Psychographic segmentation is a legitimate way to segment a market, if we can identify the proper segmentation variables or lifestyle statements, words, pictures, etc. The advantage to marketing management is that this technique divides total demand into relatively homogeneous segments which are identified by some. The word demographic is derived from demography, meaning the study of population. It focuses on the definition, basis of market segmentation and issues related to market segmentation in detail. Market segmentation is the process of dividing a target market into smaller, more defined categories. Psychographic segmentation is a legitimate way to segment a market, if we. Its basically a method of market research that divides consumers based on their psychological characteristics. Pdf businesses may not be in a position to satisfy all of their customers, every. Psychographic segmentation could be used to segment markets according to personalit y traits, values, motives, interests and lifestyles. Psychographics is a qualitative methodology used to describe traits of humans on psychological attributes. According to some researchers, the benefit segmentation is an independent segmentation and has no relation to the behavioural segmentation. See how you can leverage market segmentation by learning. The idea that brands contain personal meaning for the consumers. Target audience segmentation means a dynamic way of separating people into analogous subgroups based on geographic, demographic, and psychographic factors.
Psychographic segmentation could be used to segment markets according to. The segmentation is designed for use by wine sales and marketing staff of wineries, to understand a set of psychographic characteristics that are believed to. Psychographic segmentation divides buyers into different segments based on internal characteristics personality, values, beliefs, lifestyle, attitudes, interests, social class so you can market accordingly. In the section of the market segmentation process the different types of market segmentation and the variables of each type will first be explained. These psychological aspects may be consumers lifestyle, his social standing as well as his aio. Develop strong positions in spealized market segment. Pdf with growing competition, loyal customers have become the key to the. These factors are then analyzed to predict how you, the customer, will respond to focused marketing campaigns. Psychographic segmentation psychographics is the science of using psychology and demographics to better understand customers. A more powerful use of psychographic segmentation could be applied if there was a demonstrated relationship between the segmentation and some aspect of health or disease. Psychographics is classified as the study of personality, values, attitudes, interests, and lifestyles. Behaviourbased segmentation is conspicuous with the. Before we get to the examples of psychographic segmentation, lets look at what it means exactly. The member of these groups share similar characteristics and usually have one or more than one aspect common among them.
There are many reasons as to why market segmentation is done. Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior and various characteristics. It helps the firm divide the market into several segments or groups, each having a common variable, and target each of these. Market definition, market segmentation and brand positioning. Mar 20, 2019 a buyer persona is a profile of a typical customer based on real data. Marketer will identify the customer need and want then only decide if it is practical to develop marketing mix to satisfy those wants. Well address the development of market segmentation, how it serves as the foundation of a marketing strategy, the types of segmentation to consider and the process of developing a market segmentation strategy.
Psychographic segmentation is the next frontier for health care, said david homan, director of marketing and innovation and a shareholder at mcgohan brabender. Psychographic insights can get into specifics, such as words to use and words to avoid. Aug 12, 2017 how to use psychographic segmentation in your marketing. Define product positioning and briefly state its relevance to the airline industry. The ukbased national readership survey segregates social class into six categories. Unlike demographic and geographic segmentation, which focus on quantifiable and visible details, psychographic segmentation focuses on less obvious details. It is a kind of segmentation used by marketers to group their target customers into distinct categories based on their lifestyle. Psychographics are applied to the study of cognitive attributes such as attitudes, interests, opinions, and belief, as well as the study of overt behavior e. Psychographic segmentation is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. An analysis on the market segmentation of starbucks and. Psychographic segmentation is one of the most important factors that must be kept in mind by the marketer, in order to successfully gain and maintain market share.
Psychographic segmentation has been used in marketing research as a form of market segmentation which divides consumers into subgroups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. American journal of business education june 2011 volume 4. Psychographic segmentation is quite similar to behavioral psychographic segmentation. Psychographic segmentation psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics 7. The word psychographic comes from the word psyche, the human soul, spirit, or mind, and graphics, to give a clear and effective picture. Present the definition of target market to the class. Psychographic segmentation financial definition of. Psychographic or lifestyle segmentation lastly, we come to psychographic or lifestyle segmentation, based upon multivariate analyses of consumer attitudes, values, behaviors, emotions, perceptions, beliefs, needs, benefits, wishes, and interests. Psychographic segmentation 5 factors for marketing. Pdf the use of demographic and psychographic segmentation to. Psychographic segmentation definition in the cambridge. Using this segmentation, companies target different messages to. Everyone has different values, beliefs and attitudes. Many believe you can get a full understanding of your customers by studying demographics e.
