of the life cycle concept in marketing
Marketing researchers adopted the life cycle concept to study consumer needs and
spending patterns. In contrast to life cycle research in sociology that typically focuses
on the family (e.g. Loomis, 1936; Glick, 1947; Lansing and Kish, 1957; Farber, 1961), the
household gains in importance as unit of analysis in marketing. More recently, scholars
call for an individual life course perspective in consumer research (e.g. Bailey et al.,
2010).
From family to household to consumer life cycle
Family and household both constitute basic socialization and consumption institutions
in society that are characterized by co-residence. The family is typically defined by
marriage, cohabitation, and consanguinity. In most western societies, the nuclear
family consisting of father (traditionally the household head), mother, and children
reflects the traditional family group (ORand and Krecker, 1990). In contrast to the
moderate family described by Rowntree (1910) that comprised two to four children,
couples in modern societies tend to have one to two children (Cherlin, 2010). Like the
family, the household represents a residential unit in which economic production and
consumption, as well as shelter, child rearing, and inheritance are organized. The
household concept, however, ignores affinity or procreation (Haviland, 2003). For ages,
family and household were considered identical in most civilizations, whereas in
modern societies family patterns have largely changed since the early nineteenth
century. Individuals living together in a household not necessarily are members of the
traditional family.
Particularly in western countries, households increasingly comprise various forms
of co-residence other than the traditional nuclear family: (married/unmarried) partners
71
1979
1979
1978
1979
1977
1978
1975
1971
1974
1966
1968
1961
1947
1955
1955
1957
Title
Rowntree
Loomis
Blackwell
1910
1936
1942
Table I.
A timetable of life cycle
research
Author(s)
Marketing
Sociology
Economics
Economics
Sociology
Marketing
Economics
Sociology
Social history
Marketing
Marketing
Sociology
Sociology
Marketing
Sociology
Sociology
Sociology
Sociology
Sociology
(continued)
(Report)
(Monograph)
Journal of Family History
(Book Section)
(Monograph)
Rural Sociology
Rural Sociology
72
Year
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Derrick/Lehfeld
Fritzsche
Gilly/Enis
McLeod/Ellis
Tashchian et al.
Wagner/Hanna
Hamermesh
Hill
Duvall
Lawson
1980
1981
1982
1982
1983
1983
1984
1986
1988
1988
1990b Danko/
Schaninger
1990 ORand/Krecker
1990a Danko/
Schaninger
Author(s)
Year
The family life cycle: an alternative
approach
The Analysis of Energy Consumption
Patterns by Stage of Family Life Cycle
Recycling the Family Life Cycle: A
Proposal for Redefinition
Housing Consumption over the Family
Life Cycle
The Family Life Cycle and Preferred
Policies for Gasoline Conservation A
Conjoint Analysis
The Effectiveness of Family Life Cycle
Variables in Consumer Expenditure
Research
Consumption during Retirement: The
Missing Link in the Life Cycle
Life Cycle Stages for Types of Single
Parent Families: Of Family Development
Theory
Family Developments First Forty Years
The family life cycle: a demographic
analysis
Attitudinal and Leisure Activity
Differences Across Modernized Household
Life Cycle Categories
An Empirical Evaluation of the Gilly-Enis
updated Household Life Cycle Model
Concepts of the Life Cycle: Their History,
Meanings, and Uses in the Social Sciences
Title
Sociology
(continued)
Marketing
Marketing
Family Relations
Journal of Marketing Management
Family Relations
Sociology
Sociology/psychology
Marketing
Urban Studies
Economics
Marketing
Marketing
Economics
Marketing
Marketing
Economics
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Table I.
Lawson
Fodness
Schaninger/
Danko
Wilkes
Slater
Hong/Kim
Commuri/Gentry
Krisjanous
Redondo-Bellon
et al.
Gourinchas/
Parker
Schaninger/
Danko
Gentry et al.
1991
1992
1993
1995
1996
2000
2000
2001
2001
2003
2002
2002
Sundeen
1990
Table I.
Author(s)
Title
Marketing
Marketing
Economics
Marketing
Marketing
Marketing
Psychology
Economics
Marketing
Marketing
Marketing
Marketing
Sociology
Econometrica
(Monograph)
Journal of Consumer Affairs
Sociological Perspectives
74
Year
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Author(s)
VanRooyen/
DuPlessis
Brown/
Venkatesh
Brown et al.
Du/Kamakura
Bearden/Wilder
Putler et al.
Nance/White
Lienard
Neulinger/Simon
Year
2003
2005
2006
2006
2007
2007
2009
2010
2011
Title
Anthropology
Marketing
Marketing
Marketing
Journal of Macromarketing
Information Society
MIS Quarterly
Marketing
Marketing
Information systems
Information systems
Marketing
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Table I.
