Consumer Segmentation Study Sheet

Demographics

Measurable, observable characteristics of a population.

Age Segments

Seven age segments categorize consumers: Pre-customer (0-9), Allowance customers (10-15), Youth market (16-19), Postsecondary market (20-25), Family formation (25-40), Establishment (40-55), Mature market (55+).

Gender Marketing

Products are often marketed differently to men and women, reflecting traditional gender roles and evolving trends.

Cultural Preferences

Ethnicity influences buying habits, affecting preferences for products like grocery stores and grooming products.

Income Level

Determines affordability and spending habits, with lower-income individuals focusing on necessities and higher-income on discretionary spending.

Family Life Cycle

Consumer needs change based on life stage, such as young couples needing household items and empty nesters focusing on travel.

Education Level

Affects career choices, income level, and overall spending capabilities.

Occupation

Different careers create unique purchasing needs that influence buying behavior.

Languages Spoken

Affects media preferences, product packaging, and advertising strategies.

Psychographics

The study of consumer lifestyles, values, and personality traits.

Personality Traits

Characteristics such as outgoing, shy, intelligent, motivated, and confident that influence brand choices.

Hobbies & Activities

Shared hobbies lead to similar purchasing habits; for example, photographers buy cameras, and gamers buy computers.

Values, Goals & Beliefs

Religious and cultural beliefs impact product choices, affecting spending based on personal priorities such as education or sustainability.

Attitudes Toward Health & Wellness

Influences demand for fitness products, organic foods, and health supplements.

Behavioural Segmentation

Examines how consumers interact with products and brands.

Desired Features

Consumers seek specific features in products, and businesses tailor products based on customer expectations.

Usage Rate

Classifies consumers into heavy, moderate, and light users based on their purchasing frequency.

Heavy Users

Consumers who engage with a product daily and make consistent purchases, such as regular coffee drinkers.

Moderate Users

Consumers who purchase products frequently but not on a daily basis.

Light Users

Consumers who consume products occasionally.

Brand Loyalty

Consumers stick to specific brands due to experience, reputation, or emotional connection, often targeted with rewards.

Purchasing Behaviour

Describes how, where, and when consumers prefer to buy, encompassing online vs. in-store purchases.

Motivation & Influences

Consumer behaviour shaped by psychological, social, and situational factors, impacting their purchase decisions.

Psychological Influences

Factors that shape consumer decisions based on internal thought processes, emotions, and personal needs.

Thorndike’s Law of Effect

Consumers tend to repeat purchases that result in positive outcomes and avoid those leading to negative experiences.

Maslow’s Hierarchy of Needs

A theory that prioritizes human needs into five levels: physiological, safety, love/belonging, esteem, and self-actualization.

Physiological Needs

Basic needs essential for survival, influencing purchases such as food, water, and shelter.

Safety Needs

Needs for security and protection, impacting purchases like health insurance and alarm systems.

Love/Belonging Needs

Social acceptance drives purchases influenced by trends in social media and recommendations from friends.

Esteem Needs

The desire for status and recognition, leading consumers to buy luxury brands and exclusive memberships.

Self-Actualization

The pursuit of personal growth, motivating purchases such as educational courses and gym memberships.

Entertainment Purchases

Buying experiences like movies or concerts to achieve emotional satisfaction.

Athletic Gear Purchases

Purchasing branded sportswear for enhanced performance and self-confidence.

Special Event Purchases

Spending on events like the Olympics or World Cup for prestige and cultural connection.

Social Influences

Factors that shape consumer choices based on external relationships and cultural norms.

Culture & Upbringing

Cultural values shape preferences, influencing dietary habits, fashion, and media consumption.

Family Influence

Parents can significantly affect brand loyalty and purchasing habits of their children.

Peer Influence

Purchase decisions influenced by friends and coworkers to fit in or gain social acceptance.

Social Status & Recognition

Consumers may buy certain products to impress others or reflect social status.

Examples of Social Influence in Purchases

Concert tickets, sports team merchandise, and trendy gadgets influenced by social circles or media.

Situational Influences

Temporary conditions that affect purchasing decisions.

Key Situational Factors

Factors including weather, store environment, time of day, promotions, mood, and scarcity that influence buying behavior.

Weather & Season

Seasonal effects on demand; e.g., winter prompts need for jackets, while summer increases sales of air conditioners.

Store Environment & Location

An organized store with attractive displays can enhance impulse purchases.

Time of Day

Different times create demand for specific items; morning favors breakfast foods, while night may cater to takeout or streaming.

Promotions & Advertising

Sales and ads, such as Black Friday deals, create urgency for consumers to buy.

Mood & Emotions

Consumers may purchase comfort products during stress or spend more when financially secure.

Scarcity & Limited Availability

Perceived scarcity drives purchases; consumers often buy before products run out.

Examples of Situational Influence in Purchases

Includes impulse buying, limited-time offers, and mood-based purchases.

Impulse Buying

Unplanned purchases, often driven by attractive displays or promotions.

Fan Behaviour

The actions of fans influenced by their engagement, loyalty, and motivations within sports and entertainment.

Types of Fan Behaviours

Different actions fans engage in based on their level of attachment, such as buying merchandise or attending events.

