Market Segmentation Assignment
1) Importance of Income Types for Different Businesses
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Expensive Watches: Disposable income is more important for businesses that sell expensive watches. Disposable income refers to the amount of money individuals have left after taxes and essential expenses, which would allow them to make luxury purchases like high-end watches.
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Second Homes: Discretionary income is crucial for second home purchases since it refers to the income that remains after all necessary expenses (including disposable income) have been paid. Individuals would need significant discretionary income to afford the additional costs associated with owning and maintaining a second home.
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Financial Services: For financial services, both disposable and discretionary income are important, but discretionary income may play a more significant role in terms of investments or purchasing premium financial products. Individuals with higher discretionary income are more likely to seek out investment opportunities or financial advisories that cater to affluent customers.
2) Psychographic or Lifestyle Trend Supported by the Study on Beverage Consumption
The recent study showing that teens are drinking more bottled water and reducing their intake of carbonated beverages supports the health and wellness trend in psychographics. This lifestyle shift reflects an increasing awareness of health issues among younger demographics, emphasizing choices that align with healthier living. The decline in carbonated beverage consumption suggests a preference for healthier drink options, indicative of a growing concern for personal health and wellness in lifestyle choices.
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