Psychographics segmentation has limitations including being costly and time consuming to implement due to extensive data collection and analysis needed. It can also be difficult to define and measure psychographic variables and make assumptions about consumer behavior since individuals have unique personalities and purchasing behaviors are influenced by multiple factors. While psychographics provides insights, it works best combined with other segmentation approaches for niche markets rather than broad application due to these challenges.
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Psychographics segmentation has limitations including being costly and time consuming to implement due to extensive data collection and analysis needed. It can also be difficult to define and measure psychographic variables and make assumptions about consumer behavior since individuals have unique personalities and purchasing behaviors are influenced by multiple factors. While psychographics provides insights, it works best combined with other segmentation approaches for niche markets rather than broad application due to these challenges.
Psychographics segmentation has limitations including being costly and time consuming to implement due to extensive data collection and analysis needed. It can also be difficult to define and measure psychographic variables and make assumptions about consumer behavior since individuals have unique personalities and purchasing behaviors are influenced by multiple factors. While psychographics provides insights, it works best combined with other segmentation approaches for niche markets rather than broad application due to these challenges.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
Psychographics segmentation has limitations including being costly and time consuming to implement due to extensive data collection and analysis needed. It can also be difficult to define and measure psychographic variables and make assumptions about consumer behavior since individuals have unique personalities and purchasing behaviors are influenced by multiple factors. While psychographics provides insights, it works best combined with other segmentation approaches for niche markets rather than broad application due to these challenges.
Copyright:
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Psychographics and its Limitations
By: Cheryl Kan • Dong Tianzhao • Karen Chen
• Kelvin Lee • Ng ShiQi • Valerie Wong Traditional Segmentation • GEOGRAPHIC – Variables like Continent, Country size, Climate etc • DEMOGRAPHIC – Age, Gender, Sexual Orientation, Family Size, etc • BEHAVIORAL – Benefit sought, product usage rates, brand loyalty, product end use, readiness-to-buy, etc Evolution of Psychographics Segmentation
• Globalization – changes in the socio economic structure – blurring of social class lines – Market saturation • leading to fewer physical differences between brands • tapping into emotional elements of decision-making Evolution of Psychographics Segmentation
• Rise of the ‘creative class’
• Bringing about the cognitive elite - (Herrnstein and Murray, 1994) • A more technologically advanced society creates new breed of consumers and its associated emerging markets -removing traditional criteria eg. race, gender or class -Making purchase or consumer decisions based primarily on evolved cognitive ability The Limitations of Psychographics Segmentation
Costly and Time Consuming -
• costly to launch • difficult to implement on a wide scale • requires involvement of: – Focus groups / Extensive Market Data collection – Intensive surveys – Anthropologists and psychologists needed The Limitations of Psychographics Segmentation
Difficult to define and measure -
• Other factors of purchasing behaviours – Age – Income – Economic situation • No single psychographic analysis can be used universally Two Assumptions 1. Percentage of customers conforms to a defined psychographic profile – People don’t always think the same – Individual personalities & perceptions – E.g. hybrid cars 2. Members of psychographic group behaved as predicted – Individual belongs to upper class might not go for luxurious cars or houses Homogeneous & Heterogeneous Society • Japan case study… – Market is homogenous – Advertisers do not segment the market using psychographics – Fear of • Implosion and the disability of psychographical segmentation to stimulate consumerism • Failure of campaign will be disastrous due to the homogenous nature of target market and consumers Conclusion • Researching into lifestyles, personalities and consumer mentality is resource-heavy and time/cost consuming. • Marketers and advertisers still exercise the implementation of psychographics with much success. This however is often to a niche market E.g. Porsche Cars • To achieve optimised results, psychographics should be used in tandem with other forms of segmentation and marketing/advertising tools
