Elements of Consumer Customer segmentation:
Geographic – country, region, density, climate ….
Trending
Behavioural – benefits sought, purchase occasions, usage rate, loyalty status….
Demographic – age, gender, social class ….
Psychographic – lifestyle and personality ….
Principle:
Recognizes that customers do not need the same product or hold the same spending power to create uniform demand
Issues:
Threat of substitution from other segments
Determine KEY Success Factors
Sources: Speed, reliability, service, design, features, technology, corporate personality, relationship
Applications:
To determine different market patterns that demands for different capabilities to compete
Well defined segments prevent customer segment switching and creates barriers to entry
Source of Consumer Customer segmentation:
Weinstein (1992)