5 Difference between consumers
People behaviour and consumer behaviour effect some influences. Their penetration
and final repercussion in particular purchase decision is unique – individual.
However : some are in their purchase behaviour in some spheres more similar then
others. This similarity is very sought and used value in firm marketing. It enables at the same
time also higher satisfaction of need of some group of consumers.
The task of market segmentation, one of resources of decision about marketing
strategy, is to discover segments, how to recognise in which segments belong which
customers and what is specific for segments.
Market segmentation (in the meaning state) can businessman use :
 Intuitively,
 on base of experience,
 systematically and purposely.
The same is valid for market segmentation in meaning of segment uncovering. It is
possible to progress on base of intuition, experience, experiments or to analyse consistently
potential segmentation positions on base of most objective information.
Segmentation of consumable market (in the meaning process) is searching for such groups
of consumers on given market, which fulfil two basic conditions :
- consumers inside segment are most similar with their market presentation on given
market – it is a condition of homogenous segments,
- market presentation of different segments on given market are mutually most different - it
is a condition of heterogeneous segments.
Homogenous segments secure inside segment bigger probability of similar reaction on
marketing impulse, shaped by appropriate way.
Heterogeneous segments mean, that segmentation has marketing importance, sense, that
different groups, segments are different to each other in relation to given category of product,
that they will react differently.
Exist other practical conditions to use strategy based on segmentation :




segments are enough big,
segments are accessible by media and marketing tools,
segments are adequately fixed, in time stabile,
segments are measured in other necessary positions.
The way to uncover segments in the form which is usable for decision about market
orientation, composes from four phases :
- delimination of given market,
- covering of important criterions,
- usage of important criterions (own uncovering of segments),
- development of segment profile.
5.1. Dimensions of investigated market
It is a characteristic of market space, where we want to uncover market segments.
5.2. Segmentation variables
Those criterions are chosen, which lead to the best fulfil of homogenous and
heterogeneous conditions.
Following overview (Table No. 5-1) shows complex of criterions (also signed as
segmentation variables), which enforce markedly at market segmentation.
Tab.No.5-1 : Segmentation criterions on consumer markets
causal
* expected value
* perceived value
* opportunities
* attitudes, preferences
- criterions of market (delimiting variables)
criterions of usage
* user status
* rate of usage
* loyalty
* way of usage
- descriptive criterions – based on characteristics (explanatory variables)
traditional
psychological criterions – non-traditional
* demographic
* ethnographic
* social class
* physiographic
* lifestyle
* geographic
* personality
- criterions of reaction on marketing tools
* variables of media reactions
* reaction on prices
* reaction on tools of purchase support
* variable shopping
McCarthy, E.J., Perreault, W.D., Základy marketingu, Victoria Publishing, Praha 1995
Descriptive criterions – based on characteristics

-
Traditional segmentation variables
demographic segmentation
- age
- sex
- family size
- family life cycle (household)
- education
- profession
- income
also called social economic criterions
Participation of age cohorts as segments is sometimes marked as generation marketing.
-
ethnographic segmentation comes out from connection of ethnographic characteristics
on different consumer behaviour. In view of variables it is :
- nationality,
- race,
- religion,
- ethnic group,
- subculture.
Participation of last mentioned criterion already overlaps into psychological segmentation.
-
physiographic segmentation is connected with that our physiographic situation
predetermines often form of necessities :
- physiographic, physiological dispositions
- health condition
Although physiographic segmentation is not mentioned very often in literature as specific
group of segmentation criterions, has large sphere of influence from toothpaste to healthy
food, sport shoes, clothes, …
-
geographical segmentation comes out of that changes, differences in consumer
behaviour are conditional on geographical characteristics. The use mainly variables, as :
- world territory,
- countries,
- regions,
- town extent,
- town segmentation,
- density of settlement (town, suburb, country)
- landscape morphology,
- climate.
It is spoken about geo-demographics.

Non-traditional psychographic segmentation
Differences in purchase behaviour are connected with social and psychological influences.
Consumers with the same “traditional” characteristics behave on market different.
Criterions :
- Social class : different social classes represent different segments.
Picture No. 5-2. Warner stratification schema of social classes
Upper Uppers
Upper classes
Lower Uppers
Upper Middlers
Social classes
Middle classes
Lower Middlers
Upper Lowers
Lower classes
Lower Lowers
As the base are gates of following variable :
- education of the head of household
- position at work of the head of household
- highest finished education of the head of household.
