Usually, a combination of demographic variables is used to segment the market. According to this segmentation, the consumer wants and abilities change as they age or mature. Gender is also an important variable because men and women have different attitudes and behave differently when it comes to products and buying decisions. Income, another important demographic variable, determines the ability of the consumer to participate in the market exchange. Regarding income, it does not always provide with the accurate segmentation, because there are other factors such as attitudes, values, and lifestyle that affect the buying decisions of the consumer.
Social class is another important demographic variable that needs to be taken into consideration while segmenting the market. Social class builds up preferences amongst consumers for different brands and products. Many companies design products and services which cater to specific social classes. Psychographic segmentation is what follows the important demographic segmentation. Psychographics is the science of using psychology and demographics together to better understand the consumers. Under the psychographic segmentation, consumers are divided into different groups based on the personality traits, lifestyle or values.
Lifestyle and values have the most significant impact on consumers’ buying behavior. It is very likely that people under the same demographic group will have very different psychographic profiles. Then comes the Behavioral segmentation. In behavioral segmentation, marketers divide consumers into groups on the basis of their response and attitude towards the product. Behavioral variables include occasions, benefits, user status, usage rate, buyer-readiness stage, loyalty status, and attitudes. Occasion segmentation is done when products are offered on different occasions. Consumers are also grouped according to the benefits that they seek.
Different people will seek different benefits from the same product.
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