Homework 3 1. Age and Life-Cycle Stage. According to the article, “Millennials” are causing a headache to most cereal companies due to their health conscious habits or diet fads that completely exclude sugar filled cereals. In addition, most cereal companies are trying to create nostalgia for older consumers by bringing back old cereal flavors or characters. The reason why I chose this specific market segment is because people are becoming efficient and busy in their daily lives, no one has time to sit down and consume cereal like the old days. I believe cereal companies should focus on the wants of their young consumers (ie; cereal bars, kashi infused cereal, etc…) and older adults and try to become more innovative in their marketing and products. 2. In my opinion, I believe PRIZM geoclustering can be helpful in identifying the specific kinds of consumers that are within a 10 mi radius. This approach basically breaks down certain attributes such as affluence, education, income, tastes, and preferences that are more prevalent in that radius. So for example, let’s say if we did geoclustering in New Brunswick, NJ for cereals, I can derive that this population is mostly Hispanics and African Americans mostly living in poverty and Rutgers college student. Knowing this information can be helpful when marketing to low income students and individuals by possibly adding Spanish advertisement on the cereal box or introducing exclusive cereal marketed to the tastes of that crowd at an affordable price. 3. The behavior market segmentation I would use for the cereal market would be “User Status”. User status consists of nonusers, ex-users, potential users, regular users, and first time users. According to the article, cereal accounts for the majority of breakfast foods in America. However, overtime sales have declined as many people switched to different