Lifestyle Segmentation

What is Lifestyle Segmentation?

Lifestyle Segmentation is a type of segmentation in which the consumers are grouped as per their lifestyle. Marketers use lifestyle segmentation and studies to plan their product or service better, so that it is in line with the consumer lifestyles. This kind of segmentation is also important to decide on the message to be communicated in advertising the product or service to the target customers.

Importance of lifestyle segmentation

The basic principle of lifestyle segmentation is that the better you know about and understand your consumer lifestyle, the more effective will be the marketing and communication to the consumer. It is important in delivering customized services, better quality products etc based on consumer activities, interests etc.

Lifestyle includes the following aspects:

a. How consumers spend their time in activities and hobbies

b. Consumer interests

c. Views and opinions about themselves and their surroundings

d. Basic demographic characteristics like age, gender, income and occupation

Lifestyle segmentation is one of the ways to do market segmentation. It directly falls under the psychographic segmentation.

The most widely used tool for lifestyle segmentation is the AIO (Activities, interests and opinions). Activities tell the marketer about the work he does or the hobbies he is engaged in or the ways in which he keeps himself entertained. Interests tells about what the consumer likes, for e.g. food, technology, travel or sports. Opinions matter because they tell the marketer about how the consumer thinks about themselves and major political, social, environmental and other issues at large in the public domain.

Source: William D. Wells and Douglas J. Tigert, “Activities, Interests and Opinions”, Journal of Advertising Research 11(August, 1971):27-35

Lifestyle Segmentation Example

There are many ways in which companies identify groups based on lifestyle. An example of lifestyle segmentation are-

1. Mountain Dew advertising strategy was focused on adventure lovers and thrill seekers. The drink was positioned as a way of overcoming fear and the communications carried situations reflecting the same. So the target customers for Mountain Dew were young adults between 18-30 years of age, who love adventure and travel and have confidence in their own abilities.

Hence, this concludes the definition of Lifestyle Segmentation along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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