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Target Market

Home Depot categorize the market into groups based on demographic characteristics such as
gender, age, income, education, and family life cycle. Lakshmi et al. (2017) mentioned that both
genders have distinct purchasing decisions due to various preferences and perceptions of purchasing
habits. Other than gender-neutral home improvement products, Home Depot has separated its
market product such as clothing into both genders. For example, Home Depot has divided its
workwear and sleepwear into menswear and womenswear (Appendix 1). Although it is considered a
male-friendly store, Home Depot also caters to women with their products such as the Ladies Tool
Kit more likely to appeal to female homeowners than the basic tool kit (Appendix 2). Despite the
gender, Home Depot divide the market by age based on life cycle and generation. For example,
Home Depot's baby care products and baby furniture are age-specific to segmented across babies in
the life-cycle segmentation. In terms of generation-based, baby boomers are the largest potential
customers of Home Depot. Thomas (2022) stated that Home Depot's customer base mainly
consisted of Baby Boomers. This is because Boomer's homeowner tends to invest more in home
improvement products to renovate home (Bose, 2018; Yale, 2019).
Income is another valuable segmentation variable as monthly income will affect consumers'
purchase decisions. According to Thomas (2020), Home Depot emphasizes middle to upper-class
income consumers as the target market. Due to different purchasing ability, Home Depot has
different prices and offerings in its store brand and exclusive brand to cater customer with different
income. Education is another variable as consumers nowadays are well educated; they are more
aware of the quality and feature of products, especially electronic goods (Wan Mokhtar & Ismail,
2018). For instance, Home Depot's smart home technology attracts demand from highly educated
homeowners and perceives them to make more technology-related purchases with higher
acceptance. Home Depot goes after newly married adults with and without children in family life
cycle segmentation. Diehl (2018) mentioned that married couples and parents are likely to shop in
Home Depot for home-related items. For instance, Home Depot's visual kid workshops are mainly
organized to target parents and generate demand to kid workshop kits (Shain, 2016).