After the discovery of market segmentation, each and every company especially, the e-commerce sector faced a huge profit margin. Therefore, companies can stay stress-free even after surviving within a competitive market. Actually, the segmentation mainly focuses on the consumer group rather than the market. There are four types of market segmentation, which are as follows:
Demographic market segmentation: It is that particular segment that briefly analyses the people of an area. However, the entire analysis depends upon the evaluation average of several aspects, such as age, tradition, source of income, number of educated people, caste and religion, job type, gender, etc. After analyzing all these factors, a company decides the price of a product for a particular region.
Physiographic market segmentation: Whether a product will reach its desired level of profitability entirely depends upon a customerâ€™s demand. It is such a segment that completely focuses upon a consumerâ€™s personality and subject of interest, which includes personality, hobby, the goal of life, moral beliefs, and lifestyle.
Behavioral market segmentation: When a company knows its consumerâ€™s choices and behavior while shopping, there is no one to compete with that entity, such segment focuses on the expensive nature, interest of buying, internet surfing frequency, previous communication with a brand, level of sticking to the same brand and so on.
Geographic market segmentation: Undeniably, different people have different choices. Therefore, it is completely unexpected that people of other countries will be attracted to a company from another region. To handle such a situation, a market is divided on the basis of country, region, city, and postal area.
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