Bases for Segmentation in Consumer Markets

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

• Geographic

• Demographic

• Psychographic

• Behavioralistic

Geographic Segmentation

The following are some examples of geographic variables often used in segmentation.

• Region: by continent, country, state, or even neighborhood

• Size of metropolitan area: segmented according to size of population

• Population density: often classified as urban, suburban, or rural

• Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation

Some demographic segmentation variables include:

• Age

• Gender

• Family size

• Family lifecycle

• Generation: baby-boomers, Generation X, etc.

• Income

• Occupation

• Education

• Ethnicity

• Nationality

• Religion

• Social class

Many of these variables have standard categories for their values. For example, family lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several stages, for example, full-nest I, II, or III depending on the age of the children.

Psychographic Segmentation

Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include:

• Activities

• Interests

• Opinions

• Attitudes

• Values

Behavioralistic Segmentation

Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include:

• Benefits sought

• Usage rate

• Brand loyalty

• User status: potential, first-time, regular, etc.

• Readiness to buy

• Occasions: holidays and events that stimulate purchases

Behavioral