What is the difference between the demographic and behaviora

What is the difference between the demographic and behavioral bases of market segmentation? Provide three instances of when each of these strategies would be appropriate. Why? Explain in depth

Solution

Demographic basis of market segmentation involves segmenting the market based on demographic and social factors like age, gender, occupation, income, ethnicity, social class etc.

Behavioral basis of market segmentation involves segmenting the market based on consumer behavior towards the products, the factors include brand loyalty, benefits expected, readiness to buy, occasions etc.

Demographic basis is appropriate for -

1. High technology products targeted towards younger generation based on the segmentation by age

2. Clothing and accessories targeted towards high-end consumers based on the segmentation by income level

3. Makeup products and fairness creams targeted towards women based on the segmentation by gender.

Behavioral basis is appropriate for -

1. Holiday package companies targeting visitors or tourists during christmas season which is an example of segmentation based on ocassion

2. Targeting consumers who look for toothpaste that reduces sensitiveness with segmentation based on benefit sought

3. Targeting consumers who travel through the airlines more than once by offering better services compared to the first-time travellers.