Figuring Out Buyer Behavior No. 1
Segment: I am going to focus on younger individuals who have just entered the work force, primarily out of college and only supporting themselves, as they will likely have a portion of their income that is disposable. This group, while maybe not the most money conscious segment I can look at, will likely be the most receptive to a web format for personal finance management, as well as have the disposable income to consider making a one-time purchase to better align their spending, saving, and investing.
Interviewee #1: Graduate Student working as a TA (26F)
My first interview was with a graduate student studying history, focusing on the contributions and depictions of women in European history. She says she becomes aware of her need to better manage her finances when she considers how much her stipend is and how much rent will cost month by month, realizing she really will have to stretch the limited remainder to cover the rest of her needs, like food, insurance, and other miscellaneous expenses. She tries to find information on how to better manage her finances on YouTube primarily, as well as reading articles online by searching for "budgeting" or "how to save money", but she admits that most of this information she acquires does not become a part of her money routine, and she remains in her original position. She hopes that when she graduates her pay increase will mean that most of these problems will go away, but still really wishes there was a good solution to manage her money now, and even when she does receive that income bump.
Interviewee #2: Prospective Dental Student working for UF Health (22F)
This interview was with a student who just graduated from UF this past year with a microbiology and cell science degree, and is now in the process of applying to dental school, though she has decided to take a year off before she resumes her studies to prevent burnout and build a small nest egg. She holds a temporary, entry-level position at Shands and has need awareness that she needs to better manage her finances when she realizes only a small portion of her paycheck is saved in every cycle to help pay for future schooling, and that this small amount will barely make a dent in the debt she will have to take on. She recognizes that this is really an uphill battle, and she wonders if there is a more advantageous place she can put her money that a simple savings account. She has searched about investing on the web, but she does not feel confident enough in her knowledge to actually move the money. She thinks if there were more cohesive information available, as well as someone or something to guide her as she invests she might make the switch, but currently she is electing to just hold the money.
Interviewee #3: UF graduate working as a mechanical engineer (24M)
My last interview was with an mechanical engineer at the very beginning of his career, still making largely an entry level salary. He says his pay is decent, and that his purchasing ability and lifestyle has taken a big step up from college, but he still is relatively frugal with his money, electing to save a portion of his paycheck every cycle for emergency medical expenses and eventually long-term investing. He knows his pay will increase as he gains job experience over the next decade, and he wants to make sure he can support himself and a family if the need arises. He has need awareness for a money management service when he considers his desire to retire in his fifties, as he thinks that will give him time to enjoy his retirement and be active before he is too old to do so. He looks at information on the web and asks his parents how they are planning for retirement to replicate their solution. He has downloaded a budgeting template from Google sheets and has followed a YouTube video to fill it out, but he admits he only loosely follows those guidelines.
Conclusion: Describing this segment, I would say the majority of consumers use online resources to learn about money management, as this is the most easily accessible form of information for this group. A lot of individuals in this group are aware that they have a need to manage their money better, whether that's for retirement or school expenses, or simply to make ends meet and make money less tight. However, I think this segment is maybe less viable than the segment above them, as a lot of the individuals in this segment are still in some form of schooling and will be taking debt regardless of their spending habits. Probably those who are fully done with school and are beginning to support themselves in couples or familial units are more viable consumers, and still have the disposable income to pay for such a service.
Interviewee #1: Graduate Student working as a TA (26F)
My first interview was with a graduate student studying history, focusing on the contributions and depictions of women in European history. She says she becomes aware of her need to better manage her finances when she considers how much her stipend is and how much rent will cost month by month, realizing she really will have to stretch the limited remainder to cover the rest of her needs, like food, insurance, and other miscellaneous expenses. She tries to find information on how to better manage her finances on YouTube primarily, as well as reading articles online by searching for "budgeting" or "how to save money", but she admits that most of this information she acquires does not become a part of her money routine, and she remains in her original position. She hopes that when she graduates her pay increase will mean that most of these problems will go away, but still really wishes there was a good solution to manage her money now, and even when she does receive that income bump.
Interviewee #2: Prospective Dental Student working for UF Health (22F)
This interview was with a student who just graduated from UF this past year with a microbiology and cell science degree, and is now in the process of applying to dental school, though she has decided to take a year off before she resumes her studies to prevent burnout and build a small nest egg. She holds a temporary, entry-level position at Shands and has need awareness that she needs to better manage her finances when she realizes only a small portion of her paycheck is saved in every cycle to help pay for future schooling, and that this small amount will barely make a dent in the debt she will have to take on. She recognizes that this is really an uphill battle, and she wonders if there is a more advantageous place she can put her money that a simple savings account. She has searched about investing on the web, but she does not feel confident enough in her knowledge to actually move the money. She thinks if there were more cohesive information available, as well as someone or something to guide her as she invests she might make the switch, but currently she is electing to just hold the money.
Interviewee #3: UF graduate working as a mechanical engineer (24M)
My last interview was with an mechanical engineer at the very beginning of his career, still making largely an entry level salary. He says his pay is decent, and that his purchasing ability and lifestyle has taken a big step up from college, but he still is relatively frugal with his money, electing to save a portion of his paycheck every cycle for emergency medical expenses and eventually long-term investing. He knows his pay will increase as he gains job experience over the next decade, and he wants to make sure he can support himself and a family if the need arises. He has need awareness for a money management service when he considers his desire to retire in his fifties, as he thinks that will give him time to enjoy his retirement and be active before he is too old to do so. He looks at information on the web and asks his parents how they are planning for retirement to replicate their solution. He has downloaded a budgeting template from Google sheets and has followed a YouTube video to fill it out, but he admits he only loosely follows those guidelines.
Conclusion: Describing this segment, I would say the majority of consumers use online resources to learn about money management, as this is the most easily accessible form of information for this group. A lot of individuals in this group are aware that they have a need to manage their money better, whether that's for retirement or school expenses, or simply to make ends meet and make money less tight. However, I think this segment is maybe less viable than the segment above them, as a lot of the individuals in this segment are still in some form of schooling and will be taking debt regardless of their spending habits. Probably those who are fully done with school and are beginning to support themselves in couples or familial units are more viable consumers, and still have the disposable income to pay for such a service.
Hey Philip, Your interviews were very thorough and seem to be very well conducted! I appreciate how organized your post is so it is easy for me to identify your business idea , interviews , and conclusion. I think your choice of segment was also very useful because the younger generations most likely use online money management. Great post.
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