Psychographic segmentation, though, tells us that some women buy candles as part of decorating their homes. Explains how market researchers now look beyond the demographics of a target audience in an effort to discover what goes on in consumers minds. The concept of psychographics is illustrated with a case study based on the korean tourist visiting australia. Market segmentation market segmentation is the division of a market into different groups of customers with distinctly similar needs and productservice requirements. Why psychographic segmentation is more important than. Psychographic segmentation is one which uses peoples lifestyle, their activities, interests as well as opinions to define a market segment.
Oct 25, 2008 psychographic segmentation in tourism marketing research can be an important tool in ascertaining why tourists choose destinations and what are their expectations and perceptions of a holiday exper. The slide design contains a chart image and a business man. In this paper, we report the results of a survey conducted amongst 560 respondents in the five metropolises. They are not datafocused and require research to uncover and understand. Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it for your target market. Unlike demographic and geographic segmentation, which focus on quantifiable and visible details, psychographic segmentation focuses on less obvious details. Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or. Download fulltext pdf download fulltext pdf download fulltext pdf. Market definition, market segmentation and brand positioning. Increased brand value of the organization in the eyes of the customer.
The effectiveness of demographic and psychographic. The outcome is a manual which describes in detail how to segment a. How to use psychographic data in your marketing strategy. Subscribe to the financial brand via email for free.
Li kityee karen mba project report presented to the graduat e if school fi in partial fulfilment of the requirements for the degree of master of business administration twoyear mba programme. Why do businesses perform psychographic segmentation. However, little work of relevance has been undertaken to understand the indian consumers. Includes bibliographical references pages 171183 and index introduction. Only slight differences are found by season and by year. 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 is a legitimate way to segment a market, if we can identify the proper segmentation variables or.
The tourism market is further segment ed on the basis of purpose of trip. For demography segmentation, nike has included different age group, gender and based on their targeted customers financial status. Customer segmentation analysis powerpoint template is a free powerpoint template design that you can download to decorate your business or marketing powerpoint presentations. The predictive relationship of a large and comprehensive set of personal descriptors to aspects of product and brand use is examined. Dec 15, 2014 psychographic segmentation psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics 7. Pdf consumer segments based on psychographics is preferred over the traditional criteria of segmentation. Psychographic characteristics, tobacco, and alcohol use in. 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. Many of these experiments can be done in as little as an hour or two. An analysis on the conditions and methods of market segmentation. An overview of psychographic segmentation with examples. Psychographic segmentation of tourists as a predictor of. Leave a comment and let us know what you learned and how it impacted your business.
Pdf businesses may not be in a position to satisfy all of their customers, every time. Have you worked with psychographic research in the past. Psychographic segmentation is an extremely powerful tool for marketing the same products and services to individuals that have varying psychological traits and characteristics. When the term market segmentation is used, most of us immediately think of psychographics, lifestyles, values, behaviors, and multivariate cluster analysis. Psychographic segmentation definition, importance, advantages. Experiments put customer segmentation into action practical exercises that help you get closer to your customers and add segmentation as a core competency. This segmentation process is used in social and commercial activities for instance, social and. The evidence is overwhelming that the covariates are related to brand use in an identical way for all. Psychographic segmentation helps marketers understand that whythe goals, challenges, emotions, values, habits, and hobbies that drive purchase decisions. Simply put, psychographic data is information that allows you to divide your market based on attitudes, interests, activities, and personality traits. Kotler 1997 has proposed that consumer markets should downloaded by. According to some researchers, the benefit segmentation is an independent segmentation and has no relation to the behavioural segmentation. Scribd is the worlds largest social reading and publishing site.
Psychographics free download as powerpoint presentation. Mar 20, 2019 download a buyer persona example based on the 5 rings of insight and begin working on your buyer personas today. In this lesson, youll learn about psychographic segmentation in marketing and be provided some examples. But, marketers must be careful to guard against stereotypes when using age and lifecycle segmentation.
