consider loyal clients of your company and rival firms under the following conditions:
the price of their products is higher;
the cost of goods is the same;
your product is much cheaper.
Structural analysis of price segments and competing companies will help to deepen market segmentation and assess consumer behavior patterns.
Stage 4. Research of differences and final segmentation criteria
This is a critical step that requires sufficient time to be allocated.
From the list of categories, identify the criteria that most strongly differentiate one audience subgroup from another. These features will be the key to understanding why a user purchases a product, postpones a decision, or refuses to buy. As a result, you will discover three main parameters on which the segmentation process is based. The remaining factors are necessary for a more in-depth analysis.
To explore the psychology of purchasing decisions, focus on behavioral traits and psychographics rather than variables like gender or age.
Step #5: Defining and describing audience categories
Let's describe the clients of each subcategory using the previously obtained data. How to understand the success of segmentation? The correct one will differ in the descriptions of each subgroup. For example, attitude to brands, service requirements, incentives for quick purchases.
Step #5: Defining and describing audience categories
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Let's come up with names for the subgroups and outline their characteristics according to the following criteria:
Socio-demographic characteristics – data on gender, age, marital status, presence of children, level of education and profession.
Location plays an important role in determining the prospects of segments. This is not only the geographical location, but also the size and level of development of the settlement, its demographic structure.
A distinctive feature in consumption is the frequency of purchasing goods and using services, the motives for choosing products, the place of their purchase, and satisfaction with the product.
Psychographic characteristics of consumers, such as their behavior, values, interests, and social group membership, play an important role in forming market segments.