Identify the four major categories of segmentation of variables for consumer products, and give three examples of each.

Question

What will be an ideal response?

Answer 1

A marketer that uses segmentation to reach a consumer market can choose one or several variables. Segmentation variables can be grouped into four major categories: demographic, geographic, psychographic, and behavioristic. Demographic characteristics that marketers commonly use include age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class. Age is a common variable for segmentation purposes. For example, a trip to the shopping mall highlights the fact that many retailers, including Zara, Aeropostale, and American Eagle Outfitters, target teens and young adults. Markets may be divided using geographic variables, because differences in location, climate, and terrain will influence consumers' needs. City size can be an important segmentation variable. A classic example is Walmart, which initially was located only in small towns and even today can be found in towns where other large retailers stay away. Marketers sometimes use psychographic variables, such as personality characteristics, motives, and lifestyles, to segment markets. Personality characteristics can be a useful means of segmentation. When appealing to a personality characteristic, a marketer almost always selects one that many people view positively. For example, the Ermenegildo Zegna advertisement for men's luxury clothing and accessories clearly appeals to customers who are motivated by personal appearance and status and who care about fashion. Firms can divide a market according to consumer behavior toward a product, which commonly involves an aspect of consumers' product use. For example, a market may be separated into users-classified as heavy, moderate, or light-and nonusers. To satisfy a specific group, such as heavy users, marketers may create a distinctive product and price, or initiate special promotion and distribution activities.