Market Segmentation From a Behavioral Perspective

Abstract

A segmentation approach is presented using both traditional demographic segmentation bases (age, social class/occupation, and working status) and a segmentation by benefits sought. The benefits sought in this case are utilitarian and informational reinforcement, variables developed from the Behavioral Perspective Model (BPM). Using data from 1,847 consumers and from a total of 76,682 individual purchases, brand choice and price and reinforcement responsiveness were assessed for each segment across the UK cookie (biscuits) market. Building on previous work, the results suggest that the segmentation of brand choice using benefits sought is useful. This is especially the case alongside demographic variables. This article provides a theoretical and practical segmentation approach to both the behavioral psychology literature and the wider marketing segmentation literature.

KEYWORDS:

• segmentation
• benefits sought
• demographics
• Behavioral Perspective Model
• utilitarian
• informational

Notes

1. Fast-moving consumer goods are products sold quickly at relatively low cost. This includes many products, such as bread, milk, tinned goods, etc., found at supermarket and convenience stores.

2. The class grouping system used in the UK is based on occupation. Five groupings are used: (A) Upper Middle Class: Managerial and Professional (typical occupations include doctor, solicitor, barrister, accountant, company director); (B) Middle Class: Managerial and Professional (typical occupations include teacher, nurse, police officer, probation officer, librarian, middle manager); (C1) Lower Middle Class: Supervisory and Clerical (typical occupations include junior manager, student, clerical/office workers, supervisors); (C2) Skilled Working Class: skilled manual (typical occupations include foreman, agricultural worker, plumber, bricklayer); (D) Working Class: unskilled manual (typical occupations include manual workers, shop worker, fisherman, apprentices); and (E) Underclass/unemployed (typical occupations include casual laborers, state pensioners).