Assume you are the marketing consultant for your university, which wants to focus its marketing efforts on retention of current students. You have a choice of segmenting the undergraduate student market on either a geographic or psychographic basis. What is the difference between the two? Which would you recommend, and why?

Answers will vary by the type of institution. Geographic segmentation organizes customers based on where they live. University students could be divided geographically into on-campus and off-campus segments or in-state and out-of-state basis. Psychographic segmentation divides students based on how students see themselves, including self-values, self-concept, and lifestyles. For example, students could be divided into groups such as "nerds," "jocks," "socialites," and "partygoers." Which to recommend will vary but, since the university is focusing on retention, psychographics may be more appropriate since it addresses why people attend the school.