A – highest – the highest group in society, families with highest incomes and with highest life
standard
B – upper middlers – families with better-than-average incomes and with better-thanaverage life standard
C – middle class – families with average incomes and average life standard
D- lower middlers – families with average as lightly subnormal incomes
E – lower lowers – families with subnormal incomes
-
Lifestyle : uncovered different lifestyles can represent relevant market segments.
Complex approach represents research of lifestyle repeated every two years by AISA
agency : (11 lifestyles)











protagonists of old orders
authoritative head of family
modest grandmother
Novák family from prefabricated block
buck passers
ageless
hustlers
good family
emancipated modern woman
manager
young people
Agency STEM/MARK has view on lifestyles based on application VALS2 – lifestyles in
position of orientation on principles. Second used dimension is enough sources (material and
psychical character including education, health).
Company BSB (Backer Spielvogel & Bates Worldwide) follows in number of cultures
(mainly TRIAD and Pacific RIM) segments Adapters (18%), Traditionals (16%), Pressureds
(19%), Achievers (22%), Strivers(26%).
Further was concentration on lifestyle of young people and seniors.
Dobois, B., Comprendre le consommateur, Paris, Duboz 1994, Piirto, Rebecca, “Global Psychographics”, American
Demographics, December 1990
Value orientation – research of lifestyle (value structure : 150 statements)
- intellectual (birds-eye-view)
- manager (business spirit)
- senior (prudent)
-
mother (family type)
Progress of profile of segments come out from:
- social economical signs
- consumer behaviour, mark preferences, spare of free time, holidays
- structures of interests
- attitude to family, money, economy, politics, hygiene, chosen commodities …
- identification – join a social group
At integrating of lifestyle into role of market segments it is necessary to take into
consideration extent of its homogeneity from view of marketing against given product
category. There is a reserve against lifestyles – they are too abstractive.
-
Personality : is understood in marketing maybe to simply as relatively constant reaction
of person on the surroundings.
V.Bárta :Segmentace spotřebitelů podle životního stylu, psyma Praha. 2002
See : Antonides, G., Van Raaij, W.F., Consumer Behaviour – A European Perpective, Chichester, Wiley 1998
At segmentation are different approaches, based on research of different attributes of
personality (dominant, submissive, … - impulsive, rational, …- melancholic, flegmatic
…) and joins to typology.
It is not commended to use personality as only one segment criterion. Then segments have
not adequate homogenity.
Profile of segment “ influential young”
Geography : map with signed areas of high, better than average, average and subnormal
occurrence.
Example U.S.
Basic demography : - yupee of suburban inner circles
- mainly white, singles and couples without children
- high school education
- white collars
Politics : - dominated ideology : moderate
- voting in presidential votes 84 : Reagan (61%)
- key problems : fiscal conservatism, nuclear weapons
Weis, M.J., The Clustering of America, New York, Harper and Row, 1988
Picture No. 5-3 : Possibilities of market segmentation accord. to personality
General
All-around delimitation
Self-picture
Social character
General delimitated person
social oriented
Attributes interpersonel response
self-actualisation
inner oriented
delimiteted accord. to relation
specific market
style of knowledge
courage (incline to
risk)
Frank, R.E, Massy, W.F., Wind, Y., Market Segmentation, Nwe Jersey, Prentice Hall, Englewood Cliffs 1972
Segmentation criterions of market exposures
Segmentation according to behaviour – specific market situations - has two main
positions :
 criterions based on reasons (question why)
 criterions based on description (question how)
Criterions type “WHY” based on reasons (also segmentation according to use)
- segmentation according to expecting value – expected benefit (benefit
segmentation) : what consumer expect from product category, what benefits. Basic
phases of scale : price – quality – social effect . According to concrete situation is
especially quality followed more in detail. Here belong also purposes of use
(consumer motivation) and parameters of decision about purchase.
- segmentation according to perceived value : based on how the customers
differences in perceiving of certain products, marks
- segmentation according to opportunity (time, social, fashion relations, context
of possible use of product)
- segmentation according to attitudes – segmentation according to marks
preferences and according to ideal product.