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life cycle research in marketing describes the life cycle as a valuable, observable
segmentation variable that can be used along with or in place of chronological age
(Lansing and Kish, 1957; Katona, 1960). A related term used occasionally in sociology
(e.g. Sundeen, 1990) and marketing (e.g. Andreasen, 1984) is life status. Life status
parallels the traditional notion of the life cycle in marketing as cross-sectional tool.
Research on consumers life status changes, however, increasingly acknowledges the
importance of studying consumers over time applying longitudinal approaches
(e.g. Lee et al., 2007; Mathur et al., 2008). The availability of longitudinal consumer data
due to technological advancement provides many opportunities to enrich life cycle
research (e.g. long-term observations of consumption patterns, changes in historical,
social, and political circumstances or prediction of future behavior).
A chronology of life cycle models
Early life cycle models in marketing are categorical models describing the distinct life
stages. Later conceptualizations, in contrast, represent flow models explaining
transitions between the successive stages. They provide a basis for marketing
decisions beyond mere segmentation.
Wells and Gubar (1966) present the first comprehensive (categorical) life cycle
model based on previous contributions in the field of marketing (Lansing and Morgan,
1955; Katona, 1960). The authors assign households to nine different stages according
to the variables age, employment status, and marital status of the household head,
presence of dependent children, and the youngest childs age (see Figure 1). These
stages reflect distinct market segments differing in their attractiveness for a wide
range of product categories (e.g. food, furniture or home equipment). This model makes
a significant contribution as it systematizes life cycle research in the field of sociology
and links the life cycle concept to empirical marketing research on consumer purchase
behavior. However, the model has some of the typically criticized shortcomings of life
cycle models developed in this early era. Essentially, it relies on the nuclear family in
the mid-twentieth century western (American) culture, consisting of a married couple
with children (ORand and Krecker, 1990, p. 251). The model fails to capture
non-traditional family types such as widowed non-parents or single parents
(Schaninger and Danko, 1993; Krisjanous, 2001). Most importantly, however, it is
static and ignores household dynamics. Although segmentation is a major goal in the
application of the life cycle, understanding life course dynamics allows marketers to
respond to consumers changing needs over time.
Life cycle research has considered the various social developments since the 1960s
including prolonged education, more single households, delayed marriage and first
child birth, falling fertility rate, separation of marriage and parenthood, changes in
family structure including various forms of non-marital cohabitation, more divorces,
re-marriage, and patch-work families, aging society and intergenerational differences,
etc. (Murphy and Staples, 1979; Derrick and Lehfeld, 1980; Gilly and Enis, 1982; Danko
and Schaninger, 1990a; Krisjanous, 2001). Research has resulted in more elaborate life
cycle conceptualizations that show sequential life paths rather than provide a mere
classification and allow marketers to better understand changes in consumer behavior.
Following the trend in sociological literature, marketing researchers in the 1970s
increasingly apply the life cycle approach in empirical research. Murphy and Staples
(1979) propose several adjustments to the Wells and Gubar-model. Based on 1973 US
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Figure 1.
Life cycle stages defined
by Wells and Gubar (1966)
census data, the authors add stages (totaling 13) to account for new household types.
They also introduce new age limits for dependent children (infants, young children
aged 4-12 years, adolescents) and show the potential flow of individuals and families
through life cycle stages (see Figure 2).
Although Murphy and Staples (1979) integrate and extend the earlier classification
proposed by Wells and Gubar (1966), unresolved differences in the definition of stages
remain between the two models (Derrick and Lehfeld, 1980). Conceptual imitations of
the modernized model concern the ignorance of non-traditional household types
(Wagner and Hanna, 1983) and female household heads and lead to a high number of
unclassified households. Investigating a representative US sample, Schaninger and
Danko (1993) find that unclassified households account for 27.9 percent in the Wells
and Gubar (1966) life cycle, and 19.4 percent in the model of Murphy and Staples (1979).
Gilly and Enis (1982) strive to further redefine the life cycle to minimize the
unclassified households category. They include non-family household forms
classifying couples of any sexual orientation living together in a household as
married. In contrast to the previous models, the authors consider the wifes instead of
husbands age, holding that the womans age better predicts household consumption
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Figure 2.
Life cycle model proposed
by Murphy and Staples
(1979)
than the males age. Gilly and Enis (1982) thus propose a modified model comprising
14 stages, based on the female household heads age, marital status, and presence and
age of children (see Figure 3).
As the preceding models, the classification by Gilly and Enis (1982) relies on US
census data. The model is thus US-centric and lacks empirical foundations concerning
Figure 3.
