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BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION

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Consumer Psychology (PSY - 514)
VU
Lesson 14
BASES FOR SEGMENTATION:
SOCIOCULTURAL SEGMENTATION
USE RELATED SEGMENTATION
USAGE SITUATION SEGMENTATION
1. Sociocultural Segmentation
Sociocultural segmentation combines social (related to groups) and cultural variables (related to the shared values,
beliefs, attitudes of people) that provide further basis for segmentation
Groups
Group may be defined as two or more people who interact with each other to accomplish either individual or
mutual goals e.g.
 Intimate group pf two neighbors
 The local cricket club
 The doctors in a hospital
 Colleagues in an office, etc.
Variables of Socioeconomic Segmentation
 Family Lifecycle
 Social Class
 Core Cultural Values
 Sub-cultural Memberships
 Cross-cultural Affiliation
4. Family Lifecycle
Many families pass through similar phases in their formation, growth and final dissolution. At each stage the family
unit needs different products and services
Family Lifecycle ­ A composite Variable
Family Life Cycle is a composite variable. It is explicitly based upon marital and family status and implicitly reflects
relative age, income and employment status. For example young single people need relatively basic furniture. Their
parents finally free of child rearing often re-furnish their homes with more elaborate pieces. In Pakistan, however,
the family unit is still very strong. The parent children bond hardly weakens throughout the life. Senior parents
now have their sons in laws and daughters in laws to take care of. There are various rituals and norms of the family
that they have to fulfill with regards to their daughters in laws, sons in laws as well as grand their grand children.
Senior parents after many years of professional experience usually have greater buying power as well. They have to
do a lot of shopping for the rituals and norms.
Each stage in the traditional family life cycle represents an important segment for the marketers. Financial services
industry frequently segments customers in terms of family life cycle stages as the required financial services tend to
shift as they pass through different stages of life.
Stages in the Family Lifecycle
Stages in the Family Lifecycle include:
 Bachelorhood (what do they buy...)
 Newly Married Couples (what do they buy...)
 Parenthood and (what do they buy...)
 Post parenthood (what do they buy...)
 Dissolution
2. Social Class
What is social class? We frequently hear direct or indirect references to social class, like,
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Consumer Psychology (PSY - 514)
VU
This place is not my class, this item is not my class, In my family we don't go for the jobs, we have lands or we
have business to take care of, etc...
Social Class is a hierarchy in which the individuals in the same class generally have the same degree or status
whereas the members of other classes have a higher or lower status.
Social Class as Basis for Segmentation
Social Class can be used as a basis for segmentation. Consumers on different social classes vary in terms of values,
product preferences and buying habits.
Marketers may offer products to the consumers that correspond to their wealth status. Shopkeepers, while
bargaining, tend to hint upon a person's relative social class to increase the chances off purchase. They do so while
saying
"Oo Baji yeh khas kapra aap ki class kay liyay hi hay, yeh aap kp bauhat suit karay ga, agar nahin to chalain aap yeh
lay lein"
" Sastay kapray ki dookanein aap ko bauhat mil jaien gi, yahan par to quality ka maal milta hai aur is kay liyay aap
ko kuch ziyada daina paray ga" Zara logon ko pata to chalay key app ka kya andaaz hai
Investment companies appeal to upper classes by offering them investment opportunities corresponding to their
wealthy status. In contrast a financial program targeted to lower socio-economic class might talk about savings
account or certificates of deposit.
Measurement Social Class
Social Class is measured a weighted index of demographic variables such as Education, Occupation and Income.
3. Culture and Subcultural Memberships
This approach corresponds to dividing consumers on the basis of cultural heritage. Members of the same culture
tend to have same values, beliefs and customs.
Culture
Culture refers to relatively specialized lifestyle of a group consisting of their beliefs, values, artifacts, ways of
behaving, ways of communicating ­ that is passed on from one generation to the next.
