What does the reduction from eight to ten LSM groups signify in market segmentation?
Understand the Problem
The question is asking about the implications of reducing the number of LSM (Living Standards Measure) groups in market segmentation, specifically what this reduction signifies regarding consumer categorization and marketing strategies.
Answer
The reduction to 8 LSM groups reflects a consolidation in market segmentation.
The reduction from 10 to 8 LSM groups signifies a consolidation in the living standards segmentation, which may reflect changes in socioeconomic conditions or demographics that make finer distinctions less necessary or viable.
Answer for screen readers
The reduction from 10 to 8 LSM groups signifies a consolidation in the living standards segmentation, which may reflect changes in socioeconomic conditions or demographics that make finer distinctions less necessary or viable.
More Information
This consolidation might simplify analysis and targeting in marketing by reducing the granularity of segmentation and focusing on fewer distinct categories.
Sources
- The LSM scale is used for indicating the socioeconomic status - journals.co.za
- The use of personal values in living standards measures - journals.co.za
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