psychographic segmentation

Psychographic Segmentation

The research method known as psychographic segmentation is used to examine consumers and categorize them based on various psychological traits.

What is psychographic segmentation? What are psychographic segments? Why is psychographic segmentation important? What’s the definition of psychographics? And a lot more. If you are looking for answers to these questions, then read ahead.

What are Psychographic Segments?

By using psychographic segmentation, marketers can arrange their items such that potential buyers who share their interests might “find” them. It’s how businesses determine the best customer match based on the attitudes and lifestyles of consumers.

What's the definition of Psychographic Segmentation?

A market segmentation strategy known as “psychographic segmentation” divides consumers into groups based on psychological characteristics that affect their purchasing decisions and are influenced by their preferences and way of life. It is mostly carried out based on “how” people think and “what” they want out of life.

This segmentation strategy can be used by any firm that wants to comprehend the thought process of its target market. Other than demographic segmentation, regional segmentation, and behavioral segmentation, psychographic market segmentation is one of the most successful segmentation techniques.

What are some examples of Psychographic Segmentation?

Now that we are acquainted with what psychographic segmentation actually is, let us have a look at how we can implement it in the real world.

Consider the scenario where you provide software to developers or run a meal delivery service. In that situation, you might observe that the majority of your clients are introverts or have low extraversion scores. Once you’ve identified the key attributes of your group, you can better tailor your services to their needs and create marketing efforts to appeal to those same characteristics.

In a similar vein, we may use social status as an illustration of this kind of segmentation. How much a person can spend on particular things depends on their social rank. Brands with a clear understanding of their target market include Burberry and Rolex. With their high quality and expensive price, which a middle-class consumer typically cannot purchase, they mostly cater to upper-class consumers.
This is how on the basis of several other factors, psychographic segmentation can be done.

How do you collect the data for Psychographic Segmentation?

While gathering feedback from a sizable community is useful, you sometimes need to go further to comprehend the motivations of your target market.

You can learn more about people’s motives, issues, and purchasing decisions by conducting customer surveys. These surveys will offer comprehensive information on consumer behavior, whether they are focus groups or one-on-one interviews.

For client surveys, open-ended questions are further employed in addition to planned inquiries. In order to understand why a consumer initially looked for a product to remedy their problem, marketers must identify the underlying cause of that customer’s issue. A better understanding of the customer’s issue and whether it is shared by others will result in better market segmentation.

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Why Is Psychographic Segmentation Important?

Because it enables organizations to comprehend the lifestyles, behavior, shopping preferences, and interests of their users – all of which are essential to comprehend the motivations behind their actions – psychographic segmentation is crucial.

You can determine why clients would choose to buy your product or choose one of your competitors by applying psychographic segmentation. You may create profitable marketing campaigns using this information.

What are the advantages of Psychographic Segmentation?

The benefits of psychographic segmentation are numerous. Here, let’s go over a few of them.

  • Personalization benefits from psychographic segmentation. Knowing your consumers’ interests will enable you to launch targeted promotions and boost sales.
  • It increases your ability to retain customers. Customers will remain loyal to you if they believe you are interested in and comprehend them.
  • You can better understand your competitors’ audiences by using psychographic segmentation. You can develop more successful marketing plans when you analyze the target markets of your competitors using comparable variables.
  • It aids in customer behavior understanding.
  • It enables marketers to divide up their clientele into groups according to their points of view, and it can support behavioral segmentation.
  • Given that it provides details about purchasers’ internal characteristics including interests, routines, and opinions, it is more successful than geographic or demographic segmentation.

What are the types of Psychographic Segmentation?

Personality, activities and interests, attitudes and views, values, and lifestyle are the most significant categories of psychographics. Each person can closely examine any of these sorts.

They provide us with interesting information about people’s behaviors, mental processes, and values.

Interests And Activities

The focus of this psychographic market segmentation is on the interests, attitudes, and pastimes that consumers have towards particular subjects. Activities, interests, and opinions, or AIOs, are the terms used to describe these requirements.

Market analysts can identify the most popular goods and services based on behavior analytics. They can also develop marketing strategies that cater to various preferences, inclinations, and points of view.


Personality is shaped by biological and environmental factors, which have an impact on particular behavioral, emotional, and cognitive aspects. Market researchers can thus use personality segmentation to separate customers that have similar personality features.

Products and services can appeal to certain personalities in different ways. Additionally, you can provide the studied personalities with new functionalities.


A significant expenditure is required to produce a range of items for a variety of customers. However, dividing products into psychographic segments based on lifestyle can help focus marketing and product development efforts and reduce costs.

For instance, a shoe designer can create footwear for a variety of clientele, including office employees, athletes, runners, students, etc. As a result, improving categories based on consumer lifestyles results in a better product and a more successful marketing effort.


The sense of right and wrong that exists among humans is referred to as virtues. Family, societal, and environmental values are a few examples of what they might be. You may target your most valued clients by figuring out which values and virtues are important to them.

IKEA’s sustainability campaign, which highlights the brand’s commitment to environmental causes, serves as an illustration of this psychographic segmentation.

You can monitor online behavior to ascertain the values of your target market as value is a sophisticated psychographic segmentation parameter.

Attitudes And Beliefs

An individual’s attitude is shaped by their upbringing and cultural heritage. Each prospect has distinct thinking as a result, and this mindset can be used as a predictor in psychographic segmentation.

As a result, you can divide up your clientele into groups according to what they think. The fundamental behavior of a consumer can be inferred from their beliefs, which constitute an inherent parameter. Every user thinks and behaves in a unique way. When determining the target market for a new product feature, take into account these variables.

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What are the limitations of Psychographic Segmentation?

Psychographic segmentation, like other types of segmentation, reveals crucial data for comprehending target groups but is not without limitations.

Intricate Setup Procedure

This type of segmentation is harder to perform than other types of market segmentation, such as behavioral and demographic because it requires participation in specific psychographic surveys.

Demands Firmly Established Standards

Psychographic segmentation can be vague and inconsistent, therefore analysis needs to have clear interpretation rules in place.

Might Be Deceptive

Contrary to popular belief, psychographics does not totally explain why people purchase your goods. It’s a reliable indicator but may not be the root problem.

Relies On Conjecture

It might be challenging to come up with questions for psychographic surveys because it’s typical to make assumptions about the target audience.

Expensive To Obtain Insights

A combination of quantitative and qualitative market research techniques is typically needed for meaningful psychographic segmentation, which can be extremely expensive.


We should add that psychographic data can be used in conjunction with demographic, behavioral, geographic, and transactional data for comprehensive market segmentation now that you are familiar with psychographic segmentation, its several types, and some examples.

These data types can be used and analyzed to help businesses who want to go down the customer-focused marketing road.

We hope that the questions regarding psychographic segmentation have been cleared up. Stay connected with us and keep reading such informative and interesting articles.

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