Market Research Analysis - Teens

8 Pages 2091 Words

cretionary income. In a 1997 Rand Youth Poll, teenage girls had an income of $56.4 billion dollars, making the average yearly income $3795 per girl. Fifty-three percent of this income comes from their own earnings, with the remaining coming from their parents. Additionally, teens spend more than ninety percent of their earnings (about $67) per week on merchandise, health and beauty aids and entertainment. Teenage girls spend more money on clothing and jewelry than anything else, while boys mostly spend their money on food and entertainment. However, clothing and entertainment rank within the top three purchase categories for both genders. Also of interest, thirty two percent of teens possess credit cards, thirty five percent are interested in obtaining one, and nine percent have access to their parents’ cards.
Recent surveys have again confirmed that apparel is the most important product category to teenage girls, followed by personal-grooming products. Research conducted by Seventeen magazine quantifies that young women spend half of their money on clothing, jewelry, and beauty aids. Teenage girls are extremely involved in buying their own clothes, including athletic shoes, stockings, and jeans. In the last year, over 64% of teenage girls reported purchasing athletic shoes. Another 27% reported buying casual or leisure shoes. Considering these statistics, our product will no doubt be in great demand among our target market.
Today’s teenagers are easily more independent and more self-reliant than teenagers of the past. Three out of four teens come from homes with two working parents or a single parent raising the family. These busy parents are aiding teenager independence by giving them more spending money than ever before. A recent survey of 12 to 17 year olds by Merrill Lynch finds that 86% of teens obtain money from their parents when they ask for it. ...