You are a financial planner who uses demographic segmentation factors such as age, income, education and family status to identify potential clients for your retirement investing services. You are also interested in investigating how to use psychographic segmentation to identify potential clients. How can you use the concepts of psychographic segmentation to assist you in identifying additional clients?

Question

What will be an ideal response?

Answer 1

In psychographic segmentation, a business uses psychological factors to divide the market. This type of segmentation can assist in creating meaningful profiles of consumers who are interested in a specific product or service. The planner can use lifestyle segmentation to group consumers by their activities, interests and opinions to identify who would be interested in the retirement investing services, or what groups in the past have purchased retirement services. The planner can then market these specific services to these groups. Psychographics divides segments by groups based on the reasons these consumer groups made a purchase.