Which segmentation method categorizes individuals based on their lifestyle factors?

Psychographic segmentation is the method that categorizes individuals based on their lifestyle factors, including their interests, values, attitudes, and personality traits. This approach goes beyond basic demographic details such as age or gender and dives deeper into what drives consumers' decisions and behaviors. By analyzing lifestyle factors, businesses can create targeted marketing strategies that resonate more profoundly with their audience, ensuring that messaging aligns with the consumers’ values and lifestyle choices.

This understanding of psychographics allows marketers to tailor offerings more effectively, providing products or services that not only meet the needs of a specific group but also appeal to their emotional or psychological desires. This can lead to more engaged consumers who are more likely to remain loyal to a brand.

Demographic segmentation focuses on statistical characteristics of a population, such as age, gender, income, and education, which do not necessarily reveal the lifestyle or motivations of individuals. Geographic segmentation divides the market based on location, focusing on where consumers live, which might influence purchasing behavior but does not provide insights into their lifestyles. Behavioral segmentation categorizes consumers based on their actions or responses to a product, such as buying patterns or brand interactions, rather than their lifestyle factors.