Pdf psychographic segmentation in the financial services context. It is believed that the indian metropolitan consumers are fairly. 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. Psychographic segmentation is a legitimate way to segment a market, if we can identify the proper segmentation variables or. Once all data collection was completed, the sample demographics were com pared to the 1981 census of agriculture using chisquare analysis. The word demographic is derived from demography, meaning the study of population. However, this does not mean nike does not use market segmenting to more precisely define various market segments.
Pdf businesses may not be in a position to satisfy all of their customers, every time. Pdf psychographic segmentation of indian urban consumers. Brajesh kumar2 1department of commerce, radhamadhab college, india 2department of commerce, assam university, india. A great strategy to implement when segmenting psychographically is to gain a deeper understanding of who the users actually are. Psychographic segmentation and its application in the hospitality industry harald hafner, mag. The scale of or size of the organization are irrelevant when this concept comes into play. Psychographic segmentation is market segmentation on the basis of the attitudes, interests. It is the marketers and the sellers of products and commodities who use this technique in order to decide their marketing strategy. Demographic segmentation is market segmentation based on various demographic factors, like age, gender, social class, etc.
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. The different variables or factors of this type of market segmentation are divided into several different types. It is not possible for a marketer to address the mass with same marketing strategy. Psychographic segmentation of the farm market thomas f. 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. These variables are diffi cult to measure, and lead into a discussion of why they are sometimes used with other segmentation variables to provide more detailed descriptions of market segments. Aug 12, 2017 how to use psychographic segmentation in your marketing. The rationale behind marketing segmentation is to allow businesses to focus on their. Pdf consumer segments based on psychographics is preferred over the. Pdf the use of demographic and psychographic segmentation to. Psychographic segmentation basically, it is the process of dividing the market based on the way people think.
Psychographic segmentation could be used to segment markets according to personalit y. Which market segmentation variables are most effective to. Approaching psychographic segmentation in b2b marketing. Psychographic or lifestyle segmentation introduction in consumer behaviour psychographic or lifestyle segmentation introduction in consumer behaviour courses with reference manuals and examples pdf.
Target market is a group of people or organizations for which an organization. While psychographic segmentation can be strengthened by analyzing past behavior, the ultimate goal of psychographic segmentation is to predict the future actions of each individual user. Psychographic segmentation has more widely been used in the consumer. Pdf psychographic segmentation based on belief factors. See how you can leverage market segmentation by learning. Since 1991, india is emerging as a key destination for marketers from across the globe. Apr 04, 2019 while psychographic segmentation can be strengthened by analyzing past behavior, the ultimate goal of psychographic segmentation is to predict the future actions of each individual user. Psychographic segmentation of the farm market maryse hudon. 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. Market segmentation and target marketing pearson canada.
It involves the careful analysis of the behavioral factors that influence a decision for a potential or current b2b and b2c customer. This is an exciting and different way to engage consumers in their health care. Market segmentation is the process of dividing a target market into smaller, more defined categories. Netflix business sector is extremely alert and always showing signs of change in innovation and buyer conduct. Demographic and psychographic variables based on the differentiation of consumer brand preference were used to elicit the characteristics of market segments. It focuses on the definition, basis of market segmentation and issues related to market segmentation in detail. Netmba explains that such divisions into market segments are the basis of targeted marketing, but they are different from mass marketing, which employs a single sales strategy. How they behave psychographic segmentation dividing markets into segments on the basis of consumer life styles and attitudes. Psychographic segmentation is one which uses peoples lifestyle, their activities, interests as well as opinions to define a market segment. Market segmentation, targeting and positioning 105 target market a target market is a set of buyers sharing common needs or characteristics that the company decides to serve kotler et al. 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. Psychographic segmentation could be used to segment markets according to. Sample response nike segmentation and targeting nike is unique in the fact that they have a very general targeted demographic segment their stated target market is all athletes. Hudon this article uses psychographic clustering techniques to segment the market for farm supplies.
Market segmentation is now new and has been used by marketers since the late 1900s. Psychographic segmentation is a legitimate way to segment a market, if we. Here are five examples of psychographic characteristics that researchers commonly study and can give you useful insights about potential customers. 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. Market segmentation, chapter targeting and positioning. Until now, operationalizing psychographic segmentation has been challenging.
Here i will discuss demographic geographic psychographic and behavioral segmentation of coca cola. Coca cola is an american multinational beverage manufacturer marketer and distributor. The effectiveness of demographic and psychographic variables for explaining brand and product use 20,000 respondents from a study conducted by simmons market research. Aliens within the same demographic group can exhibit very different psychographic profiles. In b2b context priori segmentation variables might be for example turnover. Market segmentation is a marketing strategy that divides consumers interests, demographics and behavior into different groups to better market to specific needs. How to use psychographic segmentation in your marketing. Psychographic segmentation is the next frontier for health care, said david homan, director of marketing and innovation and a shareholder at mcgohan brabender. 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. For example, a company might choose to market its redeye. It helps the firm divide the market into several segments or groups, each having a common variable, and target each of these.
There are three main psychographic targeting variables, each of which is broken down into subcategories. This whitepaper describes patientbonds proven psychographic segmentation model and discusses how patientbond operationalizes this approach through digital engagement. Demographic segmentation primarily takes into consideration the age and the gender of the targeted customer group. The psychographic segmentation divides the customers into segments. 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. Psychographic segmentation 5 factors for marketing. Although some may think of it as outdated, it is still a cornerstone part of marketing strategy and planning.
