Introduction to Marketing Concepts

Segmentation criteria can be divided into three main categories:
Profile variables Are used to characterize the consumer but in terms that are not expressly linked to, or predictive of, an individual's behaviour in the specific market.
Behavioural variables Relate to the behaviour of the consumer. Thus behavioural factors such as benefits sought, usage and the purchase occasion all come under this category.
Psychographic variables Identify individuals' attitudes, opinions and interests to build up a lifestyle profile that includes the consumer's consumption patterns. Thus these profiles are inextricably associated with specific purchasing behaviour.
Segmentation is a creative process and can be conducted using a range of different variables, each bringing a particular perspective to the dynamics of the market. The air travel market could be segmented according to the benefits sought (value or status), or usage occasion (business or holiday), or stage in the family life cycle (young and single or middle-aged, married with children). On occasion it may be relevant to use a single variable to segment a market, but more often than not they will be used in combination. For instance, a potential market segment in the air travel market could be middle-aged consumers with children who seek status benefits for business travel. Innovative combinations of variables from across the range can uncover new market segments, even in supposedly traditional markets.
There is no hierarchy to these variables. Marketers can use any variable as a starting point (first order variables), and then...