Answer to Question #139853 in Management for Parshuram

Question

Q2. Which of the stages of the family life cycle would constitute the most lucrative segment/segments for the following products and services?
(a) Domino's pizza
(b) Mobile telephones
(c) Mutual funds
Justify your answer.

Answer 1

Domino’s pizza

Full Nest II – Families at this stage have children aged 6 – 12 years. Food, especially junk foods like pizza, are among the key expenditure areas (Neulinger & Simon, 2011). Therefore, this stage of family lifecycle is the most lucrative segment for Domino’s pizza.

Mobile telephones

Bachelorhood – The income is low but those in this stage of family lifecycle want to spend on fashionable and tech-related items

Honeymooners – Higher income and desire to spend more

Parenthood – Higher family income and desire to spend on accessories

Post parenthood – Decline in expenses and desire to spend

Mutual funds

Honeymooners – Higher income and desire to spend more

Parenthood – Higher family income and desire to spend more

Post parenthood – Decline in expenses and desire to spend

Dissolution – Most of the expenditure is on medications and drugs. Need to spend on future stability

Reference

Neulinger, A., & Simon, J. (2011). Food Consumption Patterns and Healthy Eating across the Household Life Cycle in Hungary. International Journal of Consumer Studies, XXXV(5), 538–544.