How do generational cohorts differ from segmentation based on wealth and life-stage?
Solution
Generational cohorts are described as groups of people who share birth years, history, and a
collective personality as a result of their defining experiences. Generational profiles, while not
infallible, help us to understand how the life experiences of a generation capture the attention and
emotions of millions of individuals at a formative stage in their lives and ultimately affect
personal core values. Although there is no absolute beginning or end to generational groups, they
typically span 15 to 20 years. The historical, political, and social events experienced by
generational cohorts help to define and shape their values, work ethics, attitudes toward
authority, and professional aspirations.
It divides generation into four groups:
The Veterans (1925-1945)
The Baby Boomers (1946-1964)
Generation X (1963-1980)
The Millennial Generation (1980-2000)
Segmentation based on wealth and life stage:
Lfe Stage: The life cycle stage of a consumer group defines what will be the need of that
particular customer. Example – a toddler will need infant food, a child will need dolls and toys, a
middle age customer will need insurance and investment plans and finally an old age person
might need retirement plans. This demographic segment cannot be said as an “Age” segment
because these customers are in specific phase of their “Life”.
Wealth:There are many brands and products which are targeted towards the high income group
customers. Thus, income too can be used to define a customer group from a population. These
customers are generally divided as Sec A, Sec B and Sec C customers depending on their income
and purchasing power..
How do generational cohorts differ from segmentation based on wealth.pdf
1. How do generational cohorts differ from segmentation based on wealth and life-stage?
Solution
Generational cohorts are described as groups of people who share birth years, history, and a
collective personality as a result of their defining experiences. Generational profiles, while not
infallible, help us to understand how the life experiences of a generation capture the attention and
emotions of millions of individuals at a formative stage in their lives and ultimately affect
personal core values. Although there is no absolute beginning or end to generational groups, they
typically span 15 to 20 years. The historical, political, and social events experienced by
generational cohorts help to define and shape their values, work ethics, attitudes toward
authority, and professional aspirations.
It divides generation into four groups:
The Veterans (1925-1945)
The Baby Boomers (1946-1964)
Generation X (1963-1980)
The Millennial Generation (1980-2000)
Segmentation based on wealth and life stage:
Lfe Stage: The life cycle stage of a consumer group defines what will be the need of that
particular customer. Example – a toddler will need infant food, a child will need dolls and toys, a
middle age customer will need insurance and investment plans and finally an old age person
might need retirement plans. This demographic segment cannot be said as an “Age” segment
because these customers are in specific phase of their “Life”.
Wealth:There are many brands and products which are targeted towards the high income group
customers. Thus, income too can be used to define a customer group from a population. These
customers are generally divided as Sec A, Sec B and Sec C customers depending on their income
and purchasing power.
