Behavioral Segmentation has the advantage of using variants those are closely related to the products itself. It could be a direct starting point for market segmentation. Behaviors could be described as consumers resorting to impulse purchases, crowd following mentality or analytical type. Consumer behavior could also be ascribed to first movers for the product or some of them could be late adopters. Younger consumers prefer to carry out online purchases/transactions or using mobile banking. 24/7 online purchase/transaction facility on e-commerce sites or visiting Bank/Super Market on weekends is convenient to some consumers. Senior Citizen prefer visiting bank/retail outlets for face-to-face interaction.
Geography has been a useful segmentation for the consumer products. Regional segmentation across the globe could be contingents, countries, cities, villages and micro-markets in a city. Another geographical segmentation could be in the form of metropolitan, urban, semi-urban and rural areas. Some of the examples could be Multiplexes in Metro & Urban areas, seeds and fertilizer sales in semi-urban & rural areas.
Consumer value segmentation refers to income generation levels from each of the consumers by the marketers. Value could be divided into high value segment, medium value segment and low value segment. Marketers segment consumers based on the contributions made by consumers where a frequent product/service purchaser generates high value whereas irregular consumer contributing average income to the marketer falls in the Medium value category. One time purchasers or consumers buying low end products, thereby hardly contributing any value to the marketer falls under Low value segment. .
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