Dimensions for Segmenting Consumer Markets
As discussed earlier, people in consumer markets buy for their own, personal non-business use, thus segmentation dimensions for this type of market focus on the characteristics of the buyer. Four dimensions are traditionally used to segment consumer markets. These dimensions are:
- demographic dimensions – demo’ means people, and ‘graphics’ means some representation of thereof. So, demographics consists of all those characteristics of people that are used to describe the size and composition of the population including age, gender, amount of income, level of education, and other such attributes.
- psychographic dimensions – ‘psycho’ from Greek means ‘spirit or mind’ so while demographics deals with the statistical characteristics of the market segment, psychographics refers to the characteristics of peoples’ spirits and minds. For example, psychographics is usually broken down into personality, life style, and motivation.
- geographic dimensions – this dimension, not surprisingly, relates to where people live, for example, the demand for snow skis is higher in the mountainous states in the U.S. than it is in the plains states.
- behavioristic (or intended use) – this dimension relates to benefits sought and expected use by the customer. For example, many products are sold in multiple packages such as six-packs because customers expect to consume multiple units in relatively short periods of time.