Info

purchaser; rejection

Behavior

Involvement

Minimum effort; comparison; special effort

Exhibit 2-6 iVillage initiated a website targeted at women

Exhibit 2-6 iVillage initiated a website targeted at women

Psychographic Segmentation Dividing the market on the basis of personality and/or lifestyles is referred to as psychographic segmentation. While there is some disagreement as to whether personality is a useful basis for segmentation, lifestyle factors have been used effectively. Many consider lifestyle the most effective criterion for segmentation.

The determination of lifestyles is usually based on an analysis of the activities, interests, and opinions (AlOs) of consumers. These lifestyles are then correlated with the consumers' product, brand, and/or media usage. For many products and/or services, lifestyles may be the best discriminator between use and nonuse, accounting for differences in food, clothing, and car selections, among numerous other consumer behaviors.5

Exhibit 2-7 Abercrombie & Fitch changed its image to appeal to echo boomers

Exhibit 2-7 Abercrombie & Fitch changed its image to appeal to echo boomers

Exhibit 2-8 Segunda Juventud targets the 50+ Hispanic segment

Psychographic segmentation has been increasingly accepted with the advent of the values and lifestyles (VALS) program. Although marketers employed lifestyle segmentation long before VALS and although a number of alternatives—for example, PRIZM— are available, VALS remains one of the more popular options. Developed by the Stanford Research Institute (SRI), VALS has become a very popular method for applying lifestyle segmentation. VALS 2 divides Americans into eight lifestyle segments that exhibit distinctive attitudes, behaviors, and decision-making patterns. SRI believes that when combined with an estimate of the resources the consumer can draw on (education, income, health, energy level, self-confidence, and degree of consumerism), the VALS 2 system is an excellent predictor of consumer behaviors. A number of companies, including Chevron, Mercedes, and Eastman Kodak, have employed the VALS 2 program for a variety of purposes, including advertising, positioning, and media planning.

Behavioristic Segmentation Dividing consumers into groups according to their usage, loyalties, or buying responses to a product is behavioristic segmentation. For example, product or brand usage, degree of use (heavy versus light), and/or brand loyalty are combined with demographic and/or psychographic criteria to develop profiles of market segments. In the case of usage, the marketer assumes that nonpurchasers of a brand or product who have the same characteristics as purchasers hold greater potential for adoption than nonusers with different characteristics. A profile (demographic or psychographic) of the user is developed, which serves as the basis for promotional strategies designed to attract new users. For example, teenagers share certain similarities in their consumption behaviors. Those who do not currently own a Sony Discman are more likely to be potential buyers than people in other age groups.

Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80-20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. Again, when the characteristics of these users are identified, targeting them allows for a much greater concentration of efforts and less wasted time and money. The same heavy-half strategy is possible in the consumer market as well. The majority of purchases of many products (e.g., soaps and detergents, shampoos, cake mixes, beer, dog food, colas, bourbon, and toilet tissue—yes, toilet tissue!) are accounted for by a small proportion of the population. Perhaps you can think of some additional examples.

Benefit Segmentation In purchasing products, consumers are generally trying to satisfy specific needs and/or wants. They are looking for products that provide specific Exhibit 2- Estrostep benefits to satisfy these needs. The grouping of consumers on the basis of attributes takes a uniqiie approach in sought in a product is known as benefit segmentation and is widely used dual benefit ads

Consider the purchase of a wristwatch. While you might buy a watch for particular benefits such as accuracy, water resistance, or stylishness, others may seek a different set of benefits. Watches are commonly given as gifts for birthdays, Christmas, and graduation. Certainly some of the same benefits are considered in the purchase of a gift, but the benefits the purchaser derives are different from those the user will obtain. Ads that portray watches as good gifts stress different criteria to consider in the purchase decision. The next time you see an ad or commercial for a watch, think about the basic appeal and the benefits it offers.

Another example of benefit segmentation can be seen in the toothpaste market. Some consumers want a product with fluoride (Crest, Colgate); others prefer one that freshens their breath (Close-Up, Aqua-Fresh). More recent benefit segments offer tartar control (Crest) and plaque reduction (Viadent). The Den-Mat Corp. introduced Rembrandt whitening toothpaste for consumers who want whiter teeth, and other brands followed with their own whitening attributes.

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