Authors
Daniel S Putler, Tieshan Li, Yong Liu
Publication date
2007/12/1
Journal
Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration
Volume
24
Issue
4
Pages
284-299
Publisher
John Wiley & Sons, Ltd.
Description
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. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.
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