Psychographic Segmentation refers to internal characteristics of consumers, such as attitudes, beliefs, preferences, knowledge, interests and personality traits. Attitudinal segmentation aid marketers understand consumers and their perceptions. Other sub-segments could be based on understanding, awareness and knowledge. When these sub-segments are applied for market segmentation, buyer behavior could be gauged almost precisely compared to demographics or other uni-variate bases. To elaborate, two consumers of identical age may not exhibit similar buying behavior in respect of financial services, owing to divergence of interests, knowledge and attitudes.
Let us understand buying behavior of the consumers based on their attitude. Attitude sub-segment could be divided into four variants. Opportunists would be having high level of confidence but low respect for Financial Services provider (these types of consumer are likely to switch loyalties to capitalize on better opportunity). Minimalists would not possess confidence level as usage of the financial services would be restricted, and these types of consumer would not carry much respect for Financial Services provider. Traditionalists are the ones having high level of confidence as well as high respect for Financial Services provider as they tend to avail full range of services. NTFS (New-to-Financial-Services) would have low level of confidence and high respect for Financial Services provider.
When buying behavior of consumers based on Knowledge is analysed, it depicts Cautious Investors who would be financially active possessing good knowledge but carry a conservative approach towards investment. These types of consumers hardly use credit cards, and if used full payment is made on due date. Financially confused consumers have low knowledge levels, and are least active in financial markets. These types of consumers do not have savings habit neither use credit cards, and if used end up in paying interest charges for revolving credit as financial discipline is lacking. Capital Accumulators have high maturity and knowledge level, which makes them financially active. These types of consumers are frequent users of financial services and also heavy investors. Fourth variant is Apathetic Minimalists whose knowledge levels are low but matured enough to use financial services. These types of consumers take some risk for the purpose of investments, and also trust Financial Services provider.
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