Answer to Question #206568 in Management for Prince

Question

SUBJECT : CONSUMER BEHAVIOUR 

Explain in detail , What do you mean by life style analysis ? Why is the understanding of life style analysis important for marketers , explain importance in 7 points with elaboration ?

Answer 1

The sources of income and spending of each party are examined in a lifestyle analysis. It's utilized in divorce proceedings to show the level of living during the marriage and to figure out each spouse's living costs and spending patterns. A forensic accountant prepares it, which is often a more in-depth examination than the financial affidavits necessary in the divorce procedure. The analysis' data serve as proof of net worth and income, and cost accounts supplied by both spouses can aid a judge in determining the fair allocation of marital assets and alimony requirements.

The importance of understanding lifestyle analysis for marketers include;

• it combines all factors and creates a visual representation of income and spending during the remaining life expectancy.
• One can determine what finances are truly necessary (and if these funds are accessible) to sustain a level of life by illustrating the aggregate sources of income(s) and costs through time.
• The capacity to measure the parties' net worth at many times in time is another useful outcome of the lifestyle study.
• Finally, the lifestyle analysis shows the sources of income, tax liabilities, and available cash before and after anticipated spending.
• The investigation procedure may even lead to the parties determining an individual's "actual income."
• They utilize it to better design their product or service so that it fits the consumer's lifestyle.
• This type of segmentation is also necessary for determining the message to be sent to target customers when advertising a product or service.