Market Segmentation Question Types
Transcript
Hey, I'm Audrey Guinn and I'm part of the Advanced Analytics Team at Decision Analyst. Today I want to discuss a segmentation topic. What questions should we include in a market segmentation?
Market segmentation is one of the most powerful tools in marketing research. It's the process of grouping individuals who share similarities to create cohesive segments. While some segmentation models only look at one type of question, the most effective analysis uses a variety of five question types to build a holistic view of the consumer.
The first question type to consider is needs. These questions uncover what a consumer actually requires from a product, service, or shopping experience. A few questions to consider are what features are non-negotiable? How important is delivery or variety in payment methods? What are the pain points consumers experience with the service?
Next is behavior, which helps us get at the what, when, where, and how. Examples of behavioral questions include how often is the product used and for what occasion? How much do consumers spend in the category? Is purchasing mostly online or in store?
To understand the why behind the why, we use psychographics. This dives into the consumer psychology, including questions like what do they do with their free time? How do they feel about current events, brand philosophies, or the product? What are their attitudes towards the category?
Finally, we define who the segments are through personality and demographics. With personality questions, we ask things like, are they outgoing or shy? Are they early-adopters of tech or late adopters? Do they spend money without much thought or are they frugal?
Demographics adds the finishing touches using data like age, gender, ethnicity to draw a picture of who the segments are.
In conclusion, the secret to success isn't using every question, but using your expertise to pick the ones that fit your category. By mixing these five pillars, you move beyond basic data to create rich multi-dimensional segments that drive strategy. Thanks for joining me. If you found this video helpful, check out our other videos in the series.
Presenter
Audrey Guinn
Statistical Consultant, Advanced Analytics Group
Audrey utilizes her knowledge in both inferential and Bayesian statistics to solve real-world marketing problems. She has experience in research design, statistical methods, data analysis, and reporting. As a Statistical Consultant, she specializes in market segmentation, SEM, MaxDiff, GG, TURF, and Key Driver analysis. Audrey earned a Ph.D. and Master of Science in Experimental Psychology with an emphasis on emotional decision-making from The University of Texas at Arlington.