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A market segmentation technique where groups are formed as per the psychological traits of the consumer is called Psychographic segmentation. In this market scenario, the psychological traits are mainly influenced by the consumption habits drawn from the people’s lifestyles and preferences.

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Meaning of Psychographic Segmentation

The psychographic market is mainly conducted on two factors ie a) “how” people think and “what” they aspire in their life. A lot of research work is done and then the company accumulate the data is accumulated so that they can have sound knowledge about the market trends and consumer behaviour for the targeted market

For Psychographic segmentation usually, consumers are divided into different group’s basis their values, beliefs, lifestyles, opinions, purchasing power. 


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Depending on the social, economic and cultural background consumers have their different interest. Some people prefer non-veg food while some people are vegan who does not intake any animal products.

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Variables of Psychographic Segmentation

Mainly there are five psychographic segmentation variables which are jotted below:

Social status – In a market there are customers from different social backgrounds. Some are poor or middle class or rich. The social status mainly depends upon the buying behaviour of people.

Lifestyle of people - Daily habits of a person defines their lifestyle. A college-going may have a different preference while an office going prefer something else. The lifestyle of a person or group provides us with a detailed picture of the position of a person in their life-cycle.

Personality - Educational background, economic status, social status and lifestyle determines the personality of a person. The type of clothes you prefer, the music preferences, etc determines a person’s personality.

Interests and opinions – Customers’ psychological states and preferences can be understood by their interests and opinions. For example, you may prefer a football match as your friend prefer cricket, both you prefer outdoor games.

Life aspirations and values – Our aspirations and values determine which product we will opt for. A person who is environment conscious will prefer to use bio-degradable products.

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Importance of Psychographic Segmentation

Let’s discuss the importance of psychographic segmentation:

  • Understanding the choice:Each customer has their own belief behind buying a product or service. The company has to understand psychographic segmentation and find out the logic behind buying behaviour so that they can improve their products or services.
  • Understand the concerns: The Company has to understand the issues or the concerns of the customers while using the products or services through psychographic segmentation.
  • Perceive customer value:Psychographic segmentation helps to analyse the customer value in regards to the product or services.

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