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 hobbies, whatever the primary use of the camera may be. This could be a young person who would use a more highly technical lens camera for hobby or as part of their career goals. . Magazines – Geographic and Behavioral; according to the type of magazine it may be would depend on the region it is being sold in as well as the benefits that would be derived from the purchase of it, i. e. Home and Gardening magazine would give a home owner ideas about decorating etc. d. Hotel Accommodations – Demographic and Psychographic; according to social class and lifestyles, many hoteliers cater accommodations to suit the budgets of their clientele.
Upper scale hotels such as the W Hotel and Plaza Hotels in NYC, or the more moderately priced Motel 6 or Super 8 Motels. Party size and length of stay is also an important variable to consider. e. Recreational Vehicles – Demographic and Behavioral; based on income and user status. Source of 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)
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Segmentation Variables. (2018, May 30). Retrieved from https://graduateway.com/segmentation-variables-essay/