In fact, psychographic segmentation is dividing mass market to specific submarkets that. What are some examples of psychographic segmentation. They include the demographic segmentation, which is. Why it should be implemented recommendations 15 use benefit segmentation to market specific products to the customer 15 use geographic segmentation to market to a specific area 16 use psychographic segmentation to market to a specific lifestyle 17 managerial implications 18. Because this area of research focuses on activities, interests, and opinions, psychographic factors are sometimes abbreviated to aio variables. This is an exciting and different way to engage consumers in their health care. Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles. Market segmentation helps marketers define customer needs and wants more accurately. This segmentation helps organizations understand consumer behavior accurately that in turn helps them perform better. Oct 08, 2018 psychographic factors effect on consumer behavior. Demographic segmentation is market segmentation based on various demographic factors, like age, gender, social class, etc. Psychographic segmentation psychographic segmentation is the market segmentation strategy in which the total market is divided on the basis of psychology, personality of people, characteristics, lifestyle, attitudes etc. Attitudes and psychographic data environment behavioral greens reach consumers likely to think and act green.
Psychographic segmentation in the financial services context. Psychographic segmentation based on belief factors underlying attitude toward advertising in general article pdf available january 2012 with 2,707 reads how we measure reads. The psychographic segmentation divides the customers into. Psychographic segmentation is the market segmentation strategy in which the total market is divided on the basis of psychology, personality of people, characteristics, lifestyle, attitudes etc. This is moving way beyond generational segmentation, he said. Market segmentation is a crucial marketing strategy. Aliens within the same demographic group can exhibit very different psychographic profiles. Psychographic segmentation was developed by marketing researchers to correlate personality with brands. Psychographic segmentation divides the target market based on socioeconomic class or lifestyle preferences.
Core segmentation research psychographic segmentation is the process of grouping individuals based on attitudes,opinions,personality traits,beliefs, and lifestyles piirto, 1991. Psychographic segmentation advantages apart from the obvious advantage of increased sales, there are a few other intricate advantages of psychographic segmentation as well. Psychographic is the study of how people live, what interests them, what they likealso called lifestyle analysis because it relies on a number of statements about a persons activities, interests and opinions. You must have heard of psychographic segmentation already. How to use psychographic segmentation in your marketing. Psychographic segmentation and target audience in online.
The effectiveness of demographic and psychographic variables for explaining brand and product use 20,000 respondents from a study conducted by simmons market research. Definition psychographic segmentation, or behavioral segmentation, is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. This research paper will provide information about the knowledge gap and will show a path for future research in the area of market segmentation, which is the heart of marketing now a day. An overview of psychographic segmentation with examples. May 09, 2020 market segmentation is a process of dividing the market of potential customers into different groups and segments on the basis of certain characteristics. Psychographic segmentation definition with examples. It is a kind of segmentation used by marketers to group their target customers into distinct categories based on their lifestyle, personality characteristics and other similar or related factors. They have negative attitudes towards products that pollute and incorporate green practice into their lives on a regular basis. To arrive at the 12 questions, c2b researchers used statistical clustering procedures to examine the response patterns to two psychographic segmentation studies involving 380 survey. For instance, private elementary schools might define their target market as. Psychographic segmentation social class is the single most used variable for research purposes, and divides the population into groups based on the occupation of the chief income earner cie. Another aspect of psychographic segmentation is personality. Psychographic studies of individuals or communities can be valuable in the fields of marketing, demographics, opinion research, prediction, and social research in general. Kotler and armstrong define market segmentation as dividing a market into.
You want to start by segmenting your customers into general psychographic groups. This kind of market segmentation is done to cater to consumers with similar likes and needs and offer them something they value. This research paper will provide information about the knowledge gap and will show a path for future research in the area of market segmentation, which. Influence of psychographic factors on consumer behavior. Psychographic segmentation is a method used to group prospective, current or previous customers by their shared personality traits, beliefs, values, attitudes, interests, and lifestyles and other factors. Within each of these types of market segmentation, multiple subcategories.
