Answer to Question #220227 in Management for Asjad inam Abbasi

Question

Which of the five stages of the family life cycle constitutes the most lucrative segment for each of the following products and services: (a) TV cable subscriptions, (b) Club Med vacation, (c) Domino’s Pizza, (d) iPods, (e) mutual funds, and (f) the fastest Internet access available in one’s location? Explain your answers

Answer 1

a) Tv cable subscription- in the family cycles honeymooners prefer to have a TV cables subscription. This stage includes the newly married couples. A wide range of disposable income is spent on clothing, vacations and leisure activities. They have the highest purchase rate and highest average purchase of durable goods mainly appliances and furniture. They appear to be more susceptible to advertisements. Therefore, Tv cable subscription is the most lucrative segment in this stage.

b) Club Med Vacation- newly married couple also referred to as the honeymooners need a outdoor vacation in a relaxed and stylish ambiance. Club Med Vacation also applies to the empty nest which is a family life cycle comprising of older married couples with no children living with them.

c) Domino's Pizza- Full nest 2 is a family cycle comprising of older married couples with children aged between 6 to 12 years. Pizza is among the key expenditure areas. Therefore, this stage of family lifecycle is the most lucrative segment for Domino's Pizza.

d) iPods- Bachelor stage of young and single. iPods are likely to be used by single young people. The main market is to the single young people with secondary market of families with children.

e) Mutual funds- Honeymooners have a higher income and desire to spend more. Parenthood also has higher family income and desire to spend more. Post parenthood has a decline in expenses and desire to spend. Dissolution- most of the expenditure is on medication and drugs and the need to spend on future stability.

f) Fastest internet access available in one's location- Bachelor stage comprising of young and single prefer fastest internet access for various purposes such as online learning and entertainment through various social media platforms such as Twitter or Instagram. Full nest 1 which is a stage that comprises of young married couples with child also require fastest internet access to entertain their child through various kids programmes such as Nickelodeon. Fastest internet access also applies to full nest 2 involving two married couples with child.