Question

Identify the four major categories of variables that can be used to segment consumer markets. Give examples of product markets that are segmented by variables in each category.

Answer 1

The four bases for segmenting consumer market are as follows:

A. Demographic Segmentation :

It refers to dividing the markets into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality.

Markets that are commonly segmented by age includes clothing, toys, music, automobiles, soaps, shampoos and foods.

B. Geographic Segmentation

It refers to dividing a market into different geographical units such as nations, states, regions, cities, or neighbourhoods. For example, national newspapers are published and distrib­uted to different cities in different languages to cater to the needs of the consumers.

C. Psychographic Segmentation

Psychographic segmentation pertains to lifestyle and personality traits. The buying behaviour predominantly depends upon lifestyle and personality characteristics..

elitists would generally prefer solitaires, luxury cars, holiday homes etc. A luxury car brand would target only the elitists and not the middle-class of people.

D. Behavioural Segmentation.

buyers are divided into groups on the basis of their knowledge of, attitude towards, use of, or response to a product. Behavioural segmentation includes segmentation on the basis of occasions, user status, usage rate loyalty status, buyer-readiness stage and attitude.

For example, Cadbury’s advertising to promote the product during wedding season is an example of occasion segmentation.