Monday, December 14, 2015

Why Use Age for Market Segmentation?

In this age of behavioral, attitudinal, and lifestyle segmentation, how important is age as a segmentation variable to identify consumer groups within a market?

Pew Research Center has an excellent analysis, titled "The Whys and Hows of Generations Research," that explains how members of generational cohorts (think "Millennials" and "Baby Boomers") are influenced by the same world events, music, technology, media, product fads, and other elements.

Clearly, the attitudes, actions, needs, and priorities of one generation are typically not the same as members of another generation. Even when multiple generations adopt a particular technology (smart phones or activity trackers), their reasoning and usage will vary by age. So age continues to be a key variable for market segmentation.

Interestingly, Pew found that Millennials don't like to call themselves by that generational name. What Millennials do say about themselves is that they are idealistic. For more on Pew's studies of Millennials, check here.

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