Psychographic Segmentation In Marketing Management

Psychographic is the science of using psychology and demographics to better understand consumers. In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values.

People within the same demographic group can exhibit very different psychographic profiles. Values and lifestyles significantly affect product and brand choice of consumers. Religion has significant influence on values and lifestyles.

The strict norms that consumers follow with respect to food habits or even dress codes are representative example in this regard. A significant numbers of consumers in India are strictly vegetarians. Even among those who consume non vegetarian food, many avoid beef. McDonald’s changed their menu in India to adapt to the consumers preferences. Beef is avoided in the menu of McDonald’s and instead, company introduced vegetarian burger and other products based on the preferences of vegetarian food.

Similarly, “Halal” meat is prescribed for consumption among Muslims, and the meat imported to countries like Pakistan and Bangladesh has to be certified by approved Islamic organizations.

The market for wristwatches provides another illustration of segmentation based on lifestyle parameters. Titan watches have a wide range of sub-brands within their Titan range such as Edge, Regalia, Nebula, and Raga, to appeal to different lifestyle segments. Some of these models are ornate watches with gold plated bracelets, and some with leather straps. The company’s range of watches under the Fastrack brand appeals to the youth segment.

Instead noodle manufacturers and ready to eat, fast to cook food brands such as Maggi, Top Ramen, and Aashirvaad targeted at time constrained consumers is another example of segmentation based on lifestyle and consumers.

Similarly, Femina, a women’s magazine in English, is targeted at the “woman of substance” or women with a broader world view.

One of the most popular commercially available classification system based on psychographic measurement in SRI Consulting Business intelligence’s (SRIC-BC) VALS^TM framework. VALS, signifying values and lifestyles, classifies U.S. adults into eight primary group based on response to a questionnaire featuring 4 demographic and 35 attitudinal questions. The VALS system is continually updated with new data from more than 80,000 surveys per year.  You can find out which type of VALS you are by going to the website of SRIC-BC.

The main dimensions of the VALS segmentation framework are consumer motivation and consumer resources. Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression. Those motivated ideas are guided by knowledge and principles.

Different levels of resources enhance or constrain a person’s expression of his primary motivation.

The four groups with higher resources are:

1.     Innovators- Successful, sophisticated, active, “take-charge” people with high self-esteem. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

2.     Thinkers- Mature, satisfied, and reflective people who are motivated by ideals and who value order, knowledge, and responsibility. They seek durability, functionality, and value in products.

3.     Achievers- Successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers.

4.     Experiencers- Young, enthusiastic, impulsive people who seek variety and excitement. They spend a comparatively high proportion of income on fashion, entertainment, and socializing.

The four groups with lower resources are:

1.     Believers- Conservative, conventional, and traditional people with concrete beliefs. They prefer familiar products and are loyal to established brands.

2.     Strivers- Trendy and fun loving people who are resource constrained. They favor stylish products that emulate the purchases of those with greater material wealth.

3.     Makers- Practical, down to earth, self sufficient people who like to work with their hands. They seek products with a practical or functional purpose.

4.     Survivors- Elderly, passive people who are concerned about change. They are loyal to their favorite brands.

Markets can apply their understanding of VALS segments to marketing planning. For example, Transport Canada, the agency that operates major Canadian airports, found that Actualizers, who desire to express independence and taste, made up a disproportionate percentage of air travelers. Given that segment’s profile, stores such as Sharper Image and Nature Company were expected to do well in the firm’s airports.

Psychographic segmentation schemes are often customized by culture. The Japanese version of VALS, Japan VALS^TM, divides society into 10 consumer segments on the bases of two key concepts: life orientation (traditional ways, occupations, innovations and self expression) and attitude to social change (sustaining, pragmatic, adapting, and innovating).