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BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION

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Consumer Psychology (PSY - 514)
VU
Lesson 13
BASES FOR SEGMENTATION:
DEMOGRAPHIC SEGMENTATION
PSYCHOGRAPHIC SEGMENTATION
OBJECTIVES:
UNDERSTANDING
Demographic Segmentation
Age
Age Effect
Cohort Effect
Gender
Changing Sex Roles
Marital Status
Stages of Family
Family Life Cycle
Income
Education, Age, Income
Psychographic Segmentation
Market consists of people, People ­ who are inhabitants of a certain place (e.g. city, province or country), are called
population. Population can be seen in terms of many of its characteristics
Demographics is a way to describe population in terms of its defining characteristics
1. Demographic Segmentation
Includes vital and measurable statistics of a population, demographic characteristics such as age, sex, marital status,
income, occupation and education are most often used as the basis for market segmentation
Demographics help locate a target market. Psychological and Sociocultural characteristics help to describe how its
members think and how they feel
Variables of Demographic Segmentation
Demographic Segmentation is is usually based upon the following variables:
age
gender (male/female)
income
occupation
education
household (family - style) size
1. Age
Age is an obvious way to divide the market into segments since so many products are based upon "time of life"
a.  Diapers are for babies
b.  Toys are for children
c.  Entertainment for "over 19"
Two kinds of effects are important to notice while considering the age factor in segmentation. These include:
a.  Age Effect
b. Cohort Effect
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Consumer Psychology (PSY - 514)
VU
a. Age Effect
Age effect includes occurrences due to chronological age. Examples of the age effect are heightened interest in
leisure travel that often occurs for people (single, ,married) during the middle age (particularly in their late fifties or
early sixties)
a. Cohort Effect
Occurrences due to growing up in certain time periods are called the Cohort Effect. This is captured by the idea
that people hold onto interests they grow up to appreciate.
2. Gender
Gender is an obvious way to divide the market into segments since so many products are gender-specific
 Cosmetics Industry
 Clothing
Medical products
 Sports products/services
Entertainment
Men on the other hand have been the users of
2. Psychographic Segmentation
Psychographic Segmentation is lifestyle, social class, and personality-based segmentation.. Psychographic profile of
a consumer is composite of:
Attitudes
Interest
Opinions
This is commonly referred to as (AIO's)
AIO Research
AIO research seeks consumer responses to a large number of statements that measures:
Activities
How the consumer or family spends time (Pakistani consumer & family)
Interests
Consumers' family preferences and priorities (Home, fashion, food)
Opinions
How the consumers feel about a wide variety of events and political issues, social issues, and state of economy
AIO Psychographic Inventories
AIO Psychographic Studies use Psychographic Inventory which is designed to identify relevant aspects of
consumers' personality, buying motives, interests, attitudes, beliefs and values
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Consumer Psychology (PSY - 514)
VU
Example
Portion of AIO Inventory used to identify "Techno Road Warriors"
Techno Warriors: business people who spend a high percentage of their work week on the road, equipped with
laptops, cellular phones, electronic organizers
Psychographic Inventory
Please read each of the following statements and place an "X" in the box that best indicates how strongly you
"agree" or "disagree" with the statement
Hypothetical Profile of the "Techno Road Warrior"
G
STATEMENTS
A
D
o
e
I feel that my life is moving faster and faster sometimes just too fast
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5
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7
s
I could count the pluses and minuses technology has been good for
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2
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7
o
me
n
I find that I have to pull myself away from e-mail
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5
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7
t
Given my lifestyle, I have more shortage of time than money
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h
e
I like the benefits of the internet, but I often don't have the time to
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take advantage of them
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I am generally open to considering new practices and new technology
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n
t
ernet more than six times a week
Sends and/or receives 15 or more e-mail messages/week
Regularly visits websites to gather information and/or to comparison shop
Often buys personal items via internet
Belongs to several reward programs (frequent flyer programs, rent-a-car programs and hotel programs)
Results of Psychographic Studies are frequently reflected in firm's marketing messages
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism