benefit segmentation

Quick Reference

The idea that consumers can be grouped according to the principal benefits that they seek from products or services. Different people buy the same or similar products for different reasons. For example, women may purchase a Volvo car for safety and comfort; men may purchase it for it durability and practicality. Use of different types of segmentation variables could lead to the conclusion that the main criterion for segmentation is the principal benefit sought. Hence, although this approach acknowledges the fact that no single variable is likely to be of sufficient discriminatory power to segment a market on its own, it regards the benefit sought as the main variable. See also market segmentation.

Subjects: Marketing.

Reference entries