Criterions type “HOW” based on describing of use, on view site of consumer behaviour
- Users status (users – non users, past users, potential users)
- Rate of use (frequency, volume) : strong, average, subnormal users.
- Loyalty : as incline to purchase and use the same mark is for needs of segmentation
follow as in position :
* frequency – always the same mark, so
* unit – share of purchase of a mark and use of category,
- Rates of diffusion process (intake of new products) : according to placing in scope of
diffusion graph it is possible to differentiate segments of innovators, early accepting,
fast majority, slow minority, latecomers).
- Knowledge of products, marks. How the consumers differentiate in knowledge of
marks (as on general level, so in given product category).
see for example. Ozimek, J., Targeting for Success, London, McGraw Hill, 1993
Criterions of reaction on marketing tools
Criterions of reaction on marketing tools belong to one of most important spheres of
criterions, cultivating segments profiles.
Typology of Czech consumers :
Loyal conservatives (18%) / ardent (14%) / unassuming consumer (16%), thoughtful analytic
(43%) / Progressive (13%), Inconstant hedonists (15%) and Superficial (13%)
Typology of Czech buyers :
Unassuming phlegmatic (15%) / loyal housewife (11%) / Mobile pragmatic (15%) / cautious
conservative (13%) / Saving (13%) / Demanding (19%) / suggestible (19%).
Example of segmentation according to reaction on tools of purchase support are
segments, which discovered in 1997 in Great Britain agency AC Nielsen : Lapsed to support,
Searching for low prices, Impassive, Pillars of marks and EDLP (Easy distribution Low
Prices).
Criterions of reactions on marketing tools belong to one of most important sphere of
criterions, cultivating profile of segments
.
Definition of important criterions
The base of uncovering of market segments is to affect bindings between followed criterions.
In marketing perspective are the decisive measure of differences between consumers – define
criterions.
Curry, J., Knoe Your Customer, London, Kogan Page, 1992
Miller, R., Does Everyone Have A Price, Marketing, April 1997
To define criterions we search the most appropriate explanatory variables –
describing criterions. Describing criterions explain or associate movements of define
criterions. Customer goes for lunch to exclusive restaurant, because he belongs to upper lower
class, young family equips household with things of long term consumption.
So in given examples :
define criterions
describing criterions
use of services of exclusive restaurant
purchase of certain articles of long term consumption
social class
life cycle of household
So first we decide : which define criterions we will examine, which we will integrate
in own segmentation research. Further what we use as criterions uncovering segments. Then
we try to find out, which describing criterions have the strongest binding on define criterions.
By gradual selection we come to important criterions. Also are followed bindings between
criterions mutually defining.
Methodically are used in simple situations cross relations, tables, corresponding
association
rates, group indexes, affinities. From more complicated methods of
multidimensional statistics is used factor analysis “R” type.
5.3 Uncovering of market segments
-
Segmentation A priory : in advance we choose one of criterions, which determines
membership to segment. Can arise two situations :
1. We know in advance how many segments we obtain – at use of one basic define
criterion with fixed and final scale (strong – average – subnormal users = 3 segments)
or mutual eliminating situation (variants).
2. A priori choice of one define criterion, which is multidimensional, does not lead
immediately to, what in the number of segments.
-
Segmentation Post hoc: Number of segments is not given in advance. At uncovering of
segment are followed connections between important criterions, examining their
combinations and consequential is chose those, which provide such elements, which suit
the conditions of homogeneity and heterogeneousness best.
At a priory and post hoc segmentation we can use mentioned “ forward segmentation” or
“backward segmentation”.
-
When for uncovering of segments are used criterions of behaviour towards
product, this process is sometimes called “forward segmentation”.
Sometimes it is possible to proceed from effort to use difference in described
variables, which attend to differentiation of possible market segments. But always
follows verification if hypothesis about impact of describing criterions on
different consumer orientations on given market were confirmed. Such approach is
characterised as backward segmentation.
Problem can be lower homogeneity of segments in relation to product.
Appropriate cross tables and analysis of obtained data – tree disintegration
gradually defined profiles of segments according to investigated criterions to homogeneity
and heterogeneousness. From multidimensional statistic is used cluster analysis (is followed
similarity of consumers at current view of all important criterions).
5.4 Picture of market segments
In this phase we renew view of segments with other useful information considering :
 further show of consumer behaviour of segments (example following
media),
 needs of choice between segments (size of segments and development, …)
Usage of discrimination analysis if we chose process a priory segmentation ore cluster
analysis.
