The Value of Household Life Cycle Variables in Consumer Expenditure Research: An Empirical Examination

Canadian Journal of Administrative Sciences, 24 (4) 284-299, 2007

16 Pages Posted: 6 Sep 2015

See all articles by Daniel Putler

Daniel Putler

University of British Columbia, Sauder School of Business, Students

Tieshan Li

Concordia University, Quebec

Yong Liu

University of Arizona

Date Written: 2007

Abstract

We examine why studies reach contradictory conclusions concerning the value of the household life cycle model as a predictive tool in consumer expenditure research. Using a database of roughly 14,000 Canadian households, we find that household life cycle variables do not generally enhance prediction over a more parsimonious model containing a basic set of socioeconomic and demographic variables, even when comparing less aggregated to more aggregated expenditure categories. However, they do enhance prediction for categories that are defined such that the typical users of the category fall into a fairly narrow age range. The theoretical and applied significance of our findings are discussed and directions for future research are offered.

Keywords: administrative science, consumer research, household life cycle, marketing research

Suggested Citation

Putler, Daniel and Li, Tieshan and Liu, Yong, The Value of Household Life Cycle Variables in Consumer Expenditure Research: An Empirical Examination (2007). Canadian Journal of Administrative Sciences, 24 (4) 284-299, 2007, Available at SSRN: https://ssrn.com/abstract=2655808

Daniel Putler

University of British Columbia, Sauder School of Business, Students ( email )

Vancouver
Canada

Tieshan Li

Concordia University, Quebec ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1MB
Canada

Yong Liu (Contact Author)

University of Arizona ( email )

1130 E Helen Street
Tucson, AZ 85721
United States

HOME PAGE: http://https://eller.arizona.edu/people/yong-liu

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