Included in the culture will be all that members of a culture have produced and developed, their language, modes
of thinking, art, laws and religion.
For example the Pakistani Marriage includes elaborate set of rituals and norms, norms on the boy's family side,
norms on the girls' family side. A marriage may be broken down into following constituents
Match making: Vast Industry of match makers consisting of many different types. Now internet and other
electronic media play a significant role in match making)
Engagement: Industry of the engagement planners, private players, hotels, marriage halls
Marriage: Barri on the boys' side (Specialized Barri Packages), Dowry on the girls side (Specialized Dowry
Packages),
Marriage functions: Mehndi, Barrat, Walima
Subcultural Memberships
Within the larger culture distinct sub-groups (subcultures) often are united by certain experiences, values or beliefs
that make a significant market segment. These groupings may be based upon specific demographic characteristics
(race, religion, ethnicity, or age) or lifestyle characteristics (teachers, joggers)
Now as the world has grown smaller and smaller a true global marketplace has developed, which calls for the need
of Cross-cultural and Global Market Segmentation.
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Consumer Psychology (PSY - 514)
VU
For example, a young man while preparing for his exam at home may be:
 Drinking a CSD that originated from America
 Wearing a trouser of an international brand that comes from Dominican Republic
 Wearing a watch that came from Japan
 Wearing shoes that came from China
 Some global market segments such as teenagers appear to want the same types of products regardless of
which nation they call home
Similarly, an international brand of sneakers used the same global advertising campaign in 140 countries to launch
a line of sneakers
2. Use- Related Segmentation
Categorizing consumers in terms of product, service, or brand usage characteristics is included into Use Related
Segmentation. The variables usually include:
Levels of usage
Level of awareness
Brand loyalty
Rate of Usage Segmentation
Rate of Usage Segmentation means differentiating according to the rate of usage. The variables may include:
 Heavy Users
 Medium Users
 Light Users
 Nonusers
Organizing Customers into Action Oriented Frameworks
A segmentation strategy is especially suitable for marketers seeking to organize their database into an action-
oriented framework. The framework proposes a way to identify a firm's best customers by dividing them into
following categories:
Segment Name
Segment Characteristic
Company Action
Lo Lows
Low current share, low consumption patterns
Starve
Hi Lows
High current share, low consumption customers
Tickle
Low Highs
Low current share, high consumption customers
Chase
Hi Highs
High current share, high consumption customers
Stroke
Targeting Heavy Users
Research has consistently indicated that 25-35% of the consumers account for 70-80% of all consumption. For the
very reason most marketers target their advertising campaigns to heavy users than spend considerably more money
to attract the light users
Targeting Low Users
Marketers take note of the gaps in the market coverage for light and medium users and target them profitably
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Consumer Psychology (PSY - 514)
VU
Segmentation @Awareness Status
Consumers may be segmented on the basis of awareness level. Aspects of awareness are:
 Consumer awareness of the product
 Interest level in the product
 Readiness to buy the product
Brand Loyalty as a Basis for Segmentation
Marketers often try to identify the characteristics of their brand loyal customers so that they can direct their
promotional efforts to people with similar characteristics. Other marketers target consumers who show no brand
loyalty in the belief that such people represent greater market potential than consumers who are loyal to competing
brands. Marketers stimulate and reward brand loyalty by offering special benefits to consistent and frequent
consumers
3. Usage-Situation Segmentation
Occasion or situation often determines what consumers will purchase or consume. They sometimes focus on the
usage situation as a segmentation variable. For example:
Whenever our son Ali gets a promotion or raise we always take him out to dinner
When I am away on business for a week or more, I try to stay at a suites hotel
Every Sunday when we go to the market for grocery we have our lunch at the Baryani House
Products for Special Usage Occasions
The greeting card industry, e.g. stresses special cards for a variety of occasions, e.g. Grandparents day, Secretaries
Day, etc...
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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