The presenters, steve longley, ceo of philadelphiabased tpg direct, and brent walker, vp and cmo of c2b solutions, in mason, ohio, say the advantage of psychographic segmentation is that its results are more effective in resonating with a consumers motivations and unspoken needs than traditional ways of segmenting consumers, like demographics, deliver. Pdf psychographic segmentation based on belief factors. Before discussing psychographic or lifestyle segmentation which is what most of. An analysis on the conditions and methods of market segmentation.
These types are significant when identifying the right target customers to a product. It wont be as clearcut as classifying people as millennials, female, or. Brand loyalty is a complex construct, which leads to many definitions, which. But psychographic segmentation also takes the psychological aspects of consumer buying behavior into accounts. The socioeconomic scale ranges from the affluent and highly educated at the top to the uneducated and unskilled at the bottom. Difficult to target consumers within a population unless individuals participate in a psychographic survey.
Although there have been conflicts within the academic community as to the reliability and. Psychographic segmentation capitalizes on this by dividing customers based on psychological factors, which include behaviors, personalities, lifestyles, and beliefs. Psychographic segmentation is one which uses peoples lifestyle, their activities, interests as well as opinions to define a market segment. Pdf psychographic segmentation in the financial services context. Apr 04, 2019 psychographic segmentation capitalizes on this by dividing customers based on psychological factors, which include behaviors, personalities, lifestyles, and beliefs. Why it should be implemented recommendations 15 use benefit segmentation to market specific products to the customer 15 use geographic segmentation to market to a specific area 16 use psychographic segmentation to market to a. Definition of psychographic segmentation psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles. Demographic segmentation examples include age, gender, income, religion, race and nationality.
A psychographic segmentation that showed differences in health or outcomes is a perfect case for population health. Psychographic segmentation is defined as a market segmentation technique where groups are formed according to psychological traits that influence consumption habits drawn from peoples lifestyle and preferences. This segmentation process is used in social and commercial activities for instance, social and political campaigns, advertisement and so on. Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in your market. Jan 27, 2020 psychographic marketing focuses on internal and intrinsic characteristics. Psychographic segmentation is a way to categorize audiences and customers by factors that relate to their inner personalities and characteristics. Psychographics have been applied to the study of personality, values, opinions, attitudes, interests, and lifestyles. Increased brand value of the organization in the eyes of the customer. Demographic segmentation is defined as a market segmentation method based on variables such as age, gender, income etc. What is psychographic segmentation and why is it important. May 10, 2018 psychographic segmentation divides potential consumers based on their interests, personalities, lifestyles, activities, and other similar factors. A buyer persona is a profile of a typical customer based on real data. Consumers can be segmented based on how they feel and think about a product or service. Psychographic segmentation groups consumers by shared values, beliefs, emotions, personalities, interests and lifestyles.
Behavioural segmentation is defined as the segmentation of the market according to individual purchase behaviours. The rationale behind marketing segmentation is to allow businesses to focus on their consumers behaviors. Psychographic segmentation definition, importance, advantages. Psychographic segmentation divides potential consumers based on their interests, personalities, lifestyles, activities, and other similar factors. Qualitative research techniques focus groups, depth interviews, ethnography become invaluable at this stage. Although there have been conflicts within the academic community as to the reliability and validity of psychographic measures wells, 1975, this seg. Psychographic segmentation psychographic segmentation was developed by marketing researchers to correlate personality with brands. Think greens reach consumers who are likely to think green but do not necessarily follow through on those. In 1998, us starbucks coffee international formed a joint venture with two subsidiaries of the unipresident group the unipresident enterprise corp. Understanding consumers unarticulated needs and motivations empowers marketers to develop more compelling messaging. Using this segmentation, companies target different messages to different customer segments for a single product, highlighting the products worth that is mutually beneficial for the consumers belonging to one segment. The management can respond to meet changing market demand. Basic explanation of demographic segmentation with. Its aim is to identify and delineate market segments or sets of buyers which would then become targets for the companys marketing plans.
How they behave psychographic segmentation dividing markets into segments on the basis of consumer life styles and attitudes. Identifying these important factors can be a powerful way of marketing the same product or. Psychographic segmentation pronunciation in english. It is mainly conducted on the basis of how people think and what do they aspire their life to be. Even the best frequency of communications varies among the five segments.
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