Buying Merchandise

Fans purchase products related to their favorite celebrities, teams, or brands.

Attending Events

Fans participate in live events such as concerts, sports games, or meet-and-greets.

Engaging on Social Media

Fans interact by following, commenting on, or sharing content related to their interests.

Watching Games or Performances Regularly

Fans consistently view games, shows, or performances as part of their routine.

Collecting Memorabilia

Fans accumulate items such as autographs, posters, or specialized merchandise.

Participating in Fan Clubs or Online Communities

Fans join groups that share their interests and facilitate interaction with like-minded individuals.

Creating Content

Fans express their passion by producing fan art, writing blogs, or making videos.

Emotional Connection

Fans feel a deep personal attachment to a celebrity, team, or brand, driving their engagement.

Social Identity

Fandom provides individuals with a sense of belonging and identity within a group.

Fandom Culture

Fans participate in unique traditions, chants, or rituals that enhance their experience.

Escapism & Entertainment

Fans turn to media as a form of escape from reality, seeking enjoyment and relaxation.

Status & Prestige

Some fans value exclusivity, such as VIP memberships or limited edition merchandise.

Nostalgia

Fans' attachment is often fueled by positive past experiences and memories associated with their interests.

Frequency Escalator

A model by Bernie Mullen (1978) that defines levels of consumer involvement in sports or entertainment events, aiming to increase fan engagement.

Levels of Fans

Categorization of fans based on their engagement levels in sports or entertainment events: 1) Non-Consumers, 2) Indirect Consumers, 3) Light Users, 4) Medium Users, 5) Heavy Users.

Non-Consumers

Individuals who are unaware or uninterested in a sport or entertainment event.

Indirect Consumers

Fans who engage with sports or entertainment through media but do not attend live events.

Light Users

Fans who are occasional attendees at live events.

Medium Users

Fans who regularly attend live events with moderate engagement.

Heavy Users

Highly loyal fans who consistently engage with a sport or entertainment event, such as season ticket holders.

Criticism of Frequency Escalator

The model focuses primarily on event attendance and neglects digital engagement, such as social media and streaming.

Psychological Continuum Model (PCM)

A comprehensive model of fan development by Funk & James (2001) that describes how fans evolve through four stages based on their psychological connection.

Stages of Fandom

The four stages that fans go through in the Psychological Continuum Model: Awareness, Attraction, Attachment, and Allegiance.

Awareness

The initial stage of fandom where individuals are exposed to a team, artist, or event through friends, media, or advertisements.

Attraction

The stage where fans begin to engage more actively, following an artist, team, or event, such as adding songs to their playlists.

Attachment

A stage characterized by a higher emotional investment in the fandom, including purchasing merchandise and following the entity on social media.

Allegiance

The final stage of fandom that involves deep commitment, such as altering personal schedules for events and participating in

Sport-Indifferent Consumers

Consumers who watch only major sports events, like the Super Bowl, showing minimal engagement.

Star-Struck Spectators

Fans who focus on individual superstars rather than a team's performance, such as followers of Messi instead of FC Barcelona.

Social Viewers

Individuals who engage in sports primarily for social interaction, lacking a strong emotional investment.

Opportunistic Viewers

Consumers who watch sports events only when it’s convenient for them, such as when invited by friends.

New Sports Consumer Model

Recognizes diverse types of fans with varying levels of commitment and engagement with sports.

The New Sports Consumer Model

A framework that identifies modern types of fans who engage differently with sports.

Sport-Indifferent Consumers

Consumers who primarily watch big events, such as the Super Bowl, showing minimal engagement with regular sporting activities.

Star-Struck Spectators

Fans who are attracted to individual superstars rather than a team's overall performance.

Social Viewers

Individuals who engage in sports mainly for social interaction rather than having significant personal investment.

Opportunistic Viewers

Fans who watch sports events when convenient, such as when invited by friends, rather than committing to regular viewership.

Fan Engagement Spectrum

Categorization of fans based on their level of engagement and commitment to sports.

Modern Fan Diversity

Recognition that fans have varied interests and levels of investment in sports, influencing marketing and engagement strategies.

Nav Bhatia

Toronto Raptors superfan recognized for his unwavering support and involvement with the team.

Frequency Escalator - Heavy User

Nav Bhatia is a heavy user as he is a season ticket holder, attending all Raptors games.

Psychological Continuum Model - Allegiance

Bhatia exhibits allegiance, showing lifelong dedication to the Toronto Raptors.

New Sports Consumer Model

Bhatia exemplifies a fully engaged fan, rather than a casual viewer, demonstrating deep commitment to the team.

Fan Typology - Fanatical Fan

Bhatia is classified as a fanatical fan who attends every game and is deeply invested in the Raptors.

Fan Engagement Over Time

The progression of a fan's loyalty and commitment, reflecting changes in their relationship with a team or artist.

Deeper Loyalty in Fans

Some fans experience increased loyalty and engagement, often moving up the Psychological Continuum Model (PCM) or Frequency Escalator.

Reasons for Decreased Engagement

Fans may move down in engagement due to life changes, disappointment, or shifting interests.

Life Changes Impacting Fans

Factors such as increased responsibilities, financial constraints, or time limitations can lead to reduced fan engagement.