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Definition: Behavioral Segmentation
Behavioral Segmentation is a marketing strategy where the potential market is divided on the basis of behavioral characteristics like lifestyle, perception, desire, attitude etc. Behavioral Segmentation is done by understanding the underlying needs and wants of a customer based on their behavior.
The target consumers for a product or a campaign can be grouped on the basis of their behavioral characteristics which can be :
When a product is used or purchased for a particular occasion only. Example- toothpaste is a product which is positioned as something which is to be consumed on the occasion of “getting up in the morning”. It is not something which the consumer can use at any time of the day.
The grouping can be on the basis of how much a product is being used/consumed by the customer. Accordingly, we call them heavy or light user groups.
Markets are segmented based on the retention rates of the consumers which is a fair indication of brand loyalty among them. A brand commanding a high degree of loyalty has a very high retention rate and does not need to worry too much about acquiring new customers. But a brand with low loyalty levels continually needs to recruit new and new consumers to its basket.
Example-teens usually keep changing their brands of clothes which they wear. But when we move up to higher age groups of people, they usually prefer to stick to the brand which they use.
Loyalty varies depending upon brand, product, social class and location of consumers.
Consumer segmentation is also done on the basis of the different benefits perceived by different consumers. Example- some people like “Bournvita” because they like its taste, others have it because its healthy. Depending on the perceived benefits, the marketers have to develop their future communications and positioning.