Segmentation 2

Segmentation 2

1. Benefits

   • can understand consumer values and motivation that drives and affects customer behaviour
   • provides company with a more focused target market

2. Limitations

   • research into this can be complex
     • people may fit into more than one category
   • findings cannot always be projected towards the rest of the population
   • market may be too small, or be a niche and therefore not be profitable enough to warrant the research

3. Socio-Economic

   • Income, occupation, education and social classes can be considered

4. Psychographic Personality Types

   • Psychocentrics
     • do not seek out new ideas
     • cautious and conservative
     • financially frugal (prudent/intent on saving)
     • prefers the more popular brands
     • little confidence in their tastes and therefore will often follow the crowd
     • often looks guidance to help their buying habits
     • passive
     • typically describes people who prefer what is familiar and not very open to new experiences
   • Allocentrics
     • intellectually curious
     • makes decisions quickly and easily
     • spends readily
     • looks to try innovative products
     • confident and energetic, sociable
     • trusting in their judgement
     • assertive
     • open to different varieties
     • adventurous, interested in other people and focuses main interest on others

5. Geodemographic

   • combines geographic plus certain demographic and socio-economic variables together