Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product.

Behavioral Variables: Occasions When a product is consumed or purchased. Examples

KELLOGGS

OCEAN SPRAY CRANBERRIES INC.

Benefits An important form of behavioural segmentation. Benefit segmentation requires Marketers to understand and find the main benefits customers look for in a product. User Status Nonuser, ex-user, potential user, first-time user, regular user. Potential-user group are consumer who will become users in connection with some life stage or life event. User Rate Some markets can be segmented into light, medium and heavy user groups. Buyer-Readiness Stage Unaware, aware, informed, interested, desirous, intending to buy. Loyalty Hard-core loyals, split loyals, shifting loyals and switchers. Attitude Enthusiastic, positive, indifferent, negative, hostile.

Segmenting for Business Markets

Demographic- Industry, Company Size, Location

Operating Variable- Technology, User or non-user status, Customer Capabilities Purchasing Approaches- Purchasing function organization, Power structure, Nature of existing relationships, General purchase policies, Purchasing Criteria Situational Factors- Urgency, Specific application, Size of order Personal Characteristics- Buyer-seller similarity, attitudes toward risk, Loyalty