Question

it's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). what type of variable is it usually cross-tabbed with?

Answer 1

It is not uncommon to see a segmentation study consisting of some usage variable or some attitudinal variable. It is usually cross-tabbed with a demographic variable.

Market segmentation is the process of breaking a large consumer or company market, often consisting of present and future customers, into sub-groups of consumers (known as segments) based on some form of shared trait. When separating or segmenting markets, researchers often look for similar traits. Market segmentation assumes that distinct market segments necessitate different marketing programs, such as different products, prices, promotion, distribution, or some combination of marketing elements.

Market segmentation is intended not only to identify the most profitable categories, but also to create profiles of key segments in order to better understand their demands and buying motivations. Insights from segmentation analysis are then utilized to support marketing strategy creation and planning.

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