Consumer Behavior Segmentation Techniques

Consumer Behavior

• Segmentation Variables: Used to divide the market into groups with shared characteristics.
  • Geographic: Nations, regions, cities, neighborhoods, climate.
  • Demographic: Age, life cycle stage, gender, income, religion.
  • Psychographic: Lifestyle, personality.
  • Behavioral: Occasions, benefits, user status, usage rate.
• Geographic Segmentation: Dividing the market into geographical units like countries, regions, cities, etc.
  • Geo-clustering: Combining geographic variables with other variables to create smaller, more defined segments.
  • Geo-targeting: Showing different content to consumers based on their location.
• Demographic Segmentation: Uses variables like age, life stage, gender, income, occupation, education to define consumer segments.
• Psychographic Segmentation: Divides consumers based on lifestyle and personality traits.
• Trait Theory: An approach to studying personality that identifies recurring patterns of thought and behavior (e.g., anxiousness, shyness, openness).

Big 5 Personality Traits (OCEAN)

• Openness to experience, conscientiousness, extraversion, agreeableness, neuroticism are five key personality traits that psychologists often use.

Behavioral Segmentation

• Divides buyers based on their knowledge, attitudes, uses, and responses to products.

Factors Affecting Market Segment Attractiveness

• Market Factors: Size, growth rate, life cycle stage, predictability, price elasticity, bargaining power of buyers, demand cycles.
• Economic and Technological Factors: Barriers to entry and exit, supplier power, technology utilization, investment required, profit margins.
• Competitive Factors: Intensity, product quality, threat of substitution, degree of differentiation.
• Environmental Factors: Economic fluctuations, political and legal regulations, social and physical environment.