Segmentation-Targeting-Positioning (STP)

Demographic Variables Drill

'Full Nest I' in the family life‑cycle typically describes ______ households.

Young singles

Older couples without kids at home

Empty nest retirees

Young parents with children under six

Marketing texts label early‑child households as Full Nest I, reflecting major spending on baby and preschool categories. Each FLC stage maps to characteristic purchase patterns.

Which demographic variable shows the broadest correlation with product needs across categories?

Pet ownership

Age

Place of birth

Blood type

Age influences preferences in food, fashion, media, and technology. Marketers often start with age‐bands when profiling markets because life‑stage needs shift predictably.

An income segmentation threshold is actionable when ______.

It creates equal segment sizes

It uses gross household earnings

It exactly matches median national income

Disposable income predicts distinct brand or price‑tier choices

Cut‑offs should reflect meaningful behaviour differences—like ability to afford premium versions. Arbitrary median splits may not map to real preference shifts.

'Boomer' and 'Gen Z' are examples of ______ segmentation.

Psychographic archetype

Generational cohort

Benefit

Usage rate

Cohorts group people born in similar periods who share formative experiences, shaping distinct values and consumption patterns.

PRIZM combines demographics with ______ to create lifestyle clusters.

Birth‑order

Zip‑code geography

Eye‑tracking data

Purchase occasion

It overlays census data on geographic units, producing geo‑demographic segments like 'Young Digerati'. Location is integral to cluster identity.

Education level often correlates with ______.

Seasonality of demand

Height

Information search depth and media channel preference

Astrological sign

Higher education generally leads to more extensive information processing and use of certain media (e.g., print or online long‑form content).

'DINK' households are attractive because they generally have ______.

High discretionary income

High price sensitivity

Minimal digital usage

Low brand loyalty

Dual incomes and no children free up resources for travel, dining, and premium goods, making them lucrative targets.

Marketers often pair demographics with behavioural data because demographics alone ______.

Predict impulse purchases perfectly

Remove the need for primary research

Are illegal to collect

Tell 'who' but not 'why' consumers buy

Demographics are descriptive; adding behaviour or attitudes reveals motivations, making strategy sharper.

Household size affects demand for bulk packaging due to ______.

Colour psychology

Consumption rate and storage capacity

Legislation

Ad clutter

Large families consume more quickly and can store bigger packs, justifying warehouse‑club formats and jumbo sizes.

Life‑stage targeting differs from pure age segmentation because it ______.

Focuses solely on geographic variables

Accounts for situational roles like 'new parent' regardless of age

Ignores income levels

Uses psychographics only

Life‑stage looks at events (e.g., first home purchase) that can happen at varying ages, providing richer insight than age alone.

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