Segmentation Variables
What are Segmentation Variables?
To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used.
Four (4) groups of Segmentation Variables –
1. Geographic segmentation is based on variables such as:
• Region: this kind of segmentation involves division of customer by continent, country or state etc.
• Customer groups can also be formed on the basis of size of population of any particular region.
• Population density: also known as urban, suburban, or rural
• Climate: various weather patterns that are common to that part of the region
2. Demographic segmentation divides the market into groups based on variables such as: • Age
• Gender
• Family Size
• Income
• Occupation
• Education
• Religion
• Nationality
• Life-cycle Stage
• Social Class
3. Psychographic segmentation is the process of dividing markets into groups based on variables such as: • Interests
• Activities
• Opinions
• Behavioral patterns
• Habits
• Lifestyle
• Perception of selling company
• Hobbies 4. Behavioral segmentation divides a market based on variables such as: • Usage Rate
• Product benefits
• Brand Loyalty
• Price Consciousness
• Occasions (holidays like Mother’s Day, New Year and Easter)
• User Status (First Time, Regular or Potential) Two (2) possible segmentation variables for the following items are as follows:-
a. Shoes – Demographic and Psychographic; based on age and activities or interests, i.e. tweens or teens would prefer higher priced, well known brand named shoes, whereas people in a much older age bracket would only buy shoes for comfort or as needed, not as a fashion statement.
b. Cameras – Demographic and Psychographic; based on occupation and/or
To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used.
Four (4) groups of Segmentation Variables –
1. Geographic segmentation is based on variables such as:
• Region: this kind of segmentation involves division of customer by continent, country or state etc.
• Customer groups can also be formed on the basis of size of population of any particular region.
• Population density: also known as urban, suburban, or rural
• Climate: various weather patterns that are common to that part of the region
2. Demographic segmentation divides the market into groups based on variables such as: • Age
• Gender
• Family Size
• Income
• Occupation
• Education
• Religion
• Nationality
• Life-cycle Stage
• Social Class
3. Psychographic segmentation is the process of dividing markets into groups based on variables such as: • Interests
• Activities
• Opinions
• Behavioral patterns
• Habits
• Lifestyle
• Perception of selling company
• Hobbies 4. Behavioral segmentation divides a market based on variables such as: • Usage Rate
• Product benefits
• Brand Loyalty
• Price Consciousness
• Occasions (holidays like Mother’s Day, New Year and Easter)
• User Status (First Time, Regular or Potential) Two (2) possible segmentation variables for the following items are as follows:-
a. Shoes – Demographic and Psychographic; based on age and activities or interests, i.e. tweens or teens would prefer higher priced, well known brand named shoes, whereas people in a much older age bracket would only buy shoes for comfort or as needed, not as a fashion statement.
b. Cameras – Demographic and Psychographic; based on occupation and/or
References: William M. Pride and O.C. Ferrell, Marketing: Concepts and Strategies, Houghton Mifflin Company, (Paperback – 2006 Special Edition) Albert Loudon and David Della Britta, Consumer Behavior: Concepts and Applications, McGraw Hill, (Paperback - 1993)