People Innovation Excellence

SOME CONCEPTS ABOUT HOW IMPORTANT BEHAVIOURAL SEGMENTATION IS

By: Dimas Candrabhaskara, SE (Student of International Marketing)

  1. Behavioural Characteristics of Schiffman & Wisenblit

First of all, we will look at the definition of behavioural segmentation according to Schiffman and Wisenblit (2014). They stated that the concept created by one of Standford Research Institute, Strategic Business Insights, which is called VALS (Value and Lifestyle) can specifically reflect consumer’s self orientation and resources. Self orientation is based on the way consumers pursue and get the products and services that gives them satisfaction and ended up giving them identity. VALS gives 8 characteristics in the behavioural segmentation research and there are Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers and Survivors.

  1. Behavioural Characteristics of Peter & Olson

According to Peter & Olson (2010), there are 7 characteristics that shape the consumers in the market based on their behavior and the descriptions are here below:

  • Media usage explains the types of medias in the present era. This characteristics can help the company in deciding which marketing activities should be implemented.
  • Specific media usage leads to the what specific media that is often used or referred by consumers such as Zalora online shopping, Cosmopolitan magazine, New York Times newspaper etc.
  • Payment method refers to how the consumers pay during the transaction.
  • Loyalty status categorizes consumers on their loyalties and interest towards a brand.
  • Usage rate specifically explains the purchase frequency of the consumer in buying specific products.
  • User status describes the consumers based on their status in the market and whether they are a user of the product or not.
  • Usage situation refers to the situation where the products are used such as at home, at work or even in vacation.
  1. Behavioural Characteristics of Walker & Mullins

Walker and Mullins (2014) gives a characteristic explanation in behavioural segmentations through consumer needs, choice criteria, product usage and purchase influence. Consumer needs is usually expressed by the benefits of the received product. Every individual has different needs and there, we can find an increase of importance towards the benefit of given product. Choice Criteria is the consumer’s way of evaluating an alternative product based on the demanded characteristic and how worthy the product is for the consumer. Marketers can determine the choice criteria based on the availability of certain characteristic and the attached importance in each product. Product usage is the most important aspect because a small portion of potential customers can be a big percentage from the total purchases of various markets. Purchase influence is used as a source of market segmentation for the product category which is relevant with consumer and organizational market.

  1. Behavioural Characteristics of Kotler & Armstrong

Kotler and Armstrong (2012) stated that behavioural segmentation is believed by marketers as a best starting point to create a market segment and this segmentation has five behavioural variables. User status is one way of differing the market into several groups such as non-user, potential users, novice user, regular users and users who are about to change into another brands. The main key of company’s success is to retain regular users and draw attention to potential and novice users. Occasions or moments are categorizing the buyers as the one who just needed, bought or used the product. This segmentation can expand the scope of company’s product because they can benefit from certain events either national or international. Benefits categorize segments who have received the features or privileges from the products and felt satisfied by what the product and services offered. Usage rate gives a clear picture of the frequency used of the company’s product by consumers. From the frequency used, companies can estimate the number of productions which will later be distributed in the market. Loyalty status of the consumers towards a product, brand or company is a promise that cannot be influenced by anyone. Buyers can be varied into 4 categories and they are Hard-Core Loyals, Split Loyals, Shifting Loyals, Shifting Loyals and Switchers.

By recognizing their behavior, marketers in the company can focus on planning their marketing strategy to increase both sales and brand awareness so that loyal and potential consumers can recognize the uniqueness and benefit of the product in the tire industry. It is advisable to plan the marketing strategy carefully towards the formed segments in order to save time, energy and money.

 


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