They use the makeup products, perfumes, body sprays and feel fresh and look well and good. Purchases often relate to lifestyles and interests. After completing this chapter, student should be able to understand. Pdf psychographic segmentation of indian urban consumers. Market segmentation and target marketing pearson canada. This is a strategy that considers the lifestyle of people, interests, their activities, as well as opinions to describe a market segment. Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles. Download market segmentation article decision analyst. Download fulltext download fulltext download fulltext.
Psychographic segmentation is the next frontier for health care, said david homan, director of marketing and innovation and a shareholder at mcgohan brabender. The criteria that a company chooses should be good predictors of differences in customer needs and the way they buy. Kotler 2010 describes segmentation as the classification of consumers within a market that share related needs and establish related purchasing behavioral. Segmentation is used mainly to target a certain group from within a population. Study aims were to identify psychographic clusters and their relation to tobacco and alcohol use within a predominantly hispanic 87% young adult ages 1825 sample. Psychographic segmentation all loreal cosmetic brands and. Using survey data to perform psychographic segmentation. Segmentation variables are the criteria that a company uses to segment its market.
Psychographic segmentation is a market segmentation technique where groups are formed according to psychology, lifestyle, personality, social status, daily activities, interests, and opinions. Market segmentation levels of market segmentation mass marketing same product to all consumers no segmentation segment marketing different products to one or more segments some segmentation micromarketing products to suit the tastes of individuals and locations complete segmentation niche marketing. A study of psychographics and the application of psychographic segmentation in the hong kong cosmetics market by ko kitling kitty. Psychographic segmentation and target audience in online. Psychographic segmentation marketing in the public sector. Few studies using psychographic segmentation have been conducted. 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. Pdf the use of demographic and psychographic segmentation to. I consumer activity, ii media markets, iii consumer subgroups putting psychographics. Jun 24, 2018 in this article, were going to talk all about the power of psychographic data.
The effectiveness of demographic and psychographic variables. Nov 09, 2019 target audience segmentation means a dynamic way of separating people into analogous subgroups based on geographic, demographic, and psychographic factors. Consider how much diversity exists in any demographic data. In other words, do certain groups of companys customers according to demographic or psychographic segmentation have a. Lifestyle data are used to profile the tourists to massachusetts. For this reason, psychographic segmentation has become a goto tool for top marketers that have the goals of. Psychographic segmentation factors are slightly more difficult to identify than demographics because they are subjective. Psychographic segmentation is a way to categorize audiences and customers by factors that relate to their inner personalities and characteristics. In this article, were going to talk all about the power of psychographic data. Psychographic segmentation is quite similar to behavioral psychographic segmentation but psychographic segmentation also takes the psychological aspects of consumer buying. A demographic is what most marketing activities focus on, as it is easiest to describe. Psychographic segmentation of indian urban consumers.
Unlike demographics, transactional, or behavioural data, psychographics gives us an idea of why a certain customer chose to buy a product. Psychographic segmentation social class is the single most used variable for research purposes, and divides the population into groups based on the occupation of the chief income earner cie. Target audience segmentation means a dynamic way of separating people into analogous subgroups based on geographic, demographic, and psychographic factors. It is the marketers and the sellers of products and commodities who use this technique in order to decide their marketing strategy. Pdf psychographic segmentation based on belief factors. The marketing power of psychographics rebecca piirto on. Download fulltext pdf psychographic segmentation based on belief factors underlying attitude toward advertising in general article pdf available january 2012 with 2,456 reads. Psychographic segmentation in the financial services context. Segmentation will allow you to better develop and market. Market segmentation, market target and market positioning.
Aug 12, 2017 how to use psychographic segmentation in your marketing. Since 1991, india is emerging as a key destination for marketers from across the globe. 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. Psychographics have been applied to the study of personality, values, opinions, attitudes, interests, and lifestyles.
