As consumer needs & desire changes with the age, thus a target market can be classified according to the age groups based on their lifecycle stages.
For example: A product like apparel that appeals to both young and older people, thus age and life cycle segmentation is considered in order to reach both the segments differently. For older segment the reach can be by the method of commercials on daytime television and for the younger people via internet.
The Household Lifecycle:
1. Younger (<35) types:
• Single me: They are mostly the fashion and recreation oriented people with few financial burdens. They are a prime market for nice apartments, sports cars, vacations and other activities.
• Young Couples: No Children: Romantically inclined, highest purchase rate of consumables and durables and financially are better off. They can afford nice cars, stylist apartments and led a high quality lifestyle.
• Full Nest I :Low liquid assets ,high purchaser of baby food and baby oriented products
• Single Parent I: Unique need for child care, enormous pressure, thus prefer on time and energy saving products and services that are not very expensive.
2. Middle Aged (35 – 64) types:
• Middle Aged Single: They have more money to spend and willingness to indulge themselves.
• Empty Nest I: Both of them are working and have enough money to spend but also have less responsibility thus more time to enjoy. They are prime market for financial services.
• Delayed Full Nest I: Older new parents with larger incomes than the younger new parents. Thus they are ready to pay for the best for their children.
• Full Nest II: greater demand for space at home and cars. More savings in order to ensure the future of the children’s and a considerable financial burden on households.
• Single Parent II: Lacks mostly in financial, emotional and time support. Thus mostly are inclined to time saving alternatives such as ready to eat food, and fast food restaurants.
3. Older (> 64) types:
• Empty Nest II: Big market for leisure items and health care services.
• Older Single: They are less innovative, more risk averse and more price sensitive.
Hence, this concludes the definition of Age and Life Cycle along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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