Page 4: Market research: lifestage analysis
Quantitative research uses questionnaires often involving large numbers of people. By contrast, qualitative research is based on more detailed interviewing of a representative sample from the target population. Organising focus groups is a form of qualitative research, inviting, in this case, young people to talk about their financial requirements. YBS organised several workshops at which young people explained their financial requirements and motivations.
The target audience falls naturally into segments based on life stages. Motivations and key influences at each of these stages are summarised below:
For the under 12's, parents generally make the decision on what account to open, their objectives being the long-term welfare of their child and saving for key events, e.g. first car/home, university.
From the age of 12, although the parent/s still feel that they should be making the decisions, the young person increasingly feels torn between independence and knowing that the parental security blanket is there just in case!
Once they are 16, young people feel independent (even if their parent/s don't agree!).
Financial needs of this older age group are affected by legal requirements, e.g. the minimum age for taking a car driving test is 17. Law affects the age when driving lessons, possibly a car, and car insurance all need paying for. At 18 many young people go to higher education. As more opportunities become available, these people want more independence and opportunities to start to earn their own money.