Chapter 3

Market Segmentation
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk

Copyright 2007 by Prentice Hall

Bases for Segmentation

Geographic
Demographic
Psychological
Psychographic
Sociocultural

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Use-Related
Usage-Situation
Benefit Sought
Hybrid

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Table 3.1 Market Segmentation

SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES
Geographic Segmentation
Region
Southwest, Mountain States, Alaska, Hawaii
City Size
Major metropolitan areas, small cities, towns
Density of area
Urban, suburban, exurban, rural
Climate
Temperate, hot, humid, rainy
Demographic Segmentation
Age
Under 12, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Sex
Male, female
Marital status
Single, married, divorced, living together, widowed
Income
Under $25,000, $25,000-$34,999, $35,000-$49,999,
$50,000-$74,999, $75,000-$99,999, $100,000 and over
Education
Some high school, high school graduate, some college,
college graduate, postgraduate
Occupation
Professional, blue-collar, white-collar, agricultural,
military
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Table 3.1, continued

SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES
Psychological Segmentation
Needs-motivation
Shelter, safety, security, affection, sense of self-worth
Personality
Extroverts, novelty seeker, aggressives, innovators
Perception
Low-risk, moderate-risk, high-risk
Learning-involvement
Low-involvement, high-involvement
Attitudes
Positive attitude, negative attitude
Psychographic
(Lifestyle) Segmentation
Economy-minded, couch potatoes, outdoors enthusiasts,
status seekers
Sociocultural Segmentation
Cultures
American, Italian, Chinese, Mexican, French, Pakistani
Religion
Catholic, Protestant, Jewish, Moslem, other
Subcultures (Race/ethnic)
African American, Caucasian, Asian, Hispanic
Social class
Lower, middle, upper
Family life cycle
Bachelors, young married, full nesters, empty nesters

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Table 3.1, continued

SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES
Use-Related Segmentation
Usage rate
Heavy users, medium users, light users, non users
Awareness status
Unaware, aware, interested, enthusiastic
Brand loyalty
None, some, strong
Use-Situation Segmentation
Time
Leisure, work, rush, morning, night
Objective
Personal, gift, snack, fun, achievement
Location
Home, work, friends home, in-store
Person
Self, family members, friends, boss, peers
Benefit Segmentation
Convenience, social acceptance, long lasting, economy,
value-for-the-money
Hybrid Segmentation
Demographic/
Combination of demographic and psychographic profiles
Psychographics
of consumer segments profiles
PRIZM NE
Movers & Shakers, New Empty Nests, Boomtown
Geodemographics
Singles, Bedrock America
SRI VALSTM
Innovators, Thinkers, Believer, Achievers, Strivers,
Experiencer, Makers, Survivors
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Geographic Segmentation
The division of a total potential
market into smaller subgroups on
the basis of geographic variables
(e.g., region, state, or city)

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Demographic Segmentation

Age
Sex
Marital Status
Income, Education, and Occupation

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Web sites for Singles

Looking for a Match
weblink

Match.com targets all

singles
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weblink

The Right Stuff

targets only Ivy
League graduates
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Psychological Segmentation

Motivations
Personality
Perceptions
Learning
Attitudes
Harley-Davidson Video

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Two High-End Watches for Different

Psychological Segments

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Psychographic Segmentation
Also known as Lifestyle Analysis
Psychographic variables include
attitudes, interests, and opinions
(AIOs)

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Table 3.6 Excerpts from AIO Inventory

Instructions: Please read each statement and place an x in the box that best indicates how
strongly you agree or disagree with the statement.
I feel that my life is moving faster and faster,
sometimes just too fast.

Agree
Completely

Disagree
Completely

[1] [2] [3] [4] [5] [6] [7]

If I could consider the pluses and minuses,

technology has been good for me.
I find that I have to pull myself away from e-mail.
Given my lifestyle, I have more of a shortage of
time than money.
I like the benefits of the Internet, but I often dont
have the time to take advantage of them.

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[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

[1] [2] [3] [4] [5] [6] [7]

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Opinions
and Attitudes
ADBUSTERS
Web site is
targeted to
consumers
with a certain
attitude toward
advertisers

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weblink

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Sociocultural Segmentation
Family Life Cycle
Social Class
Culture, Subculture, and Cross-Culture

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Family Life Cycle Advertising

Video cameras
are often
purchased by
young couples
with children.

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Target reaches
out to the
Latino
market.

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Discussion Questions
What types of marketers might
segment according to social class?
What ethical issues might marketers
have when marketing to different social
classes?

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Use-Related Segmentation
Rate of Usage
Heavy vs. Light

Awareness Status
Aware vs. Unaware

Brand Loyalty
Brand Loyal vs. Brand Switchers

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Segmenting Customers by Usage

Table 3-8
Current Share
High
High

Low

HiHighs
(stroke)

LowHighs
(chase)

HiLows
(tickle)

LoLows
(starve)

Consumption

Low

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Usage-Situation Segmentation
Segmenting on the basis of special
occasions or situations
Example Statements:
Whenever our daughter Jamie gets a raise,
we always take her out to dinner.
When Im away on business, I try to stay at
a suites hotel.
I always buy my wife flowers on
Valentines Day.
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Benefit Segmentation
Segmenting on the basis of the most
important and meaningful benefit

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Band-aid
offers flex
as a
benefit to
consumers.

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Hybrid Segmentation
Approaches
Psychographic-Demographic Profiles
Geodemographic Segmentation
SRI Consultings VALS

Copyright 2007 by Prentice Hall

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Selected Demographic Profile of

USA Today Excerpt from Table 3-10
USA TODAY

USA
TODAY.COM

USA TODAY
NETWORK

Men

66%

70%

66%

Women

34%

30%

34%

Age 18-49

62%

73%

64%

Age 25-54

65%

78%

67%

Age 55+

27%

18%

25%

Average Age

45

43

45

Attended college 77%

or beyond

83%

77%

College graduate 55%

or beyond

65%

56%

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Selected Lifestyle Profile of USA Today

Excerpt from Table 3-11
%
Comp

Index

Use Internet more than once a day

32%

174

Internet access at home

79%

128

Online purchase for business or personal use in past

30 days

40%

182

Household owns a PC

84%

119

Owns digital camera

22%

130

Attended movies in last 6 months

73%

120

Bought music CD/tapes in last 12 months

46%

126

Book reading

45%

120

Entertain friends or relatives at home in last 12 months

48%

123

Household subscribes to cable

69%

112

Tech Savvy Readers

Leisure Activities

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VALS Framework
Figure 3-7

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Discussion Question
How would you classify
yourself according to
VALS? Your parents?
Do you think this
represents you as a
consumer?
If so, for what products
does this fit you as a
consumer?
Copy down the URL below
to take the VALS survey
tonight. See if you were
right in your
classification
http://www.sricbi.com/VALS/presurvey.sht
ml

Copyright 2007 by Prentice Hall

weblink

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