Consumer segmentation is the division of current and potential consumers of the target audience into subgroups with the same needs and consumer behavior.
Personal value-based segmentation
Consumer segmentation based on personal values
and motivations
One of the most advanced types of consumer market segmentation is Value-Based Segmentation.
Value-Based Segmentation will allow:
- Develop or adjust the existing brand communication strategy that will hit the target and work with the needs of target segments;
- Better understanding consumers: Where do they buy? What are they guided by? What is of interest and value to them? Why?
- Understand what to focus on in the products or services so that this will resonate with the consumers.
Value-Based Segmentation provides a deep understanding of the requirements and interests of customers, their motivations, preferences vectors, formation of the effective conditions for an individual approach to each of the selected groups.
For this type of segmentation, the following classification of value-based segments is used:
- “Achievements”, representatives of this group have the following priorities: wealth, status, power, ambition, self-centeredness and attractive appearance. Predominantly, Achievements are more focused in a career, achieving a high status; products that are more expensive in their preference;
- “Traditionalists” are characterized by traditions, faith, respect for ancestors, cultural purity, traditional gender roles, disinterest in fashion and trends;
- “Thrifty”, the main characteristics of this group are modesty, frugality, hard work and simplicity;
- “Caring”, for consumers of this category the most important priorities are: stable relationships, helping others, protecting family, friendship;
- “Hedonists” are distinguished from other groups by their tendency to search for thrills, enjoying life, spirit of youth and craving for entertainment;
- For “Rationalists” tolerance, equality, erudition, open-mindedness and social responsibility are in priority;
- “Self-sufficient”, representatives of this segment stand out for their love of freedom, self-confidence, and life in harmony with themselves and with their principles.
The target audience, segmented by value-based groups, can be described by socio-demographic, geographical, economic, psychographic, behavioral and other categories depending on the study tasks.
