BUAD 307 Final: Final Exam Study Guide
Document Summary
Outline the different ways of segmenting (labeling) markets. Geographic segmentation organize people into groups on the basis of where they live (e. g. country, region, state, city, etc) Most useful for companies whose products satisfy needs that vary by region: example: assortment of products in grocery store may vary depending on needs of area. Demographic segmentation groups customers according to easily measured objective characteristics (e. g. age, gender, income, education) Psychographic segmentation organizing customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live. Psychographics how consumers describe themselves and what underlying psychological reasons determine choices: self-values goals for life and the overriding desires that drive how a person lives his or her life, self-concept, lifestyles. Benefit segmentation groups customers on the basis of the benefits they derive from products or services. Behavioral segmentation divides customers into groups based on how they use the product or service.
