Asked by Sushil Kumar Pradhan on May 20, 2024

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Shannon is considering using psychographics to segment the market for her small travel agency. This approach to segmentation offers her an advantage because

A) it is based on underlying motivations of target customers.
B) it is easier to use than demographics.
C) the travel business doesn't respond well to other approaches to segmentation.
D) psychographics is the preferred method for service businesses.
E) psychographic segmentation is the least expensive method.

Psychographics

The study and classification of people based on their attitudes, aspirations, and other psychological criteria, primarily used in marketing.

Target Customers

A specific group of consumers at whom a company aims its products and services, identified by characteristics like age, gender, income, and interests.

Demographics

The statistical characteristics of human populations, such as age, gender, income, and education, used especially to identify consumer markets.

  • Understand the significance of psychographic segmentation in forecasting consumer actions.
  • Ascertain how consumer decisions are influenced by lifestyles, values, and self-awareness.
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CF
corry frimpongMay 25, 2024
Final Answer :
A
Explanation :
Psychographics segmentation is based on the underlying motivations, beliefs, and attitudes of target customers. This approach allows marketers to understand their customers' needs and create messages that resonate with them. In the case of travel agencies, understanding customers' psychographics can help tailoring travel packages that meet their preferences, such as adventure-seeking or luxury-loving customers. Psychographic segmentation is a powerful tool but may be more time-consuming and expensive than demographic segmentation.