Consumer Segmentation Study Sheet

1. Demographics

Demographics involve measurable, observable characteristics of a population.

Key Variables:

1. Age – Seven age segments:

• 0-9: Pre-customer

• 10-15: Allowance customers

• 16-19: Youth market

• 20-25: Postsecondary market

• 25-40: Family formation (nesters)

• 40-55: Establishment

• 55+: Mature market

2. Gender – Products are often marketed differently to men and women.

• E.g., clothing, personal care, grooming, magazines, sporting goods.

• Traditional gender roles have evolved (e.g., men involved in household chores, women in renovations and car maintenance).

3. Ethnicity – Cultural preferences impact buying habits.

• E.g., ethnic grocery stores, hair & grooming products, TV channels in multiple languages.

4. Income Level – Determines affordability and spending habits.

• Lower-income → Focus on necessities (food, shelter, clothing).

• Higher-income → More discretionary spending on recreation, luxury, and education.

5. Family Life Cycle – Consumer needs change based on life stage.

• Young couples → Basic household items.

• Families with young kids → Baby products, childcare services.

• Empty nesters → Travel, health & wellness.

6. Education Level – Affects career choices, income level, and spending.

7. Occupation – Different careers have unique purchasing needs.

8. Languages Spoken – Affects media preferences, product packaging, and advertising.