Editing Market segmentation (section)

=== Behavioural segmentation ===

Behavioural segmentation divides consumers into groups according to their observed behaviours. Many marketers believe that behavioural variables are superior to demographics and geographics for building market segments,<ref>Philip Kotler and Gary Armstrong, ''Principles of Marketing,'' Pearson, 2014; 2012</ref> and some analysts have suggested that behavioural segmentation is killing off demographics.<ref>Burrows, D., "Is behavioural data killing off demographics?" ''Marketing Week,''4 September 2015</ref> Typical behavioural variables and their descriptors include:<ref>Kotler, P., ''Marketing Management: Planning, Analysis, Implementation and Control,'' 9th ed., Upper Saddle River, Pearson, 1991</ref>

* '''Purchase/Usage Occasion''': regular occasion, special occasion, festive occasion, gift-giving
* '''Benefit-Sought''': economy, quality, service level, convenience, access
* '''User Status''': First-time user, Regular user, Non-user
* '''Usage Rate/Purchase Frequency''': Light user, heavy user, moderate user
* '''Loyalty Status''': Loyal, switcher, non-loyal, lapsed
* '''Buyer Readiness''': Unaware, aware, intention to buy
* '''Attitude to Product or Service''': Enthusiast, Indifferent, Hostile; Price Conscious, Quality Conscious
* '''Adopter Status''': Early adopter, late adopter, laggard
* '''Scanner data from supermarket or credit card information data'''<ref>{{cite book|last1=Dolnicar |first1=Sara |url= https://books.google.com/books?id=b-1lDwAAQBAJ&q=bases+for+segmenting+consumer+market |title=Market Segmentation Analysis: Understanding It, Doing It, and Making It Useful |last2=Grün |first2=Bettina |last3=Leisch |first3=Friedrich |date=2018-07-20 |isbn=9789811088186 |author-link=Sara Dolnicar}}</ref>

Note that these descriptors are merely commonly used examples. Marketers customize the variables and descriptors for both local conditions and for specific applications. For example, in the health industry, planners often segment broad markets according to 'health consciousness' and identify low, moderate, and highly health-conscious segments. This is an applied example of behavioural segmentation, using attitude to a product or service as a key descriptor or variable which has been customized for the specific application.

==== Purchase/usage occasion ====

Purchase or usage occasion segmentation focuses on analyzing occasions when consumers might purchase or consume a product. This approach customer-level and occasion-level segmentation models and provides an understanding of the individual customers’ needs, behaviour, and value under different occasions of usage and time. Unlike traditional segmentation models, this approach assigns more than one segment to each unique customer, depending on the current circumstances they are under.

==== Benefit-sought ====

Benefit segmentation (sometimes called ''needs-based segmentation'') was developed by Grey Advertising in the late 1960s.<ref>Clancy, K.J. and Roberts, M.L., "Towards an Optimal Market Target: A Strategy for Market Segmentation", ''Journal of Consumer Marketing'', vol. 1, no. 1, pp 64-73</ref> The benefits-sought by purchasers enables the market to be divided into segments with distinct needs, perceived value, benefits sought, or advantage that accrues from the purchase of a product or service. Marketers using benefit segmentation might develop products with different quality levels, performance, customer service, special features, or any other meaningful benefit and pitch different products at each of the segments identified. Benefit segmentation is one of the more commonly used approaches to segmentation and is widely used in many consumer markets including motor vehicles, fashion and clothing, furniture, consumer electronics, and holiday-makers.<ref>Ahmad, R., "Benefit Segmentation: A potentially useful technique of segmenting and targeting older consumers," ''International Journal of Market Research,'' Vol. 45, No. 3, 2003</ref>

Loker and Purdue, for example, used benefit segmentation to segment the pleasure holiday travel market. The segments identified in this study were the naturalists, pure excitement seekers, and escapists.<ref>Loker, L.E. and Perdue, R.R., "A Benefit–Based Segmentation," ''Journal of Travel Research,'' Vol. 31, No. 1, 1992, pp. 30–35</ref>

==== Attitudinal segments ====

Attitudinal segmentation provides insight into the mindset of customers, especially the attitudes and beliefs that drive consumer decision-making and behaviour. An example of attitudinal segmentation comes from the UK's Department of Environment which segmented the British population into six segments, based on attitudes that drive behaviour relating to environmental protection:<ref>Simkin, L., "Segmentation," in Baker, M.J. and Hart, S., ''The Marketing Book,'' 7th ed., Routledge, Oxon, UK, 2016, pp. 271–294</ref>

* '''Greens''': Driven by the belief that protecting the environment is critical; try to conserve whenever they can
* '''Conscious with a conscience''': Aspire to be ''green''; primarily concerned with wastage; lack awareness of other behaviours associated with broader environmental issues such as climate change
* '''Currently constrained''': Aspire to be ''green'' but feel they cannot afford to purchase organic products; pragmatic realists
* ''' Basic contributors''': Skeptical about the need for behaviour change; aspire to conform to social norms; lack awareness of social and environmental issues
* '''Long-term resistance''': Have serious life priorities that take precedence before a behavioural change is a consideration; their everyday behaviours often have a low impact on the environment, but for other reasons than conservation
* '''Disinterested''': View ''greenies'' as an eccentric minority; exhibit no interest in changing their behaviour; may be aware of climate change but have not internalized it to the extent that it enters their decision-making process.