Life cycle model proposed
by Gilly and Enis (1982)
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individual consumers life cycle dynamics and transitions over the life course. Scholars
raised these and other issues on the definition and omission of stages and suggested
further model improvements (Schaninger and Danko, 1993; Redondo-Bellon et al.,
2001). Despite all criticism, the model is widely approved in marketing literature (e.g.
Cornwell et al., 2006; Putler et al., 2007). Contrary to mere classification as provided by
the Wells and Gubar-model, the models by Murphy and Staples (1979) and Gilly and
Enis (1982) describe consumers movements between life cycle stages. Most empirical
research relies on one of the three models presented.
Schaninger/
Danko
Danko/
Schaninger
Danko/
Schaninger
Wagner/
Hanna
Fritzsche
Landon/
Locander
Arndt
Hisrich/
Peters
Darden/
Perreault
Author(s)
Study purpose
Year
USA/158 Rich and Jain (1968)
HH
USA/278 mod. Wells and Gubar
HH
(1966)
Correlation
coefficients
MANOVA F-test
Analysis method
Family clothing
expenditures
(continued)
One-sided t-tests,
MANOVA
MANOVA
Pearsons chisquare test
MANOVA
MANCOVA
Multiple regression
Outshopping profiles of
consumers
Entertainment activities
Dependent variable(s)
CrossUSA/
mod. Wells and Gubar
sectional 3,897 HH (1966), Murphy and Staples
(1979)
Wells and Gubar (1966),
CrossUSA/
mod. Murphy and Staples
sectional 10,034
(1979)
HH
CrossUSA/444 mod. Gilly and Enis (1982)
sectional HH
NOR/
mod. Wells and Gubar
Crosssectional 3,363 HH (1966)
Crosssectional
Crosssectional
Research Country/
design
# of HH HLC model(s)
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Table II.
Empirical studies on the
household life cycle in
marketing
Table II.
Putler et al.
Van
Rooyen/Du
Plessis
Brown et al.
Schaninger/
Lee
RedondoBellon et al.
Hong/Kim
Wilkes
Study purpose
Year
CrossESP/
mod. Gilly and Enis (1982)
sectional 21,155
HH
CrossUSA/444 mod. Gilly and Enis (1982)
sectional HH
CrossUSA/
mod. Murphy and Staples
sectional 7,337 HH (1979) mod. Gilly and Enis
(1982)
Research Country/
design
# of HH HLC model(s)
OLS regression
MANCOVA
Analysis method
Dependent variable(s)
82
Author(s)
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Figure 4.
The life cycle model
developed by Du and
Kamakura (2006)
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Year
Author(s)
1978
1978
1980
1981
1982
1984
1985
1987
1991
1992
1993
1994
1995
1996
1997
1999
2000
2000
2001
2001
2002
2003
2003
2003
2004
2004
2006
2007
2007
800
2008
2010
2010
2010
2011
2011
Elder
Hareven
Rossi
Nock
Tausig
Andreasen
Elder
Cantor et al.
Schouten
Schewe/Balazs
Bengtson/Allen
Elder Jr
Gentry et al.
Pearlin/McKean Skaff
Boynton Arthur
Mathur et al.
Scully et al.
Yurchisin et al.
Ashforth
Lee et al.
Pulkkinen/Caspi
Hogg et al.
Mathur et al.
Zittoun et al.
Curasi et al.
Hogg et al.
Hopkins et al.
Lee et al.
Moschis
Mathur et al.
Kessous/Roux
Moschis et al.
Benmoyal-Bouzzagio/Moschis
Bailey et al.
Harrison et al.
Weaver et al.
Life course
Transitions
Life events
Research field
Sociology
Sociology
Psychology
Sociology
Medicine
Marketing
Sociology
Psychology
Marketing
Marketing
Sociology
Psychology
Marketing
Sociology
Sociology
Marketing
Psychology
Marketing
Psychology
Marketing
Psychology
Marketing
Marketing
Psychology
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
Marketing
85
Table III.
Research on life course,
transitions, and life
events
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The empirical model by Du and Kamakura (2006) proves a valuable tool for life
cycle-stage based marketing that enables quantifying transition probabilities between
stages and captures life cycle dynamics (essentially, probabilistic evaluations of
household members future spending patterns).
Life course research requires longitudinal or retrospective measures (Moschis,
2007). Due to the multi-theoretical background and complexity of the life course
perspective, methodological approaches are fragmented across and within academic
disciplines (Settersten and Mayer, 1997). Quantitative techniques such as event history
analysis (Settersten and Mayer, 1997; Lee et al., 2007) might be used to analyze
longitudinal data. Macmillan and Eliason (2003) view the life course as a process
consisting of transitions and role configurations regarding different social
(family/non-family) institutions that are interrelated over time. Common methodical
approaches such as regression analysis or structural equation models do not account
for heterogeneity in life courses (Macmillan and Eliason, 2003). Furthermore, these
methods require the definition of independent and dependent variables, exogenous
and endogenous variables, causes, and effects (Macmillan and Eliason, 2003, p. 532).