Psychographic segmentation is the use of peoples attitudes and interests, often studied in conjunction with typical demographic data, to build and target customers. Demographic and psychographic variables based on the differentiation of consumer brand preference were used to elicit the characteristics of market segments. 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. Psychographic segmentation advantages apart from the obvious advantage of increased sales, there are a few other intricate advantages of psychographic segmentation as well. This article is a shortened and revised version of the inauguration speech that bernd schmitt delivered in october 1996 in shanghai as the bat chair of marketing at ceibs. The descriptors comprise demographic and general psychographic variables frequently used in segmentation studies and studies of consumer purchase behavior. What psychographic segmentation is and the methodology behind the development of patientbonds proprietary psychographic model.
Psychographic segmentation all loreal cosmetic brands and products make a good personality of a woman. Download fulltext pdf psychographic segmentation of indian urban consumers article pdf available in journal of the asia pacific economy 2 may 2008 with 9,532 reads. Psychographic segmentation free download as powerpoint presentation. This segmentation process is used in social and commercial activities for instance, social and political campaigns, advertisement and so on. Psychographics is a qualitative methodology used to describe traits of humans on psychological attributes. Psychographics are the psychological characteristics of your ideal customer. Psychographic segmentation is market segmentation on the basis of the attitudes, interests, opinions, values. How they behave psychographic segmentation dividing markets into segments on the basis of consumer life styles and attitudes. For example, the luxury car brand may choose to focus on customers who value quality and status. Psychographic segmentation 5 factors for marketing. According to wikipedia, psychographic segmentation is defined as the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research. Psychographic segmentation has more widely been used in the consumer marketing but. It is believed that the indian metropolitan consumers are fairly homogeneous in nature.
Pdf with growing competition, loyal customers have become the key to the companys. Objective characteristics of consumers such as age, income, education, sex or occupation. Which market segmentation variables are most effective to. Psychographic segmentation recap considers variables such as interests, activities, opinions, and behavioral patterns. Psychographic factors in consumer behaviour pradyuth dutta pyschographic segmentation. In this thesis, however, the benefit segmentation has. This is moving way beyond generational segmentation, he said. Psychographic segmentation variables arent as quickly recognizable as other types of. You want to start by segmenting your customers into general psychographic groups. Pdf psychographic segmentation in the financial services context. Psychographic segmentation is one which uses people lifestyle, their activities, interests as well as opinions to define a market segment. Market segmentation is the process of dividing the whole. Demographics and psychographics demographics is the study of the behaviors and other characteristics of groups of human beings in terms of statistics. In psychographic segmentation, consumers are divided into different groups on the.
Psychographic age and lifestyle some companies use age and lifecycle segmentation, offering different products or using different marketing approaches for different age and lifecycle groups. Psychographic segmentation could be used to segment markets according to. Because this area of research focuses on activities, interests, and opinions, psychographic factors are sometimes abbreviated to aio variables. Check your understanding of characteristics of market segmentation in this worksheet and quiz. The evidence is overwhelming that the covariates are related to brand use in an identical way. Psychographic segmentation, or behavioral segmentation, is a method of dividing markets on the bases of the psychology and lifestyle habits of customers. This is an exciting and different way to engage consumers in their health care. Often used in conjunction with, but should not be mistaken for, demographic segmentation.
Psychographic segmentation psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics 7. This free marketing segmentation powerpoint template is a free business slide background that you can use as a free theme for microsoft powerpoint 2007 and 2010. Customer segmentation avoid lost opportunities step by. The characteristics are internal and intrinsic to the customer and not visible from the outside. For this reason, psychographic segmentation has become a goto tool for top marketers that have the goals of increasing purchase amount and frequency, lifetime value.
Learn all about psychographic segmentation definition, variables, examples, and advantages to implement it. Different types of market segmentation strategies that best. How can you identify your audience segments and understand their behavior to maximize their value. The effectiveness of demographic and psychographic variables for explaining brand and product use 20,000 respondents from a study conducted by simmons market research. Nike had segmented their customers into four categories which are demographic, geographic psychographic, and behavioral segmentation. The definition of market segmentation, why it matters and the nuts and bolts of how to do it will be presented within this blue paper.
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