16 Questions
What is the concept of psychographic segmentation?
Psychographic segmentation involves dividing the market into groups based on psychographic variables such as social class, lifestyle, and personality.
How does social class influence people's preferences?
Social class strongly influences people's preferences in cars, clothing, furniture, leisure activities, and reading habits.
Give an example of behavioral segmentation based on occasion.
Buyers can be categorized based on when they get the idea to buy, when they actually make the purchase, and when they use the purchased item.
What is an example of nationality-based customer categorization?
Customers can be divided based on nationality, such as Indian, Nepalese, Sri Lankan, American, etc.
How does religion influence the needs of customers?
The needs of customers change with their religion, for example, a florist may prepare garlands for Hindu customers, bouquets for Christians, and square 'Chader' of garlands for Muslim customers.
What are the different types of furniture a furniture company might produce to cater to various professions?
A furniture company may produce different types of furniture to cater to various professions.
How does education level impact customer categorization?
Customers can be categorized based on their education levels, such as highly educated, moderately educated, or uneducated.
What is an example of a multinational company tailoring its products based on nationality?
A multinational company operating in different countries may tailor its products accordingly, for example, Star TV has started its programs in different languages.
How does race impact customer demands?
People of different races have different demands, for example, Jains, Brahmins, and Kshatriyas may have varying preferences.
What are the behavioral variables used in segmentation?
The market is divided into various groups based on behavioral variables such as occasion, benefits, user status, readiness stage, and attitude.
Give an example of an industry where gender segmentation is applied.
Clothing, cosmetics, automobiles, magazines, cigarettes, hair styling
What is an example of income segmentation in India?
Introduction of luxurious cars for affluent individuals
How is generation segmentation applied in the music industry?
Classical music for older generations, pop music for the younger generation
Explain how family size affects the offerings of a hotel.
Different-sized rooms like double beds, triple beds, and family suites
How do the needs of a family change based on the family life cycle?
Varies through stages like young married couples, parents with young children, and parents with grown-up children
Name some occupations based on which customers can be grouped.
Doctors, lawyers, managers, farmers, workers, politicians
Study Notes
Market Segmentation
- Psychographic Segmentation: Dividing a market based on personality, values, attitudes, interests, and lifestyles to identify specific groups of customers with similar characteristics.
Demographic Segmentation
- Social Class: Influences people's preferences, as people from different social classes have different lifestyles, values, and purchasing behaviors.
- Nationality: Example of customer categorization, where companies tailor their products to specific nationalities, e.g., McDonald's offering halal meat in Muslim-majority countries.
- Religion: Influences customer needs, such as halal or kosher food options, or modest fashion clothing.
- Occupation: Customers can be grouped based on their profession, e.g., furniture companies producing different types of furniture for teachers, doctors, or engineers.
- Education Level: Impacts customer categorization, as people with higher education levels may have different preferences and purchasing behaviors.
- Income: Example of income segmentation in India, where companies offer different products or services based on income levels, e.g., luxury cars for high-income individuals.
- Race: Impacts customer demands, as people from different racial backgrounds may have different preferences and needs.
Behavioral Segmentation
- Occasion-Based Segmentation: Example of behavioral segmentation, where companies offer specific products or services based on special occasions, e.g., Valentine's Day or Christmas.
- Behavioral Variables: Used in segmentation, including benefits sought, user status, usage rate, and loyalty.
Other Segmentation Types
- Gender Segmentation: Applied in industries such as cosmetics, where companies offer specific products for men or women, e.g., shaving cream or skincare products.
- Generation Segmentation: Applied in industries such as music, where companies offer specific music genres or products based on age groups, e.g., baby boomers or millennials.
- Family Size: Affects the offerings of a hotel, as larger families may require more rooms or family-friendly amenities.
- Family Life Cycle: The needs of a family change based on the family life cycle, e.g., young families with children may require baby-friendly products or services.
Professions for Customer Segmentation
- Teachers: May require specific furniture or products for their classrooms.
- Doctors: May require specific furniture or products for their medical offices.
- Engineers: May require specific furniture or products for their workspaces.
Test your knowledge of market segmentation with this quiz. Learn about how industries use gender and income segmentation to target their products and services to specific consumer groups.
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