Answer to Question #99247 in Macroeconomics for trushang

Question

List and discuss the major bases for segmentation of consumer markets. Explain the four
variables in detail for Balwaan.

Answer 1

1.     Geographic segmentation. It is one of the simplest methods of segmenting a market. People from different regions of the country have different purchasing and consuming habits which differ from those living in other regions.

2.     Psychographic segmentation. Consumers are classified into market segments on basis of their psychological makeup, i.e., personality, attitude and lifestyle.

3.     Demographic segmentation. Demographic variables such as age, occupation, sex and income are commonly used for segmenting markets

4.     Behavioristic segmentation. In this method consumers are classified into market segments not on basis of their knowledge, attitude and use of actual or product attributes. It is based on purchase occasions, benefits sought and user status.