Learn how surveys can collect psychographic data, and how this practice can increase marketing roi. After completing this chapter, student should be able to understand. Psychographic segmentation of indian urban consumers. A psychographic segmentation that showed differences in health or outcomes is a perfect case for population health. Basic explanation of demographic segmentation with examples. Psychographic segmentation is a method of defining groups of consumers according to factors such as leisure activities or values.
Some of the commonly used psychographic segmentation variables are. Psychographic segmentation and its application in the. For example, they could target men or women aged 1835 who lived in the city. Youll also have a chance to take a brief quiz after the lesson. 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. Many companies try to develop a personality for their product that compares to the personality of a large segment of the market ie. For example, marketers can segment their markets on the basis of relevant consumer. Psychographic segmentation definition with examples. May 29, 2018 the beauty of psychographic segmentation. Segmentation is used mainly to target a certain group from within a population. However, little work of relevance has been undertaken to understand the indian consumers. Twentythree psychographic dimensions produced four clusters. Mar 20, 2019 unlike demographic data, which identifies broad categories of potential customers, psychographic data tells you about these peoples attitudes and beliefs.
However, littlework of relevance has been undertaken to understand the indian consumers. Psychographic segmentation should not be confused with demographic segmentation. Harrison 1994 in an example of psychographic segmentation has used. Psychographic segmentation definition, importance, advantages. Identifying these important factors can be a powerful way of marketing the same product or. Psychographic segmentation, or behavioral segmentation, is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. For example, an organization dealing with the younger generation will have to. Influence of psychographic factors on consumer behavior. Behavioral segmentation can be the answer for a great deal of organizations on where to lavish their next marketing dollar. Psychographic segmentation is the smartest way for companies to stand out and identify the critical needs of customers. Market definition, market segmentation and brand positioning. 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. Perhaps the best example of mass marketing today is walmart. The insights derived from psychographic segmentation allow businesses to develop and market products and services more precisely and effectively, because a match between the product or service and each segments needs and wants has been defined.
An overview of psychographic segmentation with examples. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it for your target market. Psychographic segmentation goes beyond the typical social and economic demographical factors that we have studied as marketers. Psychographic segmentation is a way to categorize audiences and customers by factors that relate to their inner personalities and characteristics. Psychographic segmentation consists of dividing a market based on consumer personality traits, lifestyles, interests, attitudes, and values. Pdf with growing competition, loyal customers have become the key to the. Jul 01, 2002 demographic and psychographic variables based on the differentiation of consumer brand preference were used to elicit the characteristics of market segments. Psychographic segmentation of indian urban consumers article pdf available in journal of the asia pacific economy 2 may 2008 with 9,566 reads how we measure reads. Before discussing psychographic or lifestyle segmentation which is what most of us mean. Psychographic segmentation of restaurant service market. Psychographic or lifestyle segmentation introduction in. Even the smallest scale marketer knows the benefits of psychographic segmentation, and he will apply it.
In this paper, we report the results of a survey conducted amongst 560 respondents in. Psychographic variable personality end consumers personalities may effect the purchase of your product or service. According to hannah 2016 point out a report estimated that there are over 2. Unlike demographic and geographic segmentation, which focus on quantifiable and visible details, psychographic segmentation focuses on less obvious details. The basis for the measurement is that if we ask a statistically valid sample of.
In this lesson, youll learn about psychographic segmentation in marketing and be provided some examples. Psychographic segmentation is quite similar to behavioral psychographic segmentation but psychographic segmentation also takes the psychological aspects of consumer buying. It may sound complicated, but with the segmentation examples above, youll have a better understanding of how and why customers use this type of segmentation every single day. Here are some examples of market segmentation to prove this point. Unlike demographic data, which identifies broad categories of potential customers, psychographic data tells you about these peoples attitudes and beliefs. A study on psychographic profile of restaurant visitors of silchar town in assam rupam roy1, dr. American journal of business education june 2011 volume 4. Market segmentation is a common practice among all the industries. Using survey data to perform psychographic segmentation. Psychographic segmentation is a method of dividing markets on the bases of the psychology and lifestyle habits of customers.
Why do businesses perform psychographic segmentation. Case studies of patient behaviors change with significant results are included in this paper. Psychographic segmentation is a market segmentation technique where groups are formed according to psychology, lifestyle, personality, social status, daily activities, interests, and opinions. It is believed that the indian metropolitan consumers are fairly homogeneous in nature. What are psychographic variables business plan hut. Market segmentation is a decisionmaking process that involves dividing a market of potential customers into different groups. Below depicts examples of psychographic segmentation variables.
Coca cola has in placed multisegment and targeting strategy. The advantages of psychographic segmentation are well known to any marketer who wishes to sell his product or service. What are some examples of psychographic segmentation. Psychographic segmentation psychographic segmentation was developed by marketing researchers to correlate personality with brands. Mar 04, 2018 market segmentation examples cocacola. Basic explanation of demographic segmentation with.
772 191 961 545 1392 592 1421 964 1590 1564 1209 1498 850 336 1399 432 1162 945 934 870 646 729 1532 421 642 8 304 1336 620 538