Life-Stage Segmentation Profiles

Portrait of the Lower-Income Family

Overview

The Lower-Income Family segment (LIF) represents 12 percent of the population. They are under 45 years old, have an income of less than $30,000 per year, 53 percent are married, and there are children in the house. Slightly less than half have attended college and politically they are middle-of-the-road.

Fifty-five percent own their own home, the smallest percentage except for the Lower-Income Youth. Minority representation is high: 50 percent define themselves as Caucasian/Hispanic, 25 percent as Hispanic/Latino, 21 percent Black/African/American, 1 percent Asian. Twenty-one percent consider themselves multilingual.

Newspaper Readership & Newspaper Web Site Usage

The need felt by LIF to “get the news every day” declined as did newspaper readership. While the declines were smaller than the other Family segments, readership is overall lower. Less than half of LIF are newspaper readers.

Of those readers, an equal number buy the Sunday paper for advertising as buy it for the news. The importance of advertising is higher among this group than in any but Middle-Income Families.

Lower-Income Families have the highest percentage of single copy buyers.

When those who read the newspaper were asked if they had a favorite newspaper section, the response was 1) Sports 2) Classifieds 3) Entertainment 4) Local news and 5) Main News.

Nearly half read the preprints, nearly all check local sales, a large number read the classifieds and a majority clip coupons.

Seventy-eight percent, the highest percentage of any segment, say the newspaper is a good value. Only 57 percent, however, feel that reading the newspaper is a mentally engaging activity, the lowest of any segment.

They are second only to the Upper-Income Young in believing it is very important for them to be up-to-date on the news. A large majority believe that newspapers “let me learn things I might not otherwise be aware of.”

In keeping with their profile as single copy sales buyers, Lower-Income Families have the highest percentage of non-newspaper readers who use the newspaper to check sales in local stores and to compare prices. Maintaining strong local advertising and promoting it effectively is critical to keep these single-copy buyers coming back.

This group is the least likely to read both the newspaper and the Web site. Among those who do visit the newspaper site, they are the people most likely to say they used the Web site instead of reading the paper. Once on the newspaper site, LIF typically spend more time than any other segment. They are the highest users of the site for job information.

Internet & Technology Adoption

Internet use by this group is smaller than any group except the Lower-Income Mature. They have less Internet access at home and at work.

When they do go on the Internet, it is less for maps, articles, reviews, and sports; more for photos, blogs, entertainment/celebrity news and downloading podcasts/music. They are not high users of online classifieds and auctions, perhaps reflecting their limited Internet access. When online, if they are looking for local news, information or entertainment they tend to look at Yahoo over Google.

Typically they are below average in their adoption of tech devices such as personal computers, digital cameras, video cameras, cell phones and mobile devices. But when it comes to DVD players and video game systems they outpace the average. Like all the lifestage groups in which there are children, the LIF seem to have accepted these items as standard.

Shopping

The Lower-Income Families are about average in having shopped in the past seven days. Average numbers are mall shoppers and Internet shoppers.

Three-quarters of the LIF are shopping more often at discount/general merchandise stores, and about half are shopping more often at dollar stores. About half are shopping less often at department stores and warehouse clubs. They are more than twice as likely to shop at Wal-Mart as at Target.

They are lower than average in their use of the Internet for researching and shopping, but about average for researching online/purchasing offline. When asked where online they shop/research the numbers are highest at store Web sites, eBay and Yahoo.

Advertising

Newspaper is the dominant source for advertising for the Lower-Income Families, the preferred medium for both advertising information and convenience. Even among this group, however, among which Internet use is comparatively low, the newspaper and Internet tie in helpfulness for making large purchases and for purchases from a computer store.

They have a higher than average use of advertising inserts, and are the highest users of Sunday inserts. They also keep Sunday inserts longer than average and more than half say they enjoy browsing even if they aren’t looking to make a purchase.

Developing online advertising, research capabilities and content that is helpful to making purchases is clearly a strategy which newspaper Web sites should pursue. Equally important is protecting the newspaper’s franchise as the best place to get inserts and shopping information.

Recommendations

While the study reveals no specific tactics for reaching the Lower-Income Families, the trend indicates that when it comes to shopping and advertising, they continue to look to the newspaper. They show dependence and trust in the newspaper, and are significant single copy buyers, so strategies put in place for the Middle-Income Families are also important in reaching the Lower-Income Families.

Equally important is to develop entertainment and shopping content of interest to them as they come to the newspaper Web site. As a price-sensitive group that is looking for advertising, sales and store information, the LIF present an audience for online advertising content that could support the information already found in print.

Again, not stated in the study, online products that appeal to the family, including appropriate products targeted to the children could provide a very real benefit while strengthening the already-established trust they have in the local newspaper.

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About the Author

Ethnic/Income Segmentation | Life-Stage Segmentation

© December 2007 NAA

For more information, contact Randy Bennett, NAA vice president, audience and new business development, at randy.bennett@naa.org.