Starbucks discovered through marketing research that 30% of consumers buy over 90% of all coffee drinks. If Starbucks used this information to segment the market, it would be relying on what type of segmentation base?

Question

Business

Snyder

9 July, 01:32

Starbucks discovered through marketing research that 30% of consumers buy over 90% of all coffee drinks. If Starbucks used this information to segment the market, it would be relying on what type of segmentation base?

+5

Answers (1)

Know the Answer?

Holly Beltran · Answer 1

Psychographic Segmentation

Explanation:

Marketing segmentation is a process through which the company targets its customers by segmenting or dividing the market on different basis like Demographic Segmentation, Geographic Segmentation, Behavioral Segmentation and Psychographic segmentation.

According to the Demographic Segmentation the company divides its customers on the basis of factors like age, sex, education, occupation, income, family size etc.

According to the Geographic segmentation a company divides its customers on the basis of the different regions like rural, urban or sub-urban.

According to the Behavioral segmentation the market is divided as per the behavior of the customers like their preferences towards online shopping, brand loyaly, buying pattern product knowledge etc.

As per the case given in the question Starbucks used the given information by segmenting the market on the basis of psychographic segmentation where the company targets its customers on the basis of their lifestyles, personalities, attitudes, interests and values etc. So here though the percentage of customers are only 30% but they consume 90% of the coffee as a matter of habit and as a matter of an icon of lifestyle which is been made a part of their daily routine.