Since the assumptions of the life course perspective are not consistent with these
requirements, latent class analysis (Lazarsfeld and Henry, 1968) might be used to
identify consumers life course patterns (Macmillan and Eliason, 2003). Retrospective
methods, which are often used in cross-sectional studies, comprise quantitative
techniques, such as correlation/regression analysis (e.g. Benmoyal-Bouzaglo and
Moschis, 2010) or life history matrices (Settersten and Mayer, 1997) and qualitative
methods, such as narrative methods (Cohler and Hostetler, 2003).
Conclusion and outlook
This paper outlines the development of life cycle models over time and links to the life
course perspective and related concepts. The historical review of the life cycle concept
in marketing research reveals considerable research potential in the field. The authors
conclude that future research should apply life cycle models grounded on empirical
analyses and point to promising methodological options. Essentially, life cycle
research should use longitudinal data to get insights into life course trajectories and to
keep track of an individuals switching between life cycle stages. Technological
advances and increasing availability of longitudinal customer databases facilitate
longitudinal analysis of consumers characteristics and consumption patterns (Verhoef
et al., 2007). The vast repositories of data on consumer preferences that marketers can
accumulate online (e.g. online stores) can be linked to life cycle data collected from
customers (age, household size, number of children, etc.). So far, such databases are
hardly available to academic research. At present, scholarly studies mostly are
restricted to census data or data offered by institutions such as the German
Socio-Economic Panel (www.diw.de/soep) or the American Panel Study of Income
Dynamics (http://psidonline.isr.umich.edu/default.aspx).
While the need for synchronizing individual and family life course trajectories has
already been stated in sociological literature in the 1970s and the 1980s, marketing
literature has not yet sufficiently considered this perspective. Studies delineating the
effects of individual life course and family life cycle trajectories on spending patterns
or non-spending consumer behavior are promising. In this respect, investigation of
long-term influences (e.g. life course, personality) vs short-term influences (e.g. major
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life events) on consumer behavior might be a matter of interest in future studies. The
estimation of a longitudinal life course model enables investigation of cohort effects
(e.g. Moschis, 2007) or the effects of the timing of transitions on individual behavior, as
posited by the life course paradigm (Elder et al., 2003). Furthermore, detailed analysis
of cultural groups and specific segments (different generations of ethnic groups; newly
emerging segments such as living apart together, etc.) is important. The Du and
Kamakura-model discussed in this paper can be readily applied to identify the most
typical household types in different socio-cultural contexts. To enhance practical
understanding, research needs to focus on empirical investigations of marketing issues
related to consumer life cycles (e.g. changes of brand meaning depending on
consumers life cycle stages). Although research on transitions and transitional
consumption is developing (e.g. Srensen and Thomsen, 2006; Lee et al., 2007;
Katz-Wise et al., 2010), the analysis of dependency patterns still represents a highly
promising field of future research (Cornwell et al., 2006; Cornwell et al., 2008).
Methodological improvements as those outlined in this paper provide an opportunity
to gain new insights into the changing needs of consumers over time (Macmillan and
Eliason, 2003; Du and Kamakura, 2006).
With this study the authors wish to provide a context for better understanding the
evolution of the life cycle concept in marketing. Hopefully, this contribution will
encourage new consumer research taking a life course perspective and the empirical
development of life cycle models. Since marketing managers would benefit in various
ways from the newly suggested directions in life cycle research, this paper might
stimulate data exchange and cooperation between marketing scholars and
management. The benefits for marketing practice are manifold. First of all, the life
cycle concept can still be applied for market segmentation (Redondo-Bellon et al., 2001),
need identification, and market forecasts (Arndt, 1979). Furthermore, marketing
communication managers might use customized targeting programs to approach
individuals in certain stages of the life cycle (Fritzsche, 1981). Detailed analyses of the
process of adaptation and adjustment to life events can deliver valuable insights for
implementing successful targeting and positioning strategies. Understanding
consumers experiences of life events represents an important prerequisite for
effectively building long-term customer relationships and designing appropriate
customer relationship management activities (Boulding et al., 2005). Adopting a
long-term perspective in marketing is expected to optimize customer lifetime value due
to better understanding of customers needs and wants. Marketing managers should
consider the suggestions presented in this study to augment the lifetime value of their
regular customers. Consistent with the goals of customer value management, the
insights presented here can assist managers to increase retention of current customers,
attract new customers, and support customer expansion (Verhoef et al., 2007). Brand
managers in particular may better address consumers changing needs over their
lifetime and, by offering products and brand variations adapted to the life stage,
strengthen brand loyalty and prevent brand switching.
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