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FOUR MAIN T YPES OF MARKET SEGMENTATION Market segmentation is the process of dividing a target market into approachable groups based on wants, needs, common interests, common behaviors, and demands. Looking for more Introduction to Business content to share with your students? Visit Divides a market by demographic factors such as age, education, income, gender, occupation, ethnicity, family size, and nationality. Age Education Income Gender Occupation Ethnicity Family size Nationality DEMOGRAPHIC SEGMENTATION Divides the market based on geographical location, climate, or population density. GEOGRAPHIC SEGMENTATION Similar to demographic segmentation, but unlike demographics which provides basic information about customers, psychographics takes into account the psychological aspects of behavior such as values, opinions, personality traits, a€ itudes, lifestyle, hobbies, beliefs, fears, and interests. PSYCHOGRAPHIC SEGMENTATION Divides markets based on customer behaviors and decision-making pa€ erns. BEHAVIORAL SEGMENTATION 1 2 3 4 Location Climate Needs Preferences Interests Values Opinions Personality traits A€ itudes Lifestyle Hobbies Beliefs Fears Interests Purchasing habits Consumption Brand loyalty Lifestyle Product usage Source: Introduction to Business Heidi M. Neck, Ph.D. Christopher P. Neck, Ph. D. Emma L. Murray, BA, H. Dip

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