Antonides, G., Van Raaij, W.F., Consumer Behaviour – A European Perspective, Chichester, Wiley 1998
5.5 Steps of process of consumer segmentation
-
Delimitation of given market (geographical dimension and product category)
Exploration of famous criterions :
 exploration phases


-
-
groups interview
secondary information (statistic of families accounts, data mining of agency data etc.)
interview of professionals
primary solutions :
interview (decision about content and form of questionnaire in connection with way of
analysis, kind of selection and selected units,…)
analysis
verifications of criterions (cross tables, analysis of diffusion, factor analysis and other
multiply statistic methods)
Uncovering of segments (cross tables, cluster analysis, factor analysis of Q type and other
multiply statistic methods)
Expansion of segment profiles (backwards cross tables against new variable in segment,
discrimination analysis)
Interpretation of results and evaluation results of segmentation :
 By interpretation to take into consideration conditions of successful segmentation :
- corresponding homogeneity and heterogeneousness of segmentation,
- measurement of segments,
- importance of segments,
- dynamic of segments, stability
- objectivity
 Segmentation maps
- difference evaluating criterions,
- contractor's expanse
Stated ways of segmentations are called inductive – searching for variables to segments
designation. Problem solution from other side – deduction. According to firm behaviour
on given market. Then we follow :
 what product mix offers the firm,
 in which price levels,
 what distribution ways (what kind of shops their articles are sold),
 what media they use,
 what kind of communication reports.
For two last levels is useful content analysis.
Is obvious selected orientation of firm on given market in meaning of purpose
marketing ? If yes, then :
- What segmentation variables they use ?
- What segments of consumers try to accost other relevant companies ?
- What are their characteristics ?
- Is used segmentation of market comprehensive ?
- Are used ways of segmentation of market most effective, most accurate ?
If no, then should follow own effort to uncover the most appropriate criterions and
segments – transition to inductive way of market segmentation.
Koudelka, Jan a kol. (2007) : Sborník vybraných výstupů z řešení grantového projektu “Ženské a mužské role v perspektivě
spotřebního marketingu” za rok 2006, Praha, 2007, GAČR 402/05/0152
Theme to think over
1.
2.
3.
4.
Relation between given market and segment, market segment and end group.
Usable criterions for market segmentation of producer of kitchen electric appliances.
Importance of ethnographic segmentation of Czech market.
Importance of age for segmentation of juice market in following case :
age
usage of juice
-20 years
21-40
41- years
more than 1 l / week
10 %
11 %
9%
0,5 – 1 l / week
20 %
22 %
20 %
less than 0,5 l / week
70 %
67 %
71 %
5. Expected advantages (values) can appear by running sport shoes.
6. Changes in segments behaviour defined according to sex.
7. How much allows administrative segmentation of state on regions market segmentation
from marketing view.
Literature









Antonides, G., Van Raaij, W.F., Consumer Behaviour – A European Perspective,
Chichester, Wiley 1998, ISBN 0-471-97513-3
Frank, R.E., Massy, W.F., Wind, J., Market Segmentation, New Yersey, Prentice Hall,
1972, ISBN 0-13-557579-6
Haley, R.I., Developing Effective Communication Strategy – A Benefit Segmentation
Approach, J. Wiley, 1985, ISBN 0-471-81262-5
Howard, J.A.., Consumer Behaviour In Marketing Strategy, New Yersey, Prentice Hall,
1989, ISBN 0-13-169666-1
McDonald, M., Dunbar, I., : Market segmentation, Macmillan, Elsevier Butterworth,
Heineman Oxford 2005 0 7506 5981 5
Myers, J.H. :Segmentation and Positioning for Strategic Marketing Decisions, American
Marketing Association, Chicago 1996 South-Western Educational Pub IBSN-10:
0877572593
Ozimek, J., Targeting for Success, London, McGraw-Hill, 1993, ISBN 0-07-706666-0
Readings in Market Segmentation, ed. Scotton, D.W., Zallocco, R.C., Chicago, AMA,
1980
Wedel, M., Kamakura, W.A: Market Segmentation, Conceptual and Methodological
Foundations, 2nd ed., Kluwer Academic Publisher, Norwell 2001, ISBN 0792386353